Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-22
LOANS AND LOANS.
CONTINUED from Page Onej

upon tne TeCOTuS, picCc. W PiSSS, 81
! til the chain was. complete.
| For the first time since her hus-
band had been on trial, Mrs. Clemen-
| tine Dodge Morse appeared in the
court room. She was becominSly
! gowned in a suit of blue and appeared
1 deeply. interested in the proceedings
| Calvin Austin, president Of the East
1 ern Steamship Co. of Boston, was
| a witness in the afternoon. He testi-
\ fed that Mr.. Morse had induced him
| to buy 1850 shares of ice stock, for
which Mr.. Austin gave in payment a
| note for 100000 and the witness pro-
duced a letter signed by Mr.. Morse
guaranteeing Mr.. Austin from all loss
| Mr.. Austin said that he subsequent
| ly learned that his note had been dis
| counted at the National Bank Of North
| America. Just before this information
| came to him, the witness testified,
| Miss Kate Wilson came to his office
with a letter from Mr.. Morse, asking
| him to surrender the certificate for the
| 1850 shares of ice stock. Mr. Austin
endorsed the certificate in blank and
| surrendered it.
| Then Mr. Austin said. Mr.. Curtis.
president of the National Bank OF
| North America. told him his note had
| been discounted at his bank Mr.. Cur
tbs informed him. the witness said.
that Charles T. Barney. one of the di-
| rectors had suggested that he Ont.
Curtis,) see Austin and "sk him to
| either pay the note or furnish collat-
eral.
II told Mr.. Curtis that Mr.. Morse
| had put the loan in the bank and that
he would have to take care of it, said
| Mr. Austin He added that Mr.. Curtis
told him that Mr.. Barney had threat
ened to resign from the board of di-
lrectors if the note was not taken up.
Mr. Austin testified that Mr. Curtis
pushed pen and ink toward Mr.. Bar
| ney with which to sign his resigna-
ton.
"And did he sign it?" the witness
was asked.
He did not" was the reply.
Gould you have made good the
| note?" was asked.
II could not that is. not without the
ice stock" replied Mr.. Austin.
| Upon the cross examination of the
witness by the defence. it was brought
out that Mr. Austin had been in many
deals with Mr.. Morse, and that he had
derived large profits. 1t was also
shown that his salary ranged from
$4,000 a year to 100000 a year. and
the lawyers for the defence tried to
show that Mr.. Austin would have been
well able to pay the note. The wit
ness admitted owning large amounts
| of stock.
Mr. Moxey was recalled to the wit
ness stand at this point and he testi-
fled that Mr.. Morse had discounted
the Calvin Austin note for 100000 and
note of James r. keene for $4,000
and had received d cashiers check for
s123,00O.
Several other minor witnesses.
simply called to corroborate and make
complete testimony that had already
been put on the records. were placed
on the stand and the trial was adj
journed until tomorrow.
New York, Oct. 21.-BefOre the trial
of Charles w. Morse and Alfred II.
Curtis on charges of violation of the
/ national banking laws and conspiracy
in their conduct of the National Bank
of North America was resumed to-
day United States District Attorney
Stimson denied the published asser-
ton that George. r. Sheldon, treasurer
Of the National Republican commit
tee had been member of one of the
Morse pools in American Ice stock
His name has never appeared in con-
nection with this case in any way
said Mr. Stimson. $50 far as I know
lie never was connected with any ice
pool or with Morse
The first witness examined today was
John +. Fensler, an accountant and
examiner of the federal department of
justice. who testified in great detail
about the loans, interest. checks and
profits and losses of the various loars
which had been made by the bank dur
ing Mr.. Morse's domination. Loans to
Wesley M. Oler. president of the Amer
lean Ice Co, were among those eX-
amined. The witness also described the
loan made to John F. Carroll the bank
er. who appeared on the books to have
!. borrowed $4,000 from the bank. The
witness said this loan originated sub.
sequent loan to Davidson Brown, q
clerk in the brokerage firm of Prim-
rose & Braun. 1t appeared from Mr.
Fenslers testimony that Mr.. Carril
either paid his loans or in some way
cancelled them. When the Davidson
Brown loan was closed in 1906, three
, other loans took its place on the banks
books. The net profits to the bank from
these loans and from those made tc
Leslie E. Whiting also a clerk EN-.
ployed by Primrose & Braun, were
s65.555, if the bank got the interest
due, the witness said.
A loan to Mrs. X. A. Wilson, Mr.
Morse's secretary, was closed out in
February, 1906. by demand note or
4. T. Gelshenen. 1t previously has
!, been shown that Mrs. Gelshenen's loan
: which was invested in ice stock. was
closed after Mr. Gelshenen had made
a profit Of $3S,000.
; The Calvin Austin loan of 100000
which had been mentioned in earlier
testimony, was. according to Mr.
Fensler, closed out by a $4,000 demand
loan to r. M. Thompson, a $4,000 de-
, .mand loan to ]. A. Sleicher and a cred
! It charge on the stock and bond &C
cCllnt of tho hank GOT 7n0 The