The evening world., 1890-07-15
PRESIDENT MORTON IN JAIL.
Charged by the Western National
Bank with Fraud.
Trouble for tho New York Export
Lumber Company.

Edward Morton, President Of the New
York Export Lumber Company, is in
Ludlow Street Jail, where he was quietly
taken yesterday afternoon after being
arrested in suit brought by the Western
National Bank charging him with wrong
fully converting to his own use or the
use of the Company goods worth s12. 900.
MIR. Morton was arrested yesterday
morning by Deputy Sheriff Young, but
the fact of his arrest was guarded very
carefully, as in the days of Flack.
AT Ludlow Street jail he was comfort
ably ensconced in the cell formerly occu-
pied by ex-Napoleon Henry s. Ives, who
was one of the star prisoners before the
exposure of the manner in which pris-
oners with money we're allowed special
privileges.
Morton is an Englishman, and has only
been In the country about three years.
He owns large lumber mills in West Vir-
gina. in which he employs several hum
dred men. He lives with his wife and
three children at 1923 Lexington avenue.
The office of the New York Export
Lumber Company is at 80 Broadway. The
present difficulty is the result of q rupture
III O series of transactions which began
when Conrad N. Jordan was President of
Mr.. Jordan. 1t will be remembered, was
the means of patching up the affairs of
the Lenox Hill Bank when thnt concern
WAS drawn under blythe syndicate of bank
wreckers.
An EVENING WORLD reporter called at
the bank this morning to learn the
grounds on which the claim for Sl2, 900 is
made,
Vice e-President Snyder. who was seen.
refused to say anything about ii. Police
Commissioner Charles +. MacLean, the
banks lawyer. also declined to speak of
the matter except in general way.
THE suit is based on the Company's
Indebtedness to the bank" said Mr.. Mac
Lean. The bank holds judgments
against the Company for several thousand
dollars, and the present suit is against Mr..
Morton, the Company's president. The
banks opinion of the matter is that Mr..
Morton made promises he could not fulfil,
ana the bank, rs trustee for many stock
holders, among whom are widows and
orphans, had to bring suit"
Mr.. Il. Breckinridge Steele. Of lie Bar
bier d Brewster, counsel for President
Morton. was more outspoken In regard to
the arrest.
- II grows out of an attempt on the part
of the bank to make Morton responsible
for the company's debts. 1t Is outrageous
that man should be locked up without a
bearing ! hsa rims, upon the allegations made on
From another authority the reporter got
q statement of the difficulty.
The complaint in the suit is sworn to
by Thomas j. Brennan, assistant cashier
Of the Western National Bank. who
alleges that between Nov. @. 1889, and
April, 1890, the company pledged and
hypothecated to the bank for value,
forty three carloads of lumber or collnt-
rol ftN fnR ,NaIA 90
lt between the above dates. and also for
collateral security for all it's indebtedness
to the bank, and delivered to the bank
bills of lading for the carloads of lum-
ber, duly indorsed by the corporation,
and that thereupon the bank became en-
titled to possession of the lumber which
was valued at $12, 900.
The complaint then sets forth that
Norton wrongfully took possession Of the
,orty three carloads of lumber and con-
5erted and disposed Of 1t for his own use
br the use of the company, since which
the bank has obtained Judgment against
the company based upon the same claim.
A gentleman who has been acting in
capacty for the company made the fol-
Lowing statement to an EVENING WORLD
reporter:
The custom of the Company has been
TO give the bank inland bills Of lading on
goods in transit between Baltimore and
England and upon shipment of the goods
the inland bills of lading were exchanged
for ocean bills of lading.
" The goods then went to the other side
and the bank cole oted on its bills of lad
ing, thus realizing O neat sum by each
transaction. These transactions went on
for two years, and the bank admits that II
had former transactions of this kind.
- The bank alleges that the Company
Oh which they held inland bills of lad
ing, in spite of the fact that the goods
constituted no security unless they were
shipped to England. they beng sold there
under contract price which could not
be obtained here to the knowledge of the
bank.
Therefore, their technical allegation