New-York tribune., 1908-10-24

! he reduced to and kept within prudent limits
The fluids of the bank must NOT pe used 10 such
| an in1nrudent extent by any of its officers or
directors for the benefit Of enterprises IN Whch
they are interested.
oessive use of the funds by the banks officers
than from any other cause - ...,
Continuing. Controller Ridgely called attention.
to the fact that of the loans to directors agsre-
eating s. 697. 900. a large amount was secured
by stock of the American Ice Securities Com
nanv the Clyde Steamship Company. the NAL
lory Steamship Company and the eastern
Steamship Company. in all of which Mr.. Morse
was heavily interested. Not only did Mr. Ridge
I " want these loans reduced but he also asked
for general reduction in collateral OF the kind
so prevalent in these loans Collateral of more
recognized stability. he said. must be secured
on all standing loans
DEMANDED ADEQUATE COILATERAL-
A loan of S16C.694 to the Mercedes Import
Companv the Controller wanted guaranteed by
MI Morse and he demanded adequate collat-
eraI" on a loan of S116.S24 to w w Robinson
for the benefit of Warner Van Norden- loan
of 100000 to the William Campbell wan Paper
Company he wanted Morse to indorse' Wlie one
Of S3SS 914 to the Consolidated Arizona SmeitinS
Company, one of S134, 800 to John l.. Elliott
and one of S1O4.516 to James T. Morse he in
sisted must be either reduced or retired Ihe
last two loans the Controller said ought to be
"adeouatelv secured The same provision was
also applied to a loan Of S390.303 TO Charles M
Schwab and one OF $213.646 to Wesley NJ Oler
The heavy investment Of the bank in the wall
Street Exchange Building Association and IN
the Lands Purchase Company. which owns the
Trust Company Of America Building, the Con-
troller also thought was open to criticism The
stock Of the Delaware & Hudson company, as
we'll as all other stocks owned by the oahk' he
ordered disposed Of.
in n nj w
proved and signed by a majority Of the direc-
tors contended that all the loans were, in the
opinion of the banks management and director
ate well secured and good, safe" loans. He
said that one thousand shares of the banks
Delaware & Hudson stock had been sold at
profit Of Sal 900, and that orders had been given
for the disposal of the rest Of the stock.
Next to the reading of the correspondence be-
tween President Curtis and Controller Ridgely,
interest centred yesterday in the introduction
by the prosecution Of the 100000 note to the
Knickerbocker Trust Company, which
signed by Edward B. Wire cashier of the Ma
tional Bank Of North America, at the request of
Mr.. Morse and the late Charles T. Barney. At
the time Mr.. Wire signed this note and a check
for 100000 was received from the Knicker-
booker Trust Company the National Bank of
North America made, a part of the transac-
ton. a deposit Of 100000 in the trust company
Mr. Wire went away for his vacation about
the middle Of September. 1907, and returned to
his post at the bank in the second week of Octo-
Der, or just IS the first rumblings of the panic
in the air On the day before the Knicker-
booker Trust Company closed its doors, follow
ing which it unable TO withstand Mr..
Wire feeling that all was not we'll with the trust
company. drew check the Knickerboc1er
Trust Company for 100000 his own fnitia-
tive and put it through the Clearing House The
han +ba dow b17t+
company suspended. The prosecution brought
out that the per cent interest on the loan from
the Knickerbocker Trust Company was paid by
the National Bank OF North America, and that it
amounted to S5306 more than the interest which
the trust company credited to the bank on its
100000 deposit account.
WIRES EXPLANATION OF LOAN
Mr. Wire was on the stand and explained his
connection with the 100000 Knickerbocker
Trust Company loan as follows:
Il made the 100000 note and turned the
check over to Miss Wilson, Mr.. Morse's secre-
tary. concluded that the money was used in
the steamship deal Mr. Morse at the time
promoting the New York and Cuba Steamship
Company. Later I received, in March. the
shares in the New York and Cuba company for
the 100000 I put them in the vault, and in
June I received the temporary certificates Of
the stock and the bonds Of the new Consolidated
Steamship Company. received 5000 shares
of the new stock as a bonus, the exchange being
made for the 500 bonds of $1,000 each These
deposited in the vaults of the National Bank Of
North America. The securities were in the
name OF myself and Mr. Rado. / never at anv
time paid any interest on the 100000 loan, al
though I received from time to time notices
calling for the payment OF the interest to the
Kuickerbocker Trust Company. I understand
the bank paid the interest when due"
Another interesting point brought out was
that the National Bank Of North America not
only received interest at per cent on the money
lent to the New York Contracting Company.
the Murphy concern. but also received a share
Of the profits in connection with certain New
Haven improvements" Mr. Wire also testified
that he had told Mr.. Morse that he feared he
l1Iorse) would be criticised on account of the
100000 KnickerbOcker loan
Gordon Wendell Juror No. 9. whose Illness
caused an adjournment Of the trial on Thurs
Car. seemed to nave completely recovered. Mrs.
Curtis and Mrs Morse attended the trial, which
viii so on this morning
$
MONTGOMERY ON TRIAL.