Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-30

IOTInCT PRESIDENT OF the National
Bank of North America. is on trial in
the criminal branch of the United
States circuit court on a charge Of
conspiracy and violation of the ma
tional banking laws, took the stand
in his own defence today.
All during the tedious days Of the
trial, Mr. Morse has sat inside the
railing nervously awaiting the mo-
| mcnt when it would become necessary
| for him to take the witness chair and
| undergo the ordeal OF cross eXamina-
| ton that he knew was in store for him.
When his name was called late today
! he sprang from his chair as though
greatly startled, looked inquiringly Il.
| his counsel and when the latter nod
| del his head affirmatively, the tinan-
| cicr hurried to the witness stand be-
side Judge Hough's bench and moved
| about restless in his seat while the
| lawyers were framing questions to
| ask him.
| In 4 voice so low as to be inaudible
to tho jury Mr.. Morse gave his birth
| place as Bath, Nc. said he had grad
uated from Bowdoin College, and that
on coming to New York he engaged in
the shipping business, and later the
ice business. After these preliminary
interrogations the lawyers for the
government volleyed questions at Mr..
Morse so rapidly that the financier's
voice failed him when he endeavored
to answer them.
Mr.. Morse was kept on the stand
until an adjournment had been taken.
He related how he came to have an
| DE-, Of ~ h
America. saying that he secured an
interest in the consolidation, in 1902.
The accused banker said that he had
had no experience in the routine of
| banking.
Speak louder 50 the jury can hear"
said the inQuiSitor repeatedly. as the
former bankers voice dropped almost
to a whisper.
| Mr. Morse said that he was not a
| salaried officer of the bank and knew
nothing of the legal exactions cover
| ing national banking. He explained
that after 1905 he had accepted an Of
| flee in the directors rooms in the new
bank building.
The nnancer then told of forming the
| acquaintance of Mr.. Curtis and Mr..
Wire.
| Fl had confidence in them and used
my influence to have them made pres
| ident and cashier of the bank, said
Mr.. Morse.
| Mr. Morse testified that he knew
nothing of the banks method of book
keeping and admitted that he saw the
banks loan sheets only few times
each year MY secretary, kate "A.
Wilson, and my former secretary, Ar
thur Braun, attended to my personal
| and private affairs" said the wit
ness Miss Wilson kept my bank &C
count straight"
| Mr.. Morse's counsel then asked a
number Of questions regarding the con-
nection of Mr. Morse with the Amer
| lean Ice Co Mr. Morse said that he
| had been connected with that company
since it's formation in 1889 or 1890 The
company was then paying dividend
| witness testified and dealt principally
| in natural ice. a difference in the de-
| mand came in 1902 he said, ami arti-
fetal ice was all the market wanted.
That effected d change in the business
| Of the company.
| AS this line of questioning was con-
tipued it finally led up to the point
Of the loans made to John F. Caroril
| nv the National Bank of North Amer
| lea, amounting to $135.OO0 at one time.
| There was such a maze or figures that
Mr.. Morse confessed his inability to
| follow the questions without the ald
| of q memorandum. He was given the
necessary data and constantly referred
| to if when he answered questions. In
| pxnlainjng the Carroll loans he said
| thew were secured by 10000 shares of
| ice stock. Mr.. Morse told of plan to
| buv half Of the Carroll stock at $50 a
share and give the bank the profit OF
the deal Then he purchased 1000 shares
| If Ice stock, he said, at $40 share for
| Mrs. Gelshnen.
| "What became of the profit on $40 a
share?" asked Morse's lawyer.
| Il gave it to the bank answered
the financier.
| The loans made to Leslie Whiting,
the 19-year-old boy in a brokers' Of
flee. were then taken up and Mr.. Morse
said that the first loan of $4,000 to the
vcuth was made at his (Mr. Morse's)
request land was an accommodation
| borrow
Attorney General Stimson objected
| to Mr. Morse telling of his gift to the
| bank Of the profit on the purchase OF
the Carroll Ice stock for Mrs.
Gelshenen until the witness had out
| lined step by step the entire transac-
| ton. This led Mr.. Morse to tell of con-
yersations with MIR. Curtis in which
| he told the latter that several loans
would be made on Ice stock and that
he would give the profits to the bank.
MIR. Morse added that the directors
Of the bank were every much pleased
when he gave the profits of the deal
tn the bank. Mr. Morse next told of
how the loan of $50. 900, made to Whit
ing had been used to. take up 1000
shares of Carroll Ice stock. The second
Whiting loan of 5000 was secured by