New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-22
BARNEY THREATENED
TO LEAVE BANK BOARD
R4LKED At 4 NOTE OF
nORSEDS FRIEND.
Cabin dustin GriIed on Stand
about Transaction an Ice Stock
Defendants Hfe in Court.

The late Charles T. Barney threatened 70 re-
sign as director of the National Bank OF Norm
America in the summer of 1907 unless Fresi-
dent Alfred H. Curtis obtained immediate set
Element Of an unsecured note for SlVo'Voo ana
interest made By Calvin Austin, preSluelI VI
the Consolidated steamship Company, ana as
counted in the bank By Charles W. Morse, 1t
was brought out yesterday at the Morse-Curus
trial before Judge Hough in the United States
District Court. When Mr. Curtis pushed pen
and ink toward Mr.. Barney, however. the for
nner head of the Knickerbocker Trust Com
many thought better Of his threat and remained
on the board.
Nj Austin. who said he at present head
OF the Eastern Steamship Company. was put
through a hard grilling by both the prosecu-
ZION and the defence. As president Of the Con-
solidated Steamship Company, the SIZooVoVVV
coastwise shipping merger formed by Mr.. Morse
the witness said he drew salary OF S0oV"o i
year He also admitted that his high position
in the steamship business was due 10 MoIse
friendship for him.
Witness testified that Morse had induced him
20 buy go shares Of American Ice Securities
Company stock in January. 1907, at $50
share for which he gave his note for S1uoVJU
due in twelve months. Mr.. Morse. according
10 M Austin's testimony. had told Austin that
he Cdorsel believed Ice stock was golng 10
10 Morse also guaranteed the buyer against
all loss in q letter
Austin received the 1850 shares Of stock
but after holding them for a short time sent
the certificates back to Morse at the latter
request. Morse meanwhile discounted the note
In the National Bank OF North America but
apparently put up no collateral although the
quarterly dividends on the Ice stock were
credited TO Austin At the same time Morse
had discounted a note Of $4,000 made by James
R Keene.
Mr. Austin testified that on several occas ions
M Curtis had pressed him either to pay the
note or 20 Put up collateral, but when he took
the matter up with Mr.. Morse the latter told
him he would take care OF the transaction, as
he had agreed. Therefore, witness said, he had
ceased TO worry about the transaction. EX-
Congressman Charles E. Littlefield, on cross
examination for the defence. brought out that
Morse had put Austin into several previous
deals in Ice stock, which had netted the latter
over $4,000 profit. In one Of these transactions
James {. Morse. who figured in the Morse
Dodge divorce trial as Uncle Jimmie" made
& $1,000 profit.
HAD HEARD OF OCTOBER PANIC.
There was q ripple Of laughter in the court
room when Mr. Ldttlefeld asked Nj Austin If
he did not know that there was a financial crash
last OCTOBER. Witness AleehIy ooseiNeu III1I
he had heard there was" In trying TO estab-
Ish the fact that Austin financially able
70 pay q note Of S100,oo0, Mr.. Little1eld forced
the witness 70 admit that he had steamship Sc
czrities worth S250oO0.
United States Attorney Stimson continued 10
probe into the alleged dummy loans, and in
This connection showed numerous large ad-
vances 10 Miss Katherine a. Wilson Mr.. Norses
private secretary. One loan 10 Miss Wilson Of
$4,000 on 1900 shares Of Ice stock was linked
by the prosecution 10 one Of Mrs. Katherine T.
Gelshenen's transactions.
John Z. Fensler. z bank investigator for the
government testified that between April !. 1907.
and October Il. 1907, when the panic began. the
National Bank Of North America lost S133,-