Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-11
MORSE LOSES APPEAL
Prison Again Opens Wide for
Former Banker.
SENTENCE is Affirmed
Federal Circuit Court Upholds Deci'
sion of Lower Tribunal,
SURRENDERS TO q. S. MARSHAL
Financier, While Out on Bail, Re-
cuperated Fortune and Paid Debts.
Appeal to Supreme Court.

NEW YORK, October 1.-THE United
States circuit court Of appeals today
affirmed the decision Of the lower fedora
court sentencing Charles w. Morse. the
former banker and steamship capitalist,
to fifteen years. Imprisonment In the
federal prison at Atlanta, Ca
Mr.. Morse appeared at the office of
the United States marshal soon after the
decision was handed down and surrender
ed himself He remained In the mar
shafs office while his counsel. Martin
w. Littleton, asked the circuit court of
appeals for a stay in the execution of
the sentence pending further proceedings.
The court later in the afternoon granted
a stay of forty days in the execution of
the sentence.
The decision of the circuit court of ap-
peals is final so far as direct appeal is
concerned. It was said that counsel
for Morse may apply to the Supreme
Court of the United States for a writ
Of certiorari in order to bring about a
review of the entire proceedings by that
court.
Appeal to Supreme Court.
At the Office OF the counsel for Mr.
Morse 1t was said that the case would
be taken to the United States Supreme
Court. and an application for bail would
be made. Meantime Mr.. Morse will be
sent to the Tombs prison. or might be
sent to Atlanta to begin his sentence
II
New York grants stay in the execu-
ton of his sentence.
Morse was convicted Of violating the
national banking laws in misapplying
the funds of the National Bank of
North America. Of which he was presi-
dent, at the time Of the financial panic
of 1907. He was charged with making
false entries on the banks books. He
was sentenced November 8, 1908. after
a long jury trial
The United States circuit court of ap-
peals in its decision rendered today
says:
1--WE fully recognize the consequences
to the defendant which must follow an
affirmance of this judgment, and yet we
cannot doubt that he was given fair
trial, and the verdict on the fourteen
No unprej JUDGED person can read the rec
ord without being convinced that by the
defendants procurement the bank
National Bank of North America) bought
its own stock and the stock of the Ice
Securities Company, and by his procure
ment the entries in the bank book and in
the reports of the controller as to these
were SO arranged as to con-
ceal the truth and to record transactions
which in reality never took place"
Indicted in March, 1908.
Morse was indicted in March, 1908. on
his return from Europe. The indictment
contained twenty-nine counts, compris-
ing conspiracy to defraYd the United
States government. the making of false
entries and the misapplication of the
funds of a. national bank. 1t was charged
that Morse, with others, was engaged in
a pool that was manipulating the stock
of the American Ice Company.
AS the result of this pool, United
States District Attorney Stimson declar-
ed, Morse and his associates became pos
SCISSORS of large blocks of ice stock. and
finally, getting near the end of their re-
went to the National Bank of
North America and secured money to
continue the speculation. The govern
ment alleged that from time to time
81 200. 0OO of the bank S money was used
for this purpose. To conceal these trans
actions, Mr.. Stimson said, fictitious loans
were made on the banks books, with
the ice stock really bought with the
banks own money.
Paid Off Many Debts.
After his original sentence Mr.. Morse
obtained a writ Of error, which brought
his case before the circuit court of APP
peals for review. Arguments on his APP
peal began last February and did not
end until June II, when the judges re-
served decision and admitted the de-
PENDANT to s125.0O0 bail. furnished by
twenty of his friends.
June II Mr.. Morse was released from
the Tombs, where he had been confined
since October, 1905 Immediately he
plunged into business. as if long prison
term were not hanging over him, and
during the past four months his financial
was rapid. During that
time he is reported to have paid off
(. OOO, 600 of his 100000 Indebtedness
and to have regained control Of a large
part of his extensive steamship interests.
Lexington Races Postponed.
TEXTNCTON Nv nctohar