1.
April 3, 1906
The Sun
New York, NY
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FATHER, TOO, ROBBED BANK. ELDER TURNEY MADE AWAY WITH $106,000 IN 1877. on Who Has Now Stolen $34,000 Was a Clerk There at the Time-Loss Made Up and Hushed Up-Edna Leonard Held Blameless for the Son's Thefte After Joseph A. Turney, the embezzling note teller of the Bank of North America, bad waived examination yesterday morning in the Tombs police court and had been held in $10,000 bail it becam known that bis father had stolen $106,000, with the connivance of another clerk. from the same bank in 1877. The father restored $6,000 to the bank, and the directors made up the loss and hushed it up rather than have the safety of the bank imperilled by a run. The elder Turney died about three years ago a respected citizen. The name of the young woman who has figured in the son's case also became public She is Miss Edna M. Leonard, who keeps a boarding house at 358 West Fortysixth street. The bank officials say that their investigations show that Miss Leonard is entirely blameless for Turney's steal. ings and they are convinced that his rela. tions with her were solely those of a businoss friend. Miss Leonard admitted yesterday that she knew Turney, and said she had been "unfortunate enough to have her name mixed up in the affair." but she declared most positively that she knew nothing of the man' 's stealings and had not shared in them. The bank officials are satisfied that she is telling the truth. They Bay that her house is respectable and that they have dropped that side of the case The disclosure of the stealings of the elder Turney came as a surprise to the present officials of the Bank of North America. A former director of the bank dictated at his office a statement about the old embezzlement. He said that he got the full particulars from the late William Dowd. who was once president of the Bank of North America. and also was vice-president of the Clearing House. This is what the former director wrote out himself "One morning in 1877 the paying teller, Mr. Turney, went to Mr. Dowd and confessed that he had for a long time been abstracting funds of the bank with the connivance of another clerk and that the money had been lost in speculation. The amount stolen reached $106,000. *The examiners were about to inquire into the bank's condition. Turney realized that it was no longer possible to cover up the deficit. He had carried it along for several years, but the amount had become 60 large that discovery was inevitable. Turney and his accomplice were able to raise $6,000. so that the actual loss to the bank was $100,000. "In view of the general condition of affairs, of the former good character of Mr. Turney. his long and faithful services to the bank and another reason, which need not be mentioned, the officers decided to keep the matter to themselves. Mr. Turney secured employment else= where and, SD far as we know, led an upright life. He died about three years ago a respected citizen." The statement went on to say that Joseph Turney was employed in the bank at that time as a boy, but was not discharged because it was thought such a course would be unjust to him. and that he grew up to be one of the most valued clerks in the institution and had such a capacity for work that he could do almost twice as much work as any one in the bank. He was the oldest employee of the bank. The former director who revealed the father's crime added "All his old friends are grieved to learn that this young man. who has been in the bank for thirty-three years, has followed in the footsteps of his father and, like him. has been detected in a defalcation though of much less proportions." The former director said privately in explanation of his words 'another reason which need not be mentioned.' that it was in troublous financial times and a run was feared if the defalcation should become known. He understood from Mr. Dowd that the directors made good the loss and that the bank did not lose anything. President Curtis and the other present officials of the bank were astonished at the story Mr Curtis said the books of had been destroyed and that he could not verify the story from them We simply know nothing about it," he said. Coming from the source it does it is undoubtedly true. but we have no record of it here. Vice-President Lee said yesterday that Miss Leonard had told him all she knew about Turney without reserve, and convinced him absolutely of the truth of her story. She came to this city from a small town in Pennsylvania and about fourteen months ago bought out the furniture of the West Forty-sixth street house from a Miss Edith Singerland and got a leass at $1,000 a year from the Astor estate. Miss Leonard is only 22 years old and is comely The agent of the property, Edward Ashforth of 51 West Forty-second street. said yesterday that she was "a good tenant and prompt pay. Investigation showed that the lodgers in the house were above reproach. and Mr. Lee said he was convinced that the house was entirely respectable He said Turney had become acquainted with the young woman in a legitimate way and had been acting as a businessmenton for her, because of her inexperience. The charge against Turnev was changed yesterday in the Tombs police court from grand larceny to forgery in the third degree. Turney pleaded not guilty and was held for the Grand Jury Later in the day Cashier Wire had interview with Turney and it was said that Turney had given certain valuable information Mr Lee. the vice-resident of the bank. said that no further defalcation had been discovered and that no one else had been im: licated The police were called into the case again yesterday, but for what purpose was not revealed. It is known that every statement that Turney has made to the bank officials is being verified The officials said yesterday that they were con. vinced that he stole the $34,000 in comparatively small amounts
2.
