The free lance. (Fredericksburg, Va.) 1885-1926, 1908-11-03
MORSE LIED
ABOUT LOANS
Government Proves By Ills Let
ter HG G5t tho MOl3y.
BARK fJOIED TIE LOSSES

kl;.ouga ,:a Gains He W-s c -lycr',
a.. Merce Had lrsti;ation M-A
cooa $50 For ris 1-,'s - r.
Never a--I Ecaor.s TO the Comp
uog-r. But Signed Ttem Onhlni.
Went Through a Crue!Iiny cross-
Examination at Hands Of Attorney
Stmson.
New York. oct 3l.-For more than
six nouls Charles " Morse. who a
year 40 was one OF the dominant fs-
uros in Wall street. sat in the win 3
chair in the criminal branch OF The
United States circuit court. endclyor-
ing to defend the financial opera loAs
IN connection with the National Bank
of North America which res uted In
the indictment OF himself and Alfr~I
II. Curtis. on charges Of conspiracy
and violation OF the national banking
laws.
All went smoothly when the lawyers
for tie defense asked questions OF Mr..
Morse. bur when United States Dis
trict Attorney S;imson took up the
crossexamlnatlon Tor the government.
sharp. accusing questions were put to
the fnancior.
Mr. StimsOn sprang somewhat OF
surprise on Morse when he took IN
the loan OF more than sl2f00O made to
Miss Katherine A. Wilson, MOrses
secretary The fnancier had testified
that the loan had been made In hls
behalf and that tho Leslie Whiting
loans were alsl his,
Then. with .dorse still IA the wit
ness chair. Mr. Stimson read a Letter
addressed to The comptroller OF the
currency. ". =. Rldgley. and signed
by Mr. Morse and other directors OF
the New Amsterdam bank. saying that
MIR Morse was not directly interested
in the loan.
Mr.. Stimson asked Mr.. Morse agair
II he had understood that the Wilson
loan was made in his behalf. and Mr.
Morse replied that the loan was his
Mr. Stimson then read another lettcr
this one being firm Comptroller Ridg:
ley to the president Of the New Am
sterdam bank.
1t called attention to the excessive
loans made by the bank, and especially
mentioned the one to Miss Wilson.
saying that the $40 shares Of National
Bank OF North America stock put up
to secure the loan was not sufficient
collateral
The letter pointed out that the stock
was only quoted at sii5,OoO at the time
and added that the examiner is under
the impression that Mr. Morse 10 In
some way connected with the ioan.'
II was this letter from the comp
troller that called forth the one signed
by Morse and the New Amsterdam
bank directors. declaring that Morse
was rot directly interested in the vii
son loan,
II was brought out that Morse never
read the reports to the comptroller Of
the currency, showing the banks out
standing loans, indorsers, etc, but that
ne signed them offhand,
Mr.. StImson produced a number OF
these reports. and opposite the name
Of Mr.. Morse appeared figures repre-
senting his liability to the bank, as
an indorser OF loans.
In another instance Mr.. Stimson
asked:
"You say you were solvent on Oct
14T
"Yes." replied the witness.
"And YET. according to your state
mcnt. you agreed with Mr.. Curtis to
charge off the books OF the bank a
perfectly good account of 100000 at 8
loss?"
That's not the right way to put
It," retortei Mr. Morse firmly. IL was
holding 5000 shares of ice stock, 1000
hi the Mercantile and 1000 in the Ma
tional Bank of North America. did
not consider that 1t was much to ask
the bank TO pay $40 share on the
eO0O shares. when | had given the
bank slS5.CO0"
The +. Augustus Helnze loan OF
s2120O0 was entered into briefly, Mr.
Morse explaining that the loan was
made on supposedly good collateral.
Mr.. Curtis refused to make this loan.
and Mr. Morse afterward put the loan
through.