New-York tribune., 1908-03-16
SCHWAB WITH MORSE.
WILL BEAR HIS SHIRE.
Former Bcnker Tells Hosv He Plans
to Retire scith No Debts.

to Retire scith No Debts.
Charles w. Morse. through Eugene P. Carver.
of his counsel. gave out last night long state
ment, 81 which he told he intended TO
habitate his affairs and pay nil his Indebtedness.
According TO the statement. the former banker
expects TO have enough after settling all just
debts and moral obligations to enable MIN to
1--we the rest OF his life by rigid economy" Coan
sci refused TO state what Mr.. Morse's ideas OF
rigid economy" were how much the eliminated
fnancier expected to have left.
Mr.. Morse says he purposes to fight in every
honorable way ana hopes for speedy disposal
OF the criminal charges pending against him both
in the federal and county courts. In regard TO
the bankruptcy proceedings which are pending
against him. he reiterates his announcement that
he will prove his solvency. In case he is over
ruled his to the rights ot the three
Pettioning creditors, whose position legal bank
rUptcy petitioners he doubts he says he VIII de-
nand a jury trial and carry the case, if neces-
sary. TO the United States Supreme Court
Charles A Hanna. receiver Of the National Bank
of North America, Mr.. Morse says, is simply the
temporary receiver" Mr.. Hanna refused to COM
ment this statement last night but it is gener-
ally understood that he is the permanent receiver
Mr.. Carver issues for his client general threat
bring suit against any and all persons who
may make any statement in the public press
tending to injure Mr.. Morse the Morse securi-
ties
The statement says that Charles NJ Schwab in
tends share the full burden of responsibility
that may belong to him, whether legal or moral
in connection with the suit which the receiver has
brought against the directors the National Bank
of North America under the Morse regime to re
cover losses alleged to have been incurred in stock
transactions.
The statement says:
Mr.. Morse proposes. and believes that he is able
nav m so s 9ep1s ynorsi safion s NAV be deemed
hY n he a
sufficient: by possibly rigid economy 10 enable nm nm
in every Honorable way. invoking such legal rights
and remedies as @ " we co may 9awe T TO abeed to bring
actions, defend actions take any other course
criminal matters of which there are some pend
ing both before the courts OF me eibeT Il bai!
quick determination of those questions both as Sc 70
'' conference with the United States District A.
torney. and he desires. as We 90, 10 see MS! Wa !t
legal rights the government has Under tnat lndct
and shall file an exception an aQd p poSS5nE SS
motions in relation oetien no 1e Of law and motion
in regard to the guashng m , @I me to are the mat
ter before Judge Hough.
Then the statement says that Mr.. Hanna is
simply the temporary receiver, appointed unoe ''e
authority of Controller Of the Currency ana not
under the authority of any court Regarding the
bankruptcy matter counsel says he does not believe
that any of the three persons is creditor who'
under the bankruptcy act. can petition MI Morse
into bankruptcy. On this point it says;
Besides this. certain acts of banISrnptcT are are
alleged in the petition. one of them being IN 1e-
lation TO the R. A. c. Smith Judgment and the 0Iher
relating to prefe1encGp pbIf1 dTsfp Frtt We IN
derstand that the r. A, g Smith Judgment will vii
shall 90 into a hearing on Tuesday to have it
opened, in which case all defect IS cured. We W.
and we doubt if such prefer
enHe erS' for many reasons If it is preference,
would stand, even without bankruptcy proceed
Prior TO the bankruptcy proceedings certain
bim in such matters as might be deemed
sary 1t has been stated that certain tain sfei people,
notes in the Bank of North America. and that in
| some way or other they were MIXED up WIN WIN
here that he could purchase notes for certain
of Of nd M r 4d MePse WSt result
then went back to Boston and returned TO eaca
person advancing the money the amount placed
in my hands.
The statement says that Mr.. Morse and his
immediate relatives and friends own between
40 and As per cent of the stock of the Bank of
North America. Regarding the bank counsel
says:
might be interesting to know that Mr. Morse and
own somewhere between 40 and 10 per cent of
the stock OF the bank. and that the receiver has
stated publicly that the bank viii pay all de
Air Morse and Mr.. Curtis feel that the first
America is to pay off the deposits in full and
an endeavor TO raise syndicate to pay these
depOSltOrS In full. either by the purchase OF re-
Ceiver's certificates by the actual payment of
the money into the Sub-TreaSury Of the United
States: and they feel assured that this can be
Gepositors will part with his receivers receipt
al less than its face value.
In regard the suit against the directors Of
the bank. have not made a full and complete
legal examination; but if such examina-
riOn far Mr.. Morse is concerned we believe
that there is legal liability. shall recommend
10 him that he assume the liability to that eX-
tent We have not conferred with the other di-
Tectors. with the exception of Nj Scnwab and
his counsel, and we can say that Mr. Schwab'S
disposition is share the fun burden Of
obligatiOn.be strictly legal obiisat ton simply
moral
In relation TO the suit which is brought against
Mr.. Morse the alleged dummy loans deny
any liability in relation to Of them, and
/ would furthermore. that of these loans
in respect dummy loan but the per
whose note is in the bank paid value
Ceiyed for the amount OF the same. Our PROPOSE
tion in relation to the National Bank of North
America i TO pay off the depositors. hold d di-
rectorS' meeting elect stockholders agent cali
q stockholders meeting confirm the action of the
directors. deposit the funds in the ssub-Treasury
wind up the bank the minimum expense for
the benefit Of the stockholders.
-s-
CAN'T SMO0THE OVER BROWNSVILLE.
In q prologue to his evening sermon last night
the Tsov. DT. r. &. Ransom. pastor of the African
Methodist Episcopal Bethel Church, in West 25th
street said President Roosevelt in his dealing with