New-York tribune., 1908-10-31


off 100000 of a loan Of 100000 TO proht anu
loss Mr.. Morse however insisted that he nae
made over $4,000 net in profits for the oahh'
and that therefore the bank ought to oe VIZ
ing 70 help him out to the extent Of Soo''"'.
He said that the late Charles T. barhe! hou
taken the same view he did Of this quest'oh ..
charging off but that the other directors ha'
refused to turn over the 1000 shares OF ice
stock which Mr. Curtis testified he hsd soio
TO the bank go
Mr. Morse admitted that his relations with
Mr. Curtis were a bit strained In octooer oh
last wear. He also testified that Curtis was
ALWAYS timid and he added that he hked nun
for that very quality. Mr.. stimson asked tne
witness if he did not frequently confer with
Curtis on banking questions and ask Curtlss
advice You mean, l presume. replied MI
Morse "that Mr.. Curtis frequently came 10 me
for advice" This caused ripple of laughter
DIDN'T SEE SIGNS OF PANIC.
Mr.. stimson asked Mr. Morse if he had not
seen signs in the summer of lHoI or the ap-
preaching financial panic.
II did not" was the witnesses answer.
Didn't the other directors Of the bank scent
the coming Disturbance asked the prosecutor
Not to the extent OF paying off their loans
was Norse's retort "Other directors Of the
bank gave Mr. Curtis lots Of advice but no
money" volunteered the witness. He came to
me when he wanted money"
Mr.. Morse said that he had not asked Mr..
Heinze what he wanted the $4,000 for the
famous October Is. IF 1 asked men what they
wanted money for I'd be asking questions all
my life" was the witnesses added comment.
Mr.. Morse differed with Mr.. Curtis IN regard
to the settlement Of the final Whiting loan OF
100000 The security back of this loan was
. +oJ
Copper. Mr.. Curtis had testified that on Oc-
tober 16. 1907, the bank bought the ice" stock
from Mr.. Morse for 100000 and made him
loan Of $4,000 on the United Copper stock.
Later Mr. Morse took out 900 shares of the Sc
Curity.
Mr.. Morse testified that Mr. Curtis had sug-
gested that fair way 10 settle the loan would
be for the bank to charge off $4,000 to its com
mission or profit and loss account, and then
make him a loan of $4,000 on the collateral
Subsequently, the witness said, he found the
ice" stock had been credited TO the banks pur-
chase and sales account. which was not right.
The $4,000 note was still unpaid MIR. Morse
said hut he had told Charles A. Hanna, receiver
for the bank that he stood ready to pay the
loan. provided the ice stock was put back
in the loan. where il belonged.
Proof was introduced to show that in Decem-
her Of last year Mr.. Morse had paid Mr. Hanna
the S211OOO note which he gave the bank to
make good his overdraft, with the exception of
the $4,000 over which there is dispute. He
had also paid UP other of his Indebtedness to
the bank.
HAD PROMISED HEINzE THE LOAN.
Referring to the overdraft of $4,000 to F.
Augustus Hefnze. the witness said that he had
promised to make this loan to Mr.. Heinze, and
,,11y1 - ln
that il was his duty TO make good his word.
Mr Morse insisted that he had a regular Gus
tom Of making his overdrafts good with notes
ar +he close of the days business. He added
that his pass book showed that he had done q
total business of over S65. 100000 with the Ma
tional Bank Of North America from 1900 TO
the fall Of 1907 and had kept an average bal
ance of 100000 He said he had never or
dered a check certified.
Mr. Morse fatty contradicted the testimony
OF Wesley NJ. Oler. president Of the American
Ice Securities Company, in regard to the latter
speculations in Ice stock under Mr.. Morse
guidance Mr.. Oler had testified that Mr Morse
made nearly $4,000 for him in Ice stock deals.
and finally insisted that he buy 1000 shares at
Al Mr. Oler said that he demurred against
buying this stock and giving his note to Morse
for SIP 600 but finally took the stock. When
the price had advanced to 30. Oler said he
wanted to sell but that Morse would not let
him. saving he would get 10 for the stock.
Mr. Morses version Of this transaction was
altogether different. He said that in 1906 he
made over 100000 for Oler in various deals, for
which the latter was devoutly grateful. When
Oler failed, Morse said he put him on his feet
again and made him president Of the American
Ice Securities Company. Morse said Oler re-
peatedIy thanked him for all he had done, and
assured him that he CMorse) would always have
the prayers of his wife and children.
IF Oler had wanted to sell that Ice stock at
90" said Mr. Morse "he could have done So
as 1t was his own stock and not mine ] never
refused to sell it. That statement is altogether
wrong"
KNEW ALL ABOUT ICE SECURITIES
Mr Macfarlane brought out from Mr.. Morse
that the latter was thoroughly acquainted with
the business and properties Of the American Ice
Securities Company. The witness said he
thought the companys earning capacity war
ranted price of at least par for the stock
which was paying dividends in the early part
Of 1907 at the rate Of : per cent.
Referring TO the prosecutions charge that he
sold Ice" stock to the bank at fancy prices
when he knew that it was worth only SIS a
share Mr.. Morse said: The real value of Ice
stock was then and is to-day par. Any person
saying the contrary speaks absurdly and does
not know what he is talking about
In regard to the exchange Of S3OOO0O of loans
with the Mercantile National Bank Mr. Morse
said that Mr. Henze did not like to borrow
from his bank. 50 he Odorse) had agreed
20 this exchange, which he considered perfectly
legitimate. In giving Mr. Curtis instructions
concerning these loans" said Mr.. Morse. Il