New-York tribune., 1908-02-26

arisen the company assumed that II was pest
for il to refuse to surrender the stock until 1t
was decided who was entitled to 1T. and thus
avoid anv possible loss entaied by what might
prove TO be an Illegal surrender.
OFFICIALS IN DOUBT.
The Metropolitan Trust Company further re-
torted IL is said when Mr.. Hanna demanded
the 900 shares that it was apparent that the
officials of the Bank of North America were not
certain themselves that they had an equity.
Consequently il would be little short of folly
for It to surrender the stock.
II is probable that the other claimants to
equities in the stock are the Heinze interests.
When Otto Heinze 6, Co went into bankruptcy
3 600 shares Of the capital stock of the Chase
National Bank were found among its assets. 1t
is also known that Arthur P and F Augustus
Heinze were at one time large holders of the
Chase National Bank, and that f Augustus
through this ownership unsuccessfully at
tempted to force his way into the directorate OF
that bank
There was rumor yesterday that ceroaih III
tarasts supposed to be the Heinzes ana
Thomases. had attempted to purchase part u
not the whole of the one thousand shares ana
had made part payment on them. Until the
stock had been paid for in full 1t would still re-
| main in possession of Morse and could stlll DC
| hypothecated for the loan This theory Is ex-
| planned by the supposition that Morse acted as
| the agent Of the National Bank Of North Amer
| lea in purchasing the stock. According TO II MI.
Morse working with the Heinzes. and perhaps
| the Thomases as well, to get control of the
| Chase National. decided to sell the stock to
those interests As dictator of the National
| Bank Of North America he could readily have
| advocated and carried through this plan. and
these interests were paying for It by instalments
| when the panic and the subsequent crash OF the
| Morse-Heinze-T Thomas banking plans came.
Two hundred was the last bid yesterday and
| 21O was asked for Chase National Bank stock
MORSE WTTHDRAws PLEA
Morse in the Supreme Court yesterday with
! drew his plea of not guilty. filed week ago.
upon the indictment of perjury found against
him Monday Of last week. for the purpose of
| filing demurrer 10 the Indictment Justice
| Bowling set the demurrer for a hearing on
| March 3. at = p. m.
| Assistant District Attorney Kresel, who is
| prosecuting the insurance and banking cases.
said to the justice that the impression had been
| generally gained that the motion made by
| Morse to inspect the minutes OF the grand jury
| on the grand larceny charges had been granted
| but as he understood the court that was not
! true
| Most certainly not" said Justice Bowling.
Justice Bowling announced later that a time
| would be fixed for argument the motion
! to inspect the minutes.
The indictment tc which the demurrer
| filed relates that Morse testified before the
| special grand jury that he vas S0t cognizant
that he had authorized a loan OF $4,000 20 z. r.
/ Thomas for the National Bank OF North Amer
ica. Later he testified before the same body
| that he did recall having authorized such loan.
| When Mr.. Havemeyer became president Of
the National Bank Of North America he was
| advised by his counsel that the bank had
| equity in the 1000 shares OF Chase National
| Bank stock held by the Metropolitan Trust
| Company as collateral for the S1J0000 loan to
! Morse Upon advice Of counsel and with the
approval and direction of the directors he wrote
to the trust company saying that the National
| Bank of North America had an equity in the
| stock
| After d further investigation counsel ad-
| vised Mr.. Havemeyer and the board of directors
| that he did not believe that the bank had an
equity in the stock. Mr.. Havemeyer, acting
| upon this advice and at the direction of the
| board Of directors wrote the second letter TO
| the Metropolitan Trust Company, III which
| he said that the National Bank of North Amer
| lea had no equity the stock and that the
! whole transaction was personal with Mr.. Morse
| II is understood that counsel for the bank
| prepared both letters
| The legal questions involved in the transac-
| tions are complicated, and il is believed that
! the decision of a court alone definitely set
! tie the question as to whether or not the Ma
tionaI Bank Of North America has equity.