The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1908-11-05
MORSE WITNESS IN
HIS own DEFENSE
ICE TRUST FINANclER TELLS OF
HIS EXTRAORDINARY
TRANSACTIONS.
Didn't Know Bank Laws-ExpIains
the Carroll and Whiting Loans and
Says He Gave the Profits on Deals
to the Bank.

New York, oct. 31.-For more than
six hours Friday Charles w. Morse,
who a year ago was one of the domi.
nant figures in Wall street, sat in the
witness chair in the criminal branch
of the United States circuit court en-.
desvorlng to defend the financial
operations in connection with the Ma.
tional Bank of North America, which
resulted In the indictment of Mr..
Morse and Alfred II. Curtis. on
charges of conspiracy and violation
of the national banking laws. Mr..
Stimson sprang somewhat of a sur
prise on Mr.. Morse when he took up
the loan of more than $125,000 made
to Miss Katherine A. Wilson, Mr..
Morse's secretary. The fnancier had
testified that the loan had been made
In his behalf and that the Leslie Whit.
ing loans were also his. Then, with
Mr.. Morse still in the witness chair,
Mr. Stimson read a letter addressed
TO the comptroller of the currency, w.
B. Ridgely, and signed by Mr.. Morse
and other directors of the New Am.
sterdam bank, saying that Mr.. Morse
was not directly interested in the
loan.
Morse Spars on Stand.
New York, Oct 30.-Charles w.
Morse, who, with Alfred H. Curtis,
former president OF the National Bank
of North America, is on trial In the
criminal branch of the United States
NJ wi
OF the national banking law, took the
stand in his own defense Thursday.
Mr.. Morse was kept on the stand
until an adjournment had been taken.
He related how he came to have an
interest In the National Bank Of
North America, saying that he secured
an interest In the consolidation In
1902. The accused banker said that
he had had no experience in the rou.
tine of banking. He was not sal
aried otiicer of the bank and knew
nothing of the legal exactions cover.
ing national banking
Gave Profits to the Bank.
In explaining the loans made to
John F. Carroll by the National Bank
of North America, amounting to 1885,
900 at one time. he said they were Sc
cured by 10000 shares of ice stock.
Mr.. Morse told of plan to buy half
of the Carroll stock at $50 a share
and give the bank the profit of the
deal Then he purchased 1000 shares
of Ice stock, he said, a. $40 a share
tor Mrs. Gelshenen.
What became OF the profit of $40
q share?" asked Mr.. Morse's lawyer
II gave It to the bank" answered
the financier.
p Explains Whiting Loans.
The loans made to Leslie Whiting.
the 19-year-old clerk In a brokers Of
flce, were then taken up and Mr.
Morse said that the first loan of $780,
900 to the youth was made at his Mr.
Morse's) request and was an - 6m-
mediation borrow"
Mr.. Morse told of how the loan
made to Whiting had been use& to
take up 1000 shares of Carr0ll1 ice
stock The second Whiting lS& of
$4,000 was secured by 1000 shaf(Kof
Ice stock, being one-half of the bar
roll stock he, Mr.. Morse, h9AHhr.
chased "
Puts the Blame on Mock.
New York, Oct. 29.-The Apparent
determination of Alfred II, Curtis to
exonerate himself Of alIc6lame re.
specting the banking trafysactions for
which he and Charles W. Morse are
now undergoing trial II the United
States district court here became
more defined Wednesday when. under
the prompting Of MS attorney, Mr..
Curtis produced a letter written by
him under date of June 13, 1907, and
addressed to Morse. in which he pro-
tested vigorously against the continu-
ance of practices inaugurated by the
latter. which. In Curtis opinion, con-
stituted a grave menace to the stabil-
ity of the Bank of North America.
Curtis said he refused loan of
$4,000 to F. Augustus Heinze and
that a personal check OF Charles w.
Morse for 3126,0OO. drawn TO the order
of Heinze. came through the next day.
The check had been honored although
at the time. the witness said. Morse
had balance to his credit Of only
S310O.