Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-30
MORSE ON STAND
IN own DEFENCE.
Former Ice King, Nervous and Worried,
In Almost |naudib|e Tones, Answers
Rapid vo||ey Of Sharp Questions.

! 200O shares of Ice stock, being one half
| Of the Carroll stock he, Mr. Morse, had
purchased.
Judge Hough at this juncture ad-
| journed court and Mr. Morse left the
witness chair with an expression Of re-
| lief on his face.
| Before Mr. Morse testified Col. r. l.
Thompson, former director of the
National Bank of North America, was
cn the stand and Attorney General
StimsOn asked him if the holding COM
pany for tho American Ice Co. had not
been characterized as trust"
IAN evening newspaper has so char
acterizeG it," answered Col. Thomp-
| son.
Didn't the attorney general of the
state so characterize it," asked Mr.
| Stimson.
Not until the attorney general was
caught short in the stock market and
stung," was the response.
Just repeat that statement for the
! benefit of the jury" said Lawyer Lit
i tleficld, as the witness was about to
do so. when Judge Hough ordered him
not to.
Later, in discussing the Morse loans,
| Gel. Thompson was asked if he had
been aware of the fact that Mr. Morse
had several times overdrawn his ac-
| count
| There is not a broker in Wall street
| who does not overdraw his bank ac-
| count daily" answered Col Thomp-
son. and he added: They have no way
of knowing what they are going to
win during the day"
| After court had adjourned, Col
! Thompson sought out the newspaper
men and said that his testimony re-
Sarding the attorney general had been
misunderstood and that his answer to
the question, Didn't the attorney gen.
| eral OF the state so characterize?
should have been entered on the court
| records as follows:
+, ''Not until some politicians who We're
| acc uaintances of the attorney general
We're caught short in the stock market
and stung."
Col Thompson said that he had no
knowledge that the attorney general
had ever speculated in the stock mar
! ket
| When the trial was resumed today
Mr. Curtis was recalled to the stand
| and was taken in hand by u. S. Dist.
| Atty StiinsOn for cross examination.
II telling of the occurrences at the
National Bank of North America at
about the time Morse is alleged to have
cver,1rawn his accounts. 100000, Curtis
said many things which were discuss
ed by the directors at meetings of
the board were not entered in the min
utes of such meetings. While none of
| these remarks which were omitted
| from the minutes could have been re-
gardad as material in themselves, said
the witness, undoubtedly as II whole
they Influenced the banks officers in
their actions. He said Charles r. Bar
ney and Mr. Morse were close friends.
They frequently discussed the Gee"
| situation and were optimistic regard
ing the company's future.
| Mr. Stimson next took up the liquid
alton of the 100000 Whiting loan
| through the purchase by the bank of
5000 Ice at $50 per share and the max
ing of a loan to Mr.. Morse of $4,000
on the 1000 shares Of copper that had
been put up to strengthen the original
Whiting loan
Mr.. Curtis was asked to explain how
the transaction improved the situation
of the bank inasmuch as 1t had not
received a dollar in cash, nor an adj
| ditional share of stock in the deal. He
! insisted that the 1000 ice" purchased
by the bank from Morse at $50 per
share could have sold in the market
for ready cash and the proceeds would
have liouidated the loan. He thought
that this materially improved the
banks position The stock was not
sold. however
Mr.. Curtis declared that not until
long afterwards had he known of the
withdrawal of 900 shares of copper
originally put up in addition to the
1000 shares as collateral on the making
of the Whiting loan.
Mr.. Stimson produced a letter signed
&C. w. Morse, per w" written in re-
Spouse to a notice sent to Mr.. Morse
of the $4,000 loan made on the 1000
copper. In this letter Mr., Morse nat
w repudiated the $4,000 loan and de-
clared the bank had no right to add it
to the loans of s270,o0O then standing in
his name in the bank, saying that the
bank well knew the conditions under
which it had been made.
Mr.. Curtis declared that he was very
much surprised indeed when he first
heard through "third party" that Mr.
Morse had repudiated the loan.
While Curtis was testifying with
reference to the socalled ]. r. Elliott
loan. which appeared to have some con-
nection with the Arizona Smelling Co
loan. it developed that L. S. Dist. Atty
c.;,,sn, yx-ho iS oonductinp the proSe-
cution in the present case. was at one
time counsel for the bank and in close
rela lions with Morse and Curtis.
ct did not like this Arizona Smelter
Company loan as it was so far away
and so stated" said Curtis "Then
went to the counsel of the bank and
laid the matter before him. He ex-
amined the matter carefully and rem
derel written opinion. He did not
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