The Washington times., 1923-06-06
DENIED BIC.
LOANS To
! MORSE
Milton &. Allies and S. J. Henry
Testify in Trial on Con-
spiracy Charges.

Milton II. Allies, president OF
the Riggs National Bank today
testified in the Morse conspiracy
case on trial in Criminal Court
No. /, Justice Stafford presiding,
and on cross-examination denied
that he declined to make a loan
of 100000 in the latter part of
January, 1918, to Charles w.
Morse because Of the latter's busi-
ness relations with William Me-
Adoo, then Secretary Of the
Treasury, and also because Of his
acquaintance with John SHELTON
Williams, then Comptroller Of the
Currency.
Tells Of Conversations.
Mr.. Allies stated that he had two
conversations in the latter part of
January or the early part Of Feb
ruary, 1918. with Mr.. Morse. He
added that he had never met Mr..
Morse before, and on cross-exami.
nation by Nash lockwood OF coun-
sci for the defense, admitted that
he did not know whether another
officer OF the Riggs Bank had not
solicited Morse's business with the
bank. and that Of the Virginia Ship
building Company.
Being asked to relate the CONVEX
sation between him and Mr.. Morse.
witness said that the latter wanted
to borrow $500, 900, which at that
time was the limit under the Ma
tional Bank act. Morse, according
to Mr.. Allies offered stock OF the
United States Steamship Corpora-
ton as collateral, and proposed to
keep $150,000 Of the $500, 900, on
deposit at the bank to the credit
Of the Virginia concern. Mr.. Allies
said he declined to make the loan.
Mr.. Allies said he had another
conversation with Morse about two
or three weeks after this occur
renee, when Morse applied for a
$100, 900 loan, which was to be Sc
cured by a note of Frank Higgins.
son Of Governor Higgins, of Rhode
Island. Mr.. Allies said that Morse
proposed to leave the amount on
deposit at the Riggs Bank for the
Virginia concern. Mr.. Allies said he
also declined to make this loan.
Quotes MOrse's Reasons.
Being asked whether Morse told
witness at the time what the loan
was wanted for, Mr.. Allies said that
Mr.. Morse told him he was obliged
to show to the Government with
that he had financial resources on
deposit at the Riggs bank. The
loan was to be placed to the credit
of the Virginia Shippbuilding Cor
poration. and was to be secured by
notes Of Mr.. Higgins.
Cross-examined by Attorney Rock
wood, Mr.. Allies said that Mr.:
Glover, who was then president or
the bank. knew Mr.. Morse and that
other officials Of the bank may
have known him. Witness replied
that he was not aware that Morse's
business had been solicited by or
ficials of the bank.
Ibid you know John Shelton VIII"
liams?" asked Attorney lockwood.
Eyes. met both Mr.. McAdoo ana
Mr.. Williams.
isn't it a fact that YOU declined
TO make the loans to Morse because
McAdoo and John Shelton Williams
were interested" .....
Mr.. Allies said he did not recollect
that being the case. On further ex-
animation said he wouldn't swear
to it.
Relating Morse's conversation as
correctly as he could remember,
Mr.. Allies said that Morse expressed
his sympathy with the Riggs Bank
in their difficulties with Secretary
McAdoo and Comptroller Williams.
intimating that being a personal
friend Of both. he might probably
be Of service to the bank.
Mr.. Allies did not know whether
| any Of the officials of the bank had
| asked Morse to intercede for the
bank with McAdoo and Williams.
Disapproved by Munsey.
Samuel J. Henry Of the F. III.
Smith & Co, real estate operators
and formerly with the Munsey
| Trust Company, in charge of the
branch in the Southern Building,
testified he met Morse in February,
1913, when Colin H. Livingstone, a
director of the Munsey concern, in.
troduced him. Morse came to ar
range for a loan Of 5000, 900. accord.
ing to witness, to be secured on de-
mand notes to be placed to tho
credit of the Virginia Shipbuilding
Company. Mr.. Henry said that. his
company accepted the proposition
subject to the approval of Frank H.
Munsey. but that the latter dlsap.
proved Of the plan and that the
loan fell through.