The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-08-08
MORSES SECRET is
At LAST DISCLOSED
federal Indictment DisCIoses
How He Was Able to Sc
cure Large Sums.
is ONLY A FIGUREHEAD.
PARTY TO SCHEME PLANNED BY
CERTAIN FRIENDS OF HIS
DUPEs TO SECURE CONTROL OF
GREAT BANKING HOUSE.

New York, Aug. 8.-A new federal
indictment against Charles w. Morse
Yesterday led to the revelation Of the
secret of his ability to pay in full the
100000 of deposits in his National
bank of North America within six
months OF the date when the alleged
bankrupt and fugitive from justice
was brought back here by the police.
1t appears that Mr.. Morse is mere
ly figurehead in a scheme planned
by friends of certain of his dupes to
obtain possession of the Bank Of
North America and settle it's affairs
to suit their pockets.
AS Morse was the principal stock.
obtain his cooperation, and as he knew
more than any one else about the
value of the assets and the tangle in
which the affairs of the institution had
been drawn it was agreed to permit
him to figure as the head of the
scheme.
Borrowed $1,5oo,ooo.
or course, before anything could be
done the depositors had to be paid in
full That required the use of about
$500, 900 of actual money. To obtain
this application was made to the AS
sets Realization Company, of Chicago.
That concern agreed to undertake the
risk for a commission. it Is said Of
$275,000 or approximately 20 per cent.
Approved collateral was pledged, and
as soon as the receiver issued his GER
tificates of deposit the plan was put
into operation.
Jumped at the opportunity to obtain
their money in full at once instead Of
waiting for it to be paid in INSTALL
ments by the receiver as he realized
ON the assets. When a sufficient num-
Der was paid Morse's interests applied
to the government for permission to
place in the hands Of the receiver a
sufficient amount to pay off the re-
mainder and take over from the re-
ceiver all the assets. books, etc. of
the bank and complete the liquidation
to suit themselves.
Baked by Government.
In view of the criminal indictment
against Morse for violation of the fed
eral banking law the possession of the
books and certain assets of the bank
In the shape of notes which Morse
had discounted would have been Of
great Importance to Morse The gov.
eminent, however, refused the appli-
cation and decided that the liquida-
ton Of the Bank of North America as
well as the New Amsterdam bank,
another Morse institution, should be
carried to a finish by it's own receiv.
ers.
Such was the condition of Morse's
affairs when the United States grand
jury handed down another indictment
against him and Alfred II. Curtis, for
merly manager of the National bank
of North America, charging falsifica.
ton of the banks books.
The alleged false entries concern
seven, said to be fictitious loans, on
the American Ice Sc curities company
stock, aggregating $1,000,000 and
which were recorded in the banks
books as having been made by Curtis
and Morse as officers of the Bank of
North America between December s.
1905 and April IS. 1907.
They are described as Cali and
Demand" loans and the first one
credited to Davidson Brown, on De
cember 8. 1905 was for $114,649.1S
The other six are in the name of Les
lie e. Whiting