New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-08-08
MORSE AGAIN INDICTED
4. H. CURTIS WITH HIN
Minority Stockholders Keep Up
Fight H gainSt Liquidation Plan.

Il ~
uiroritv Stockholders Of the National Bank Of
North America whose affairs now in charge
of Charles A. Hanna, receiver. were Juolant
yesterday when they learned that the federal grand
jury had again indicted Charles W Morse and Al
fred H Curtis as vice-president and president. re-
spectivey, of the bank, on the charge Of making
false entries in the books OF the bank with the IN
tent to deceive the Controller Of the Currency
With indictments already pending against the same
officials the same charges, and with Receiver
Hanna s announcement yesterday Of the payment OF
another q per cent by October l. the stockholders
who are assisting Mr. Morses efforts TO hurry up
the liquidation the banks affairs feel assured
that the kings offer furnish the funds to pay
off all pending claims against the bank is sure to
be declined by the Controller of the Currency, in
view Of the latest indictment, which alleges false
entries of loans of almost s1.000o00.
To insure the success of the plan which Mr.
Morse and his associates put forward to hasten
the winding up of the receivership il would be
necessary to have the Of the Controller OF
the Currency no matter what percentage of the
stockholders should agree to accept the plan re-
ferred in yesterdays Tribune Yet although
Mr. Hanna as receiver is the representative of the
Controller of the Currency in charge of the bank,
and although the proposed plan bears date of May
g. Mr. Hanna never until Tuesday last
copy of the proposed agreement, which Mr.. Morse
had sent out to ali the stockholders whose names
could learn last May.
agreement. which was sent 10 the stockholders
last Nay. caused such howl of disapproval that
1t was later withdrawn by Mr.. Morse and his as
sociates. This proviued for the payment to the
banking firm of c. D. Barney & Co. of s10N0 900. be
cause, as is stated in the agreement it was at its
special instance and request that the Assets Re
aization Company has consented to make the adj
necessary to pay the depositors and credit
of the bank, and has further consented TO qui-
date the assets of the bank Barney & Co.'S ac-
tiyty in this matter in order that assets
of the bank might be conserved and withheld from
sacrifice by careful administration thereof by
parties having special knowledge and facilities in
such matters" Many of the stockholders thought
that this Introduction the Assets realization
Company. concern in whose formation Mr.. Morse
is said to have been prominent. very high. and
tnat part of the agreement dropped.
The remainder of it, however. as submitted to
the stockholders. was presented to the Controller
of the Currency Wednesday last. as stated in
TIE Tribune The Assets Realization Company ac-
cordirg to the plan. would get S275.c00 alone for
compensation and commission It is also stipu
lated in the proposed agreement that John W. Nc
Kinnon, the vice-president of the company, should
be appointed shareholders agent and that the
company should be remunerated for the expenses
of liquidation
In return for advancing approximately 81 10000
which would be necessary to close NJ the af-
fairs of the bank. the assets Of the
bank to be pledged collateral
curity for the payment Of s per cent col
y,
stipulated that all. expenses enumerated should he
paid. The repayment of all moneys advanced at 5
per cent interest before the rest of the assets
should be divided among the stockholders is also
stipulated.
William H Field who represents number of
the minority of the stockholders. said yesterday:
We shall do everything in our power TO oppose
this plan which is a barefaced attempt TO dis
crinlinae against the stockholders and to throw the
bank back into the hands of Mr.. Morse and his
friends. We entirely satisfied with Mr.. Hanna's
cgement of the bank 10 date. and under his
charge surg that each and every stock
holder viii have his rights protected Mt Morse
is trying hard he 10 change indirect
obligation into a direct obligation 10 the Assets
Realization Company by the scheme to give nego-
table notes TO the company. The stockholders
would have paw those in years. whereas
there is every prospect that before another six
months the recevership Will be terminated If Mr..
Hanna remains in charge. and am confident that
he will"
Mr. Hanna would not say yesterday what he
thought of Mr. Morse's plan TO quicken the process
of liquidation. He did say, however, that he ex
pected TO pay another dividend depositors in the
National Bank of North America by October 1
next. How large this dividend would be he
not prepared to state. but it is expected that il
will be for the same amount as the two preceding
pa yments-25 per cent each.
The Indictment returned yesterday against Messrs.
Morse and Curtis contains fourteen counts. IL is
based seven alleged fictitious loans on American
Company's stock, amounting TO about Si.00OOOO.
said have been entered on the books OF the Ma
tional Bank of North America by the two officials
between December S. 1905. and April 10. 1907. The
first of the seven is credited to Dawson Brown
on the first mentioned date. The rest are in the
name Of Leslie NJ Whiting. the clerk in the office
Primrose & Braun, the Morse brokers. fol-
lows January H. 1905, 5000: A ril 1875. s3S 500:
April TO- 1905. sS4 600; May l. 1905, S3S.500 October
l. 1905 $4,000 and April IS 1907. 100000.
AS in OF the three prior indictments. the
name of John F. Carroll. the former Tammany
leader and friend of Morse. is coupled with that
OF Whiting. These loans IL is alleged.
really made. though entered the books of the
National Bank or North America and included in
reports made 10 the Controller OF the Currency as
accounts for which the officers and directors of
the hank were not liable payers indorsers.
Both Mr.. Morse and Mr.. Curtis pleaded guilty.
with the privilege OF Withdrawing the plea
August IA Judge Hough. in the Criminal Branch
of the United States Circuit Court. set September
the date for hearing. and consented to let tha