October 24, 1907
The Salt Lake Herald
Salt Lake City, UT
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CORTELYOU AIDING THE NEW YORK FINANCIERS act mi ust Company of America Withstood a Run h All Day and Situation Is Much Brighter. State Bank Examiner Has Taken Charge of Knickerbocker Affairs-Receiver for Mayer & Co. ed in the situation. At the meeting were J. P. Morgan, E. H. Harriman, T. F. Albany, N. Y., Oct. 23.-Governor Ryan, H. C. Frick, Paul Morton, George Hughes tonight appointed Clark WilF. Baker, Hamilton Fish, Assistant Unitliams, heretofore vice president of ed States Treasurer Judge E. H. Garey the Columbia Trust company of New and Norman B. Ream. York, to be superintendent of banks. Oakleigh Thorne, president of the Trust Mr. Williams will take office tomorCompany of America, was there for a row. time. When the meeting finally broke up toward 6 o'clock in the evening, it was felt that the most influential and most New York, Oct. 23.-The crisis in New powerful men in the financial world had York financial circles was safely passed assumed command, and the confidence of tonight. After prolonged conferences at the business community in its banks' seJ. Pierpont Morgan's offices, an organcurities and money condition generally was to be speedily restored. ization of the presidents of New York The announcement at Albany tonight trust companies was effected, not differof the appointment by Governor Hughes ent in principle from the Clearing House of Clark Williams of this city as state association. It is in the nature of a prosuperintendent of banks was received tective combination. All of the leading with favor and viewed as a timely act by and admittedly conservative trust comthe governor. panies participated. John A. Stewart, chairman of the board of the United Midnight Conference. States Trust company, presided and was Late in the evening there was confielected chairman of a committee whose dence at the house of J. P. Morgan. It duties are to be analogous to those of was reported that Mr. Cortelyou was the clearing house committee. A resopresent. President Babcock of the Bank lution was unanimously adopted providof North America, speaking of the run ing for an examination of the various on his bank, said: trust companies and a report of their "After one of the most remarkable runs findings to the association. in the history of American banking, we Following this organization, which was will open our doors tomorrow. We paid regarded as one of the most important all checks today as fast as they were adjustments ever successfully carried presented. The Trust Company of Amerthrough in New York financial circles, ica is perfectly solvent." a report was made to the committee toFrank W. Kinsman. jr., president of the night respecting the investigation into the New Amsterdam National bank, tonight affairs of the Trust Company of Amersaid: ica. "Louis Stern of Stern Bros., merchants, Ample Securities. has practically accepted the vice presiThis report was carefully considered in dency of the New Amsterdam National a prolonged conference of the committee bank and will bring into the directorate and it was apparent that the trust comstrong downtown business men." panv had ample securities to warrant
3.
January 27, 1908
Evening Star
Washington, DC
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NORTH AMERICA BANK FAILS. New York Institution Has Done Business for Over Fifty Years. NEW YORK, January 27. - Fifty years after it was founded in 1851 the Bank of North America. at the height of its prosperity, passed into the control of Charles W. Morse. He had it six years. and now it has passed into the hands of a receiver, having been deserted by most of its depositors since Mr. Morse was forcibly eliminated three months ago. The decision to go into liquidation was reached late yesterday afternoon after an all-day conference between W. B. Ridgely, controller of the currency; W. F. Havemeyer, who became president of the bank to try to extricate it from its embarrassments, and Bronson Winthrop. counsel for the bank. Some comparison of the figures cf the present with those contained in. the statment of the bank made last August shows how hard the bank has been hit by the recent panic. In August last the total deposits of the bank were $19.500,000. According to the statement of the controller they have now shrunk to $3,831,482.42 The deposits from other banks in August were $8,200,000, and have since shrunk to $1,082,422.04. The Bank of North America was a founded in 1851 by John I. Fiske with capital stock of $1,000,000. Two months later Mr. Fiske lost his health and retired. He was succeeded by the late William F. Havemeyer, former mayor of New York and father of the present president of the bank. During his term the bank was successful, but he resigned at the end of ten years. He was succeeded by the cashier. Isaac Seymour. Mr. Seymour was president until 1863. when he died suddenly while attending service in Trinity Church. John Yelverton, then the cashier. was chosen president. In 1867. before there was a law against the overcertification of depositors' checks, and when it was the custom of banks to oblige their customers in that way, a brokerage firm got its account overcertified by $200.000. This was such a shock to Mr. Yelverton that he died within a few days. He was succeeded by John J. Donaldson, who had been a member of the firm of H. B. Claflin & Co. and had retired from the dry goods business with a fortune. He was president until 1873, when in the panic of that year there were several large overdrafts, which were so serious that the bank's capital was reduced to $700,000. Mr. Donaldson then decided to go back into the dry goods business. and he was succeeded by William Dowd, who had been a director. Mr. Dowd gave the bank one of the best administrations it ever had. He restored its position and accumulated considerable surplus. He was also president of the Clearing House Association. Mr. Dowd's health failed in 1891 and Mr. Van Norden was elected. He remained at the head of the bank until 1902. During Mr. Van Norden's presidency the bank made still further progress. The capital was restored to $1,000,000. The surplus grew to $1,000,000. and large dividends were paid. and the deposits increased from $3,000,000 to $25.000,000. The deposits had reached the latter figure on the day when the bank celebrated its fiftieth anniversary with a dinner at the Metropolitan Club. at which 100 of the leading bankers of the country were present. In January. 1902, Charles M. Morse and his friends bought not only Mr. Van Norden's interest, but the stock of many of the directors and individual stockholders. and Mr. Morse became vice president.
