Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-30

regard the stock as good collateral and
his opinion was against the Loan
"Tell US the entire conversation" in
terrupted Mr.. Iittlefield, counsel for
Morse, "tell us who was the counsel
well, l went to Mr.. Stimson and he
gave me an honest, fair opinion against
that loan. But despite that fact when
our directors were told Mr.. Elliott was
many times a millionaire, the board OF
directors approved the loan and it was
made in spite of Mr. Stimson's ad-
vice and written opinion.
That was three years ago." Curtis
saiG
Curtis was next asked concerning his
reference to underwriting" in the let
ter t. Mr. Morse.
Mr.. Littlefield at this juncture jump
ed to his feet and declared that the
cross-eXamination of the witness was
aimed at Mr.. Morse and not against
Mr.. Curtis.
Mr.. Littlefeld argued against the
method followed in the oss-examina-
ton but Judge Hough let Mr.. Stimsor
go on, Coming then to some of Mr..
Curtis criticisms of the banks loans,
in his letter written to Mr. Morse in
June, Mr.. Stimson inquired if it were
not true that at the time he wrote the
letter to Morse he really believed that
the criticisms of the comptroller made
in the January previous were correct.
Mr.. Curtis in his replies to the comp
troller in January, 1907, had protested
that he deemed the language of the
Washington bank supervisor in criti-
Ching the banks loans had been too
drastic
Today, however, Curtis admitted that
the condition of the bank was not
far from that represented by the comp
troller in his January letter.
MIR. Curtis sale cha. undoubtedly
Cashier Wire knew that he had re-
fused to loan $4,000 to F. Augustus
Heinze on Oct. 16. The witness denied
that Mr.. Wire showed him the $126OOO
Heinze on the same day and cashed
by the National Bank of North Amer
lea although Mr. Wire had testified
that he did not show the check to
Curtis.
Curtis said that he had no reason
up to the time to doubt Mr.. Morse
checks or overdrafts as they had al
ways been made good. He then de-
scribed loan of $211.00G to Mr.. Morse
made on Oct IS to cover Mr. Morse's
overdrafts. The witness said he ca
bed TO London to hold $1,OO0.0OO of
Morse's bonds as collateral for this loan
but it might have been that he did
not take this action until the day af-
ter the loan was made. Mr. Curtis
said that he did not know of the ex-
istence of the second Morse ice pool
until he heard it described in court
When questioned about this state
ment yesterday that he was accus-
toned to accept verbal contracts and
guarantees in his bank business, Mr..
Curtis said:
"Wall street could not exist with
out them"
from going further in that line. The
witness said that he never ordered one
Of Morse's notes left off the sheets
shown to the directors.
In explaining the form of the bank
collateral notes Mr.. Curtis said they
We're commonly known as "cut throat
notes. They gave the bank the right
to take any collateral the person max
ing the note might have in the bank,
or to take his deposits.
One by one the Thomas and other
loans were inquired about and in most
instances Curtis put the responsibility
of the loans at the door of Mr.. Morse.
Taking up the minutes of the bank s
board Of directors. Mr.. Stimson inquir-
eG about a Morse loan of S35.O00 as APP
pcaring on the banks loan sheet be-
tween Aug. l and Aug. s. 1907.
The loan was personal one to Mr..
Morse Mr. Curtis admitted that it
had not been reported to the bank
directors although he could not explain
why it did not appear upon the min
utes or why it had not been reported
only it wasn't, he said
Many witnesses were called to testify
to Mr. Curtis general character. All
of them. including John Fl. Flagner
declared that his reputation was ex-
cellent Col r. NJ. Thompson. for
mer director of the National Bank of
North America. said he was responsible
for the election of Mr. Curtis as presi-
lent of the bank.