Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-29
Ice King Possibly Will Take
Stand This Afternoon.
STIMs0N ONCE COUNSEL
Curtis Reveals Prosecuting Attor-
ney's Former Service.
ADVISED AGAINST BAD LOANS
Former President of Bank Of North
America Tells More About Loans
of Defunct Institution.

NEW YORK. October 29-Charles w.
Morse. promoter and financier, whose
great fortune was swallowed up in the
H. Curtis. former president Of the Ma
tional Bank of North America, now is on
trial on charge of violation of the ma
tional banking law, may go on the wit
ness stand In his own defense this after
noon.
When the trial was resumed today.
Curtis was recalled to the stand and was
taken in hand by United States District
Attorney Stimson for cross-examination.
In telling of the occurrences at the I>a-
tional Bank of North America at about
the time Morse is alleged to have over
drawn his account $210OO0. Curtis said
many things which were discussed by the
directors at meetings were not entered in
the minutes of such meetings.
While none of the remarks omitted from
the minutes could have been regarded as
material in themselves, said the witness
undoubtedly as q whole they Influenced
the banks officers in their actions.
He said Charles L. Barney and Morse
We're close friends. They frequently dis
cussed the ice situation and were opti-
mistic regarding the company''s future.
Whiting Loan Considered.
Stimson took up the liquidation of $780,
600 Whiting loan through the purchase by
the bank of 1000 shares of ice stock at
$40 per share and the making of a loan to
Morse of $4,000 on the 1,OOO shares of
copper that had been put up to strengthen
the original Whiting loan.
Curtis was asked to explain how the
transaction improved the situation of the
bank, inasmuch as it had not received
dollar in cash nor an additional share Of
<.aI- to-, tvrt taI hoe 1,
1000 lce' purchased by the bank from
Morse at the $50 per share could have
been sold in the market for ready cash
and the proceeds would have liquidated
the loan.
He thought this materially improved the
banks position. The stock was not sold,
however.
Curtis declared he had never known of
the withdrawal of 900 shares of copper
stock. originally put up in addition to the
of the Whiting loan. Not until long after
the withdrawal of the 800 shares did he
hear of it, Curtis said
Stimson produced a letter signed &C.
w. Morse. per W. written in response
to notice sent to Morse of the $40 600
loan. made on the 1.0oO copper shares. In
the letter Morse fatty repudiated the S4O,-
O0o loan and declared the bank had no
right to add it to the loans oc S210,OOO
then standing in his name in the bank,
tions under which it had been made
Stimson Banks Counsel.
While Curtis was testifying with ref
erence to the so-called J. r. Elliott loan,
which appeared to have some connection
with the Arizona Smelling Company loan,
1t developed that Stimson was at one
time counsel for the bank and In close
business relations with Morse and Curtis
Il did not like this sArizona Smelter
Company loan. as it was so far away.
and SO stated said Curt S. Then l
went to the counsel of the bank and laid
the matter before him. He did not re-
gard the stock as good collateral and was
against the loan.
II went to Mr.. Stimson and he gave me
an honest. fair opinion against that loan
But despite that fact. when our directors
were tod Mr. Elliott was many times
a millionaire the board OF directors ap-
proved the loan. 1t was made despite
Mr.. Stimson's advices and written opin-
ion."