4.
January 27, 1908
The Washington Herald
Washington, DC
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New York, Jan. 26.-Fifty years after it was founded in 1851. the Bank of North America, at the height of its prosperity, passed into the control of Charles W. Morse. He had it six years. Now it has passed into the hands of a receiver, having been deserted by most of its depositors since Morse was forcibly eliminated three months ago. After an all-day conference between those interested in the affairs of the National Bank of North America, it was decided late this afternoon to close the bank and liquidate. The decision was reached by President W. F. Havemeyer, Bronson Winthrop, counsel for the bank, and Comptroller of the Currency W. B. Ridgely.
5.
January 28, 1908
The Washington Herald
Washington, DC
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STOCKS ARE ERRATIC Market Fluctuations Due to Professional Trading. NET GAIN AT END OF DAY Early Weakness Lasts Only Short Time and Is Followed by Four Hours of Steady Advance-Rapid Decline in Closing Hour of Business-Union Pacific Rumors. New York, Jan. 27.-Although the course of prices in the stock market to-day was different from that which prevailed throughout last week, yet the results of the day's business were such as to afford evidence no less convincing than that which was given in the six preceding business days that purely professional operations constitute almost the sole important influence of the moment upon daily fluctuations in security prices. There was some little scattered selling of stocks immediately after the opening of business, caused presumably by the announcement over Sunday of the suspension of the Bank of North America, and by the expressed intention of the government to proceed against the Union Pacific Railroad Company in a more elaborate way than had hitherto been outlined for alleged violations of the anti-trust law. The weakness of the market lasted only a short time and was hardly deserving of the name. For four hours thereafter prices advanced. the vigor of the movement being greatest in its early period. Rapid Decline in Last Hour. Then, in the last hour of the stock exchange sessions, the market again declined with even greater rapidity than it advanced, wiping out the larger portion of the day's gains. but still leaving most of the principal stocks at higher prices than they closed on Saturday. All this, of course, plainly expressed the work of professional market operators. These operators commonly and freely sold stocks last week, and rushed to "cover" to-day, as they not infrequently do, all at one time, taking advantage, in accordance with invariable cases, of the announcement of the unfavorable news. When the buying back of stocks sold for the decline was wholly or in great majority stopped, the market was left without support, and succumbed to profit-taking and a resumption of speculative selling. The best feature of the day's business was the bond market. in which steady strength was perceptible. Other Bank Failures Anticipated. There were many people in the financial district to-day who declared the closing of the doors of the Bank of North America was, from one point of view, not unfavorable, inasmuch as the ent was one that has long been considered in banking circles as inevitable, so that It was greeted, when it did come with a sense of relief. Occurrences of this sort must obviously be expected for some time to come. An era of cheap money does not mean that an individual or a corporation which does not possess adequate funds, even in "slow" collateral. that he can offer as security for his borrowings can hope to obtain an extension of credit. Now, when money has become so plentiful that any one having proper security can obtain all the funds he wishes at merely nominal rates, it is clearly time for the repayment and final settling of obligations or else for a transfer of these to the profit and loss account Union Pacific Rumors. The weakness of the market this aft. ernoon was assisted by a rumor that the Union Pacific Railroad Company is about to issue in the neighborhood of $35,000,000 new securities. The rumor might have been incorrect in that no such issue was immediately forthcoming, but it is believed in high banking quarters that an appeal to the money market of this character will be made at no very distant date. Foreign exchange was strong toworking steadily day, the if sterling slowly in market the direction still of gold exports, while time money was a little hardet-
6.
