The Washington herald., 1908-03-08
MORSE IS NOT ALONE.
Big Financiers Namedin Suit
by Bank Receiver.
MANY DIRECTORS INCLUDED
John III. FIhEIcr, Charles SchWnb,
and John w. Gates Among Those
Made Defendants in Action TO Re-
cover Enormous Sums of Money.
Many Losses Are Alleged.

New York, March Further trouble
developed to-day for Charles w. Morse in
the fight he is making to rehabilitate his
fortune. when suit was brought in the
United States Circuit Court by Charles A.
Hanna. receiver Of the National Bank OF
North America, to recover enormous sums
| alleged TO have been lost through certain
Morse transactions
In addition TO Morse, John II Flagler
William T. Havemeyer. Alfred P. Curtis
John w. Gates, Charles NJ. Schwab,
Henry Chaplin, jr., Morgan J. O'Brien. and
Ashbel and James Barney as executors OF
the late Charles T. Barney. former presi-
dent of the Knickerboczer Trust Com
pany, are made defendants. All these men
are, or We're, directors of the National
Bank of North America
Hanna's complaint goes into detail re-
garding the transactions in which Il IS
charged the bank lost heavily. 1t is
charged that on May ]. 1906, the bank
purchased from Morse 4G0O shares of
stock of the American Ice Company. the
ice trust organized by Morse. paying s2S6.
500 This purchase, II IS alleged, was en-
tered on the bank books as loan 10
Leslie f. Whiting. for which the stock
was given as security.
Another Loan Made.
Two thousand shares Of the stock. il is
alleged were transferred 20 another loaE
later. entered on the books in the name
of Wesley NJ. Oler. president Of the Amer
lean Ice Company in the sum OF
$4,000, Of which SllS.250 was credited
to the loan in Writings name $19256 10
the banks commission account as q profit
on the stock sale. and $4,f93 credited as
interest TO the bank on the loan. is
alleged the whole transaction caused the
bank TO lose S368.69s less the value. if
any Of 2.0OO shares Of stock. The exact
loss. IL is claimed, cannot be determined
The bin charges that all the directors.
except Morgan J. O'Brien. We're parties
TO or consented to the transactions
Other purchases Of stock by the bank
from Morse, it Is alleged. included one
on October l. 1896. OF 1900 shares Of
American Ice stock for $4,000. on this
item n loss OF Sl05,CO0 il charged
Buys Steamship stock.
On October .. 1906. it is alleged. the
bank bought $500 shares OF Mallory
Steamship stock at 81 a share. for a
total OF 100000. All except 2O19 Of these
shares were sold without loss. c. W.
Barron purchased the 300 at $S5 a share
giving his note. which, il is alleged. is
now void. \ loss Of $4,000 is estimated
on this transaction
The complainant further alleges an
other loss Of $4,000 TO the bank resulting
from the purchase Of the Chase National
Bank stock. s74n from the purchase OF
Delaware and Hudson Railway stock.
and 100000 on a purchase OF Lands Pro-
duce Company stock
A full accounting is asked TO determine
the exact amount of all loss sustained.
and judgment is sought for the full
amount
Wife Aids Morse
1t became known to-day that Mrs
Charles W Morse. wife OF the indicted
former ice king." is willing TO make any
sacrifice 10 aid her husband in his tinan-
cial difficulties. II is said she sold
beautiful $4,000 Russian sable cape for
5000 the proceeds Of which. il is stated,
viii go 10 aiding her husband