COUNT 30.

And the Grand Jurors aforesaid, upon their oath aforesaid, do further present, that the said Charles W. Morse and the said Alfred H. Curtis, on the eighth day of December, in the year nineteen hundred and five, at and within the said Borough of Manhattan, City of New York, and Southern District of New York, were directors and were officers, to wit, the said Charles W. Morse was vice-president and the said Alfred H. Curtis was president, of The National Bank of North America in New York, which then and there was a national banking association theretofore organized and established, and then and there existing and in operation and doing business under and by virtue of the laws of the United States concerning national banks, and that the said Charles W. Morse and the said Alfred H. Curtis, so being such directors and officers, respectively, of the said national banking association, then and there unlawfully, knowingly and fraudu lently and with intent to injure and defraud the said national banking association, did wilfully misapply certain of the moneys, funds and credits of the said national banking association then and there being to the amount and value of One hundred and two thousand, nine hundred and twenty dollars ($102 920), (a more particular description of which said moneys, funds and credits is to the Grand Jurors unknown and therefore cannot here be set forth), by unlawfully, knowingly, wilfully, fraudulently and without the knowledge or consent of the said national banking association, and not for any use, benefit or advantage of the said national banking association, converting and applying the said moneys, funds and credits to the use, benefit and advantage of the said Charles W. Morse, which said conversion and application of the said moneys, funds and credits was then and there accomplished by the said Charles W. Morse and the said Alfred H. Curtis in the manner following, that is to say: By virtue of the power of control, direction and management which the said Charles W. Morse and the said Alfred H. Curtis, as such directors and officers, respectively, of the said national banking association, as aforesaid, then and there possessed over the moneys, funds and credits of the same, the said Charles W. Morse and the said Alfred H. Curtis at the time and place in this count of this indictment aforesaid, with the intent aforesaid, and as aforesaid, without the knowledge or consent of the said national banking association, unlawfully, knowingly and fraudulently did wilfully apply the sum of One hundred and thirtyfive thousand, four hundred and twenty dollars ($135,420) of the moneys, funds and credits of the said national banking association to the purchase from the said Charles W. Morse and other persons to the Grand Jurors unknown, for the said national banking association of four thousand shares of the capital stock of American Ice Securities Company (a corporation theretofore organized and then existing under and by virtue of the laws of the State of New Jersey), said shares of stock being of the par value of One hundred dollars each, when, as they, the said Charles W.

Morse and the said Alfred H. Curtis, then and there well knew the price at which the said shares of stock were purchased, as aforesaid, was wholly arbitrary and artificial, and did not represent the real value of such shares, but, on the contrary, was an inflated price fixed by the contrivances, manipulations and operations of the said Charles W. Morse upon the stock markét for his own personal benefit, and the said shares were really together worth much less than the sum applied to the purchase thereof, to wit, only the sum of Thirty-two thousand five hundred dollars ($32,500), whereby the said sum of One hundred and two thousand nine hundred and twenty dollars ($102,920) then -and there was wholly lost to the said national banking association, and its moneys, funds and credits were and are depleted in that amount; against the peace and dignity of the United States, and contrary to the form of the statute of the same in such case made and provided.

Misapplication, $106,000.
April 9, 1906.
Whiting Transaction.

COUNT 34B.

And the Grand Jurors aforesaid, upon their oath aforesaid, do further present, that the said Charles W. Morse and the said Alfred H. Curtis, on the ninth day of April, in the year nineteen hundred and six, at and within the said Borough of Manhattan, City of New York, and Southern District of New York, were directors and were officers, to wit, the said Charles W. Morse as vice-president and the said Alfred H. Curtis was president, of The National Bank of North America in New York, which then and there was a national banking association theretofore organized and established and then and there existing and in operation and doing business under and by virtue of the laws of the United States concerning national banks; and that the said Charles W. Morse and the said Alfred H. Curtis, so being such directors and officers of the said national banking associations, then and there unlawfully, knowingly and fraudulently and with intent to injure and defraud the said national banking association, did wilfully misapply certain of the moneys, funds and credits of the said national banking association then and there being to the amount and value of One hundred and six thousand dollars ($106,000) (a more particular description of which said moneys, funds and credits is to the Grand Jurors unknown and therefore cannot be here set forth) by unlawfully, willfully and fraudulently and without the knowledge or consent of the said national banking asso ciation, and not for any use, benefit or advantage of the said national banking association, converting and applying the said moneys, funds and credits to the use, benefit and advantage of the said Charles W. Morse in the manner and by the means following, that is to say: By virtue of the power of control, direction and management which the said Charles W. Morse and the said Alfred H. Curtis, as such directors and officers, respectively, of the

