New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-05-18
NEW MORSE COMPANY
TO TAKE BANK ASSETS.
Nay Be Able to Lquidate North
4mer1cd Institution Soon.

Charles W. Morse is making rapid progress
these days in the task of rehabilitatfng his
fortune. which sadly depleted in the panic
last October Mr. Morse's latest step was the
incorporation Saturday at Bath, Me, of the
Morse Securities Company. with a capital Of
s100O0,000, to acquire and hold any shares of
capital stock. bonds. securities other evidence
of Indebtedness"
The primary object of this holding COM
pany is to take over the assets of the National
Bank of North America, Of which Mr.. Morse
was vice president and director until the panic
but which suspended on January 81 last and is
now in the hands of Charles A. Hanna as re-
ceiver- Mr.. Morse and his friends have been
making every effort to raise enough money to
pay off the depositors and have the remaining
assets turned over to committee of stockhold-
ers to qudate, and the formation of the Morse
Securities Company probably means that the
plan will now succeed.
Mr. Morse has been aided in his efforts by the
rapidity with which Mr.. Hanna has succeeded
in converting the assets of the suspended banks
into cash for the payment of the three thousand
depostors When the bank closed its doors on
January 81 it's deposits amounted to 1881,
4S2 42. of which 100000 United States de-
posits secured by bonds placed with the Treas
ury Department. The bank owed the New York
Clearing House Association S2,2000O0 for out
standing Clearing House loan certificates. Its
surplus was carried at S.;6, ,:s45 As. 1t had $50,
OO0 of circulation and S12O,O0O of bonds bor-
rowed. which. with its capital of S2,OOOQOO.
made its total liabilities SS,137,S ,S27 80.
The assets of the bank when it suspended con-
sisted principally of loans and discounts to the
amount of S5,640,31S 16 and banking house and
other real estate carried the books at S1,21o,-
800. 1t had cash and checks of S4424l6 %; due
from other banks, S394,2S1 81; United States
bonds. S5S,902 7S and Panama bonds and stocks
1886 34S 30.
The setting off of notes by the receiver, as
provided by the national banking laws. reduced
the amount due depositors to about S2.60O.OOo
On May / Mr.. Hanna declared an initial divi-
dend of % per cent. calling for the disbursement
of about S65000O. Depostors have already re-
ceived checks from the Controller of the Cur
rency for this amount In addition. Mr. Hanna
said last night that he had already collected
enough additional money to pay another dlvl-
dend of 1212 per cent. and he added that he ex-
pected to declare second dividend of % per
cent next month.
All this has worked to the advantage of Mr.
Morse who with his family and friends. is far
and away the largest stockholder of the bank,
controlling some So per cent Of the stock
When a national bank fails the United States
government at once takes possession ana re-
mains In control of the bank until the depositors
are paid whatever there is for them. If the as
sets Sufnclent TO leave d SUI piuo aiNeA ti4N
depostors are paid in full, with interest. from
the date OF slIspension then the remaining as
sets are turned over to committee of stock
holders to be liquidated as the committee sees
fit It is obvious that certain classes of assets
will liolidate to much better advantage if not
pressed for sale
Mr. Morse now plans to deposit in the local
Suh-Treasury enough cash to pay off the de-
nositors in full. AS Mr.. Hanna has already paid
CO. in, tba- dividend
and intends to pay out S650,O00 more next
month Mr. Morse will have to raise only Sl,3Uo'-
600 to pay off the rest of the claims Oh the de-
Dositors Then the receiver will have performed
his duty and will turn over the rest of the as
sets to the stockholders. A slow and careful
administration of these remaining assets Will
probably result in an eventual liquidating value
of nearly 5000 share for the banks STOCK, as
opposed a price of less than 500 share at
which the stock has sold since the receiver
ship.
Friends Of Mr.. Morse were in Washington last
week and presented the details of the plan for
paying the depositors to Controller Murray, and
it IS understood that the Controller saw no OBJ
stacles to prevent the successful carrying out or
the plan. 1t is merely a case of raising the cash
Mr. Morse said last night that he would like
to discuss the subject but that for obvious rea-
sons his lips were sealed. When asked if the
plans for paying off the depositors were not
practically all completed, he replied:
It's a little premature to say that but as
soon as can I'll be glad to tell you all about it..
The former ice king seemed in the best OF
spirits.
The sI0,OO0,0Oo authorized capital of the new
Morse Securities Company is all in common
stock with shares of a par value of 800 each
The stockholders are Mr. Morse, H. 5. Carney
and Arthur Braun The latter was formerly
Mr. Morse's private secretary and is now mem
her Of the banking firm of Primrose & Braun at
No 43 Exchange Place who act as Mr.. Morse's
bankers and brokers. Mr. Carney is connected
with the Morse steamship lines.