Weekly Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1908-1909, 1908-10-30

NEW YORK, Oct 2S.-With the tes-
timony of Alfred Il. Curtis, one of the
defendants, just getting under way when
court adjourned last night and the pros
pect that he would be on the stand the
greater part of the day, interest i'll the
trial of Charles w. Morse and Curtis
on a charge Of violating the national
banking law was materially increased
today.
Bankers Watched Closely.
Curtis and Morse were closely asso-
ciated for many months when Morse
was most active III pushing the two
great enterprises which he organized
the American Ice company and the
steamship combination.
Acted Within the Law.
When Mr. Curtis resumed his testi-
mony today he said weekly reports were
made by him to the bank S directors
showing the loans, collateral, reserve,
etc There was a rule in the bank, he
said. that it must have on hand at the
end Of the week cash representing %
per cent. Of its net deposits.
Taking up the governments testimony
II 5tll iIllE luS ItiCh VI lt0tI " III tIlS va
tional Bank of North America, Mr.. Oh
colt, counsel for Curtis endeavored to
show that it was a common thing for
banks to be a little below the legal re-
serve and endeavOred to prove that fully
half Of the tifty-three clearing house
banks had about that time put 20 to II
per cent Of their deposits on hand i'll
cash. United States Attorney StimsOn
objected TO questions along this line and
Judge HOugh sustained him.
Tells of Dummy" Loans.
Mr.. Olcott next took up the various
dummy, loans made on ice stock at the
time trading III the stock was 50 brisk.
Many of the Whiting dummy loans,
Mr.. Curtis could not recall without con-
sulting the banks records and some of
them he could not remember at all and
did not think he had made them. He
said, however, that he probably would
have approved the loans had he been
called to pass upon them. Mr.. Curtis
told of Mr.. Morse paying off with his
Whiting loans then outstanding The
profit on this loan to the bank was $50
600 he said and was duly credited to the
banks account.
''Our Ice Holdings"
Mr.. Curtis, in reply to questions put
by his counsel, said that although he
had referred in letters to ''our ice hold
ngs,' the stock in question really was
the property of Mr.. Morse. He said
the directors generally referred to the
stock as ''ours," because the bank was
getting the profits.
Mr.. Curtis was asked regarding GER
tain testimony given by Second Assist
ant Cashier RADIO. Curtis denied that
RADIO ever cautioned or complained to
him about the amount loaned on ice.
RADIO had remarked to him that the
amount loaned was rather high. But
| asked him." said Mr. Curtis, ''if he
did not remember that was the little
man loan and that the little man was
behind it."
Morse the Little Man"
''The little man was a name Mr..
Morse was known by in the bank?"
asked the attorney.
at was"
With reference to the governments al
legation that charges of $4,000 and
$4,000 due to losses on Whiting loans,
were made against the banks commits
sion account, Mr.. Curtis said he could
not recall whether he had ordered the
two sums charged as loss to the bank
or not, but he was willing to assume
the responsibility. The bank had the
profits and the witness thought it right
for it to take the loss. Against these
losses of $50, 800 charged against the
bank there were profits of $154,0 900
which Morse had made for the institu-
ton on ice, said he
Mr.. Curtis said he knew c.. W. Morse
was behind the loans made to Miss x
A. Wilson to cover the purchase of
stock of the National Bank of North
America.
Stafford Defines Position
Mr. Curtis then described the shifting
of the Whiting loan of 100000 and the
George w. Wilder loan of 100000 from
the National Bank of North America 20
the Mercantile National bank.
Mr. Morse came to me-" said Mr.
Curtis, land said he had arranged to
transfer the loans and give f. Augustus
Heinze a personal loan of 100000"
The witness said Arthur Braun made a
new 100000 loan to take up the Whit
ing loan, which, with the Wilder loan,
was taken to the Mercantile bank The
Bank of North America in return got
Mr.. Heinzes personal note for $780,
900 and note of 100000 given by
George W. Baglin. All of this was pro
tected by collateral.
The Ice Deal.
Mr.. Curtis told also of a transaction
of October IA. when the bank bought
1000 shares of Ice stock from Mr..
Morse.
L went to Mr.. Morse" said the wit
ness. land told him he ought to take
up the Whiting loan as it had been run
uing then for a year. 1t had been cut
down from $4,000 to 100000 Mr..
Morse said he could not take it up just
then. We then arranged that the bank
should take over 100000 shares of Ice
from Mr.. Morse at $50 per share, that
being 81 per share less than the market
on that day; also to make Mr. Morse a
loan Of $4,000 on $500 shares of Unit