Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1908-10-22
THE MORSE TRIAL
soME or THE HIGH FINANCE
METHODS or WALL STREET
SHOWN UP.
EXPERT MoxtY TEsTIFIEs
Government Witness Shows How Mem
bers Of Pool Tried to Create
Demand for Ice Com
pany Stock.

New York, Oct. 21.-Eyidence was
introduced Tuesday at the joint trial
Of Charles W. Morse, financier and
Alfred H. Curtis. former president o.
the defunct National Bank Of North
America, who are charged with con.
spiracy and violation Of the national
banking laws, which made It appear
that In the IS months between June,
1905, and November, 1907, the Morse
Ice pool"-so known in financial
circles-bought and sold stock Of the
American Ice company through 50
brokers and operated Ill accounts,
slightly differentiated as to names,
and that the pool brokers earned COM
missions during that period Of up
wards of 100000.
Out Of maze Of intricate figures
prepared by National Bank Examiner
Moxey who has devoted considerable
time to studying the alleged records Of
the ice pool, the lawyers for the prose
cution succeeded IN drawing this in
formation. Mr.. Moxey was asked to
tabulate his figures and, after q recess
had been taken to give him time to
do so, the tables-59 in number, or.
one for each broker-were placed on
the records as evidence.
John w. Gates, Charles M. Schwab,
Isaac Guggenheim and other men well
known in the financial world, were in
terested in the pool The transactions
OF the pool as described by Mr.. Moxey
showed that thousands upon thousands
of shares of ice stock were dealt In
each month, but that the selling and
buying, SO the witness said, was al
most entirely done by the pools own
brokers. One hundred shares Of stock,
the witness said, would be sold to one
broker by another, and then sold to
another broker, and SO on, so that the
stock exchange records would indicate
that American Ice company stock was
In great demand. The price would
naturally go up.
Thus 1t appeared that in May, 1906,
5000 shares of ice stock had been
bought and sold and in August Of the
same year 10000 shares had been
traded in. Mr.. Moxey read his figures
from each OF the So tabulated sheets,
and endeavored to trace the various
transactions SO as to show, the witness
asserted, that matched sales" were
made.
It was shown by Mr.. Moxey's list
that the firm of John W. Gates G. Co.
had about a dozen accounts with the
syndicate operating the pool, and that
other brokerage houses operated sew
eral accounts.
Thomas Sturgis, president Of the
Continental Finance company, was
called to the witness stand to tell OF
his company's account with the Ma
tional Bank Of North America. Mr..
Sturgis said that he first heard Of the
ice stock syndicate in February, 1905,
from Mr.. Morse; that Mr.. Morse sug-
gested that the Continental Finance
company buy 1000 shares Of stock and
enter into the pool. According to Mr..
Mr.. Morse offered the stock
for $1,000 in cash and his company's
note for the balance. The proposition
was accepted and later Mr.. Sturgis
said, he learned that the note had
been discounted In bank In Maine.
The witness declared that his com.
pany had never authorized the Ma
tional Bank of North America to sell
the ice stock.
With Mr.. Sturgis still on the stand,
IN adjournment was taken until
Wednesday morning.