The Birmingham age-herald., 1908-02-18
Perjury Charge Is Brought By
 the Grand Jury
S5O,OOO LOAN IN QUESTION
Grand Jury Bases Indictment On Statements Made By Morse Rela- tive to Money Loaned E. R.
 Thomas Last September.


 Thomas Last September.
 New York, February 1.-The legal en- tangements of Charles ". Morse. former banker and promoter, are multiplying. A third indictment, alleging perjury by MT. Morse during an examination before the grand jury, was found by the special grand jury today, a short time after he had appeared in court to answer the two indictments found against him last week charging him with grand larceny. Ar engagements were made tonight to have nm appear tomorrow before Justice Vic tor J. Bowling, of the criminal branch or the supreme court, to plead to the per jury indictment. Another turn in the case today was the serving on Philip I. Britt, counsel for MT. Morse. of sum mons in two actions brought against the former banker. The complaints in these suits have not yet been filed, but 1t was explained that they relate to stock trans actions which occurred some time ago
 Morse's presence In the criminal court building this morning was comparatively uneventful. If the financier was worried there was no indication of it in his man ner. When arraigned before Justice Bowling he pleaded not guilty through his counsel The latter then asked for two weeks in which to examine the in- dictments and the minutes of the grand jury which returned the indictments. The representative of the district attor- ney thought that one week was enough and Judge Bowling agreed with him and set next Monday as the date for further hearing. After his return to his office MT. Morse'si attorney, Philip J. Britt made astatement concerning the trans action upon which the larceny indict- ments rest.
 He said:
 Britt's Statement.
 "The statement that there was writ ten agreement between MT. Morse and MT. oBrien, that the notes should not be discounted, is false. There was an agreement that the notes should be re- newed for a period of three years. but there was no agreement that the notes should not be discounted. If the notes were to be continued for period of three years, and were not to be discounted dur ing that period, it would practically make them worthless as security to be con verted in case of need during that time.
 What Mir Morse did make himself re- sponsible for was that if the notes passed out of his hands during the period In which he said that the notes should be renewed he would be responsible to see that they should be renewed, no matter in whose hands they happened to be at that time. With this understanding of the agreement there can be no question as to the fairness of MT. Morses action in get ting the notes discounted.
 Money Due Morse.
 If the check with which the discounted note was paid was made out in the name of MT. O'Brien, to whom was the money due? To MT Morse. of course It was in payment for stock delivered by MT. Morse that the notes were made. So if the check in payment for the note was made out technically in the name of MT. O'Bren, whose name was on the note, it was really meant for MT. Morse. to whom the note had been assigned There are g. lot of facts in connection with this case which have not vet come out, and which will put an entirely different aspect on 1t than has so far appeared from what has been published"
 MT. Britt said he did not yet know whether he would interpose a demurrer to the indictments. His legal action would depend upon study of the grand jury minutes, for which he intended to apply.
 After leaving the court room Mir Morse went to his office and was soon in consul tation with former business allies regard ing his entangled affairs. It was while so engaged that news was brought to him that another indictment alleging perjury had been found.
 Basis of Perjury Charge.
 The perjury indictment, it was learned. is based upon a loan obtained last Sep tember by E. R. Thomas from the Bank of North America, of which Morse was then vice president. In testifying before the special grand jury, Thomas told about the loan, which was one of $500 Alfred H. Curtis, then president of the bank also testified to the fact that the loan was made.
 MT. Morse, who had been before the grand jury, was recalled and asked if such a loan had been made, It Is alleged that he denied that the money had been loaned to Thomas, either on his recom- mendation or without it. Thomas was again summoned, and this time. 1t is further alleged, produced a letter which Morse wrote recommending the loan- Later MT. Morse again appeared before the grand jury at his own request, and 1t is said explained that he desired to correct his testimony. This he is said to have done and the testimony is said to have squared with what had been learned from other witnesses.
 It is pointed out. however. that the law Is such that corrected before the grand jury may be made basis for charge of perjllry.