New-York tribune., 1908-03-08
SIZES MORSE DIRECTORS
pECEITER SEEKS 500, 900.
National Bank of North 4mcrica
Losses in Stock Deals.

. - - North America. filed yesterday in the
.-3,sd states Circuit Court, through Thomas
: wing. his counsel, a bin of complaint in
=. a collect from the director of the bank
- the Morse regime sums estimated at up
-as NJ S7e0co0 alleged TO have been lost in
-. transactions which were approved by the
directors
1.o attendants are Charles W. Morse. John
=, ra.eler William T. Ha-emeyer, president
- fa4k- Alfred H Curtis, ex-president Of
=. hank. AshbeI H. Barney and James w.
To-,ov AS executor OF the viii OF Charles t.
,s.-,ev. John W. Gates, Charles NJ Schwab,
- cllapin. jr., Robert NJ T. Thompson and
A1o-rsu }. O'Brien-
rr,,e complaint states that the receiver has
.sUa5 .1non the defendants TO make good the
-. s,4esrad by the bank but that the direc-
- have refused 10 do So That this suit
,,,,lI r-ohably be brought was announced ex-
..~fzs1,- in The Tribune three weeks ago.
According TO the complaint, the bank lost
,;,,- in transactions in American Ice Secu-
- ,-o-,nsnv stock. which il bought from Mr..
- 81 different times in a deal of Mallory
ss-,sbip Company stock in several transac-
- in the stock OF the Chase National Bank,
: --.ses in Delaware & Hudson. in the pur-
.sss of a large block Of stock in the Lands
,,--hae4 Company, = real estate corporation.
.,s in dealings in the common and preferred
+.rsS Of the Wall Street Exchange Building
,ssociarion. which owns the twenty-seven story
hrildng II Nos 41-43 exchange Place. in
y-h;ch the banks offices are situated
HEAVIEST LOSSES IN ICE TRUST
7,s heaviest losses were those incurred in the
ice Trust stock deals. which are placed at
s.sfsss. and in the Lands Purchase Company
--snsactions which are estimated at S2eO,eo
The Joss To the bank through its ownership Of
: majority Of the stock of the Wall Street Ex-
change Building Association is placed at
sfaaWse a. least
Tbo,1gh the bank paid see0oo0 for 5000 shares
os Mallory Steamship Company stock go
sFarel Oh October -. 1906. it succeeded in dis
Messing Of 6oec shares without loss The re-
naming 900 shares were sold to G w Barron
:, 81 q share and note for $4,000 was taken
in razrnert This note. the complaint says. lis
-5s- due and has not been paid. and there will
b. = large loss to the bank This loss is esti-
mated aJ S30.oeo-
TIE estimated losses in the dealings in Chase
National Bank stock are placed in the COM
rlsint a, S25g0. and those in the Delaware &
tsrds17, transactions at S7.411 IS The exact to-
~ of the losses 10 the bank. according TO the
,aupsfut. Is SIP Al 6s-
ne name Of Wesley NJ. Oler, president Of the
American Ice Company. figures in the ice stock
dssis \ loan of SI42oao went the books OF
,bs hank on August -. 1906. in Mr. Oler's
nsre in connection with 1000 shares OF ATneri-
cs7 Ice Securities Company stock This was
mart Of 4 block Of 1000 shares OF the stock
which NJ Morse sold 10 the bank on May /, 1906.
for s2ss-ssl or al a price of SO 1212 share
-r5s stock = now quoted at SIG The complaint
charges that the real character of this pur-
chase was concealed and covered by entering IL
or The books as a loan 70 Leslie Z. Whiting. Sc
cured bv the 4)s.0 shares Of stock. Whiting,
rhe complaint alleges. was merely dummy in
ire Transaction He was q clerk in the office
~ Primrose 4 Braun. bankers and brokers. who
were employed by AIr Morse in many Of his
s-oek transactions. Arthur Braun was formerly
~ aIorse's private secretary II was In shiIt-
= me dummy loan TO Whiting on the books Of
bank that 2eoo shares of the Ice Trust
stock were transferred 10 a loan in Nj. Olers
fame.
TANGLED SHIFTING OF LOANS
Then followed. according 10 the complaint. a
-uch tangled shifting OF loans, in which the
.sme Of John /. Elliott. supposedly another
dunnny also appears, which finally ended in
leaving The $4,000 Oler loan in the bank rep
resented ny or as against the cost Of 1000
shsres Of the said stock
The petition cites that Morse. Fqagler. Have
saH ana Bsrn-y participated in approved Of
snd asserted 10" the purchase and disposition
e the 1000 shares of ice Trust" stock An
0ther deal in 2GgO shares of ice Trust" stock
vas according 10 the complaint. authorized by
Eessrz Morse. FIagler. Havemeyer, Curtis and
Barney only. The deal in Mallory Steamship
Company stock. says the complaint had as
SPONSORS Messrs. Morse. Flagler. Curtis Gates
sac Barney. while the same five directors with
me addition of 8Ir Havemeyer, authorized the
Chase National Bank stock transactions and
he Delaware q Hudson deals and the Lands
purchase Company affair
HOLDS DIRECTORS RESPONSIBLE
Tie nine directors whom the complaint holds
responsible for the Wall Street Exchange Build
Hg Association transactions are Messrs Morse
tiagie-, Havemeyer, Curtis. Schwab. Chaplin
Thompson o'Brien and Barney. Ex-Justice
y Frien appears only in this list He was
Director for only short time in the spring OF
1897 Mahlon .. Thatcher. of Pueblo. COL Is
- made defendant to the suit, as he rarely
attended the board meetings. At present
Colonel Thompson is in India on q tour Of the
Nvsld and Hr Gates is in Texas.
The complaint goes on 10 state that the fed
- statute make the directors Of natIohai
yak responsible for all losses suffered by the
'sns IN stock or other Illegal transactions and
@sAs taat the defendants be ordered 10 appear
4 eo1rl and answer for the acts Of v flich they
sfe accused
TEET OF THE COMPLAINT.
Ile complaint says.
As A.s or about May l. 1896 the National Bank Of
- america purchased from the deIenudiIt