The evening world., 1908-10-26

talltWN NtN llNl 'IINtlfN WI All' '''Ns
until after 4 o'clock. whereas tho bank
was supposed to- close ut O'Clock. Re.
plying 70 Wallace MacFarlnnc. who is
personal counsel TO Morse. Wire said II
frequently happened before that
Morses balance was squared after
banking hours.
Former Judge W. NJ x Olcott. who
is defending Curtis asked Wire n series
OF questions which tended to emphasize
the growing belief that the two wings
OF the defense arc getting farther apart.
Lawyers at Odds.
Congressman Charles W, Littleheld
who is helping to look after Morses
case, broke in wish n tegty Interruption.
Never mind Mr.. Lttlefcld." said
Judge Ocott warmly. u can take care
OF the interests of my own client. Kind
ly do not interfere with me"
This was the first surface indication
OF the break between the two defend
ants.
At this juncturc John W. Gates
entered in an transformations manner
without Offering to bet the doorkeeper
million or any like sum. Mir. Gates
took a seat next to CHARLES VI. Schwab.
. of the Steel Trust, who had arrived
few minutes earlier.
Mr.. Olcott asked II II. I. Havemeyer.
a director, had obtained loan on the
name OF ]. a. Smith. his typewriter.
This question, which brought in Di-
rector Havemeyer, who afterward be-
came president of the bank, was ruled
out as improper.
Wire said that he knew the Decem-
ber 1905. loan OF $4,000 to Dawson
Brown was really an accommodation
for Mrs. Katharine Gelshenen, who
used the proceeds to deal in Ice and
who was credited with the profits. Mir
Stimson took advantage of this opening
to show that this loan was really used
to take up an earlier loan which had
been carried by the bank direct and
the profits of which had been paid to
the bank. Stinson also showed that
losses on these dummy loans We're paid
by the bank and not by the ostensible
borrowers.
"Did you know nj the time" put
in Judge HouEh. chat the bank
twas paying the interest on these
fsO-cal1ed dummy loans:''
~ didn't know IL MT the time"
said the witness. 81 did know the
bank carried the losses in some
INSTANCES"
w. W. Lee, former vice-president of
the bank. who had also testified before,
!came to the stand after Wire left. He
twas in the bank throughout the mo-
mentous day of Oct. 15.
"Busted Bank" Said Curtis.
About 4 O'Clock, an hour after the
bank closed for the day" said Lee, Il
talked with Mr.. Curtis at his desk.
He had just come out of Morse's Of
flee. Mr.. Curtis said to me:
az HAVE JUST TOLD MORSE
HE HAS BUSTED THE BANK
] Il asked Curtis what Morse had to
say about it. Curtis told me that Morse |
had replied: Curtis, don't say that
II didn't take the matter seriously at |
first-but l investigated the banks |
books at once TO ascertain what the |
at oG ZOE w' THhRG GUNR NAT TINT AT
loan OF s2il,Oo0 CREDITED TO |
MoRSE'S ACCOUNT" Wire had tes1 |
tifed that this loan was made after
( Did YOU make any loan of s2ll 900 to
Mr.. Morse on that date?" Lee was
e ASKED.
g Did You have any hand in making
the bank? A. No.
Q. Did you see Morse and Curtis !
panied by an attendant from the vaults. |
This attendant carried two safe deposit |
THE LOAN DEPARTMENT GER
TAIN SECURITIES WHICH HAD
sECTR1TIEs RhcoRDGEHD5> AS I HNT.
ING BEEN DEPOSITED AS COLAT-
T TG SAdnG For THE LOAN OF s2ll,Ooo
Q. Was there any stock of the But
terick Publishing Company in this col
lateral? A. Yes.
"Curb Stock" as Collateral.
Mr.. Wise kept hammering along until
he proved that most of the so-called Sc
curity that was damned into the loan
account on that evening to hack mp the .
belated Morse loan and hide Morse's
overdraft was curb stock, not listed on
the Stock Exchange, and having. to
value" Besides Butterck the collateral |
Included stock of the Steamship Trust,
United Copper, Arizona Shelters Next
can can Coal and Coke, Chelsea Realty,
Knlckerbocker Real Estate Company
and Fourth National Bank,
The prosecution demonstrated to the
jury by Inference that the grand total
OF s7Ol.liD of Morses ostensible Sc
curity would never have fetched any
thing like that figure in ordinary times.
let alone time when the plug had !
been pulled out If the bottom OF the
market and really valuable stocks were
going down out of sight.
HaVemeyer Testifes.
w. II. Havcmeyer, who succeeded
Curtis as president of the bank, les
tined at the afternoon session Mr..
HaVemeyer said he called a special .
meeting OF the board OF directors ON |
Oct. H. Both Morse and Curtis were
u asked Mr.. Morse to explain the
matter of his loans and he refused,
said Mr.. Havemeyer. We then asked
Mr.. Curtis why he had permitted Morse
TO borrow so much. Curtis said that
he had made the loan 10 permit Morse
to protect his oyerdratt Curtis said:
i have got out Of Mr. Morse an that .
I can at this time, !, for one, was
The witness was not permitted to tell
how ne ana the others present eX-
pressed their feeling
Charles NJ. Schwah, John ". Gates .
and former Justice Morgan !. O'Bmen .
went on the stand, but their testimony. |.
aside from denying any knowledge of a T.
rule enabling Morse 10 overdraw his
account, was without Importance.
Didn't Borrow from Bank.
Just before Judge OBrieu left the .
stand Ie asked permission to m.l., "a .
personal explanation touching on GER
lain newspaper statements g,,ulI...g T.
his connection with Morse enterprises. .
H. said
. Il want 10 say that never borrowed
cent from the Bank OF North .
America, That ] was never IN any ice
pool on any steamship pool, or auv F.