New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-18
PROTEST TO MORSE
ON DUMMY" LOANS
BOOKING OF-TCE STOCK
URGED By R4DO.
Assistant Cashier Says Curtis Only
Shrugged Shoulders and Morse
Pad Little .4tteRtion.

a6olrh Rado. who was assistant cashier of the
National Bank Of North America. testified yes
,er,lav in the Morse Curtis trial before Judge
Eoagh. in the United States District Court that
he had protested to President Alfred H Curtis
against lending large sums of money to Leslie
z Whiting. the youthful clerk OF Primrose &
Braun. on such unsatisfactory collateral as
American Ice Securities Company stock Whit
ing is one Of the alleged dummies" to whom the
hank made large loars. Mr.. Curtis replied. ac-
corsiaz 10 the witness that il was all right
and added that Mr.. Horse had made a great
deal of money for the bank, and was going to
rut the price OF Ice stock up 80 or 40 points
tight away
The witness testified that. in spite of the reas-
surfnE statement Of his superior officer he had
considered the Brown and Whiting loans pc
crar ana al the time OF the first Whiting loan
h. placed the initials A h &" opposite the
ertrv on the hanks books 10 show that the loan
vas made on Mr.. Curtiss order. RADIO said he
did not consider Ice stock alone good collat-
eral behind leans OF such magnitude.
Nj Rado also told Of calling the attention of
Morse and Curtis one day At luncheon early in
October 1907 to the fact that. if the 1000
shares Of Ice stock which collateral for a
Slo90G0 loan 70 Whiting really belonged TO the
hank as witness believed it did, it ought to be
entered in the banks stock and bond account.
He had forgotten hat answer Morse made to
This suggestion. Curtis he said. ma de no reply
but when he referred again TO the subject Cur
It's he said. shrugged his shoulders. Counsel for
the defence objected TO the admission Of this as
evidence. and Judge Hough finally ruled it all
out
MORSE BACK OF DUMMY LOANS.
United states Attorney stimson tried to get
into the record that the subsequent actions of
the TWO defendants in regard to this particu-
lar block Of 1000 shares of ice stock-which
Morse finally sold 10 the bank for 10000 after
h had taken UP the Whiting loan-were inf1u-
enced by. and indeed were direct result Of the
suggestion made by the cashier. Counsel for
the defence fought every STEP however. and the
prosecution finally gave UP its efforts. In cross
examining the witness William N X. Olcott. for
The defence. forced the admission that while
the Brown and Whiting loans were unusual and
Irregular they were not, in the witnesses judg-
1ent. wrong.
The prosecution succeeded IN establishing the
fact that the subStitutiCns and Withdrawals Of
collateral in connection with the Brown and
Whiting loans were made by Morse's orders.
TIE receipts were always signed by either
Arthur Braun or Miss Katherine a Wilson, who
were Morse's private secretaries. Miss Wilson
was in court yesterday, but was not called. On
one occasion, Mr.. Rado testified, Morse went 10
the loan cage and wanted TO withdraw part Of
the ice stock which secured q loan made to
Wesley II. Oler president Of the American Ice
Company. The witness said he told Morse that
the Oler stock was in Mr.. Oler's own name, as
was the loan. and that. he G2ado) could not give
any Of this collateral Morse.
Al this point the jurors were sent out Of the
courtroom while the prosecution served notice
-la hat II fDfa led int in
evidence copies Of certain letters the originals
Of which were not in the prosecutions posses
sion The originals are ali in the hands of the
defence. Notice Of an objection was filed by the
defence and the jury was brought back
LETTER TO MORSE IN PARIS
~. stimson then produced d letter press copy
Of . letter written by Mr.. Curtis TO Nj Morse
when the latter was in Paris in July. 1906. The
letter which was read to the jury. follows:
Al board meeting to-day, present Flagler and
Esveulerer The question Of our ice holdings was
asked and ] stated that they already knew what
We he'd 60 shares at 5s+-showing profit at pres
Ell price Of four points
Ar. EaEefreyer wrote out the incloseG cable
gram, which he suggested that send TO you As
director ne said he voted 10 SCI. MI tIaGIeI
would not oppose YOU ! did not cable but submit
Inc request for your consideration
Ne did have some $4,000 profit before the drop
The National Surety Company has held UP our
ooupromise for $500 Ny ultin39tum was s12.c?2
o. nothing ] also stated We would like to know II
They did not intend 10 pay. 50 we could bring the
rHstter before the protest committee Of the New
York State Bankers Association. this company
being che Of the two who have ARRANGEMENT
win the state association To-day We received
check IL 1ull.
Colonel Thompson wanted to make loan for
s5o0o d syndicate some property at
Nanaroneck-ioal for one year and one years re
newsl- 7 did think il proper loan Tor the
hank and suggested that they apply TO trust
company. He said YOU 10 be one Of the un-
oerwriters. II took everything that came along
We would be pretty well strapped
Trust Company % America balance to-day.
t4e9001; loaDsbIe funds S3,1G0o Thorne, Cheese
hrough D0wd. etc. borrowing about S6SIC50. .
Wittenberg Coal Company drew out nearly all
balance to-day. but said funds would - coming II
shortly
BaldWins Empire Trust Company loans are
beng paid We let Joseph Carroll have S59Vo'
eEtfa- Nothing else Of interest 80,
NJ r just called UP to say he was aiT%ld
might have sent the cablegram- told MIN lAu
10 intention Of sending il.
40 RECORD OF ICE STOCK.
After reading this letter Nj Stimson asked