said national banking association, then and there possessed over the moneys, funds and credits of the same, they, the said Charles W. Morse and the said Alfred H. Curtis, did then and there cause to be credited upon the books of the said banking association, to the said Charles W. Morse, the said sum of One hundred and six thousand dollars ($106,000), the said Charles W. Morse not being entitled to be then and there credited upon the said books with the said sum or any part thereof, as they, the said Charles W. Morse and the said Alfred H. Curtis, then and there well knew, and did thereby falsely and fraudulently represent to the Board of Directors, the other officers, the clerks and the tellers of the said national banking association that the said Charles W. Morse was entitled to draw and have paid out the moneys, funds and credits of the said national banking association the said sum of One hundred and six thousand dollars ($106,000), and did thereby place at the disposal and subject to the order of the said Charles W. Morse certain of the moneys, funds and credits of the said national banking association, to wit, the said sum of One hundred and six thousand dollars ($106,000), they, the said Charles W. Morse and the said Alfred H. Curtis, then and there unlawfully, knowingly and fraudulently devising and intending that the said Charles W. Morse should be enabled to draw and have paid out of the moneys, funds and credits of the said national funds and credits, and should appropriate and convert to his own use, without right and without being justly entitled thereto, the said sum of banking association and should draw and have paid out of the said moneys, One hundred and six thousand dollars ($106,000); and that thereafter, to wit, at the time and place in this count of this indictment aforesaid, the checks of the said Charles W. Morse drawn upon the said national banking association for the said sum of One hundred and six thousand dollars ($106,000), being then and there presented to the said national banking association for payment, were by reason of the credit so made upon the hooks of the said national banking association as aforesaid and by the order and authority of the said Charles W. Morse and the said Alfred H. Curtis, as expressed in the said credit and in pursuance of the intent as aforesaid of the said Charles W. Morse and the said Alfred H. Curtis then and there drawn and paid out of the moneys, funds and credits of the said national banking association and appropriated to the use of the said Charles W. Morse, although as they, the said Charles W. Morse and the said Alfred H. Curtis, then and there well knew the said sum of One hundred and six thousand dollars ($106,000) so drawn out, paid and appropriated had not been deposited with the said national banking association by the said Charles W. Morse, and was not then and there due and owing by and from the said national banking association to the said Charles W. Morse, and the repayment thereof to the said national banking association was not then and there in any way secured and the said Charles W. Morse had no manner of right and title to the same; against the peace and dignity of the United States and contrary to the form of the statute of the same in such case made and provided.

COUNT 38B.

