The evening world., 1908-10-29


the records OF the bank7"
at Is" said stimson grimly, land do
you declare you never saw 1t before7"
Yes" persisted Curtis, II heard
about this note through third party,
but didn't believe 1t was true. l
DIDN'T THINK MIR. MORSE WOULD
IREPUDIATE HIS DEBT THAT WAY"
This testimony, showing that Morse
while ostensibly only a vice-president
was really the dictator of the bank
might have created sensation had not
so much evidence OF similar tenor al
ready come out during the progress OF
the case.
Q. Did you ever collect any interest
on the original Kate Wilson loan? A.
No.
Q. Did you ever ask for any7 A. did
not.
Former Congressman Charles w. Lit
tleneld who Is defending Morse, took
leading hand in objecting to Stimson's
questions. There was a lot of cross-tlr-
ing because Curtis kept trying to avoid
making direct answers to Stmson. once
the unique three cornered picture was
presented by the Judge scolding Little
field for his violent manner, Littleflel'
scolding Curtis for offering his own eN-
plantations of various transactions, and
Mr.. Stlmson Just scolding around gen
orally. Judge Olcott. Curtiss own law
yer, was mainly content to let things
wag along without taking any active
hand. He didn't seem to think his eli
ent would suffer and he was apparently
willing to have Morses cause suffer.
That Letter to Morse.
St!mson made good use for the prose-
cution of the letter which Curtis offered
in his own behalf yesterday-the letter
of July, 1901, from Curtis to Morse in
which Curtis warned Morse of the
dangerous position of the bank and
begged Morse to reduce his loans and
the loans OF his friends. II developed
that it was Morse who brought into the
bank the bulk of the loans to which
Curtis objected These included the
John T. Elliot loan, with Arizona
Shelters as security, the loan to Uncle
Jim" Morse, the Ice Trust loan, and
the loan to Z. r. Thomas and o. F.
Thomas. There was laugh when Cur
It's said he had objected to the Elliot
loan and had got an opinion against
~
cause that attorney. as il developed,
was Mr.. Stimson who is now prosecuting
his former patrons. Curtis said that
the directors went ahead anyhow and
voted the loan.
Mr. Littletield made a hard fight
against inquiry into this letter 10 Morse.
lie openly declared what everybody
already knew chat II was offered to
help Curtis and hurt Morse). His lam
guage plainly showed that the two de-
other while fighting the prosecution to-
Eether. Litilefield said Morse had
wanted separate trial. Here Mr.. Slim
son halted him to say that while Curtis
had asked for separate trial Morse
had not.
Dodses the Issue.
Mr. Stimson wanted Curtis to explain
what he meant by the words $4,000
of your underwriting operations" in his
letter to Morse. He plainly hoped to
Morse based his Ice and Steamship
specula tons with these so-called under
writing operations. Curtis managed to
dodge the direct issue.
Stimson wound up this phase Of the
REORGANIZATION by firing this thir-
teen-inCh shell:
Does not your description of the
condition of the bank. as set forth
correspond 10 what the Comp
troIier of the Treasury said In his
criticism In the January proceed
ing."
Curtis had to admit that this was
true,
Stimson also proved by the loan sheets
that Immediately after Curtis made his
written protest the bank permitted
Morse to fatten his loans without add
ing any corresponding collateral. Ac-
curlng to the records, one loan of
s35 600 to Morse on his own note, dated
Aug. ! and bearing no collateral, had
been entered on the loan sheet, but not
reported 10 the directors.
Il have no knowledge OF that transac-
ton whatever" admitted Curtis. Il
don't know why 1t was never re
ported"
Testify for Curtis.
After Curtis left the stand Judge
Olcott introduced his character wit
nesses. The FIRST of these was AleXan-
der Gilbert, who, in 1897, was chairman
OF the clearinghouse Association, He
gave Curtis a good general reputation
for truth and veracity. Others who
gave similar testimony We're Jennings
| ). Cox, Z. II. Wilcox Louis f. Pearson,
| pl esldent OF the Irving N1tional Bank.
| James r. Curran, vice-pr6sident OF the
| Carnegie Trust Company, and Oscar l..
| Richard, president 81 the State Bank.
| John II. Flagler, former director of
| the National Bank Of North America,
| was the next witness.
| After he had testified 10 Curts's char
' acter. 1t was expected that AIR. St!mson