Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-12
MORSE SUES BROKER
Demands Stock Profits Made
While He Was in Tombs.
ASSERTS He WON $4,000
Declares He Was Charged Double
Commissions and Badly Treated.
100000 COLLATERAL SOLD
Agreement Violated, Ayers Convict
ed Financier-Defenda De-
murrer Frivolous.
ASSERTS He WON $4,000
100000 COLLATERAL SOLD

NEW YORK, February I'm the
last few weeks that Charles w. Morse,
convict-banker, was in the Tombs be-
fore he was sent to the federal prison
at Atlanta he cleaned up much money
in stock deals, he thinks. In fact, in
one transaction alone he contends he
made a profit of $4,000.
This belief was revealed yesterday in
suit brought by Morse against his
brokers. which came up before Justice
Platzek OF the supreme court Morse
has sued John Wallace & Co. for an
accounting.
lie alleges the firm never gave him
a statement of his transactions, and con-
verted to its own use stocks valued at
more than 100000, put up by him as col
lateral.
Brokers' Demurrer Frivolous.
Morse contends he had a special agree
ment with the brokers that they should
not sell him out He asserts they yio-
lated almost every term of the agree.
ment.
The brokers demurred to the COM
plant. On motion of John +. Mcintyre.
counsel for Morse, Justice PlatZek yes
terday overruled the demurrer of the
brokers as frivolous.
advantage of him when he was in Jail
and violated the agreement in regard to
his collateral. He said they charged
him double commissions on mis- trans
actions, seldom executed orders on the
floor of the stock exchange as he di-
rected them, and seized every oppor-
tunity. to charge him with interest and
commissions.
The brokers retort that they treated
Morse exactly as they would have treat
ed any customer under similar circum-
stances. They deny that he ever made
$4,000 in stock deals; indeed, they assert
save themselves from loss. But Morse
says they sold him out just when S26,0o0
in profits was due to him.
Pledged Much Stock.
Morse says in his complaint that his
relations with the brokers began in
March. 1907 He did a large business in
stocks through them. AS collateral to
guarantee against loss he pledged with
them 100 shares of the Garfield National
Bank, 200 shares of the Hudson Navi-
CATION Company, 17.2S7 shares of the
Consolidated Arizona Smelling Company
and 1o.169 income bonds of the Con-
solidated Arizona Smelling Company.
Morse says he placed these securities
with Wallace & Co. on a strict under
standing that the brokers would not
actually exhausted, and unless they
could get at least the par value of the
securities. He asserts that the brokers
agreed to this; SO he went on dealing
in stocks when he was In the Tombs by
means of orders carried to his brokers
by messengers.
His complaint runs:
Believes They "Faked" Buying.
The plaintiff frequently asked the de-
PENDANTS to direct specialists to make
purchases of stock on the floor of the
stock exchange. and the defendants re-
ported back to plaintiff that such pur-
chases had been made by said specialists.
but plaintiff now believes that said orders
were not executed by said specialists as
directed by him, but by the defendants
themselves. and contrary to the wishes
of the plaintiff.
The defendants charged him illegal
commissions. double commissions and COM
missions from both sides, and were
drawing interest on his account upon
mythical and fictitious transactions for
alleged Announcements of money upon
plaintiffs account and on pretended
loans in and upon plaintiffs account.
and charged plaintiff unlawful and eX-
orbitant rates of interest
Morse demands an accounting of every
transaction he had with the brokers.