New-York tribune., 1908-02-15
MORSE NOTE In SUIT.
ACTION AGAINST HANNA.
Ccur. asked to PreUent Bank Cot
Ieetine 500. .00G.

,,,r. rv,, mas thrown on ;he methods pur-
.-,.6 nv Charles u. Morse when a bill or COM
rlsfnt was FLED Yesterday in the United states
Circuit Court by the Continental Finance Com
panv against Charles A Hanna as receiver OF
-he Na-,onaI Bank Of North America. the bank
srd Charles ". Morse The company alleges
ro-a for $50 eoo was obtained from il by Morse
,,6s- ,,,isrep-esentaAons IN connection with 4
e-,d,ca-e Of the American lee Securities Com
many and me promise that il should never he
r.ss Now the Finance company wants To pre-
ven. Mr. Hanna from collecting the $4,000 and
interest
The Continental France COMPANY. in It's con-
r,sinr SAWS II Is rot the only concern which has
suffered in she same way and that others nave
incurred similar obligations through Morses ef-
forts 70 unload the stock Of the Ice Trust.
which ne as the read Of syndicate, was trying
20 sell.
The connr?,si,,. charges that in February. 1907.
when Morse was first vice president and Alfred
H Curtis was president OF the National Bank OF
North America. the former went 10 IhonlaS
Sturgis president OF the Finance company, 10
induce him TO join the syndicate to buy some o.
The stock Of the Securities company, which con-
,rolied s14920 200 of the s15.o000o0 OF the pre-
ferred stock Of the company He offered 10 sell
TO the Finance company one thousand shares
at sc. ne q share accepting in payment s7,oso IN
complaint alleges Morse said this note need never
be maid and that when the stock was sold at
s11o OF s11a g. share he would turn ever the
profits from the transaction. minus the amount
Of the note On these terms the FINANCE COM
pany says it accepted the proposition
Some time later the Finance company in
formed Mr. Morse and Mr.. Curtis, as officers
Of the bank, that it would not be liable for the
loan TO which both men are said 10 have agreed
The Finance company says another inducement
was that Il was TO be able borrow money
from the bank on the usual collateral, just as
though the note did not exist, Just before the
note matured the company says II palo sl'oo'
interest it
This note rnatured on February 13 by which
time the deposits Of the Finance company had
been reduced from S70155 TO S6.932. The COM
1,laiut charges that Morse was at liberty to
Withdraw any Of the stock of the securities COM
pany deposited by him at his pleasure ana 1fat
at all times he was master Of the disposition OF
such stock The plaintiff company says II does
not know what amounts Morse may have Sc
cured on the note on the sale OF stocks oe-
longing TO the complainant or others but that
the bank was familiar with the conditions under
which the loan made and the renewal OF
the note obtained last August
The court is asked to enjoin the bank and the
taking legal action TO collect the note. The
plaintiff also asks that the bank and Morse he
compelled TO render accounting for whatever
money has been advanced on the note and 10
state whatever credits have been made thereon,
and whether Morse. acting for the bank IN
whole or in part, sold any of the stock
It is further alleged that the president ana
directors of the bank were fully cognizant OF
all details Of the transaction and displayed much
interest in the proceedings President Curtis
IL is alleged. suggested a plan for the issue of
new securities for the holding company
When Morse gets in tomorrow morning he
probably viii not be placed under arrest The
federal authorities have no warrant for his ar
rest and United States Attorney Stmson said
that no federal officer would trouble Morse
When Mr. Jerome visited the office Of the United
States attorney he is believed to have agreed
with the federal authorities that il would he
unnecessary TO place Morse under arrest on his
arrival AS plans stand at present Morse will
appear with his counsel in court on Monday