Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-20
ICE STOCK LOANS.
Continued from Page One.)

same lines, was given today when
Frank E. Pringle, one of the banks
law clerks. was called as the first VIII
ness. The questioning indicated 1t to
be til. purpose Of the prosecution to
show that loans made by the bank on
ice" stock had aroused suspicious on
the part of the bank employees.
During Pringle's examination there
we're Introduced in evidence memo
randum in the. handwriting OF GURUS
and a letter showing that Mrs. Is. L.
Gelshenen had made big prcnt IN
deal in "ice', stock The memorandum
bore the address *. T. Gelshenen,
1905 Fifth avenue" There was CASH
ier's check for s3S,S65 dated Jan. 10,
1906 bearing Mr.. Curtis signature. me
letter informed Mrs. Gelshenen that her
investment of $4,000 in nee mad
earned a profit of s1s,s65 and that she
therefore was being sent check Tor
s3S,S65 to cover the transaction.
The name of F. Augustus kelnZe al
SO was brought into the case during
the examina ton of Pringle. He had told
of a loan of 100000 which had been Sc
cured by 1000 shares of ice ana 5ooo
shares Of stock of the "Butterlck Pup-
fishing Co." Mr.. Curtis came to the
loan cage and carried away these
shares, Pringle said, leaving In their
place a "substitution slip" for the
Butterick stock. This slip later was
replaced by a receipt and subsequent
ly the whole loan was balanced by two
new loans. One of these was 100000 to
Mr.. Baglin, private secretary to f.
Io:o a second
| of 500, 900 was made to Heinze himself
Mr.. Heinze at that time was president
| of the Mercantile National Bank. Prln-
| gle said.
| Pringle told of having repeatedly I'M
| der orders renewed loans in liquidation
of old loans on the same Stocks anu
| for the same amount. The 1000 shares
| of ice" stock owned by the bank,
| said he, were shifted backward and
| forward, as collateral and withdrawn
| by President Curtis and re-deposlted
| again frcm time to time with great
rapidity.
| On cross eXamination Pringlt saii
| that the Davinson Brown loan really
covered an investment in ice stock
made by Mrs. Katherine Gelsht men,
| Her investment amounted to S13o,o9o
and later was closed with profit of
$4,000 through appreciation i'll the
| value of the stock in the open mar
| ket.
That loan of 100000 obtained for
Morse from the Mercantile National
Fank through the brokerake house of
| Primrose and Braun has never been
| paid developed during the examination
| OF Samuel Reborn, loan clerk of the
| Mercantile National Bank. The inter-
| est on tho loan was paid up to and in
Guiding Sept. 30, 1907, Reborn said
| and the colateral-3000 shares of ice
is still in the Mercantile's vaults
John Primrose, senior member Of the
brokerage firm. described the circum-
stances under which the loan was Sc
cured. Primrose said ne was called tc
the National Bank of America where
Mr. Curtis told him the bank wanted
him to make a loan with the Mercan-
tile National Bank and that the Ma
tional Eank of North America woull
stand behind him in caring for the
loan The note was made and sent t.
the band and was secured by 500
shares of Ice" He paid the interes
i.lonthly as it came due after collecting
from the National Bank of Nortl
America Finally he went to Mr. Mors'
and told him that Vice President 0
Srien Of the Mercantile was botherin.
him about the loan.
MIR. Morse told me to have nothing
to do with Mr.. O'Brien," said he, "bu
to go and see the people In the banl
down town about it. l inferred H.
meant the people of the National Banl
of North America
This is the loan which Reborn ties
titled has not been taken up.
Wv. See, former vice presiden
, of the National Bank of North Amer
lea. said he was certain Vice Presi
, dent O'Brien of the Mercantile com
, planned Of the ice stocks behind TIL
, Primrose and Braun loan and he VA
sure tina. President Curtis 'sweetened'
the supporting collateral by adding
, other securities.