January 30, 1908
Evening Star
Washington, DC
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BULLS AND BEARS Special Dispatch to The Star. NEW YORK, January 30.-It was very generally assumed in financial quarters this morning that the suspension of two have been known to an condition for some unsatisfactory banks that effect be in upon time have no more and upon would the stock probably market sentiment of the fn Wall street than did the closing Bank of North America. A very banker, in nent international discussing promiof the two Institutions that last not to open decided the position night for busi- beness today. said that Wall street lieved that the bank situation in this city is thoroughly sound, and that the closing a few minor of which has been well dition up of institutions, understood/ the simply confor many weeks, will be regarded as an echo of the panic of last autumn and not as indicative of any fresh weakness. He added that important financiers are perfectly satisfied with the posi- betion of the New York banks. and he lieves that even the most highly specu- with lative interests have no honest fears respect to the situation. * * There is the same diversity of opinion has with respect to trade conditions that existed for many weeks. A representative of one of the largest corporations that he does not look for in business until says provement the He much political thinks imis well cleared up. will not be it has been in situation that than business recent much weeks at better dur- any the next five or six months see ing Consequently he is unable to rate. any good reason for an active campaign for higher prices for stocks. It was feared yesterday among the bond ishouses that the reported forthcoming would of another block of city bonds at sue have a depressing effect temporarily but least upon the general bond market, it is believed that on the whole steady improvement will be recorded. * * * Those who are best informed expect that financing operations by the corpora- attentions will continue to engage the peof Wall street for an indefinite riod. tion It is known that a considerable worknumber of corporations are now maturing upon plans to take care of obligations of a temporary character ahead ing some of them are looking of and and that considering plans. for the raising fresh working capital. * A member of one of the prominent com- his mission houses who spends most of time on the floor of the stock exchange declares that if the speculation originat- to on the floor of the exchange were ing be deducted from the daily transactions about the balance would be represented by 25,000 shares daily. While it is somewhat generally believed that this statement is exaggerated it is very freely admitted is the general commission busin about SS that small. As one goes is the commission houses it easy among very little business extremely see but customers. originates to usual line of houses of the that for some doing a large from servative Commission their been character. odd most lot months invest- paying conin the in ment material falling off stocks. of buying during the the have class business report a dividend last to week that They attribute this chiefly active or two. advance that most of the levels marked have had from the low to the of stocks November and December, and also * renewed interest in the bond market. * While it is admitted, of course, that there will be every day a moderate amount of speculation on both sides of the mar- do important interests say that they ket, favor great activity along speculative lines not in the immediate future. They think well that the attention of speculators as bond as investors should be directed to the The leading bond houses report increase in their buy market. a material that orders so far for best bonds. but say given the attention has very buyers to by report that would-be little issues. They the been second- bonds even class date the 'highest new at scarce, and that this becoming early grade unless brought are of the best character are forward issues will be necessary to put as those out it that are classified to some extent speculative issues. interests in most of the bond that the market conThe active believe within will a comhouses to improve and that cleared up tinue short time it will be time paratively greater extent than at any to within a more than two years.
7.
January 30, 1908
Daily Press
Newport News, VA
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Two New York Financial Institutions to Go Out of Business. THEY WERE BOTH MORSE GONCERNS Bank of North America Going Into the Hands of Receivers Caused Rumors of the Unsatisfactorary Conditions of the Other Institutions. (By Associated Press) NEW YORK. Jan. 29.-The New Amsterdam National Bank capitalized at $1,000,000 and situated at we corner of Broadway and Thirty-ninth street was closed by the order of the comptroller of the currency today and National Bank Examiner Charles A. Hanna was placed in charge The Institution's Habilities are placed at $4,482,016 of which $2,065,272.49 are due depositors. The bank officers assert that not only will every depositor be paid in full but the stockholders will receive n substantial dividend. Two New Amstardam National was formerly one of the chist banks in the chain of Lanks estamished by Charles W. Morge. President Frank W. Kinsman, Jr., declared in a statement issued tonight, that "the closing of the National Bank of North America attracting renewed attention to the interests which has previously dominated both institutions in their past relations started fresh reports of an ext aggerated and sensational nature which necessitated the liquidation of the hank." About a year ago the New Ansterdam National underwent a reorganization because of a falling off in its business and Frank W. Kinsman. Jr., was elected president. Every effort WHS made to rehabilitate the institution. The recent panie was not without its effect although it had weathered the storm and succeeded in reducingets clearing house certificates from $1,705,000 to $300.000. Another Bank Goes Under. President D. A. Sullivan. of the Mechanics and Traders Bank. announced shortly before midnight to. night that the institution would not open its doors tomorrow. This decision was reached at a meeting of the board or directors tonight lasting four hours. In a statement Issued after the meeting The directors doclared the bank is solvent but the state of the cash resources made it appear Inadvisable for the bank to continue bustness.
8.
January 30, 1908
The Detroit Times
Detroit, MI
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a national bank examiner, is in charge. Depositors' Steady Withdrawal. The closing of the Bank of North America, another Morse institution, was the direct cause of the Amsterdam's closing. Depositors ever since last Thursday have been quickly withdrawing funds, and out of town banks, which were warned by correspondents, have reduced their balances. The bank was closed to prevent a run and to give all depositors an equal chance. F. W. Kinsman, Jr., president of the bank. issued this statement: The bank had recovered fully from the effects of the panic and had retired its clearing house certificates from $1,750,000 down to $300,000, and the bank was on an upward and successful movement. No loss will be sustained. by the depositors and the stockholders will receive a substantial dividend. F. W. KINSMAN. JR. The assets amount to $4,482,016.20. The individual deposits are $2,065,272.40. Severe Blow to Theatrical Mcn. The closing of the bank is a severe blow to many theatrical firms, managers of theaters, actors, actresses, hotel and restaurant owners, gamblers, bookmakers and the sporting element in the Tenderloin. Owing to its location at Thirty-ninth-st. and Broadway, the bank was heavily patronized by many of the most important concerns in the Tenderloin, including Opulent chorus girls. Caruso had $40,000 on deposit. The Mechanics and Traders' bank closed because of the demand of the clearing house that it settle $1,900,000 certificates still outstanding. The bank has ample collateral, but it is unable to get cash at this time. Against the $1,900,000 certificates, the clearing house holds, according to the directors, $6,000,000 of approved collateral. The directors also declare that the bank is solvent and that its closing is due only to the fact that they desired to avoid preferential payments. The Thomas interests controlled the bank previous to the October flurry and accommodated F. Augustus Heinze for a large amount.
