Los Angeles herald., 1908-02-18
MORSE FACES
INDICTMENTS
FOR PERJURY
THIRD TRUE BILL RETURNED
AGAINST BANKER
FINANciER's COUNSEL EXPLAINS
UGLY CHARGES
Attorney Says Future Developments
VIII Throw a Different
Light on Tangled
Affairs
BY Associated Press.


NEW YORK, Feb. 1.-THE legal en-
tanglements of Charles w. Morse,
former banker and promoter, are null
tiplying. A third indictment, alleging
perjury by Mr.. Morse during an ex-
animation before the grand jury, was
found by the special grand jury today.
a short time after he had appeared in
court to answer the two indictments
found against him last week, charging
him with grand larceny.
Arrangements were made tonight to
have him appear tomorrow before JUS
tice Dowling of the criminal branch of
the supreme court to plead to the per-
jury indictment.
Another turn in the case today was
the serving on Phillip J. Britt, counsel
for Mr. Morse, of summonses in two
actions brought against the former
banker. The complaints in these suits
have not yet been filed, but 1t was said
they relate to stock transactions which
occurred some tine ago.
When arraigned before Justice
Bowling Morse pleaded not guilty.
Justice Dowling set next Monday as the
date for further hearing.
Britt Explains
After his return to his office, Mr..
Morse's attorney, Phillip Britt made
statement concerning the transaction
upon which the larceny indictments
rest. He said:
THE statement that there was
written agreement between Mr.. Morse
and Mr.. O'Brien that the notes should
not be discounted is false. There was
an agreement that the notes should be
renewed for period of three years, but
there was no agreement that the notes
should not be discounted. If the notes
were to be continued for a period of
three years and We're not to be dis
counted during that period 1t would
practically make them worthless as se-
curity to be converted in case Of need;
during that time.
what Mr.. Morse aid make himself
responsible for was that If the notes
passed out of his hands during the
period in which he said the notes
should be renewed he would be respon-
sible to see that they should be renewed
no matter N whose hands they hap
pened to be at that time. With this
understanding of the agreement there
can be no question as to- the fairness
of Mr. Morse's action in getting the
notes discounted.
Due to Morse
''If the check with which the dis
counted notes as paid was made out
in the name of Mr.. O'Brlen, to whom
was the money due? To Mr.. Morse, of
course. 1t was L. payment for a stock
delivered by Mr.. Morse that the notes
were made. So If the check in pay
ment for the note was made out tech
nically in the name of Mr.. O'Brien.
whose name was on the note, it was
really meant for Mr. Morse, to whom
the note had been assigned.
There are a lot of facts In connection
with this case which have not yet come
out and which will put an entirely diff
ferent aspect on 1t than has so far ap-
peared' from what has been published
about it,"
Mr.. Britt said he did not yet know
whether he would interpose a demurrer
to the indictments. His legal action
would depend on q study of the grand
jury minutes, for which he intended to
apply.
After leaving the court room Mr..
Morse went to his office and was soon
in consultation with former business
allies regarding his tangled affairs.
1t was while SO engaged that news
was brought to him that another in
dictment alleging perjury had been
found. For the moment he had no COM
ment to make. 1t was arranged that he
should appear in court tomorrow morn
ing to answer the new charge. This
course was decided on because Mr..
Morse is already under $4,000 bonds
and he signified his willingness to ap-
pear whenever wanted.
Based on Loan
The perjury Indictment, it was
learned, is based upon a loan obtained
last September by e. r. Thomas from
the Bank of North America, of which
Mr. Morse was 1, en- vice president In
testifying before the special grand jury
Thomas :old about the loan, which was
president of the bank, also testified to
the fact that the loan was made.
Mr.. Morse, who had been before the
grand jury, was recalled and asked II
such a loan had been made. 1t is al
legged that he denied that the money
had been loaned to Thomas. Thomas
was again summoned and this time, 1t
is further alleged. produced letter
which Morse wrote recommending the
loan.
Later Mr.. Morse again appeared be-
fore the grand jury at his own request
and, it is said, explained that he wished
to correct his testimony. This he is
salad to have done, and the testimony
Is said to have tailed with what had
been learned from other witnesses.
1t is pointed out, however, that the
said to have done, and the testimony
before a grand jury may be made a
basis for a charge of perjury.
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