New-York tribune., 1908-02-26
MORSE SCHEME Barred.
AFTER CHASE N4TION4L.
ReUcaled by ReceiCer's Suit for 1000
Shares of That Stock.

Il became clear that Charles w Morse in
tended 10 force his way into the directorate OF
the Chase National Bank and TO control it and
its assets he did the other Morse-Heinze-
Thomas banks and trust companies. when
Charles A. Hanna. receiver for the National
Bank of North America, fled suit yesterday
against the Metropolitan Trust Company The
action was based on the refusal of the Metropou-
tan Trust Company TO tufn over TO the Bank OF
North America one thousand shares-of the capi-
tal stock OF the Chase National Bank when
Morse had deposited as collateral for a loan OF
$4,000 made him by the Metropolitan Trust
Company.
Il was recited that subsequent TO the time
Nj Morse procured this loan and prior TO the
tine Of SIS maturity the Metropolitan Trust
COMPANY was informed that the National Bank
Of North America the keystone Of the Morse
system was entitled 10 possession Of the stock
upon payment Of the loan with interest and
that on OF about October 80 1907, it was dl-
rected by Morse TO deliver the stock TO me
National Bank Of North America upon this pay
rnent Il was stated that the defendant in the
action refused to return the stock and therefore
damages for 100000 with interest from January
So 1908. and costs We're asked
This plan Of Morse's 10 get control Of the
Chase National Bank reveals, in the opinion OF
Wall Street men, more clearly than anything
else. the vastness OF his financial projects ana
is they think a connecting link in an ambitious
scheme OF his TO gradually get control OF prac-
ticaIIy all the independent banks in TINS CITY
Whether Morse could have carried through ms
r,,,-pose is problematical. as he was swamped In
q panic against which it was impossible for him
TO guard
HOW MORSE GOT STOCK.
The complaint says that about June 13
1897, Morse obtained loan Of S15ooeo from
Comm any
sand shares Of Chase National Bank stock, and
that at ..the time Of procuring said loan on the
said one thousand shares that stock was the
property Of the National Bank OF North Amer
lea and this bank was at all times and now Is
the owner thereof"
Il is understood that MI Morse bought the
one thousand shares from the estate Of John G.
Moore. formerly senior member OF the stock ex-
change firm OF Moore & Schley. The stock II IS
presumed. was bought with the funds Of the
hank Nj Morse at that time was The vice
president and dictator of the National Bank or
North America, and bought the stock, it is said
for the dual purpose Of investment for the
bank and TO procure for himself an entrance 70
the directorate of the Chase National Bank. The
stock was then quoted around opo ana was
bought al the market figure.
Having used IL the neighborhood OF S3Uo,VoO
o4 the banks money TO make this investment,
M Morse, It IS believed, deemed 1t wise 10 re-
duce this amount. To DO so he put the STOCK
I'D a. collateral, in his own name. with the
Metropolitan Trust Company for a loan OF
$4,000 ana il Is thought took this S15O.oOo and
deposited Il in The National Bank OF NoTth
America TO the banks credit. thereby acting
merely as the agent Cor that bank. although at
the same time he served his own purposes by
getting control Of LOCO shares Of the capital
stock OF Z bank which he wished TO add to his
string
Subsequent to his obtaining this loan the mar
ket became unsteady and generally fell off; then
came the first rumblings OF the financial panic,
and on October 19 q Clearing House committee
visited the National Bank Of North America and
forced Morse 70 resign as vice-president Of that
institution and also forced him out Of all the
local banks in which he held Office
HAvEMEYER TAKES \ HAND
William F. Havemeyer was made president
and Alfred II. Curtis, the former president sue
ceeded Morse as vice-president- AIr- Have
never took charge OF the bank when II was IN
desperate straits in a last endeavor to pull 1t
through. In going over the assets Of the bank
he discovered this loan OF $4,000 and the col
lateral deposited TO secure IL
AI-tourf the market value of the Chase Ma
tionaI Bank stock had materially decreased Yet
= still held around 24o, which would net nearly
p hundred thousand dollars more than the face
Of the note. and Nj Havemeyer saw he could
Increase the assets Of the bank By getting pos
session of L.
He wrote 10 The Metropolitan Trust Com
pany il Is understood, informing II that the Ma
+tonal Bank Of North America had an equity IN
me stock Later. il Is said Nj MaNemeyer wrote
another letter 10 the trust company IN which ne
said that upon further investigation he found
the bank had no equity in the stock: that the
whole transaction ~as q personal one Of Mr.
Morse.
The National Bank of North America closed
its doors on January -. and Charles A. Hanna
was apponted receiver. He soon discovered the
transaction. He says that October 80 Morse
had directed the Metropolitan Trust Company 10
turn over the 600 shares 10 the National Bank
OF North America upon payment Of the loan
with interest The loan became due December
n Ic-t1 Three days after he took charge Nj
Hanna rendered the Metropolitan Trust Com
many ravrrent o. the loan with interest and de-
r1apded the return of the stock The Metropoii-
tan Trust Company. however, refused TO deliver
or surrender any part of it
Il met Nj Harna's demand for the return Of
the stock with 0Ir. Havemeyers second letter,
in which he said that the transaction was purely
2 rersonal one with Morse and that the National
Bank Of North America had no equity In IT, As
other claimants Of equities IN the stock had