The sun., 1908-10-28
CURTIS TURNING ON MORSE
EACH DEFENDANT SEEMS
EAGER 10 SHIFT THE BL iME.
Morse's lawyer says That IIis Client wa'
DenefactOr Of the Bank but Not q
Practical Banker Curtis Thought
Morse was . Great Millionaire, (,

Practical Banker Curtis thought
Morse was y Great Millionaire"
Charles W. Morse's and Alfred H.
Curtis's defence was begun In the United
States Court before Judge Hough yeater-
day. Under the practice in the Federal
courts thoy are being tried together,
whereas in the State courts they would
DO tried separately. but 1t would not
surprise anybody II the defend
ants parted company now that they
are In the way OF presenting their
defence to the jury and each took his
own way TO clear himself OF the charges
in connection with the wreoking OF the
National Bank OF North America.
Wallace Macfarlane for the defence,
although representing specifically Mr.
Morse. made the customary arguments
for the dismissal OF supdry OF the Govern
ment's charges as unsupported by the
testimony which the Government offered.
His argument resulted in the dismissal by
Judge Hough of three OF the seventy
eight counts against the defendants. The
other counts stand.
Thereafter in the separate openinGs
which MIR. Macfurlane made for Mr..
Morse and MIR. Olcott for Mr.. Curtis in
addresses to the jury references were
made which in some quarters we're con-
strued as intimations that each of the
codefendants might seek to shift the
blame on the other.
Mr.. Macfarlane for example said to
the jury and the Court that Morse was
not banker and probably would not have
understood bank report IL read to him.
Mr.. Maofarlane took an hour toropen his
defence. Mr.. Olcott, who took about an
hour and half to open his defence. said
that MIR. Curtis had been taught to regard
MIR. Morse as a great finanoier and had
come to have such regard for Mr.. Morse's
greatness that had he objected when
Morse made one of his dummy loans-of
sl35, ,O00-Curtis would have regarded it
tantamount TO lase majeste-this is the
expression used by Judge Olcott-to have
made the bare suggestion that Mr.. Morse
give a written guarantee for this loan after
having said that he would back 1t.
The dismissal of the three counts out Of
seventy-eight by Judge Hough left the
prosecution still safely established in its
main contentious. those charging the de-
PENDANTS with wrongd Ding in the Ice Sc
curities speoulations, New Amsterdam
Bank stock deals. Steamship deals
Morses overdrafts upon the Bank Of
North America with Curtis's acquiescence
and the misleading reports to the Comp
troller Of the Currency and the correla-
tive misleading entries in the books Of
the bank After Judge Hough had de-
MED other motions OF the defence Mr..
Macfsrlane began his address:
He told What good man MIR. Morse
was and explained how instead of being
a speculator for profit he had been bene
factor of the bank, with speculation as a
mere incident.
while il is undoubtedly true,' said MIR.
Macfarlane. that the hooks of the bank
show tho facts testified to in the Govern
ment'e presentation of the case. yet it is
true also that the experts employed by the
Government have always given a slant
wherever possible in their explanations
81 what the books showed.
Morse was not a practical banker at
any time but he owned 40 per cent. OF the
he was heartily eager that IL should be a
brilliant success. He was attending to
the substance of affairs and leaving all
details to his subordinates.
Mr.. Macfarlane went on to say that
Morse and Curtis had conceived the idea
Of speculating to make money not Tor
themselves hut for the bank. 1t was
not a criminal act at all, he said. for
national bank TO buy or to holdi stocks.
Only, national banks not being specifically
allowed by law to buy stocks, the courts
should not do this The defendants were
not charged with the crime of buying,
and did not for a moment admit that it
was a crime, but with oonspiring to con-
oeal purchases by false entries so that the
purchases should not appear IN the books
H. NfrxNI liar
couli revoke a banks charter IL he deemed
proper, but Congress mad never yet made
il criminal offence for bank to buy
stocks.
Curtis. he said. had taken pains to see
that the bank should not have any legal
ownership or responsibility. for those
stocks Morse was not bound in any way
to turn over the profits on the stocks thus
purchased to the bank. but Morse had 30
turned the profits over. out OF good nature
and regard for the bank. OF his own free
will.
Inasmuch as he had so turned in the
profits It was not fair when there came
TO be losses that he should be compelled
TO stand them; therefore the charging on
of losses to the commission account Of
the bank. The crime charged against
the defendants, as he explained 1t, was
by false entTies.' AS to the reports to
the Comptroller, however. Morse had
never In his life read one Of them. even
though as q director he had atteSted
them, aand doubt, said Mr.. Macfarlane,
IF he would have understood one II 1t
had been read to him..
Mr.. Macfarlane had made cold legal
opening. Judge 0lcott. when he arose
TO follow him, asked Mr.. Macfarlane to
exchange seats with him and Mr.. Olcott
took bis stand just before the jury box:
His address was an impassion one, and
he often wiped his glasses and sometimes
his eyes as he assured the jury that all
he had to say to them or offer for their
Consideration in evidence he believed
with ail his heart,
EIe recited the story OF MIR. Curtis 8
life. as MIR Curtis did after him when Mr.
Curtis took the stand. He said that as
cashier Of the Bank Of the State of New
York, whence he went to the Bank OF
North America after the consolidation
Of those banks, Mr.. Curtis had been called
upon to pass, on bis cole responsibility
on overcertifications amounting to S40,-
1000 day, overcertifications being the
form in which State banks made loans
to customers, although that practice was
not permitted 70 national banks. This
Mr.. Olcott said, showed the probity Of
his client, who had he been 30 minded
could have gotten rich In one days wrong
doing at this overcertification.
Coming TO the Dawson Brown dummy
loan OF $is5, 600 in Morse's interest. Mr..
Olcott said that when Morse told Curtis
that he stood behind that loan. 30 great