The sun., 1908-01-26
how WORSE RAISED 100000
UgyN ar Vas POWERFUL IN
RANt or NORTH AMERICA.
Hrrk rrnockcr Trust Company Receivers
-Wsnt ~ KndN whether He ~ the Bank.
u uher. Is Responsible To II on the
u3uL cashiers Note for the MONEY.

N,rt ~ kndN whether Ise OP the BANK,
y iher. Is Responsible To II on the
HanL cashiers Note for che MONEY.
IrDu ,l. petition Of the temporary re-
rs;-p.. of the KnicJerbocker Trust Com
rsr, ..1u = Davenport. as referee, has
7esr -.,Iug testimony at 1lS Broadway
10 fuF "n who is responsible for pay
mem .no company of a note for soOO. 600.
H..u.lrei in the petition that the re-
reive. ,,ri among the assets Of the trust
rour ..s the note for S2OO,OOO protesting
70 E,s.. hr-n drawn on February Is. 1907,
bvF G Wire cashier OF the Bank Of North.
Incr q and a letter from G.. w. Morse.
tber .u" president Of the bank. Guaran-
,serr.r tho uote. The books showed that
hs NUS. company lent S2OO,OOO on this
NOT, I'r check came back indorsed "E.
B N.r. Pay to the National Bank of
Nor 'uericn. &. W. Morse The books
show hat on the same February IS the
nsrt ,dd Deposited s2OO. 900 with the trust
rumuluy and that this cash was Withdrawn
nm October :. the day before the trust com
panv r| - /. hut whether the bank with
dre, rle money for its own use or for the
beuar' Of somebody else the receivers have
no. n."n able 10 learn. They also found
a collateral note signed -E. r. Wira- pur-
Dor. mg 10 have been made on February
Il NI, which. they are informed and be-
lev va- made on October II, in which
Wiz, urlm-es 10 pay the knickerbocker
S2Nr rmu WITH per cent. interest. With
this bore were as collateral sOO bonds of
the Consolidated Steamship Lines and 5000
shsra- ~ 'hc stock They want to know
WIN rvas them the s2O0. .OOO.
Th"v we're Informed by Wire that he was
unan' 10 pay the note. Charles W. Morse
adr,oi . partial responsibility for it's
PAYMENT hut made no offer 20 pay. IL
vas TN contention OF the receivers that as
the money was actually loaned for the bene-
iii "t the National Bank Of North America
and tho latter bank deposited 500 900 az a
further security for the accommodation
he National Bank had no right TO with
dra" the money as II did until the note had
heel paid
Mr. Morse testified before the referee
that he had resigned as a director and vice.
pres lent Of the National Bank of North
America on October 10. He recalled hav-
ing signed the Wire note and said that he
had done so at the request Of Charles I.
3aney and President Alfred H Curtis.
'lr Barney told him. said Mr.. Morse that
the knickerbocker Trust Company was
willing o make the loan on proper security
" tho time the transaction was put through
Mr. Barney was director Of the National
Bank OF North America and Wire cashier.
What was to be done with this money!"
Mr.. Morse was asked.
Through arrangement with MIR. Barney
the money was invested in New York and
Cuba Mail Stea mship Company's ,stOoS
and bonds al the value Of S2j per bond,
which at chat date were freely selling for
s32 ~ per bond" said MIR Morse
MIR. Morse further said that Mr. Curtis
was party To the arrangement with him
self and Mr.. Barney and that it was MIR. Curtis ,
who had told him that the money was to be
plt into the New York and Cuba Mail Steam !
ship Company and that that was the reason
OF The loan Of the money to Wire. Mr..
Norse said thar Wire had paid the money
into the steamship company through him
Pursuant to what arrangement" he was
asked
Il had trades to- buy this company for
$50 OOO,0 600. S5.lN0Om cash and $4,000. 900 |
bonds. This loan was paTt Of the s., ,0OO,OOO,"
Mr.. Morse testified that he had entered
into the deal with Mr. Booth and the Roach |
estate. As he remembered il he paid within \
q few days Of February rs the $4,000
'ash. He thought he had delivered IN , !
600 900 obtained on the Wire loan first u
Mr.. Booth. or 10 a Mr.. Smith, the treasurer
Of the steamship company. Dr 10 Mr. Roach.
What did YOU do with the stock you re-
Celved!' Mr.. Morse was asked.
Converted il into the Consolidated Steam
thip Compdnys stock aud bonds, replie5
Mr.. Morse.
You took the 500 600 and gave it to the
stockholders Of the New York aud Cuba
Mail Steamship Company" asked tn
referee
Yes Mr.. Morse answered tersely
Mr. Morse went on to testify that while tn =
original New York and Cuba Steamship
Company was a New York corporation he
reorganiled it under the laws Of the State
of Maine. He received the stock Of the
corporation as he paid for it and II passs1
10 trustees
What tT,Istees?" was asked.
u think the Bank of North America II 1
remember right. said Mr.. Morse after some
hesitation.
Mr. Morse said that he never knew until
recently that the S20O,OOO had been with
drawn from the Knickerbocker.
VI" also testified that he could not recall
whether the transaction had ever been dis
Cussed at the board meetings of the bank
and admitted that he knew that Wire was
nor man with S2OOOO TO invest He
Thought the profits were to go to the bank.
Mr.. Wire testified that he remembers
making the note at the request Of Mr.. Curtis
on February IS. Mr.. Curtis told him, said
Wire, that the note was drawn on an ar
rangement between Mr.. Barney and Mr..
Morse at the request Of Mr.. Barney. Wire
sad that whom he took rhe note over to the
hnCkerbockeT Trust Company he took
His1 the $3.50 FD which was deposited in the
nam" Of the National Bank Of North Amer
Ca THIS deposit was afterward Withdrawn
by Mra
. Nr. Davenport was out Of town yesterday
hut tho examination Of Mr.. Morse will go ON
1pon hls return.
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