New-York tribune., 1908-10-29
WARNED MORSE OF
BANKS CONDITION
IO4NS TO DIRECTORS
- WORRIED CURTIS.
ITIrote 4sking "Ice King" to Stay at
Home and Help Institution an
Case of Emergency.

arf-e5 II -u-1fs as president Of the National
Bank OF North America, warned Charles w Morse
srd several OF the directors in June, 1907 that the
hank was in bad condition result Of the ex-
essiye loans 10 directors and others. loans which
M Curtis feared would not liquidate quickly in
case OF need. The warning was in the shape OF a
letter TO M. Morse. who was on the point or
starting for Europe
Mr. Curtis who the witness stand yes
terdav in the Norse-Curtis trial before Judge
Hough. in the United States District Court said
that he showed the letter 10 John Il Flagler' one
OF the banks directors. who said: I would snow
that letter 10 one except Mr. Morse as ne
IS q very rich and Tesourceful man and Will un-
ooubtedly correct everything"
Nj Curtis also testified that the late Charles !
Barney. then president OF the hnickerbocker Irus'
COMPANY, had promised advance $lcn"v IN
cash II the National Bank OF North America need
ed il while Oakleigh Thorne president Of the Trust
Company Of America, had promised s2'oco 10 'o'''
Go IN cash
The letter II full follows
Ny Dear Mr.. Morse: Since the reduction Of near
y $4,000 n the daily average balance OF tie - -S
Company Of America and necessarily a slInll1I - &Cu-
taiae2t OF our street or QUICK can iGas nd fI11i
realize thar tne bsnk-s position Is anything but
safe with you and nearly all Of the directors
make large loans to parties who could not respond
i sudden demand was made and the collateral
deposited could not be realized upon in an erner-
Ger AfPs JoRh T. fE ot5 t&9nS the @ @oodafed f arizona
Smelling Company, G L Charley. G. W ana 9 i,
Wilder, and the Butterick Company. R Hle!b polite
& Co, the American Ice Company z X ana - r
ana none Of them based upon the usual balance
requirement Including the above. the total sum
balance amounts to s. 5o5ooo
Our entire capital stock Is locked up in our build
ing and bond and stock account; this together with
5000 used IN underTrttings- on which. while the
hank has made handsome profits, the original IN
vesJeut is still tied up and are left little free
money 70 carry on our business In fact We have
Lately lost two good accounts 70 whom we
were compelled 70 refuse accommodation which had
o,vavs bean granted in the past.
Simple deposit accounts difficult II obtain IN
trust companies and in \ position TO make
promises q loans 70 prospective borrowers con
holders 10 impress upon you as forcihly as can
the danger % the situation and what il means %
which Won az i6e7-if7ed should ANYTHING happen
while you the ocean OF absent in Europe
hanks We're weak. and ability to make it even
stronger has always boon good answer 70 the
but that argument does not mold good. Very
shortly VIII have the bank examiner with us.
past have no fear with you here considering
your boundess resources and facilities for obtaining
rect the present conditions and place the bank in
position Of absolute safety.
WANTED SLOW LOANS LIQCIDATED.
Loans Ike the ones 70 George A Fernald & Co;
When eI3e We now learn thar Mr. Fernald claims
YOU have PROMISED 10 renew the same. This IS
s. the proposed clearing rules are passed. as they
md o,lFradlv viii be hank would be
peea 10 %1'aorN sot s. az 6a TIE uncertainty
q te present financial situation and the posi- bill
~ IN q ] assl ~S-r l 5eIard on as and possible
Withdrawal of deposits. make imperative that some
thing should 6e done before you leave toward the
iiu1.i6ation of some OF our slow loans
tg1r directors are indebted 20 the of
49, ~ .l,e{- leans elsewhere verbal promises of
assis arce from Messrs- Barney OF Ihorne are cold