Los Angeles herald., 1908-10-25
BROKERS TELL
OF DEALS WITH
MORSE CLIQUE
MORE BIG CHECKS Identified
BY ACCOUNTANTS
AUGUSTUS HEINZE MAY BE A
WITNESS IN CASE
Charles M. schwab Is Called to Stand,
but Defense Objects to Testi-
mony--WiII Appear
Monday
Especial to The Herald

ATEW YORK, Oct. 24.-Testimony of
III several witnesses in the Morse
1N Curtis trial today brought out
further important evidence tendlng 10
show the magnitude of the Morse Ice
pool, and the gigantic business appar-
emily done without proportionate COL
lateral.
Several brokers' clerks were on the
stand, and all told of large checKs
which had passed through their hanus
during the flourishing days of the al
legged combine. -,
II is expected many sensations Will
vet be sprung before the conclusion or
the case.
Reports in legal circles are persistent
to the effect that F. Augustus Helnze
will be called as a witness in the
Morse trial. Much interest attaches to
this fact because Heinze' s. case is next
on the federal calendar, following the
Morse-Curtis trial, when the former
copper king will be called before the
Jury to answer charges of similar ma
ture. -
Following the panic of last fall
Heinze was indicted on a charge or
over certifying checks for $500, 900 in the
Mercantile National bank. Heinze' s
many legal battles which won control
of gigantic copper properties are re-
membered throughout the West. HIS
banking operations in New York We're
on an equally large scale until the
panic overlook him.
Brokers' Clerks Testify
The dealings which Morse had with
various brokerage houses in this city
where there was any connection with
the affairs of the National Bank OF
North America, were today the sub
ject of special consideration.
The defense entered objection to the
opening of this subject by the prose-
cution, but Judge Hough decided the
witness might answer several OF the
material questions.
Joseph J. McCann, bookkeeper for
Arthur Lippen & Co, stock brokers
and bankers, identified check for $780,
600, given out October IS. 1907, by Morse
and applied to the account of j. L.
Adolph with which to purchase 1000
shares of ice stock. The check was
placed in evidence.
Alfred Churdle, a bookkeeper from
the office of Albert Loeb e. Co., brok-
ers and bankers, followed and said
Morse had an ACCOUNT with his firm
but he had passed over check for
$205, 900 to Loeb & Co. to be credited
to the account of j. +. Carroll and re-
ceived in return for it 1000 shares of
Smelling, 900 Consolidated Gas, and 500
Delaware and Hudson.
Moxey Is Recalled
After several other employees in vari-
Gus brokerage offices had told of tram
sactions with Morse. Accountant Mox-
ey was recalled to. the stand. He said
the books of the National Bank of
North America showed on the morn
ing of October 26 there was a balance
of $3722 In Morse's favor. During that
day three deposits were made, bring
ing his total credit balance to $239, 419
to meet the various checks drawn
against it that day.
Mr.. Moxey said the checks drawn
against that account by Morse that
day aggregated 100000, making an
overdraft of $210,6S1.
On the same day the loan sheets
showed demand loan of $11 900 made
by Morse and credited to him.
Mr.. Moxey said the books of the
bank indicated that demand notes
the checks which had been returned
of the days business.
Charles M. Schwab was one of the
witnesses called to the stand today by
the prosecution, but the defense OBJ
jected to Mr.. Schwab being questioned
as to whether as director of the
bank, he had known of Mr.. Morse's
account being overdrawn. The objec-
tion was upheld and Mr.. Schwab was
ordered to appear in court next Mon
day, when the trial will be resumed.