The Birmingham age-herald., 1908-10-31
MORSE DEFE NDS
 HIS OPERATIONS
Sharp Accusations Are Made
 In Bankers Trial
EXPLANATION OF LOANS
Banker Is on the Defensive Under the Sharp Questioning By Prescott tion and Manages to Make
 Very Good Impression.

New York, October 30.-For more than six hours today Charles ". Morse who a year ago was one of the domi nant figures in Wall, street. sat in the witness chair in the criminal branch of the United States circuit court en- deavoring to defend the financial op erations in connection with the Ma tional Bank of North America which resulted in the indictment of himself and Alfred Curtis on charges of con spiraey and violation of the national banking laws.
 When United States District Attorney Stimson took up the cross examination for the government, sharp accusations were put to the financier. MT. Morse, on the defensive. was at his best. Sew eral times he refused to answer ques- tions unless he were permitted to ex- plain himself at length He spared cleverly with MT. Stimson and a num- Der of times rather than insist upon an answer to a question with an ex- planation accompanying it MT. Stimson withdrew the question.
 MT. Stfmson sprang a surprise on MT Morse when he took up the loan of more than $125, ,O00 made to Miss Kath- crime A. Wilson, Morse's secretary. The financier had testified that the loan had been made in his behalf and that the Leslie Whiting loans were also his Then, with MT. Morse still in the wit ness chair. MT. Stimson read letter addressed to the comptroller of the currency, ". B. Ridgley, and signed by
 
 Amsterdam bank saying that MT Morse was not directly interested in the loan
 MT. Stimson asked MT. Morse again if he had understood that the Wilson loan was made in his behalf, and MT. Morse replied that the loan was his.
 MT. Stimson then read another letter, this one being from Comptroller Ridge ly to the president of the New Amster- dam bank. It called attention to what were termed the excessive loans made by the bank, especially mentioning the one to Miss Wilson, saying that the 430 shares of National Bank of North America stock, put up to secure the loan, was not sufficient collateral.
 The letter pointed out that the stock was only quoted at $115,OO0 at the time, and added that the examiner is under the m- pression that MT. Morse is in some way connected with the loan" It was this letter from the comptroller that called forth the one signed by MT. Morse and the New Amsterdam bank directors de- claring MT. Morse was not directly n- terested in the Wilson loan.
 When the cross examination was begun MT. Stimson asked MT. Morse concerning the banking and fiduciary institutions he has been connected with. This was to rl,,a Co, ..rff detail of the banking business and the national banking laws but the witness in- sisted that he did not understand the legal eXaetions and details of the business, saying that he always retained a lawyer when any legal point arose.
 It was then brought out that MT Morse never read the reports to the comptroller of the currency showing the banks out standing loans indorsers, etc., but that he signed them off-hand. MT. Stimson produced a number of these reports and opposite the name of MT. Morse appeared figures representing his liability to the bank as an indorser of loans, etc.
 MT. Stimson laid great stress on the liquidation of a note for $100000 on De- tober IA, through the purchase by the bank of 2OOO shares of ice stock, and a $40,0O0 loan to MT. Morse.
 Mr Morse admitted yesterday that he had requested MT. Curtis the president of the bank, to wipe out the S600O0 bal anee due the bank by charging it on the commission account. MT Morse said the amount should have been charged against the s135 GOO profits he had turned into the bank just before the situation arose.
 You say you were solvent on October 142' asked MT. Stimson.
 ''Yesr replied the witness.
 And yet according to your statement you asked MT. Curtis to charge off the books of the bank a perfectly good ac- count of S6O,0O0 as a loss?''
 That's not the right way to put it. retorted MT. Morse firmly. T was hold ing 6O00 shares of ice stock, 4000 in the Merca ntile and 2000 in the National Bank of North America. did not consider that it was much to ask the bank to pay s1O a share on the 5000 shares when I had given the bank S135 .000.'
 Then the prosecutor took up the letter sent by MT. Curtis to MT. Morse, in which the former expressed alarm at the financial standing of the bank, Mir Morse was asked if he had shared the alarm of MT. Curtis.
 "Not in the least" was the answer.
 "You thought it was all sunshine then?"
 Ut was sunshine for quite time there after" replied MT. Morse with a smile
 Was the alarm of MT. Curtis shared by the directors?" was the next ques- tion
 Not to the extent of making them pay off their loans" observed Mir. Morse.
 MT. Morse added that Mir Curtis vas a timid man.
 The hearing was adjourned until tomor- row