9.
February 7, 1908
Daily Kennebec Journal
Augusta, ME
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abroad could be reasonal as showing an inclina responsibilities at home could be more ludicrous, tl a man fleeing to Englar treaty between the United Great Britian was SO bro extradition of any one any offence specified in the in connection with t of national banks could 1 secured. In fact, they insi /lum from extradition e only in one or two of South American republi African state. 'hat Morse absolutely required ulsion and possibilities for physically afforded by : was generally admitted who have known of the : undertakings he has and the mental stress financial losses. Disclosures of the troubles ( lowed each other in rapid today. One of these wa that the creditors of th unito in making him a bankrupt, thereby a remnants of his fortune. were kept busy today of the attachment in night by Charles A. Hanna. the National Bank of No in New York, against : $243,321. Copies of the have been served on of 14 banks in which Morse \ to have accounts. A has seized 6400 shares the Furnace Valley Cop to be owned by Morse. on stock in the Kingsla Co., said to have been o A deputy sheriff has a a copy of the attachment ( in charge of the Mo in Fifth avenue. New York, Feb. 6.-Search 1 today for Charles W. merly of Bath, Me., the ban and organizer of the I Co., and the $120,000,000 Co Steamship Co. Mr. Morse his handsome home at 72 this city, yesterday, a known to have been in Monday and may have I With a judgment for ainst him; a suit for $243,321 him by the receiver of Bank of North Ameri mortgaged and in add to cover the amount : Consolidated Steamship C of receivers: his hold stock greatly deprecia grand Juries investigating with the banks, he 1 idition which might have man. National Bank Examiner CI who is in charge of the Bank of North America, ought suit against Morse 1 announced that he was Mr. Morse had probably or had departed elsev indefinite period. but Mr.
10.
February 8, 1908
The Star and Newark Advertiser
Newark, NJ
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mix-up of his affairs he answered: "That's-my business." NEW YORK, Feb. 8.-A small army of deputy sheriffs who were hunting all of yesterday for Charles W. Morse's assets to satisfy the National Bank of North America's $243,000 claim sueceeded in finding in cash only $105. This balance was found standing to the deposed banker's credit at the office of Primrose & Braun, his brokers. Apparently Morse has closed out all his accounts in New York banks. His largest standing accounts were with the National Bank of North America and the New Amsterdam National. He wound up both those accounts before the banks closed. He also had a good-sized account with the Knickerbocker Trust Company, but it is understood that that was drawn down to a nominal amount before that institution closed its doors. Receiver Charles A. Hanna of the Bank of North America will, however, take no chances on missing any of the Morse assets. He will have attachments served on every bank and trust company in the city. In the hope of landing a few where Morse may at least have some equity in collateral on loans. About seventy-five banks and trust companies were served yesterday and today. The thing has become so extensive that counsel to the receiver has given up attempting to have the attachment papers drawn in regular form on a typewriter. Instead, blank forms have been printed, and these are being filled in and turned over to Sheriff Foley's deputies by the dozen. It is expected that fully 150 institutions will have been served with the attachments before the case is ended. and that is saying nothing of the numerous brokerage houses with which I Morse had dealings.
11.
February 18, 1908
The Pensacola Journal
Pensacola, FL
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Pleads Not Guilty on Theft Allegations-An Alleged False Swearing. Served With Papers in Big Civil Action Involving Some $500,000. HE IS THE REAL DEFENDANT IN AN ACTION AGAINST RECEIVER HANNA OF THE BANK OF NORTH AMERICA ON NOTES AND BORROWINGS AGGREGATING NEARLY A HALF MILLION OF DOLLARS. By Associated Press. New York, Feb. 17.-Charles W. Morse was indicted today by the grand jury on a charge of perjury, alleged to have been committeed when he testified before a former grand jury. Morse was a witness before the county grand jury several times before sailing for Europe about three weeks ago. Facts in the Case. The perjury indictment is based upon Ican obtained last September by E. R. Thomas from time Bank of North America, of which Morse then was vice-president. In testifying before the grand jury, Thomas told about a loan of $50,000. Alfred H. Curtis, president of he bank, also testified to the fact that the loan was made. Lt, is alleged that Morse testified the money was not loaned Thomas, either with or without his recommendation. Thomas was summoned again and, it is alleged, produced a letter from Morse recommending the loan. Later Morse appeared before the grand jury atc his own request to correct his former destimony. It is Diated out, how. ever, that the law is such that corrected testimony may be made the basis for a perjury charge. Grand Larceny. Morse was also arraigned today before Justice Dowling and held on bond on two charges of grand larceny. The proceedings were of short duration. Mr. Morse was accompanied by Albert Boardman, of his counsel. He was asked to plead and in reply answered: "Not guilty." Justice Dowling then explained he was compelled to hold the prisoner bound over in $20,000 bail, which was regularly given, as the district attorney agreęd to a continuance of the bond furnished when Morse was arrested Saturday. Other Troubles. The banker's troubles were added to shortly before his arraignment when United States Marshal Henkel went to his mansion at No. 728 Fifth avenue and served him with papers in an action for nearly $500,000 brought by the Continental Finance company against Charles A. Hanna as receiver for the Bank of North America. Mr. Hanna is nominally the defendant, but Mr. Morse will be compelled to answer. The plaintiffs declare the sum is due for notes which the banker failed to make good and for borrowed money. Mr. Henkel was readily admitted when he called at the mansion. As soon as Mr. Morse saw him he extended his hand toward the paper the officer held and said: "Give it to me More trouble, I suppose. Catherine A. Wilson, the banker's confidential secretary, was summoned to appear before the federa] grand jury. That body will try to learn from her if Morse has any money or property that he has not accounted for.
