New-York tribune., 1908-03-10
HANNAS SUES C. w. MORSE
LARGE NOTES INTOLTED.
ReceiUer of Bank of North america
Claims sos SO 90.

Charles A Hanna. receiver for the National
Bank Of North America, through Thomas E
Wing his counsel. filed yesterday in the Su-
1rerne Court a suit to collect S4oo.6i6 90 and
interest from Charles w. Morse on account of
various notes which Mr.. Morse had the bank
discount for him when he was its vice-president
and virtual dictator
The makers Of the notes include Calvin
Austin. president Of the Consolidated Steamship
COMPANY: Wesley M OIer, president of the
American Ice Company; James T. Morse OF
Boston. an uncle of Charles w Morse: Prim-
rose & Braun the Morse brokers; the Arizona
Smelling Company, a Morse promotion; F H
Low cashier OF a bank in Mr.. Morse's home
town Of Bath, Me, and y. H. Campbell, treas
urer Of the Consolidated Steamship Company
The complaint charges that Mr. Morse re-
Ceived the proceeds OF these notes for his own
use and not for the account Of the makers ana
alleges that the notes were simply covers Tor
loans for his sole benefit. The receiver, there
fore. holds Mr.. Morse and not the makers OF
the notes responsible. Payment having been
demanded and refused the suit followed The
action is one for money had and received,
and Judgment is demanded
One OF the causes Of action has to do with a
loan Of se3.50e which, the complaint says. MI
Morse obtained from the bank on January B.
-ea7 and caused to be charged to the account
of c. l. Charley Of Paris. There is apparently
no note for this money in the bank. and how
the defendant was justified in obtaining THIS
sun, Of money and charging the same as a loan
70 NJ Charley is not divulged Nj Morse mas
raid sl2.50o on this loan. reducing it to $4,000
NJ Charley is the Paris distributor OF the
Mercedes automobile. and is known to have been
Closely associated with Mr.. Morse in numerous
business deals MI Morse was the hacker OF
the Mercedes Import Company Of New York
which went into the hands Of receivers ten days
ago AIr- Morse figures as creditor for s25'VVo
and NJ Charley has claim Of s43,Soe-
Il is understood that the makers Of the notes
bought securities from Mr.. Morse and gave the
notes in payment II is supposed that they
now claim certain equities by virtue OF the terms
Of the original transactions
In seven out OF the eight causes of action
the complaint alleges that Mr. Morse procured
-ba discount by the bank Of certain notes The
said discount the petition says, was procured
Fv the defendant by virtue Of his said office
and his said domination and control of the
hank and its officers and by representing to the
said officers that the maker was financially
responsible and fully able 10 pay said obllga-
non upon demand and that said note was a
usual and regular discount in the ordinary
course OF Business
..ss:z maker continues the complaint. was
--rr 2
able 70 pay the said note. and never expected
nor Intended 10 pay the same. as the DEFENDANT
vrhan he procured the said discount well knew.
md the proceeds OF the said note were received
r,,- 7he defendant from the bank for his own
use and account and not for the use and ac-
col-r Of the maker thereof. and the SAID note
was simply z cover for a loan by the DEFEND
an from the bank for his own sole use and
benefit
The complaint further alleges that the pam
IF has demanded payment Of the SAID loans
iron, Nj Morse the defendant, but payment
tas been refused in every case, with the exceP-
ton n s.. .7s5 % on the Campbell sI"''V' ho'e
and SI25l0 on the Charley loan
-,e note and discount transactions. as
c-z-ga5 n detail IL The complaint, are as fol-
lows
m Nav n. 1907. Mr. Morse discounted at III. The
National Bank OF North America note oI 1elE!n s
austin for $1,000 90 So sna @ t s. ai and i9fere the de-
ferdsnt having refused TO pay me & noe afsca,,nT
= CanpieIl for $4,000. but has siI:ce
reduced this amount s7.2l4 s.. which sum- Win
o. 60 Fsfz,,e-v : (. faos Mr. Morse obtained $4,000
= = nc - James 7 Morse and this note re
mans r-7a5i Judgment for the whole AMOUNT
win interest Is asked - ih frIIn for S32 500 was
discounted for Nj. Morse and remains uIpaIG psi
judgment for face value and ln[eres' I oaied sss-
lss : hv 6izcor.1tirc note made by r ii Low
I :
rso- -o-a of the Arizona Su1eltlng Oelll1a-lN
[or So ss4 , was discounted by the defehoanl on
October = 1ans and has never been paid Prlncl-
"a and interest on both the above notes Is oe-
o. q note for s7s s34 >. made by Wesley N
Ger or August .. 1906 Nj Morse obtalIed ~
20 81 and Trs amount with interest, IS dernandeo
As " Hanna already has suit pending
sgafns- 17r Morse to collect $4,000 and inter
eSt and as aTr Morse's share Of the Sfoe9oo
losses which Mr. Hanna is suing the directors
of The bank for in the federal court amounts
10 a. least 100000 il viii be seen that the
former Ice King # he loses the suits. VIII De
Indebted - the bank to the extent OF nearly
$4,000
The National Bank Of North America has
SUIT for $4,000 and interest pending against
c u Fsrro1 of Boston. owner Of the Boston
News Bureau and The Wall Street Journal
The suit Is based on a note which Mr.. Barron
is alleged 70 have given in payment for Zo01
Shares of Mallory Steamship Company stock