New-York tribune., 1908-02-21
MORSE AIDED HE[NZE.
MYSTERY OF OTERDR4FT.
Part Used IN United Coppor Pool
Hanna Brings Counter Suit.

It is declared that when Charles w. Morse.
then vice-president and dictator of the National
Bank of North America, overdrew his account
al the bank some S550oa0 last October Just be-.
fore the panic. large part OF the money went
T. Augustus 'Heinze. who then deeply
engrossed in conducting the i'll fated pool in
United Copper stock which soon after burst and
resulted in the failure of Otto Heine s, Co. the
resignation Of Mr. Heinze president of the
Mercantile National Bank and the forced elm
iration Of Mr.. Morse from all his banking
ncc1icIs. 1t was also learned yesterday that
the overdrafts were not all made October i.
but extended over several days This answers
in part a question which has often been asked
OF late to what Mr.. Morse did with all the
money he obtained from various sources in the
last six months.
a counter suit 10 the complaint recently filed
by the Continental Finance Company against the
National Bank Of North America and Charles
". Morse to prevent the collection of 100000
note. was placed on record yesterday in the
United States Circuit Court by Thomas E.
Wing. as counsel for Charles a. Hanna, receiver
Of the former Morse bank. The receivers suit is
instituted TO enforce collection of $4,000 note,
which is signed by the Continental Finance
Company. and given in payment it is admitted,
for preferred stock OF the American Ice Securi-
ties Company.
The receiver asks judgment tor the amount
$4,000. with interest. from August :. 1907. The
complainant alleges that the Continental
Finance Company refused TO pay the note when
Il was presented at its Office. No. 100 Broadway.
on February last The Continental Finance
Company has twenty days TO answer
The action fled by the company fortnight
ago seeks 10 restrain the receiver from taking
any steps TO enforce payment Of the note or TO
sell the one thousand shares Of American Ice
E1ad ~ he
as collateral. The company in its bill con-
tended that il had given the note for the stock
after an understanding with Mr.. Morse that the
uaper should not be presented for payment be
ing given only as an evidence Of the obligation
When Mr Morse sold out the syndicate :
stock il is alleged, he agreed 10 deduct the
amount Of the note from the conlpanys pronts
and turn over the remainder After obtaining
the note. The complainant first fled charges that
Morse at once used il as collateral with the Bank
-f North america When the note became due
= was renewed for another six months, with an
understanding among all concerned lncIuolhs
Alfred H Curtis, then president Of the baink'
that II should be renewed until the syndicate
stock vas sold.
The complaint also charged that MI AIorSo
obtained notes from others in the same way and
then promptly hypothecated them Ihe COM
ranv states that a sale of the stock at the pres
e7+ rrioes would entail heavy loss ana
further that II should not be asked 70 pay the
note until IL knows what became OF the syhoi-
,sts and its stock. and also who got the money
for the note when discounted.
Since Nj Hanna took charge Of the bank on
January - last he has reduced the haplIitles
some &. 600 600 This includes $l2o"o o.
,-la-7r;nz House loan certificates when ne mas
Maid of and S4Os0o0 of notes held by deposi1ors
which he has cleaned up by allowing deposits %
set them of
one Of the officers Of the Mercantile National
Rank said Yesterday that as far as that bahh
z-as concerned he had positive knowledge tldt
there had been no discussion by the bank OH
Gals Of any plan put Nj Morse into ~ D'AiiH
-71ntcv. Neither will the hnlcheroocher A'us'
.-,--7Tar7z-. which is a creditor Of Mr. Morse 10
he extent Of some 100000 Join II any al
7er7r,t 70 throw him into bankruptcy
ve- = Is known that the bankruptcy matter
has not been dropped. A man who Is III d posi-
-. = ,--,,z,- Ar AIorse's financial situation, as
- a.. his banking interests are concerned, per
,-,s Fe-rer than any other, said that the mat
t-,7z- lay in the fashion of two alternatives.
..-r-, .57 +l,is man I'VE find that more money
-. ta attained for creditors by pushing me
natter Of 1ankruprcy. then as a ila''eI %
-. ,-a will he Obliged TO take that course
T. -, -t,a other hand, il becomes apparent IIaI
49, 5s = fair chance that Mr.. Morse may Gear
,,- some or IL Of his obligations or tha1 al Pui
-,Sae will better be served by permitting nm
-i-,. ir which TO liQuidaUe ms securIIA09 111N
,--.-.7 -t7er7 that course viii be followed.