New-York tribune., 1908-10-20
ICE POOL SECRETS
LAID BARE AT TRIAL
PRONINENT FIN-4NCIERS
on HITNESS STAND.
c.oord Venture Carried 100000
Shares and Brought Promoters
Heduy Losses.

,.od in 1906 by Charles ". Morse were
l.s Yesterday in the Morse-Curtis trial
.,-s Judge Hough in the United States Dis
=. ,-or,rt when Charles NJ Schwab, John w.
-. Isaac Guggenheim and John F. Carroll
: -,s-,he-s OF the pools, testified to the losses
s n-o6ts OF these gigantic speculative Fent-
= According to the testimony, there were
- ice pools" operated by Mr.. Morse, one
t~s,sinr 10000 shares Of stock and netting each
:, -, members a profit Of nearly $4,000. and
=. ..her carrying 100000 shares and bringing
: see n-ornoters crushing losses
-, ,-esence Of capitalists like Schwab. Gates
- -nrsenheim on the stand gave to the trial
a. sret really spectacular feature, and the tes-
.s,on,- Of these men was listened to with closest
.,tion. Each witness told in detail or the
=. he plsyed in the pools Full control was
80 With Morse and while he in Europe
= .ba summer Of 1906 James r. Keene had
.a.-rs of the market operations.
~, - the pool stock was carried by the
-, Exchange house Of Albert Loeb & Co. but
" Gates testified that he carried his stock .
- nix sons firm. Charles C. Gates & Co. in
80, he was special partner. Mr. Gates also
= ,hs- he did not consider himself bona-ide
,ber NJ the pools. as he had only ten thou
~ e,ares Of stock. whereas the other members
"a 60, thousand shares each in the first pool
,,5 twenty thousand shares each in the second
80 iu-fsted pool The sixth member Of the
-.ols was the late Charles T Barney.
MORSE THE OPERATOR
Morse did al the buying and selling. each OF
-. -ocl members instructing Albert Loeb & Co
60 acceut orders from MI Morse for his account
rr "a the agreed limit. Letters were introduced
tom Morse 10 Carroll referring TO the success
.l one-ation Of the first pool With TWO OF
-, 70
,rr-erating over sse. 600 and representing Car
-. ,,o4zrs in the first pool The other mem
h,-s received similar checks. This ended the
,.-.,to,s Of the first pool and all the members
,-Iirv n letters and testimony, were highly
-s.sss v-ith the way Morse had handled things
md pool was started early in the sum-
,0a- of 1906 and each member with ,--e eAceP-
-, ~ Nr Gates. agreed TO take up, to 2o,ooo
shsres Of stock. Il was wound up dlsastrouslS
N November l. 1906 when the members were
,3Ts5 on 10 take up the pool stock at an aver
sre price Of 90 0S a share. What this STOCK
cost The second pool was not divulsed. but it is
matter Of history that the price Of American Ice /;
stock declined steadily from the time the pool
Was dissolved until the stock sold at SIS In the
rsnic last fall It's present price IS 70
NJ Carroll former boss OF Tammany Han
sai yice-president Of the Fourteenth Street
Bank - Of the Morse chain. was the first Of
The : pool witnesses called Carroll. 1t +
sssrned after he had cleaned up S4O,6G0 in +
Ire frs. pool and had taken on 10000 shares in .
the second pool. needed ready money along in /
he autumn OF 1906, and asked Morse 10 relieve I
hin Of some Of his pool stock This Mr.. Morse (
agreed 10 do and Carroll sold 10 Morse 10000 t
slares al 20 though the market price Of the /
sock Was over 80 at the time. Carroll said that
his brokers' Albert Loeb & Co, had advised him .
&c Tighten UP" bit
Nr Gusgenfeirn carried the operation of the /
se1oad pool little further along than Carroll ,
Asd done After the members had been called {
OF, on November !. 1906 to take up the pool /
stock and the pool had been formally dissolved, 4
Mr. Guggenheiln said there was meeting one /
night in Gir Gates's apartments at the Waldorf .
Astoria 10 discuss what was best to be done Z
Wesley N. Oler. the president of the American .
Ice Securities Company and Mr.. Johnson. the /
cenpanys treasurer. were present
IN THE ICE BUSINESS TO STAY.
What conclusion did you arrive at?" asked /
Henry I. Stmson. the United States attorney .
who is prosecuting the case a ripple Of laugh /
Ter passed around the courtroom when Mr.. +
Guggenheim replied: We concluded that we .
Eere al in the ice business TO stay
Il this point Judge Houeh asked the witness
Eme questions concerning the pool ana us /
workings. The court referred to the members
q the pool as this association Of adventurers' {
characterization which created no little nirth .
n The courtroom.
Nr stimson asked Mr.. Schwab about the .
profits in tie second Ice pool There were .
no profits" was AIr. Schwab's answer on his I
way out Of the courtroom Mr.. Schwab stopped .
and conversed for several minutes with Mrs
Curtis, wife OF Alfred H. Curtis. who was IN
oour usual As Mr.. Guggenheim left the .
courtroom with Mr.. Carroll he put on his hat
aha vas sharply reprimanded 10y one Of the /
deputy u1arshals
M Stimson examined Mr.. Gates closely about /.
Z friend" who was short" of Ice stock and had .
come to Mr. Gates 10 see about covering" his
,'ck Mr.. Gates said he. told his friend that .
M Morse the only person who could let .
nm have the stock he needed. He added that
~ Rad had several talks with Mr. Morse about
1-e price at which this friend could cover. Mr..
--''Se ne said, had agreed TO let the unlueky
SNORT have the stock at par. which was slightly
''e Inc market price at that time.
a. ne members Of the pool testified that Mr..
ise had urged them 10 90 into the pool. and
- frequently called on them to take more
.hen II became necessary All agreed,
'SeFer that the prospects of the company to
record business in 1896 were excellent. On
!, denomination ex-Judge William NJ h
Ut lo- tie defence. brought out that the
A., ,I'tfs Of the second pool were confident that
Nor Sc nad done his best 20 carry the pool
suons 10 a successful cuInination. 1t cost
- member of the second pool. with the
s+-on of Mr.. Carroll and Mr.. Gates. nearly
~ '''Vv' 10 take up his share Of the pool STOCK
~ lhe irocs closed out. Mr. Carroll. 1t
> brought out. had hfs pool stock carried
Aaierics.
A., denomination Of the pool members
- o'loli also brought out that Mr.. Curtis had
1othlng Mhate,.e- - an -. IL ..Ica r.,ols :.