And the Grand Jurors aforesaid, upon their oath aforesaid, do further present, that the said Charles W. Morse and the said Alfred H. Curtis, on the eighteenth day of April, in the year nineteen hundred and seven, at and within the said Borough of Manhattan, City of New York, and Southern District of New York, were directors and were officers, to wit, the said Charles W. Morse was vice-president and the said Alfred H. Curtis was president, of The National Bank of North America in New York, which then and there was a national banking association theretofore organized and established and then and there existing and in operation and doing business under and by virtue of the laws of the United States concerning national banks; and that the said Charles W. Morse and the said Alfred H. Curtis, so being such directors and officers of the said national banking association. then and there unlawfully, knowingly and fraudulently and with intent to injure and defraud the said national banking association, did wilfully misapply certain of the moneys, funds and credits of the said national bank ing association then and there being to the amount and value of One hun dred and sixty thousand dollars ($160,000), (a more particular description of which said moneys, funds and credits is to the Grand Jurors unknown and therefore cannot be set forth) by unlawfully, wilfully and fraudu lently and without the knowledge or consent of the said national banking association, and not for any use, benefit or advantage of the said national banking association, converting and applying the said moneys, funds and credits to the use, benefit and advantage of the said Charles W. Morse in the manner and by the means following, that is to say: By virtue of the power of control, direction and management which the said Charles W. Morse and the said Alfred H. Curtis, as such directors and officers, respectively, of the said national banking association, then and there possessed over the moneys, funds and credits of the same, they, the said Charles W. Morse and the said Alfred H. Curtis, did then and there cause to be credited upon the books of the said national banking association, to the said Charles W. Morse the said sum of One hundred and sixty thousand dollars ($160,000), the said Charles W. Morse not being entitled to be then and there credited upon the said books with the said sum or any part thereof, as they, the said Charles W. Morse and the said Alfred H. Curtis, then and there well knew and did thereby falsely and fraudulently represent to the Board of Directors, the other officers, the clerks and the tellers of the said national banking associations that the said Charles W. Morse was en titled to draw and have paid out of the moneys, funds and credits of the said national banking association the sum of One hundred and sixty thou sand dollars ($160,000), and did thereby place at the disposal and subject to the order of the said Charles W. Morse certain of the moneys, funds and credits of the said national banking association, to wit, the said sum of One hundred and sixty thousand dollars ($160,000), they, the said Charles W. Morse and the said Alfred H. Curtis, then and there unlawfully, knowingly and fraudulently devising and intending that the said Charles W.

Morse should be enabled to draw and have paid out of the moneys, funds and credits of the said national banking association and should draw and have paid out of the said moneys, funds and credits, and should appropriate and convert to his own use, without right and without being justly entitled thereto, the said sum of One hundred and sixty thousand dollars ($160,000); and that thereafter, to wit, at the time and place in this count of this indictment aforesaid, the checks of the said Charles W. Morse drawn upon the said national banking association for the said sum of One hundred and sixty thousand dollars ($160,000), being then and there presented to the said national banking association for payment, were by reason of the credit so made upon the books of the said national banking association as aforesaid and by the order and authority of the said Charles W. Morse and the said Alfred H. Curtis, as expressed in the said credit and in pursuance of the intent as aforesaid of the said Charles W. Morse and the said Alfred H. Curtis then and there drawn and paid out of the moneys, funds and credits of the said national banking association and appropriated to the use of the said Charles W. Morse, although as they, the said Charles W. Morse and the said Alfred H. Curtis then and there well knew the said sum of One hundred and sixty thousand dollars ($160,000) so drawn out, paid and appropriated had not been deposited with the said national banking association to the said Charles W. Morse and was not then and there due and owing by and from the said national banking association to the said Charles W. Morse, and the repayment thereof to the said national banking association was not then and there in any way secured and the said Charles W. Morse had no manner of right and title to the same; against the peace and dignity of the United States and contrary to the form of the statute of the same in such case made and provided.

[Endorsed] A true bill.

JAMES BROWN, Foreman.

HENRY L. STIMSON,

U. S. Attorney.

FORM XXXII.-COUNT IN INDICTMENT FOR VIOLATION OF

NATIONAL BANKING LAWS.

[Sustained, U. S. v. Heinze, 218 U. S. 532 reversing judgment sustaining demurrer. This was drawn by Henry A. Wise, Esq., U. S. District Attorney.]

SECOND COUNT.

And the grand jurors aforesaid, upon their oath aforesaid, do further present, that the said Fritz Augustus Heinze, on the said fourteenth day of October, in the same year nineteen hundred and seven, at the Borough of Manhattan aforesaid, in the said City of New York and Southern District of New York, was an officer, to wit, the president, of The Mercantile National Bank of the City of New York, which was a banking association