New-York tribune., 1908-10-28

ment's allegations have been shredded down 10
about sixty.
As for the first count, relating to conspiracy
the count Immediately following presents the
same matter. but in somewhat different lesal
ASPECT The allegations Of not reporting TO the
Controller of the Currency the Knickeroocker
Trust Company loan, with its attendant owner
shin Of the Consolidated Steamship bonds and
stocks and the purchase of the National Bank
of North America stock and the ownership OF
those shares. according to the prosecution, still
stand before the jury.
"Tbe counts thrown out, some through our
consent and the others by the Court, merely
clear up the indictment to the pertinent issues
as Is usual In most criminal cases., said MI
Stimson.
Gordon Wendell. who sits at No in the jury
box and whose illness delayed the trial one Day
last week is not we'll, and may be forced 10
hold UP the proceedings again.
ATTACKS GOVERNMENT ACCOUNTANTS.
Mr.. Macfarlane in opening the defence for
Mr Morse paid his respects 10 the government
,sleuths who have been investigating the DOCKS
of the National Bank Of North America. The
examinations and deductions Of these account
ants he said had always taken strong leahlhs
toward the governments charges The 1nVesu-
gators he alleged had been blind as moies TO
ANYTHING in the banks books which might have
reflected favorably on the two defendants
Mr.. Macfarlane referred to Mr.. Morse's advent
fn New York in 1884 as an ice dealer. he salu
Morse Uss not a practical banker, but left the
entire nanagement of the bank TO Curtis whom
he trusted implicitly To give some idea OF the
magnitude of Morse's transactions with the Ma
tional Bank Of North America in the last six
wears Mr. Macfarlane said that the defendants
passbook showed total business with the bank
aggregating more than s55,000,000 He said that
the fact that Morse owned more than ~ per
cent of the banks stock showed how closely the
success Of the institution linked with M.
Morse's own success. This, he said, disproved
at once the governments charge that Morse was
trying TO wreck the bank
Mr. Macfarlane told the jury that, although
the rules of banking forbade the ownership of
stocks by banks Congress had never made IT a
criminal matter When the Controller thought
a bank was dealing too heavily in stocks he
warned IT, and that was the end Of It, but 1t
had never been made a criminal offence.
The lawyer traced the beginning OF Ice stock
deals with the bank and told most frankly of the
deals Morse had made. beginning with the Car
roll loan and the Dawson Brown loan Of $4,000.
Coming down TO the loan TO Mrs. Gelshenen, he
said the profits had been sent to her. All the
profits Of the Ice deals made by Mr.. Morse
loans. he pleaded, were really made against the
collateral and not the individual.
The bank at time owned the stock or was
in any way liable for the loans. the attorney
said as the collateral all furnished by Mr..
Morse. The directors of the bank had all known
Of the Ice stock loans, and not only approved
them, he said, but had applauded Mr.. Morse's
Iberality.
Mr.. NIacfarlane next took up the overdrafts.
They were, he asserted, common in every bank,
and the mere making of daily demand note to
the bank to cover the overdrafts was a per-
fectly innocent transaction, and he could not
imagine how Mr.. Morse could be charged with
any criminal action in so fixing up his account
1T might be true" Mr.. Macfarlane admitted.
that the bank might have advanced Mr.. Morse
little more than any one else, but it had al
ways been for the institutions profit.
TO It all up. the transactions were inno-
cent Of any wrongdoing," the lawyer said. and
the bank at no time assumed any liability"