New-York tribune., 1908-03-14
CALL MORSE BANKRUPT
WANT RECEIVER NAMED.
Creditors File Petifion-.Iudge Holt
Defers fiction.

A, f,,,o,,,ntarv petition in bankruptcy flied
YESTERDAY against Charles w Morse in the United
States District Court by Charles a. Hanna re
,reiver for the National Bank of North Amer'ca''
and TWO other creditors. The appointment OF a
receiver 10 take charge OF the assets OF the ice
King was asked, but Judge Holt deferred acuoii
until Mir Morse had been adjudicated lnsoiNei'-
The eliminated banker must now prove to the sat
,sfac:io, Of tie that he is solvent OF re-
cciver viii De named Mr.. Morse's lawyers are
confident thag he can DO this
y, involuntary petition in bankruptcy was also
Med AGAINST the Mercedes Import Company. OF
N.u York Morse concern. by Mr. Hanna ana
two other creditors. and Judge Holt appointed Joii
s Davenport receiver, with bond OF $5@V" Two
weeks ago Justice Platzek the Supreme Court
appointed three temporary receivers on l'e appii
cation Of the company, but the state receivers
must now give way TO the federal receiver Inc
National Bank OF North America is the largest
creditor OF the company, with claim OF over
s5G.e00
The fling Of 2 petition in bankruptcy against
Nr Morse had been long expected MI Hanna
whose claim is Se0S S2l g. with interest has not
been inclined TO force the former banker. but has
indeed been extremely ienlent with hil- IiIe III
sii1utfon of the bankruptcy proceedings became
necessary. however, 10 conserve me interests ol
the banks depositors. The receiver will be glad
tc have Morse prove that he is solvent as IN
such case he viii call upon nim 10 pay the moneys
which he owes the bank In case Mr. Morse Is not
able 10 demonstrate that he is solvent MI Hanna
believes there will be greater lkehhood OF the
rupiCy laws than with the eN-banker III charge
of his much tangled affairs
James NJ. Clifford, who appeared TO oppose the
appointment of d receiver, argued that The peil-
toning creditors were not legal creditors III that
the claims grew out OF stock transactions IL is
believed. however, that the petition will hold In
case il does not fl is understood that TholnaS t'
Wing. attorney for Mr.. Hanna, has other cred
:tors on whom he call The giving OF prefer
euces by Mr.. Morse within the last four months is
nerif7c aCtO Of
lion. In refusing to name receiver at once Judge
Holt as is customary in such cases, Informed coun-
SCI for Mr.. Morse that there must be no undue
delay on the part OF the eA-banker III proving his
sovency-
The two petitioners who Joined with Mr. Hanna
were Frank g Pringie and Edward d. ShotWell'
two former clerks in the National Bank OF North
America under the Morse regime Both bought
stock in the bank from Mr. Morse through false
end fraudulent representations, the petition al
leges but on discovery of the alleged mlsrepre-
sentaton returned the stock 10 Mr.. Morse and de-
rlanded repayment, which refused. The value
Of the claim of each is SsS1s A. The receiver al
Ieges that security which he has for his claim
Of S39531 % has Ii present approximate value of
sI5Aeth- There Is security held by either PIlnSe
or Shotwel.
ences by Mr.. Morse the petition in part says:
on or about January -. 1908. while insolvent.
with intent prefer such creditors over his other
creditors transferred the Fourteenth Street
Bank creditor at that time. Philip j. Britt.
another creditor, large amount of stock and real
collateral security for such pre-existinS
Indebtedness.
on about February 3 1908, while insolvent
=snc with intent TO prefer such creditor over his
sner creditors he suffered permitted judgment
10 entered against himself of Robert A
c. smith in the of SI55,T53 06 in action
wherein the said Smith was plaintiff and the said
Morse defendant
That within four months preceding the fling of
This petition that is 10 say. since November II,
1SGz- the said Charles ". Morse, while insOlvent.
lis divers other of bankruptcy other
sfian heretofore enumerated, thar he has trans
1eTred. while insolvent q portion OF his property:
consisting of stocks bonds and other securities and
cash the whereof Is unknown TO petitioners,
t. mis- creditors in payment of indebted
ness owing by him TO them and security for in
dehtednesS by him 20 them with intent TO prefer
such creditors his other creditors.
'5n, familiar with Mr.. Morse's business affairs
sad last night that the former bankers liabilities
nc-e close S4.0Ooeto and that his assets the
present market price slightly 100000
Those who know Mr.. Morse feel that he viii fight
The bankruptcy proceedings tooth and nail.