The New York herald., 1922-05-23


Immediately. and that as soon as he
could get on his feet he could be de-
pended upon to do the right thing
stocks Owned by Sister.
"He exhibited to us certain stocks in
the Morse Securities Company. stating
that they were owned by his sister. Miss
Jennie Morse, who upon his representa-
tion that he was very anxious to pay
or secure us had consented TO allow him
TO use these stocks. / told him that We
could not utilize the stocks unless they
were valuable, and II valuable II seemed
to us that he could raise the money on
them as we'll or better than we could
He stated that the stocks had no market
value but an actual value OF par; that
they would undoubtedly pay 6 per cent.
dividend. as / now remember. and per-
haps more; that the stocks were un-
doubtedly worth par and it would only
be short space of time before par could
be realized for the stocks, and as soon
as 1t could be he would redeem the
stocks
Indeed he thought he would be able
to redeem them within very short time
with the proceeds Of the sale OF some
livery stable property that he either
owned or was interested in and which
estate agent who was negotiating the
sale Of the property.
ION this occasion Mr.. Daugherty
complained very bitterly OF our treat
ment by Morse, became very angry and
left the office before the negotiations
were conducted. After he left Mr..
Morse requested me TO take the stocks
up to the McAlpin Hotel, where we were
stopping. and TO urge Mr.. Daugherty to
take a different view of the matter; to
either accept the stocks I'm payment of
our $500 demand or as collateral Sc
curity to be redeemed by him at very
early date, stating that he would come
by the McAlpin during the afternoon on
his way home. l left his office about
noon, went to the McAlpin, lunched with
Mr.. Daugherty and explained the cir
cumstances to him. He positively and
emphatically declined to take the stocks,
either In payment or as collateral Sc
curity. although l urged him to do so,
stating that had confidence in Morse's
integrity and faith in his purpose to
make good his numerous promises.
Denounced Morse.
About four o'clock that afternoon
Mr.. Morse and his son Harry appeared
and came to my room; Mr.. Daugherty
came in. An animated discussion fol-
lowed In which Mr.. Daugherty de-
nounccd Morse in unmeasured terms,
declining emphatically to accept the
stocks rendered either as collateral or
payment. In this humor he left the
room, and after some further discus
sion with Mr.. Morse he asked me to
hold the stocks until he could make
some other arrangement In respect to
them. / told him that / could not use
the stocks, but he left the room and
left them on my dresser; and when
left the city that night for my home in
Atlanta, Ca, 1 took the stocks along in
my valise.
'In conclusion permit me to state that
have not been more aggressive in my
efforts to force Morse to pay his obli-
cations to us for the sole and simple rea-
son that have always felt apprehensive
that IL we brought suit or agitated the
matter that immediate steps would be
taken by the Department of Justice to
secure an annulment of the Executive
order and the return of Morse to the
penitentiary.
II have not been unmindful OF the
damaging evidence secured by the De-
partment of Justice in the prosecution
of its Investigations to ascertain whether
or not a fraud had been perpetrated
upon the Government by Morse in his
efforts to obtain his freedom. and while
l knew that IL fraud had been perpe-
trated that the Hon. Fl. NJ Daugherty
and myself We're not only not connected
Herewith, but were not even suspected
Of being connected Herewith, but that
the disclosure and publicity would be
disagreeatle If not embarrassing to
everybody concerned.
Had Enough "Notoriety."
1--WE were informed that the depart
ment was in possession Of evidence 60
ing to show that after physicians were
appointed to examine Morse and before
they appeared on the scene that soap
suds or chemicals or something would
be taken by him to produce hemorrhage
OF the Kidneys, and that as soon as the
examination was over that the patient
would recuperate rapidly.
"As / have stated, we have not
brought suit or instituted any proceed
ings I'm the matter because both Mr..
Daugherty and myself felt that we had
had all the notorioty and newspaper
publicity that we should In reason have
in connection with this transaction.
"As a matter of fact during the
years that have intervened i have had
frequent intimations that this matter
would be reopened and 1 have always
promptly taken steps to stop 1t. ] have
recently heard well authenticated