New-York tribune., 1908-08-05
MORSE READY TO PAY
TO DEPOSIT THIS WEEK.
Rank of North america Plans Prac-
ticallg Perfected.


,rs, closely identified with Charles W. Morse.
--bo has been working on a plan TO pay of the
,aenositors of the National Bank of North Amer
ga and hand over the assets to committee OF
e.ockbolders. said yesterday that Mr. Morse had
.-actically perfected arrangements to raise the
o.sea-~- funds and would deposit the money
;. -be local Sub-Treasury some time this week
Charles A Hanna. the federal receiver. who has
baen in charge of the bank since it suspended
>, January - last has already paid two divl-
5.nds Of - per cent each TO depositors who
have fled proofs of claim
T-han the bank closed its doors its deposits
.7,o1nted to S3.440.0o0. but other liabilities
ho,,-lt its total Indebtedness up TO nearly
g nel0a0 OF this sum the receiver has liqui-
5.-e5 10 rer cent which means that Mr. Morse
-,,,y. raise 100000 20 settle in full the banks
remaining obligations.
Nr Morse and his family controlling
interest in the banks S2,o0o.O0o capital stock.
end II has been his hope ever since the bank
s,snended TO gain possession Of its assets The
.5z-an-aees which Will accrue TO the stockholders
,,n5e- = Norse's plan are easy TO see It is
,he duty Of the receiver nquidate the assets of
6 failed national bank with the greatest possible
are huf il is the interests of the depositors and
no- those OF the stockholders which he has
uppernost in mind
Among the assets Of the National Bank OF
North America when It suspended were many
securities which were sure TO suffer heavily in a
forced liquidation. These same assets, if care
fully nursed and not thrown upon the market,
VIII realize much more money. Among them
were American Ice Company and Consolidated
Steamship Company stocks and bonds
IIr Morse Eas been paying off depositors for
the last TWO months, and in this way has OBJ
+ained large number Of receivers certificates.
He has paid the face value of accounts and
has allowed no interest The receiver on the
other hand expects TO pay interest at per
cent on all balances from the time the bank
s,,eren5ed Many large depositors of course.
have failed 70 take advantage Of Mr. Morse's
offer 20 settle because il entailed a loss of con-
siderable interest which has accrued since jan
uary . last.
~ Morse expects 10 derive the greatest equity
ro- the stockholders n case he IS able to carry
o1t his plan The bank building at No. 43 Ex-
change Place is owned by the Wall Street Ex-
change Building Association. stock company.
Nearly 90 per cent Of the associations stock,
however is owned by the National Bank of
North America which means that the bank
practically owns the building There is mort
gage OF SI.5000O0 the property
Mr Hanna the receiver. is understood to be
willing to sell the building for s2.9OO0OO, which
date. however. he has not found buyer Mr-
Morse believes that in two years from now he
will be able 10 get at least s3.000000 for the
property which viii give the stockholders an
equity OF $4,000 00o
Considerable opposition TO Mr. Morse's plan 10
ray Of the depositors is coming. however. from
the minority stockholders There IS pending in
the federal courts a suit for over 100000
brought by the receiver against the directors of
money alleged 10 have been lost by the officers
Of the bank in stock market speculation. In
case Mt Morse's plan is successful and the
ceiver is dismissed il is probable that this suit
VIII be thrown out
What the minority stockholders want to know
Is how their interests viii looked after in the
matter OF the suit If won, il would mean just
so much additional value to their stock. Mr..
Morse and the other directors, who would have
70 pay the money 10 the bank, would be glad, of
course 10 have the suit dismissed The minority
stockholders however. are not so sure that they
want 10 give UP this equity in return for Morse
ADMINISTRATION Of the banks assets
Nr. Morse said yesterday that he making
rapid progress in his plan 10 take over the bank,
but refused TO go into details. Where the money
is coming from is puzzling the receiver, but he
Is waiting for Nj Morse TO make good
Several months ago Mr.. Morse organized
S1ee0eeo corporation al Bath, Ne, which he
called the Morse Security Company It was
announced that the company's business to
buy and sell stocks. bonds and other securities.
Mr. Morse has always been very secretive when
asked what this company was doing. Many in
Wall Street believe that it will supply the money
necessary 10 pay of the depositors- It is also
possible that the necessary S2o00,o00 will come
from the Assets Realization Company. of Phiu-
oelphia. which is another recent Morse enter
prise
Friends Of Air- Morse ridicule the report that
he mas been punging in the stock market ard
has made enough money in the recent rise to
pay OF the banks GePositors. It is true, never
tae-ess. that many Of the so-caled Morse sec,sr-
ties have advanced materially from the low
Prices which were made in and directly after the
panic last fau.