New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-27
BUSTED" THE BANK
Continued from first page.

safd that Mr. Morse's balance on October -
was between $1,000 and $1,000
Il reported Mr. Morse's overdraft both 10 NE
secretary Miss Wilson. and to Mr.. curtis, he
said This S126 900 check, drawn by Mi -dcIS'
and paid through the Heinze bank and later
cleared could have been returned to the Ma
tfonaI Bank OF North America before p m
but il was not"
LAWYERS DRIFTING APART.
Although there had been indications that the
LAWYERS for Morse and Curtis were drltll"9
apart. the first open evidence that eN-' Jus :
william NJ. X. Olcott. MT. Curtiss personal
counsel did not purpose to hold back eVldeIioe
that would help his client, came in the cross
examination of Mt. Wire
When the witness was describing Sunuas
meeting OF the banks directors on Octo"e' ~
1907, at the home of Mr.. F4agler 10 uis'u1'
Morse's Indebtedness and the value OF MS COL
lateral, Mr. Attlefeld interrupted fiedse 10
kind enough not to interrupt, al l am aple ~
take care of the interests of my client. en-
claimed Mr. OIcott Mr.. Littlefeld took MS
seat acting rather surprised. but maze no o0ir
ment Mr.. Olcott asked many questions 'eho-
ing TO show that MI Curtis was acting always
in good faith in his management of the paHh-
MI Wire said that he signed the S2ooVo note
discounted by the Knickerbocker Trust C0''
pany. used in the Morse steamship specula ''oiA7'
without any misgivings. believing mat II was
a personal matter between MI Morse ana MI
Barney. who was then president Of the KnickeF-
booker Trust Company.
Mr. Wire told Mr.. Olcott that neither MI
Curtis nor Mr. Morse had ever instructed MIN
IN mako irnnroper or wrong entries in the Con-
1roIler's reports Mr. Stimson brought out the
fact that Mr. Wire had never advised Mr.. Cur
It's against the Whiting loans. 1t came out
that other loans were made by the bank tor ice
speculations. and, that while profits were CIeu-
tied TO the borrowers, some Of the losses we're
charged against the bank
NJ Wire told of certain stock deposited by
Morse with the bank collateral, but under an
agreement that the stock was really in escrow
an option on the stock having been given to Il
possible purchaser. If the latter took over the
stock under the escrow agreement the money
was still TO stand collateral for the morse
loan The option, however, was never eXercIseu'
and the stock remained against the loan
The witness said that his report, made 10 the
directors at the Sunday meeting at the nome OF
Mr. Flaeler showed the total of Mr. Morses
loans TO be $4,000. and that against them Were
securities held as collateral having a supposed
value of S701.l40
ce-President Lee examined as 10 the
eac7ritfes which Mt Morse deposited with the
hank when he made the S211.oO0 loan on octo-
her is 1907, TO take care of his large over
draft. He said the collateral consisted of But
tericlz Company stock, United Copper. Consoh-
dated Arizona Smelling, Mexican Coal and Coke,
Chelsea Realty Company. Bath Cde9 Trust Com
pany stock. New York Knickerbocker Real Es-
tate Company stock Fourth National Bank
stool, and stock and bonds of the Consolidated
Steamship Lines Company. Mr.. Lee was not al
lowed TO tell what he considered the market
value Of these securities at the prices then pre-
Yailing-
Mrs. Curtis was in court usual. The trial
will go on this morning.