New-York tribune., 1908-10-28
MORSE GAINS POINT
Joint DEFENCE BEGINS.
Conspiracy Count Throocn Out
Curtis on the Stand.


indictment, which charged that Morse and Curtis
conspired TO make false reports of the bank s
condition 10 the Controller Of the Currency The
count covering the oiscOuntfng by the NauohaA
Bank Of North America Of a $4,000 note mace
by Thomas Stursis, president Of the continental
Finance Company, was also stricken out Oh 'he
ground that no fraud existed
Wallace Macfarlane. counsel for CharIes W.
Morse and ex-Judge William NJ. K olcott'
counsel for Alfred H. Curtis. opened for the oe-
fence. Then Mr. Curtis himself took the VII
ness stand The defence's case, as outlined Dy
counsel will be a general denial OF any criminal
intent in connection with any OF the 'ralsac-
tions described by the prosecution Ihe oeais III
Ice stock and in bank and steamship securllles'
the defence will seek 10 prove, were maze oy
MI Morse and not by the bank. ana MORSE
showed great iiberality toward the bank IN
turning over profits from these lraHsdo o'io"0
aggregating nearly S15O,0oo-
Mr. Olcott dwelt at length on Mr.. Curtis's
,ood character and his forty years OF honest
banEfng methods. He argued that II was only
natural for Curtis TO place implicit commence N
Morse as the latter was always known as a
Y1uItf-niIlionaire and frequently left securities
worth 81 0oO0O0 with him (Curtis) when he went
TO Europe Mr.. Olcott nearly wept as he out
lined his clients numerous virtues, employing
frequent bursts Of orafory which Fergeo cIoseiS
upon the rrelodramatic-
For weeks have scarcely slept when
Thought of the unjust charges brought against
Mr. Curtis" thundered Mr.. Olcott. Yet keen
as my own feelings have been toward my old
time friend, what has my anguish been COM
pared with that in his own family? 1 tell you
these have been days OF he'll for those near and
dead TO this defendant.
Nj Olcott said nothing harmful TO Morse. but
Il was noted that he confined his argument
H1-1OT he
confident he would see leaving the courtroom
free man In conclusion Mr.. Olcott suddenly
said:
CI-RTIs HOPES HE WON'T HIT ANY ONE.
MY client will go on the stand He hopes
what he saws will hit no one. There is not
drop Of revengeful blood in him. He is not
crazyler He doesn't expect TO point his finger
and say TO any one: You did il; didn't But
he will tell the facts. He hopes no other di-
rectors or officers Of the bank will be hit but he
viii tell the facts
At twenty minutes past four Mr.. Olcott called
Mr. Curtis 10 the stand The witness began by
saying that IN 1868. at fourteen years of age.
he entered Wall Street brokers' Office as a
clerk. and il 1878 the Bank of the State Of New
York as q clerk There he worked through all
grades to cashier. AS such he said he had over
certified checks daily in busy times TO the extent
Of 100000. He explained that there were al
that time no Clearing House rules governing
state banks.
Mr Morse was at the time vice-president and
director OF the Bank OF the State Of New York.
Mr.. Curtis told OF Mr.. Morse's being deposed,
while absent in Europe, from his dictatorship
BY President Edwards. Upon Mr.. Morse's re-
turn the latter bought the control Of the banks
stock, ousted Mr.. Edwards. and the directors
reelected him vioe-president.
The defendant said that he had ar that time
himself been elected president of the institution.
and remained so when the Bank Of the State Of
New York and the Bank of North America were
united as the National Bank Of North America
IN 1902 Nj Morse had been an active Gus
toner Of the bank, having desk there and car
-ying an average balance Of 100000 to S15O,-
600 Morse brought many depositors and GUS
toners 70 the bank. Mr.. Curtis said.
AIr. Curtis said that Mr.. Morse had come to
him and said he would renew the Carroll loan
on 1000 shares Of Ice in the name Of Arthur
Braun. OF Primrose & Braun. Mr.. Morse had
;old him that he would guarantee the loan, and
he accordingly put it through.
CONSIDERED MORSE VERY RICH
MI Morse, Mr.. Curtis said. he then believed
70 be q very rich man. having heard estimates
OF his wealth at that time as high as 100000
and knowing that he carried large balances in
the bank he considered il a perfectly safe trans
action. M Morse had, as h had seen, many
valuable securities. The actual value, he said,
Of the 1000 shares Of Ice stock was at the mar
ket about $4,000. He considered IL a good
loan.
Mr.. Curtis, consulting the banks loan sheet,
said the loan had been renewed Then 20O0
shares had been sold TO Mrs. Katherine 7. Gels
henen for S160000. OF which $4,000 was cash
and the rest q loan Later the Ice stock was
sold at z profit CT S24, $50 to Mrs. Gelshenen,
which she received
Then to my surprise. Mr.. Morse told me
that there was still remaining q profit Of S24-
$50 which the bank might just as well have the
benefit Of. and II was 50 credited to the bank"
said the witness.
Did you get any interest on that loan?"
''No; would have been ashamed to ask IN
terest on IT, when Mr.. Morse had presented the
bank with s24.5so.'' said Mr. Curtis.
What vas the interest?"
Mr. Curtis did not know, but AIr OIcott fig
ured II up and said il was 5000
so you got s24,580 instead Of $500 interest?"
Yes"
MI Curtis told Of two more Ice loans made
10 Dawson Brown, each on one thousand shares
OF Ice, and for $4,000 and $4,000 Morse had
told him, the witness said that he would guar
antee both loans and that any profits that might
come out Of the transaction the bank should
have. While Mr. Curtis was not so sure Of Mr.
Morse having turned over the profits on both
these loans, he was sure Of the first one. Other
loans Of q similar nature on Ice he said were
IN the bank at the same time. The two thou
sand shares Of Ice deposited as collateral on
the loans came from the Gelshenen transaction
5fr. Curtis said.
MORSE WILL ALSO TAKE STAND.