12.
February 22, 1908
The Cairo Bulletin
Cairo, IL
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BANKER MORSE TAKES DAY OFF FORMER ICE KING IS OPTIMISTIC AS TO HIS FINANCIAL FUTURE. DIRECTORS IN MEETING Morse Asserts That Outlook for Set. tlement of His Affairs Are Brighter-Denies Rumor of Illness. New York, Feb. 21.-Declaring that his financial outlook was "very much brighter, very much better and more hopeful," than it had been since his sudden departure for Europe, some three weeks ago, Charles W. Morse took a "day off" today. 111 a sense it was a "red letter" In his career. because it was the first day since his return home last Sunday that he had not been arrested. summened to give bail on an indictment, or called on to answer some process of law in connection with his financial affairs. "I expect to rest today," he said early in the morning in his home. "I shall go horseback riding in the after noon and what business I have to at tend to I shall transact in my house I am not ill and I have not been ill. The last statement he made in con tradiction of the rumor in Wall street that he was confined to his bed with the grip as the outcome of his tramp ing about in the snow and rain on Wednesday, staving off bankruptcy proceedings. "What is your view of your finan cial situation?" he was asked. "It is clearing up decidedly," he replied. "It is very much more hope ful and the outlook is very much brighter." Notwithstanding Morse's optimism, he is not yet out of the woods so far as the dreaded bankruptcy proceed ings are concerned. Charles A. Hanna as receiver for the Bank of North America, has not yet abandoned his S intention of throwing the affairs of si the former ice king into the bank B ruptey court. t It was denied tonight that the Merti cantile National bank had served no o tice on Hanna that it had revoked t the assent it had given to his propo sition for a petition in bankruptcy et against Morse. n The Mercantile's directors held a R tl long meeting this afternoon to discuss th F. Augustus Heinze rather than Morse. n Heinze was present and went over the su loan he had obtained from the bank and discussed some form of settle e ment. re "Did Morse ever welch you?" a de friend asked Heinze as he was enter ti ing the doors of the Mercantile bank. si "Well," said the copper man with a significant curl of the lipe, "I don't el care to talk about that." Mr. Heinze denied that there was B anything in the report that he had O forced Morse to disgorge his loot from Jo the alleged copper corner which Morse ed sold out. te
13.
March 13, 1908
The Detroit Times
Detroit, MI
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MOVE TO DECLARE MORSE BANKRUPT NEW YORK, March 13.-A petition to have Charles W. Morse, former head of the coastwise steamship trust, ice king and deposed financier, declared an involuntary bankrupt, was filed in the United States court today by Charles A. Hanna, receiver of the Bank of North America. Mr. Morse had fought the contemplated action for a long time and the fact that he has finally lost leads to the belief in Wall-st. that the former twenty times millionaire is practically penniless. Mr. Hanna, who with Thomas E. Wing, his counsel, presented the petition in person, alleges that Morse is indebted to the bank in the sum of $203,321.25 with interest from Sept. 25, while the only collateral that can be found amounts to less than $151,000. In the petition Mr. Hanan is joined by Frederick C. Pringle and E. C. Shotwell.
14.
March 14, 1908
Daily Press
Newport News, VA
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PETITIONERS DECLARE MORSE IS BANKRUPT Twenty Times Millionaire is Said Now to be Penniless-Owes Bank $203,321.25. NEW YORK, March 13-A petition to have Charles W. Morse, former head of the Coastwise Steamship trust, ice king and deposed financier, declared an involuntary bankrupt was filed in the United States Court today by Charles A. Hanna, receiver of the Bank of North America. Mr. Morse had fought the contemplated action for a long time, and the fact that he has finally lost leads to the belief in Wall street that the former 20-times millionaire is practically penniless. Mr .Hanna, who, with Thomas Ewing, his counsel, presented the petition in person, alleges that Morse is indebte to the bank in the sum of $203,321.25, with interest from September 25th, while the only collateral that can be found amounts to less than $151,000. Till the petition Mr. Hanna is joined by Frederick C. Pringle, a broker, of 43 Exchange Place, and Edward C. Shotwell, also a broker In the same building.
