New-York tribune., 1908-02-20
NEW LIGHT ON MORSE
HISTORY. OF BANK DEALS.
Long Conference srith ReceiUer
Hanna Bankruptcy Not Pressed.

Charles " Morse visited the National Bark of
North America yesterday for the first time since
he was forced by the Clearing House committee
~ retire as v1CePresoent and dictator the night
- October IL He entered the bank alone at noon
greeted 2 3 Wire. the cashier, who sitting
his desk and passed into the private Office
which ne occupied when he made his headquarters
the hank in his palny DAYS Here he was Joined
hv Charles 4 Hanna. the banks receiver. and
Thomas Z Wing. counsel the receiver and a
conference began which did terminate until
o'clock.
Why should I discuss my affairs with report
.-s2" Mr Morse said. as he was making his way
n The covynpour OF rain TO the Office Of Philip J.
Britt his counsel. across from the bank 'Al the
papers put big false heads everything they print
about ne.
When several OF the reporters attempted 70 20
n the same elevator with him in the Lords
Court Building ne announced in angry
that they must leave him then and there Mr..
Morse has aged greatly in the last six months and
his hair has grown several shades grayer
Mr.. Hanna said the conference was on the gen
eraI subject Of Nj Morse's affairs as they per-
teiued the bank. Asked II the reported attempt
- have M Morse declared al Involuntary bank
rUpt did not have something TO do with the visit
the receiver smiled and said that might be the
Z Is understood that Nr- Morse contended that
-Fe collateral he had up with bank for the loan
of S2zS.ooo, for which the receiver is suing
vas ample. Nj Hanna, it Is believed, did
sgree with him
While Mr. Morse IN conference at the hank
= Augustus Heinze and his counsel. John c Tom
Irson. entered the Wall Street Exchange Build
tuS. which contains the bank When Mr. Heinze
vas told that Air Morse Was in the bank for the
first time since he forced 10 resign. he
claimed You don't say Well. I admire his
nerve
J. said yesterday that October Il Mr..
Morse. who then the vice president Of the Ma
ricnaI Bank o. North America overdrew his
count S557.0o0 by Of checks 10 brokers ard
others. To cover this he deposited IN the bank a
mixed lot Of securities. such American Ice stock
Consolidated Steamship bonds, bank stocks and
realty company stocks From time 70 time after
the oyerd-aft Ny Morse had reduced the loss until
when the bank suspended, II stood $4,000. for
which the receiver is now suing The securities
deposited az the time covered the loan, but since
then the market value Of most Of them has depre-
ciated, 50 that It is said they are to-day some
$4,000 short
L seems probable that the plan have M
Morse declared bankrupt viii be given up. il
Is the opinion OF q majority OF the creditors that
the ex-banker viii have much better chance Of
satisfying his creditors il proceedings not
begun Il is understood that John E Berwind, who
has claim OF S5-2.50o- does not favor the bank
ruptcy plan. The same is OF the law firm OF
O'Brien BoardITan < Plat, which has claim Of
S2o0o0o. ard Of Robert A. & Smith, who has =
Judgment for sl55.753 36 against Mr Morse. Nr
Berwjnd and the law firm are said By some 10 have
received preferential payments Mr.. Smiths suit
said 10 De Of = friendly nature. The four months
within which the alleged preference OF OBrien,
E5oardrnaE & Platt might be set aside expired yes
rerday. but II Is not thought the firm Will JON IN
the bankruptcy petition Albert 3. BoardInaa is
sIiIl OF counsel 10 Mr.. Morse
Mr.. Hanna said that his action as receiver for the
bank would be guided solely by what seemed to be
for The best interests OF the cepOslJors It IS IN
slersrood also that the Mercantile National Bank,
comparatively small creditor, does not favor the
BANKRUPTCY plan. having made satisfactory ar
rangenen1s with Nj Morse
Il was also learned that the check for 5000 coo
which Nr. Morse was said have given 10 z.
AUGUSTUS Heinze on the night Of October e. after
the United Copper pool went TO pieces was myth.
no such check was ever drawn by Mr. Morse, II
said. despite the fact that Mr. Morse is alleged
have told Alfred H Curtis, who then
president Of the bank. that he would have the
funds hand the next morning 10 meet the check.
A close friend Of Charles NJ Schwab said yester-
6av that the latter. who sailed for Europe last
week vas probably already on his way back
mis- country NJ. schvah this friend said went
10 Europe 70 see Nj Morse bat the ex-banker did
NOT wait for Mr.. schwab's arrival before taking a
return steamer NT. ScEwab. il is said. intends
srz1d behind Nj Morse and It IS hinted that there
VII Be interesting developments the
formers return.
The loans which Mr.. Morse obtained from the
National Bank II North America were made 4
said, through a clerk named l. Whiting. who
al eulpoye the Stock Exchange firm oS
Fr-mrose d Braun at No 43 Exchange Place Mr..
Braun acted Nj. Morse's private secretary.
1Ir Hanna, it is believed VIII declare an initial
dividend depositors in the National Bank Of
North America early II March one Of the duties
of tbs receiver vIIl he sell the Wall Street Ex-
change BuiEIng This Twertv-seven story Office
F-vucrurs belongs the Wall Street Exchange
Building Association, hut hank owns per
c-7- Of tf7e associations stock. In Of
laank's assets given ont by Controller RidEeIy
1eu the bank closed January q the banking
house Is carried a. 512eo but the building is said
- nave been appraised nearly g 200 IN excess
~ this figure The which the stockholders
vfH receive viii depend largely on whether the re-
seive- * forced 10 sacrifice the building.
one Of the difficulties which 1fr. Hanna - under
s-cod 70 o. meeting in liquidating the bank the
rro-eness OF borrowers 10 refuse 10 paw loans
= hen the- mature This is = thing which is
usually net in Equidat.ng big bank. il is said.