New-York tribune., 1909-06-15
FOR NEW MORSE TRIAL
IITTI ETON BEGINS FIGHT.
Opposed By Stimson Before CTcmt
Court of 4ppealS.

Charles W Morses counsel. Martin ". Lttleton.
began his fight for trial for his client yes
terday Mr. Iittleton went directly from the
Tombs after conference with Mr Morse ana
faced the three judges in the United States Circuit
Court of Appeals In opening his argument he said
that he was appearing for the daring hnan-
cer, the subject OF public gossip" but for Charles
". Morse. the citizen against whom this mon
strous Indictment found" Then Mr.. Littleton
proceeded to disseCt the evidence.
It within a few days of year since tho in
dictment charging the former president of the Ma
tional Bank Of North America with misapplication
OF its funds found. and over seven months
since his fifteen years in the fed
erai prison at Atlanta Mrs. Morse and Benjamin
Morse Mr. Morse's son, were in court. On the
bench Judg g Lacombe, Coke and Noyes.
Henry l.. StimsOn, former United States Attorney
who prosecuted Morse when in office and has been
retained by the oyernment to follow up the case
there with his assistant. Felix Frankfurter-
Mr.. Litteton began with review of the terms
the indictment with ffty-three counts, thirty
for false entries and twenty-three for misapphca-
tion of funds. The loans and other transactions
we're taken up by one, beginning with the
John F Carroll loan, which the government had
charged purchase of four thousand shares
of the American Ice Company for $4,000 for pur-
poses of manipulation and not hypothecation. The
government. the counsel said. had never shown the
real market value of the stock. lie traced the
shares through many transactions always speak
ing Of the funds loan
The charge by the government that the entry OF
the Carroll transactions was a false entry MI
Littleton said. could stand against the proof
presented that two thousand of the shares uti-
mately went TO Davidson Brown. OleT, Poor and
Mrs. Geshenen. Taking up the Leslie E Whiting
loan of $4,000 for which thousand shares were
hypothecated. he said
why the government did not label this
false entry cannot understand, for 1t is in effect
identical with other transactions labelled
which the four thousand shares of ice stock fg-
ured. he said, in summing up his findings
I challenge the District Attorney to show by
this record his argument that there ever was
any intent defraud' and ! say that the absolute
refutation Of that charge is on the books OF the
bank and in the record of the case. The Carroll
loans of $1l4 $4,000 repaid and the profit
accruing the bank is in round numbers $4,000,
which the records show Morse turned over 10 the
bank and II was distributed TO the stockholders"
Mr. IIttIeton said that the whole record was
barren Of any intent defraud injure the bank.
and yet Judge Hough, instructing the jury. had
told il that misapplication might be supported ty
the intent deceive. and this seemed evident be
cause the loans were concealed by the names Of
Davidson Brown and Whiting This the error,
he said. which had "h9unded this man throughout
the case. even down to judgment"
OF the Morse -Heinze loan Of t50O.Orn from tho
Mercantile. Heuze's bank. Mr.. Llttleton said that
Morse guaranteed the note. not the Bank OF North
America. and the bank he said. never liable.
1t simply muddle OF loans. Mr.. Lttleton
said The overdraft charges regarding the S.50op
check to HeinZe Mr.. I4ttletou said. had not been
substantiated b. evidence that the check was paid
before the time that Morse had deposited enough
meet il.
Mr.. Stmson spoke for hour. closing after
8 o'clock. and will finish tomorrow morning. lilo
said. IN opening. that the national banks were re-
strcted 10 the business Of banking. and gave in
brief the requirements OF the law. OF Morses re-
sponsibnIty for the entry OF fictitious or dummy"
loans in tho bond and stock account. he said that
a the trial the accused assumed all respon-
sibilty the forms OF the transactions which
resulted the OF false entries Of which the
jury found him guilty. lie said that tho David
son Brown and Whiting entries were false because
there such loans.
Mr.. Stimson much Of the testimony
taken at the trial to bear out the justice % the
conviction. and spoke briefly on Mr.. Morses respon
sibity for the transactions and the entries upon
which the indictments found Mr. Stinlscn re-
served the greater part Of his answer for to-mor-
row when he Will have two hours in which - I'm
ish his argument Mr.. Littleton will have A half
hour in which to close