15.
May 19, 1908
The Cairo Bulletin
Cairo, IL
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MORSE TO PAY DEBTS IN FULL "ICE KING" WILL RESUME POSI. TION IN FINANCIAL WORLDHAS PLANS UNDER WAY THAT WILL RECOUP LOSSES. New York, May 18.-Displaying even more masterly tactics than he used in gaining a vast fortune before the panie of last fall. Charles W. Morse, once the "ice king" and controller of a tsring of banks and organizer of d coastwise steamship trust, has plans under way which promise to recoup for him the wealth that dwindled away in the panic following the fight of the clearing house committee to eliminate him from the banking situation here. He is also planning to pay every debtor in full, with interest, and to * bring about such complete rehabilitation in the financial world that, with his fortune restored, may exert such influence as to "beat" the criminal : and civil prosentions that have been I started against him. Morse's friends i were emphatic today in saying that he ( would be successful in his present e fight. Not only in the retsoration of i the financier to his "ice throne" promf ied. but his reascendancy in the finanI cial world is assured. t In combatting with the odds that b were pited against him and compelled S him once to take flight to Europe: a Morse has displayed the remarkable h ingenuity that was characteristic of h him in the days when he organized e the ice trust and shipping trust, and fi was grouping a string of banks to a aid him in further enterprises. la Though Morse's ambition was not it realized when the attack of the clearit ing house and the panic depressed the values of his securities to such an exS tent that his fortune, computed at $20,l'a 000,000, dwindled away to virtually C nothing, his friends say he hopes now ti to put into effect the schemes he was 0 compelled to abandon. a With the incorporation of the Morse fe Securities Company in Maine on SatG urday, the first formal steps were o taken by Morse and the friends whom in by masterly persuasion, he called to is his aid to look over the assets of the ti ca Bank of North America. Though the k bank closed its doors with liabilities be of more than $8,000,000. Morse has re figured out a plan by which he can G settle the troubles of the institution re depositing with the treasury departm ment between $1,250,000 and $1,500, to 000 to pay off the remaining creditors en of the bank.
16.
July 14, 1908
The Morris County Chronicle
Morristown, NJ
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at $300,000,000. This is to absorb not only the lumber owners, but the principal manufacturers as well. Morse Again In the Game. Charles W. Morse has given formal notice that depositors in the suspended Bank of North America may have full payment of their deposits, and this is taken to mean that the speculative banker has managed to make good his losses and has again entered "the street." Morse had to make good deposits to the amount of $1,350,000. Morse refuses to explain how he raised the funds. Service Before Dividends. In commenting on the recent court decisions in New York city canceling street railway leases which proved unprofitable and allowing new plan of operation without regard to the payment of former rate of dividends the Wall Street Summary says: "It must be understood that a franchise to a public service corporation is under conditions which make an adequate service to the public obligatory. The costs of providing this adequate service come before dividends or any return on the capital invested, and a corporation which from poverty, owing to mismanagement or any other reason, is unable to fulfill its obligations to the public is unworthy to have a franchise."
17.
July 17, 1908
Twice-A-Week Plain Dealer
Cresco, IA
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COMMERCIAL A $300,000,000 Lumber Merger. At St. Louis the owners of 6,000 acres of yellow pine lands in Arkansas, Tex. as, Louisiana, Mississippi and Alabama met and appointed a permanent committee headed by F. E. Weyerhauser, son of the St. Paul lumber trust magnate, to work out the details of a holding company to be capitalized at $300,000,000. This is to absorb not only the lumber owners, but the principal manufacturers as well. Morse Again In the Game. Charles W. Morse has given formal notice that depositors in the suspended Bank of North America may have full payment of their deposits, and this is taken to mean that the speculative banker has managed to make good his losses and has again entered "the street." Morse had to make good deposits to the amount of $1,350,000. Morse refuses to explain how he raised the funds. Service Before Dividends. In commenting on the recent court decisions in New York city canceling street railway leases which proved unprofitable and allowing new plan of operation without regard to the payment of former rate of dividends the Wall Street Summary says: "It must be understood that a franchise to a public service corporation is under conditions which make an adequate service to the public obligatory. The costs of provid. ing this adequate service come before dividends or any return on the capital invested, and a corporation which from poverty, owing to mismanagement or any other reason, is unable to fulfill its obligations to the public is unworthy to have a franchise."
18.
August 10, 1908
Daily Kennebec Journal
Augusta, ME
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sets Realization Co., and who hoped to regain control of the bank of North America's assets by means of the plan which the acting controller of the currency has voted, regards the rejection of his offer as unwarranted.
As a consequence of the decision taken by the acting controller it is now regarded as probable that the Wall-street Exchange building, in which the bank of North America has its offices, will be sold by the receiver to satisfy the claims of the creditors.
19.
