New-York tribune., 1908-03-19
MORSE ATTACKS HANNA
DEWTRS TO PETITION.
Files -IHs7cer Also Deaying Al
Bankruptcy Charges.

r-,cone p Carver, counsel for Charles w
,,orse. filed late yesterday afternoon in the
I-,ited states District Court demurrer to the
voluntary petition ii bankruptcy presented a
ok ago against his client by Receiver Hanna
,f ,ze National Bank o. North America, Frank
= p-inele and Edward D. Shotwen The de
.,,,7rer among other things. alleges that the
e+iricners are not creditors according 10 the
bankruptcy 2ct-
II addition To the demurrer the law firm of
,.ifs~G. Hobbs & Beard submitted to the same
o,r, sTgr-e's answer TO the involuntary petit
...r which DECLARES that he IS not insolvent and
,,-s.s that the question OF his solvency be left
20 ehe determination oc jury; that at the time
;.araa was appointed receiver of the National
rsn; Of c<or1h A.aerica the bank held and still
holds collateral security the market value of
yrrca was ana is greatly in excess Of the
.D,aunt of the receivers claim. and .hat Hanna
Is oa:y tensoia.ry recci.er g the bank. He fur
taer says:
A ceasid5Table T'cIuen of the collateral de
nosited as security fer the claim been mis-
turrvpriated bZ Charles A Hanna, receiver.
ritbout the consent Of Charles VI. Morse. and
,-aptrarr ID the provisions OF tile contract under
y.ich the collateral was deposited. and has been
rTrled and held as security by Hanna on other
alleged uniiQuidated, u;lascertaineG and disputed
: Gains OF the National Bank of North America
pgaEst Charles w Morse
REGARDING Pringle and Shotwell's claims
Morse SAYS he never by false and fraudulent
-snresentations induced them to purchase for
sssso4 each thirty shares OF the capital stock
Of the National Bank of North America. and de
,ies that he owes the amounts set forth in the
,etition He says he believes that Pringle and
sbotwen clerks employed in the bank, were in
stirated 10 join in the petition by Receiver
Hanna, who had made repeated and unsuccess
mi attempts 10 induce other creditors of Morse
10 do 50.
Denying the acts of bankruptcy alleged in the
pstition Morse in the answer says:
The alleged transfer to the Fourteenth Street
Bank and TO Philip ]. Britt if made at all, was
MADE on January %, 1908. by an instrument in
writing That the alleged transfer WAS made
at the request Of the Fourteenth Street Bank
and Britt and Morse. in making il. did not with
intent TO prefer such creditors over his other
creditors transfer TO the bank and Britt a large
amount OF stocks and real estate, or any stocks
or real estate, as collateral security for pre-
existing debt within the meaning OF section Is
Clause B. Of the bankruptcy act
And Morse asserts that he believes the Four
ieenth Street Bank and Britt. or either Of them,
rfn not insist or claim that there was any pref
erence and that he win take steps 10 dissolve,
snnul or revoke the assignment. either by volun-
tary acts on the part OF the Fourteenth Street
Bank or Britt or by proper legal action
As TO the allegation that on February he
rermitted judgment to be entered against him
by Robert A c Smith, Morse in the answer has
this 10 say:
When the summons in Smiths suit was served
upon him he handed the same TO A b. Board
nan. his attorney with instructions to defend
the suit to which he had a perfectly good de
fence Mr. Boardnan promised 10 defend inc
suit but through the inadYertence or neglect OF
Boardnlan. or for some other reason involved
IN the relations Of counsel in the litigation. the
suit was not defended, Morse. in his absence
and without his knowledge or consent. was De
faulted and Judgment filed against him Pro-
ceecings are now pending 20 vacate the Jude-
raent on grounds set forth in a motion for that
purpose. that an order TO show cause OF the
motion has already been issued, and Is IN ne
heard on March 90 Execution on the judgment
has not been levied and there has been no SAFE
or final disposition Of any property affected ny
the alleged preference.
The answer closes with the following:
More than four months prior to the ming nf
the petition when the financial condition OF
Morse was so different from what ii was When
the petition was filed, is now. Morse con
veyed and assigned to the National Bank cl
North America a considerable amount OF adol-
rional collateral upon the claim Of the bank