New-York tribune., 1908-02-07
MORSE NAY COME BACK.
COUNSEL SENDS FOR HIM.
Federal Indictments RumOrcd-
Boardmau and O'Byien Before jury.


United States attorney for this district. and
chat he had reason TO believe that Mr. Morse
would return Immediately. He repeated his
-s-er,ent that his client had sailed from New
Work q, the Campania. OF the Cunard Line. last
Saturday.
when asked why Mr.. Stimson had requested
him to send word 10 Mr. Morse to return. and
ut.tber il was because federal Indictment was
n be found against him, Mr.. Boardman replied:
u do not know. but L suppose it is because
.ood many people here want him."
Mr. Boardman and ex-Justice Morgan J.
o-Rr,en were summoned yesterday to appear
before the federal grand jury. Both men are
-,enaters of the law firm of O'Brien, Boardnan
f. Pla1t formerly counsel for the National Bank
of North America Mr.. O'Brien testified for over
.u,o hours but Mr.. Boardman was not called
ypou. When asked what he supposed the grand
,,-v wanted him for Mr.. Boardman said he
.,supposed he called to tell the grand jury
xbat he knew about the sale by Morse of
,s-ee block OF stock OF the National Bank of
North America
NJ O'Brien. when he left the jury room said:
~g was director in the National Bank of North
America last spring. / held that office for
VERY short time. resigning in the spring in order
,o 90 10 Europe. / was called to-day to testify
sto the condition of the bank and the condition
cf ts loans. etc. the time left the institu-
tien~ He refused 10 say more except that he
believed that Mr.. Morse would soon return to
America
MORSE DID NOT FLEE"
Mr Boardman said he wanted it plainly
understood that Mr.. Morses departure from
Europe in way in the nature of a flight
or an attempt TO evade his creditors. Mr..
Morse" he said, admits that he owes large
sums CT money 10 the National Bank of North
America and to others of his creditors and
since last October he has devoted every busi-
ness day 10 conferences with his creditors look
ing TO q settlement. If given enough time he
would probably be able to effect satisfactory
settlement. but the strain has been terrific and
enough shatter any mans nerves. Mr.
Morse has lost great deal Of money in the last
four months and is badly in need Of rest"
Nj Boardulan and Mr. Stimson were in
sultation for hour yesterday in the latter's
Office in the Federal Building. but the United
States attorney refused to divulge what mat
ters were discussed. Asked whether Mr. Morse
was wanted by the federal grand jury. in con-
nection with the present banking investigation
which il is known TO be conducting, Mr.. Slim
son said:
u have nothing whatever to say. and the
public is at liberty draw any conclusions 1t
nav see fit concerning the appearance to-day OF
ex-Justice Morgan J. O'Brien and Albert B.
Boardman before the federal grand jury l
cannot discuss the matter Neither will 1 admit
nor deny any OF the rumors current concerning
the possibility of indictments in connection with
the banking Investigations"
close friend OF Mr.. Morse pointed out yes
terday that in his opinion, the most likely
business transactions in connection with which
Mr. Morse might be indicted were the loans
which he and his steamship companies obtained
from the National Bank a. North America be
fore the panic last October. He said that the
night before Mr. Morse resigned from the vice
presidency Of the National Bank Of North Amer
ioa. well from all the other local banking
Institutions with which he was connected. the
members of the Clearing House committee went
o+er the loans of the National Bank of North
America and found that Mr. Morse and his
companies owed the bank s1,250.oO0. These
fans were either unsecured or were made on
the stocks and bonds Of the various Morse COM
Ianies.
TOLD HE MUST TAKE UP LOANS.
The members of the Clearing House commit
tee did not nince words with Mr.. Morse. but
Informed him that every Of these loans must
be taken up by noon the next day or the com
mlttee would order the bank closed. on the
following day there was great outpOuring of
the bonds Of the Consolidated Steamship Com
lany on The curb market, and the shares OF
The American Ice Company were also heavily
hQaidated the Stock Exchange.
III. Morse. according TO this friend made
eaIian; attempts 10 raise the money needed to
lake up the loans. but, though he sacrificed his
securities without stint, failed. Then. the story
goes. he went j p Morgan and threw him
self on that hnancier's mercy. Mr.. Morgan lent
not chronicled. and the loans paid off. 1t
Is in connection With these bank loans that Nr.
morse may be indicted his friend thinks.
II is pointed out by those in a position thor
oughy TO understand federal extradition pro-
eeedings that If Mr. Morses trip to Europe
*as taken with a view to flight, he must have
teen IL advised The treaty between the United
states and Great Britain 50 broad that
-ar Morse could be easily extradited in
octEnent naming any offence specified in the
-eoeral statutes in connection with tie conduct
u federal bank officials. The same liberal
treaty also exists with the various countries
o. Europe and Mr. Morse could only find
asylum from extradition in one or two Of the
small South American and Central American
republics in some of the African states.
Mr. Boardman described $ ridiculous the re-
foff that Mr. Morse had taken Sl.00.Geo In cash
Win him 10 Europe. He also said that any at
teihr on the part Of Mr.. Morse to conceal
himself would be futile because he was lame
shd would he easily discovered. lie added that
'e ielt sure that Mr.. Morse would answer a
wireless message Il sent TO him aboard the
campania
The @herea bouts and financial affairs of Mr. .
'4ofse formed the chief topic Of conversation
yesterday in the Wall Street district Indeed.
: tornor followed rumof so rapidly that IL was
iafo 10 keep abreast of the news. In the first 4
pace no one could he found who had actually (