The Washington herald., 1908-02-11

New York Feb 10-When Charles W
Morse. the eliminated banker. returns to
these shores on the steamer ETuria, on
which he is now returning. having been
called back from Europe, he viii have to
face at least TWO indictments for grand
larceny.
The indictments were filed ~to-day by
the special January grand jury which has
been investigating banking cases. The
Federal grand jury is still looking into
AIorse's banking methods
The indictments against Morse are
based on his stock dealing with ex-Jus-
tIce Morgan J. O'Bren
Although the indictments were not
made public, Morse not being under ar
rest, it is known in general way what
they contain. The two larceny charges
are associated with one transaction Morse
had with Judge O'Brien. namely, the dis
counting Of note for 100000.
Testimony Regarding Notes.
1t appears from what could be learned
to-day that Morse got Judge O'Brien TO
make three notes for 100000 each in pay
ment for s5oO0l0 worth of stock of the
National Bank Of North America. OF
which Morse had control at the time.
Judge O'Brien purchased from MORSE l0O
shares of the bank stock at $500 share.
There was an understanding between
Morse and Judge O'Brien, it is said. that
Morse would not have the notes discount
ed, and if Judge O'Brien at the end of
Two years had not disposed of the stock
at a profit Morse would take it back at
the selling price.
Judge OBrien made the notes payable
TO himself. They were indorsed by him
and by Morse. This made them pegotia-
bic at the end of a certain period.
Either at the end of the period stipu-
lated in the notes. or before the notes
matWed Mr Morse discounted two Of
them. What he did with the third note
is not known.
1t was on one of the discounted notes
that the grand jury acted This note
Morse had discounted at the Mercantile
National Bank. one Of the Morse chain
of banks
Applied Money TO own Use.
The Mercantile Bank gave Morse a
check for Sb000O. The check was made
payable. not TO Morse but to Morean 7
O'Brien- Morse took the check. accord
ing 10 the evidence before tile grand
jury, and deposited it in the National
Bank Of North America.
The check was indorsed Morgan 7
O,Brien, per C. ". Morse" Then Morse
appropriated the 100000 to his own use.
she understanding being that O'Brien had
no knowledge Of the transaction
To get evidence to prove this transac-
ton. several witnesses were called by the
special grand jury this afternoon. In the
morning 4. 3. Boardman. Of Judge
OBrlen's law firm. and who has been
acting counsel for Morse in the last few
months. and William Rand. jr.. who was
Jerome's chief Of staff, had an hours
talk with Jerome
After that Augustus Heinze, under in
dicJment in the Federal courts. had
talk with Jerome Heinze has been as
ISOLATED with Morse in his banking and
financial transactions.
Jerome told him TO come back in the
afternoon.
When the grand jury assembled at 2
o'clock Judge O'Brien, Heinze. and
Miles NJ. OBrien were waiting in Je-
rome's Office.
Heinze was president of the AIercarA
tile National Bank after Morse got CON
trol Of it from the GouIds Before
that Miles NJ. OBrien was president
After the appearance Of Morse he be- |
came a director
Witnesses Before Jury.
Heinze was the first witness exam
ined by the grand jury. It took him /
about ten minutes to give his testi- /
mony. Then Miles O'Brien was called |
lie was before the grand jury for about /
the same length of time
Judge O'Brien, the last Of the trio
summoned, was questioned by District
Attorney Jerome for about half an
hour Then the grand jury heard FL
bert Wire, who was cashier of the
National Bank Of North America
After that there was quick action IN.
the grand jury. Jerome had a talk
with Assistant District Attorney Per-
kins, who draws the indictments for
the grand jury. Then the grand Jury
marched into Justice Dowliug's court
the Supreme Court. criminal branch.
Five indictments were handed up
Three Of them were of a routine ma
ture.
District Attorney JeIo ONE said:
There are cnly two indictment in
that batch on which I viii ask to have
bail fixed. I think that $1,000 bail on
one is sufficient to cover the two"
After some talk between the Judge
and District Attorney Jerome. bail was
fixed at $4,000 on each indictment.
Steamers Machinery DeFanEed.
Charlotte, Amelie St. Thomas. Feb 10
The Hamburg-American line steamer
oeeana' which is making a cruise among
the West Indian Islands, has arrived here
with her machinery temporarily deranead
She VIII effect repairs and sail for SAN
Juan Porto Rico. tomorrow ar noon
The tourists aboard of the steamer ex-
press themselves as enchanted with ST.
Thomas.
a In Carrie Lunch Served Daily
At Eckstein's from J. to O. I4l2 n. Y ave.
EsVeFs bofix Comes fo T. for I ,,,,to.