The sun., 1908-02-19
MORSE STARTS IN TO FIGHT
WILL RESIST BANKRUPTCY PETI.
TEON IF MADE.

Mrs. Morse Fighting, TOO-Reoeiver
Hanna 20 Sue tho Bank Director&
Three Of Charles W. Morse's creditors
will probably petition to-day TO have him
put into involuntary bankruptcy. Two
OF these creditors are banks from which
he borrowed money. They have been con-
templating bankruptcy proceedings for
several days. but have experienced dlfH-
Guilty in getting the necessary third creditor
to join with them. It Is understood. how.
ever. that the consent OF a third was OBJ
tanned yesterday and that the papers will
be fled to-day.
Mr.. Morse will fight any bankruptcy
proceedings. IL has been the contention
of his advisers that IL he is allowed reason
able time in which to work out his secur-
ties he will be able to square up all his In
debtedness. but that II he is forced into
liquidation the losses may be heavy.
II was said yesterday that one OF the pur-
poses Of the complaining creditors in fling
a petition to-day would be to include in ths
Morse assets the securities which he assigned
Platt in the settlement Of the $4,000 stock
transaction which he had with Judge
0Bnen. That asst gnment was made on
October 20. and the four months will be up
to-day. In the event Of a man being de-
clared a bankrupt any assignment made
within four months is void.
Another assignment which the creditors
expect to catch is one Of $50 900 to Philip J.
Britt. who is now acting as Mr.. Morss's
counsel. This assignment was made in
January and, according to Mr.. Britt. was 10
cover an indebtedness on a business trans-
action" It is understood that the payment
had something to do with Mr.. Britts in
terest in Morse's $4,000. 900 American Ice
pool The assignment to Mr.. Britt in
cluded Morse's equity in the collateral on
his loan from the National Bank of North
America. The balance OF this loan. $243.OO0,
constitutes the claim under which the bank
has been levying on Mr.. Morse's property.
The creditors who are planning to bring
the bankruptcy suit have settled upon q
man whom they will recommend to tho
court for appointment as trustee
While some Of the creditors were talking
bankruptcy yesterday Lawyer Britt ap-
peared in Special Term. Part l., of the Su-
preme Court and moved for the vacation Of
the attachments issued at the request Of
Receiver Hanna Of the Bank OF North
America. He charged that the atidavits
on which they were based are fatally de-
fective. These afAdavits allsge among
other things that Morse had left the country
for the purpose Of evading his crS'eAsers.
The argument on the motion was set ~
next Monday.
Mr. Morse appeared before Justice Dow
ling in the Criminal Branch Of the Supreme
Court at 1890 o'clock and pleaded NOS
| guilty to the indictment for perjury found
against him on Monday, with the privilege
Of Withdrawing or amending the plea
Mr.. Britt wanted two weeks in which 20
prepare his motions. but Assistant District
Attorney Kresel objected. Justice Dowling
fixed next Tuesday.
Il ask that the bail in this case be fixed
at 1000 said Mr.. Kresel.
Il objectl' shouted Mr.. Britt. 1T In
well known that this defendant is under
| $40. 900 bonds now. and il was only a short
time ago that a man under the same charge
on which 10000 is now demanded was held
1 in only $500 bail. This demand ls only
equalled by the performance Of Sunday.
when the District Attorney sent three
|
who had come 5000 miles to give himself up.
The action OF the District Attorney in this
matter is indefensible. The bail that hs
asks is eKorbitant. unreasonable and en-
cessive.'
Il will fix the bail at SO oOOO.' said Justies
Dowling.
with all due respect to your Honor
said Mr.. Britt. Il think that bail is exces-
sive."
You can take an exception said tbs
Justice.
Mr.. Morse. sitting in the front row. smiled
\ frequently at the words between his counsel
and Mr.. Kresel. There was just as big 9
crowd in the court room as on the previous
day.
The bond was furnished again by the
Fidelity and Deposit Company OF Mary
land
Lawyer Britt announced after the ar-
/ raignment before Justice Dowling that hs
will move to have both the perjury and the
! larceny indictments dis missed.
The perjury indictment charges MorsA
| with wilfuly and knowingly tesdfying
| falsely in regard to E. r Thomass 9 loan Of
SSo. 900 from the National Bank Of North
/ America II was learned yesterday that
| IL was after President A H. Curtis Of the
bank had dug up a letter from Thomas to
| Morse that Morse appeared before the
| Grand Jury and ASKED to be allowed 70 COR
rect his testimony. This letter showei
that Morse had handled the loan trans-
action as vice-presldent OF the bank He
! had testified when he first appeared be-
fore the Grand Jury that he knew nothing
about the loan and that Mr.. Curtis had
| handled Il.
The Sheriff's return under the attachment
proceedings from 0'Briep. Boardman a
Platt showS that Morse In his ssttlement
Of the Bank Of North America stock trans-
action with Judge o'Brien put up eo7 shars
OF the Bank Of North America. 500 shares Of
the Fourteenth Street Bank. 500 shares o.
the New Amsterdam Bank and 100 shares
Of the Garfield National Bank. The Morse
debt 10 the law firm and TO r. A. G. Smith.
who also was interested In the purchase 81
the Bank OF North America stock, 10 pus
| down a. more than 100000