The Birmingham age-herald., 1908-10-24
FAILURE OF BANK
 WAS ANTICIPATED Three Developments Occur In
 the Morse Trial BIG LOAN MADE BY BANK Prosecution Presents Evidence That Big Loan Was Made to Miss kath- erine Wilson, Secretary of
 Charles w. Morse.
!! BIG LOAN MADE BY BANK

New York October 2S-There were three
 important developments today in the joint
 trial of Charles w. Morse and Alfred H.
 Curtis, who are charged with conspiracy
 and violation of the federal banking laws
 in the management of the defunct Ma
 tional Bank of North America. First, the
 prosecution produced letters to show that
 Comptroller of the Currency R1dgiey had
 foreseen the impending failure of the
 bank, and that he had written & number
 of letters to Morse and Curtis warning
 them against making such large loans on
 what he termed unsubstantial collateral,
 to the officers and directors of the bank.
 MT Ridgely said in one of his letters that
 the Morse interests at one time owed the
 bank $S,610, 754 10, the loans to the Morse
 Steamship company alone amounting 10 S1, 764255. 38.
 Next the prosecution presented evi-
 dence to show that a large loan made
 by the bank to Miss Katherine M. Wilson,
 Mir Morses secretary, had been paid In part by profits coming out of the financing
 of an undertaking of the New Haven
 Improvement" The profits, Edward B.
 Wier, former cashier of the bank, said
 should have gone to the bank, but he tes-
 tified that MT. Curtis and Morse had ar
 ranged so that the profits went to cover
 part of the Wilson loan.
 Third, the prosecution had MT Wier tes- tify regarding a note for S2O0,0OO deposited
 with the Knickerbocker Trust company,
 one of the institutions that went to the wall during the financial panic. In trac- ing this note it was shown by banking
 records that after passing through the Knickerbocker Trust company 1t -poppeo a a to "E. B. Wier." At this point Bank Examiner Edward Moxey was called to the stand. and he endeavored to show how the $2o0,O00 ob- tained on the note had gone to finance the Morse steamship undertakings. MT.
 Moxey traced payment of interest on $1oo,- 900 to show that the interst or per cent had been charged against the account oi the National Bank of North America NC debt against MT. Wier's personai account could be found
 MT. Wier. recalled, said that MT. Morse and Charles T. Barney, the late pres l ident of the Knickerbocker Trust com | pany had asked him to sign the note | saving the proceeds would be used te | finance a deal in steamship stocks. MT | Wier said that, after making the note I he turned over a check for the amount tc | Miss Wilson He said that later he re- l CeiVeQ SIOck Ol tuC 4NCW VI ID .>~~ O~-' | Steamship company Ca Morse concern] | from MT Morse to the amount of $2OO.Ooo l and later when the Consolidated Steam ! shin company was organized he was giver 1 bonds of that company for the New Yori and Cuban company. The account in the | Knickerbocker company, he said, re- mained there until October 2l, one das l before the panic when MT. Barney called on him for collateral for the loan ane
 he turned over the steamship bonds. After | this MT. Wier withdrew the deposit, pu l he did not say what became of the money There was some interest toward tht l end of the session when the prosecutor l mt on the stand Miss Julia M. Wolfe, stenographer for the Knckerbocker Trus company. l An effort was made by the prosecution | to have introduced stenographic note' | taken by the young woman of conver | sation between Morse and Mir. Schuman l the latter counsel for the Knfckerbocker | The defense objected on the ground tha | the conversati tion took place after tn' dates on which MT. Morge and MT. Curti are charged with violation of the bankini laws. The prosecution indicated that tn'
 reading of the stenographer's notes would | he very much in the line of confession Judge 'Housh said that he would reQuM time to pass upon the question of admit | tinr the notes and asked the lawyers 10 both sides to submit briefs.