Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-25
LOAN MET 0VERDRAFT
Morse's Daily Accounts Bal
anced by Notes.
HIS DEALS WITH BROKERS
Speculative Business Done in Many
Securities.
sCHWAB TESTIMONY BARRED
Prosecution May Call Him Monday,
When He Is Ordered to
Appear.
TESTIMONY BARRED

NEW YORK, October 24.-The dealings
of Charles W. Morse with various broker
age houses in this city where there was
any connection with the affairs of the Ma
tional Bank of North America were the
subject of consideration at today's session
Of the trial of Morse and A. H. Curtin
in the United States court.
The defense entered objection to open
ing this subject by the prosecution. Judge
Hough directed the witnesses to answer
some material questions.
Marcus Mayer. stock broker, testified
as to a certain transaction with Morse
Assistant United States District Attorney
Wise read in evidence a check for $1,000
drawn by Morse on his personal accoun,
with the National Bank of North America
and made payable to Mayer.
The defense entered objection to tbs
admission of the check on the ground OF
immateriality. District Attorney Stimsor
said he proposed to show that upon the
receipt of the check Mayer released GER
tain securities which were later used by
Morse in connection with an overdraft.
Speculative Account.
Judge Hough permitted the witness to
say the check was given to strengthen the
account of Morse. The prosecution
brought out that this was a speculative
account.
Joseph J. Mccain, a bookkeeper for Ar
thur Upper Il Co., stock brokers and
bankers, identified a check given October
Ii, 1907, for $4,000 by Morse to be applied
to the account of ]. l.. Elliott with which
to purchase LOCO shares of ice stock.
Another check was placed In evidence
for $4,000 given by the firm of Upper 4
Co. to Morse to balance the sale of 100
shares of Consolidated Gas sold for their
account.
Alfred Spurdle, a bookkeeper from the
office Of Albert Loeb & Co., brokers and
bankers, followed and said that Morse ha.;
an account with his firm, but that he had
paid over check of $4,000 to Loeb q
Co. to be credited to the account of ]. f.
Carroll. and had received in return for j,
loo shares of Shelters. 600 Consolidated
Gas and $40 Delaware and Hudson.
After several other employees in va
rious brokerage offices had told of trans
actions with Morse, Accountant Moxey
was recalled to the stand.
He said the books of the National Bank
of North America showed that on the
morning Of October rs there was bal
ance of So, 100 in Morses favor. During
that day three deposits were made
bringing his total credit balance te
$239. 419 to meet various checks drawn
against 1t that day.
Moxey said the checks drawn against
that account by Morse that day aggre.
gated $fUO.GOO. making an overdraft OF
$21O.6S1. On the same day the loar
sheets showed a demand loan of 11,OOO
made by Morse and credited to him.
overdraft Covered by Loan.
Moxey said the books of the bank indl
Gated that demand notes were made dali.
by Morse to cover the checks which hao
been returned against his account before
the close of the days business.
Counsel for the defense sought to have
Moxey say the demand notes were giver
to balance the checks then outstanding
as differentiated from those cashed. The
expert insisted they covered only the
checks honored.
An effort to have introduced in EVIL
dence letters which passed between
Adolph RADIO. Morse and w. f. Have
myer. when the latter was president OF
the bank was successfully opposed by
counsel for the defense.
Charles NJ. Schwab was one of the
witnesses called to the stand by the
prosecution. The defense objected to
SchWab being questioned as to whether,
as director of the bank. he had known
of Morse's account being overdrawn.
The objection. which was made on the
ground that Z proper foundation had not
been laid by the prosecution, was up
held by the court. Schwab was ordered
to appear in court again Monday. when
the trial will be resumed.