New-York tribune., 1908-09-28
PUZZLE FOR C. W. MORSE
SUIT 4G4INST DIRECTORS.
If $780, 900 4ction Is Pressed and
Won He Would Clear $500, 900.

The minority stockholders Of the suspended
National Rank of North America are wonder
sng now that the depositors have been paid on
in fuu. what Charles w. Morse, who owns 10
,,er cent Of the banks stock. will do with the
suit for 100000 filed by Receiver Charles A
Hanna against the hanks directors under the
Morse regime to collect moneys alleged to have
been lost in stock speculation. Pursuant to the
order Of Lawrence o. Murray, Controller OF the
Currency a meeting of the banks stockholders
has been called for october p, when share
holders agent will be elected to take over the
remaining assets from the receiver
In addition TO the notes and securities whlch
constitute the banks assets, Mr. Hanna VIII
hand over to the liquidating agent who VIII
-robablv be one OF the officers Of the Assets
Realization Company. which advanced 10 Mr.
Morse the money which he turned over TO the
receiver to help pay off the depositors, the suits
which he has begun and also the suits which
are pending against the receiver. To provide
AGAINST an unfavorable outcome Of the latter
the liouidating agent viii have TO file with the
Controller of the Currency bond covering the
amounts at stake
AS for the suits filed by Mr.. Hanna while re-
ceiver. the uquidating agent will have 10 decide
whether 10 drop or continue them. All the civil
suits filed by the receiver against Mr.. Morse, as
well as the bankruptcy proceedings which he
filed have been dropped the ice king having
made satisfactory settlement The other suits
filed by the receiver are Of minor Importance,
with the single exception Of the action against
the directors
The defendants in this suit Charles W.
Morse. John H. Flagler, William F. Havemeyer,
president Of the bank when il suspended; Alfred
H Curtis president up TO last Octobers panic;
Ashbel H Barney and James W. Barney, as
g-l-- Dor rrt,o
was director at the time of his death; John
w. Gates. Charles NJ Schwab. Henry Chaplin.
1r. one Of the banks vice-presidents under the
Morse regime: Robert NJ. Thompson and Morgan
J. OBrien-
The complaint alleges that the banks money
was used by the officers to speculate in stocks
with the consent of the directors. In certain
deals in American Ice stock a loss Of S3o0oOO
is alleged in a transaction in Mallory Steamship
Company stock q loss of 100000, in a deal in
Delaware & Hudson stock a loss Of S1,411 6S
and in transactions in Chase National Bank
stock a loss of $4,000,
1t is also alleged that the bank lost 100000
in dealing in the stock of rne Lands Purchase
Company which owns the Trust Company Of
America Building and 100000 through its
transactions in the stock Of the Wall Street
Exchange Building Association. which owns the
building at No. 43 Exchange Place, in which
the bank had its Offices The bank owns more
than 50 per cent Of the stock Of the last named
company.
What to do with this suit bids fair to be a
knotty problem for Mr.. Morse to solve. If it is
discontinued the minority stockholders are sure
to raise q protest. as. if prosecuted and won, it
would mean the additional sum of S712471 6S.
If the directors are forced to repay TO the
bank the moneys lost, Mr.. Morses share of the
payment would be in the neghborhood Of $780,
600 As the owner Of 40 per cent CT the bank
stock however, he would get back S2S4 9SS 10
through the increased value of his stock. His
net profit, therefore, would be nearly 100000
In view of the fact that Mr.. Morse's trial on
the indictments found against him while vice
president and director of the National Bank Of
North America viii begin on October II,
whereas the assets Of the bank will not be
turned over to the lquidating agent until after
the meeting Of stockholders on october u, it is
said that no sentimental reasons will influence
Mr.. Morse in determining what disposition he
wishes to make of the suit against the direc-
tors. The consensus Of opinion among those
persons most familiar with the banks affairs
seems to be that the suit Will be dropped.
A dispatch from Chicago says that meeting
OF the stockholders Of the Assets Realization
Company has been called for October =. when
the company's capital stock will be raised from
100000 10 S5,O00.000 common and S5.0O0.0oO
preferred. It is presumed that the need for ad-
ditional capital comes in connection with the
companys advances TO Mr.. Morse in paying off
the depositors OF the National Bank Of North
America It viii take the company a long time
10 realize proftably on the remaining assets Of
the bank