New-York tribune., 1908-05-02
MORSE PAYS HANNA
SETTLES BANKS CLAIIS.
Giues s250,OO0 Cash and Securities
to H7ipe out sj00,O0O Debt

Charles ". Morse, the eliminated banker. who
is under indictment in the federal and county
courts for misuse OF the funds of the National
Bank OF North America, Of which he was for
merly the dictator, made his first real progress
yesterday toward reha habilitating his deDleted
fortune when he and his friends turned over to
Charles a Hanna. receiver of the National Bank
Of North America, nearly S250O00 in cash and
securities in settlement of close to 100000 of
the banks claims against Mr.. Morse
AS 9 result OF this settlement Mr. Hanna will
pay before The middle of the present month a
dividend Of - per cent to the suspended banks
depostors, and viii also instruct Thomas f
Wing his counsel. 10 have dismissed the suit for
S4o5.676 60 and interest which he Instituted in
the SUp1- he Court on March against Mr.
Morse on account of various notes which the
banker had the National Bank of North Amer
ica discount for him when he was its vice -presi-
dent and controlling spirit.
The makers Of these notes include Calvin Aus
tin. president of the Consolidated Steamship
Company; Wesley N. Oler president of the
American Ice Company; James T Morse, of Bos-
ton. an uncle Of Charles ". Morse; Primrose &
Braun. the Morse brokers; the Arizona Smelling
Company. a Morse promotion: F. H. Low.
cashier Of q bank in Mr.. Morse's home town Of
Bath Ne. and y H. Campbell, treasurer Of the
Consolidated Steamship Company.
The complaint on which the suit against Mr..
Morse was based charged that the defendant re
ceived the proceeds of these notes for his own
use and not for the account Of the makers and
alleged that the notes were simply covers" for
loans for Nj NIorse's sole benefit. The receiver,
therefore held Mr.. Morse and not the makers
Of the notes responsible Payment having been
demanded and refused the suit followed. The
action was Of the class known legally as one for
money had and received" and judgment was
demanded
The settlement yesterday was made approx
-lately on a basis Of 30 cents on the dollar. The
cash payment was. it is understood, in the
r7eig.b borhood Of Sc. 600 and the balance was in
first class negotiable securities. Certain other
claims which the hank held against other friends
and associates OF Mr.. Morse were also included
IN the settlement Among these was note OF
c L Charley of Paris. the distributor OF the
Mercedes automobiles who was closely asso-
ciared with Mr. Morse in many business deals.
M Morse was also the hacker Of the Mercedes
Import Company, of New York, which IS at
present in the hands OF John S. Davenport as
receiver The affairs of this company were
found 20 be in a decidedly tangled condltloh'
and il : understood that the present settlement
also clears up & number Of claims which the
bank had against the Mercedes import company
and its directors and officers.
The largest individual note which figures in
Yesterdays settlement is that of Calvin Austin
for 100000. which Air. Morse discounted at the
National Bank of North America on May 20,
199I--&ext in size is note Of the Arizona
Smelling Company for S79,444 - which the de-
fendant discounted on October -, 1906: note
Of Wesley NJ Oler for SIS. .s34 73. dated August
20 1906 on which Mr. Morse obtained $40
$40 50: e note Of James T. Morse for S5oOto,
and 4 note Of Primrose & Braun for S32,oOO are
also included in the settlement.
It was also learned yesterday that -,lr. Morse
had reduced to approximately 10000 the
$4,000 for which Mr.. Hanna began suit
against him At the time of his sensational trip
u Europe This SUIT was based on certain
notes made by the banker, and at the time 1t
was fled attachments were sworn out against
al Mr. Morse's property which the Sheriff was
able 70 ind. These attachments were after
ward vacated
The money and securities turned TO Mr..
Hanna yesterday were put up by certain New
ENGLAND friends Of Nj Morse, headed by
Eugene P. Carver. one Of the former bankers
LAWYERS Nj Carver has been negotiating with
The receiver for the last month looking to the
taking I'D OF the notes already referred TO- but
= vas not until yesterday that the papers We're
signed and The money and securities paid over
With the exception Of the 100000 balance
already mentioned, Mr.. Morse now owes the
National Bank OF North America nothing. In
thz cent Of Acr. Hanna's winning the suit for
100000 which he has brought against the di-
-ectOrs of the bank under the Morse regime to
collect losses alleged 10 have been incurred in
stock speculation, Mr.. Morse Will. of course, be
liable for his proportionate share This suit,
h ,ever. Is still pending in the federal courts.