October 21, 1908
New-York Tribune
New York, NY
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THE NEWS THIS MORNING. FOREIGN-Unprecedented honors were shown to the officers of the American fleet by the Emperor and Empress of Japan, and messages of friendship and good will were exchanged between the Emperor and President Roosevelt through Admiral Sperry. Dispatches from Budapest and Sofia gave further indications of a settlement of the Balkan questions through direct negotiations. A dispatch from Turin said that the Duke of the Abruzzi could not be found there and that a report was in circulation that he had sailed for America. France has proposed to Mexico that the King of Italy be chosen to arbitrate their claims to The Charcot expedition Clipperton Island. sailed southward from Rio de Janeiro. Three thousand Chinese were killed in the recent typhoon in the region of Chang-Chow. A number of earthshocks were reported from Manila, but no damage was done in the city. DOMESTIC-William H. Taft made speeches at various points in Western Maryland and West Virginia, in both of which states he appears to have captured the wavering or independent vote The monthly statein practical entirety. ment of government receipts, issued at Washington, showed a marked increase for September James S. Sherever the August figures. man, Senator Philander C. Knox and General O. O. Howard addressed a large gathering at Governor Philadelphia on campaign issues. Hughes at several meetings in St. Lawrence and Franklin counties, answered questions of Lewis Stuyvesant Chanler, propounded to him on Monday night at Newburg. Lieutenant Goverror Chanler, speaking in Chemung and Steuben counties, made no referance to Governor Hughes's answer to his questions. The two branches of the Vermont Legislature at Montpelier elected William P. Dillingham and Carroll Henry S. Page United States Senators. Clows, in discussing the tariff at Detroit, attacked the Bryan platform as unfair; "Equality A is the touchstone of taxation." he said. fire threatened to wipe out the business section of Newark, N. J. Details of CITY.-Stocks were higher the way in which Charles W. Morse advanced the price of Ice stock were brought out at his trial. Senator McCarren said that if ChanJer were elected he would fight for the repeal of Ex-Mayor the anti-racetrack gambling law. Grant resigned as a Democratic elector and said At the Busihe had retired from politics ness Men's Bryan and Kern committee meeting in Carnegie Hall. three members of President Cleveland's Cabinet spoke and Mayor McClellan United read a letter from John Bigelow. States Circuit Court judges refused to issue an injunction suspending the Interstate Commerce Commission's order fixing freight rates for grain products from Buffalo to New York and Boston Eugene W. Leake the Democratic Congressman from the 9th New Jersey District, spoke for Taft and Sherman before the ComOfficers mercial Men's Sound Money Club. of the United States ship Alabama told incidents of their cruise. Stockholders of the Bank of North America will get assets from Receiver Hanna to-day. Clergy of all denominations attended the funeral of Bishop Potter, which was marked by extreme simplicity. The Hains brothers made no plea to the indictments against them, as their counsel wished to A. inspect the minutes of the grand jury. Holland Forbes and Augustus Post returned from Berlin undaunted by their drop of 2,900 feet in the balloon Conqueror. First cabin passengers on the Kroonland witnessed a desperate fight in the steerage, followed by the stabbing of one and the suicide of the other combatant W. G. McAdoo filed plans for no extension of the tunnel from the Jersey CityPennsylvania station to the New Jersey Central station on the bay shore. THE WEATHER-Indications for to-day: Fair and warmer. The temperature yesterday: Highest. 54 degrees; lowest, 48.
20.
October 28, 1908
The Salt Lake Herald
Salt Lake City, UT
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New York, Oct. 27.-The expected split between Charles W. Morse, bank promoter, financier and "ice trust" organizer, and Alfred H. Curtis. president of the National Bank of North America, both of whom are under indictment, charging them jointly with violation of the national banking laws. came today with the swearing in of Curtis as the first witness of the defense in the trial before Judge Hough in the United States court here. Before the beginning of Mr. Curtis' examination the court had heard argument on behalf of both defendants on motions to dismiss the indictments, and had yielded on a few minor points, dismissing the counts charging conspiracy and misappropriation in one specific instance, but maintaining fifty-five counts charging overcertification. making of false reports, misapplication and the use of Tunds of depositors for speculative purpose. Before calling the former president of the suspended Bank of North America to
21.
October 29, 1908
Abilene Weekly Reflector
Abilene, KS
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CURTIS TURNS ON MORSE FORMER PRESIDENT OF FAILED BANK TO TELL ALL. Over-Certified Checks to Amount of $40,000,000 While Cashier of Morse's Bank. New York, Oct. 28.-The expected split between Charles W. Morse, bank promoter, financier and "ice trust" or ganizer, and Alfred H. Curtis, pres ident of the National Bank of North America, both of whom are under indictments charged them jointly with violation of the national banking laws came Tuesday with the swearing in of Ourtis as the first withous for the de fense in trial before Judge Hough in the United States court here. Before the beginning of Mr. Curtis' examination the court had heard arguments on behalf of both defendants on motions to dismiss the indictments, and had yielded on a few minor points, dismissing the counts charging conspiracy and misappropriation in one specific instance, but maintaining 55 counts charging over-certification, making of false reports, misapplication and the use of funds of depositors for speculative purposes. Before calling the former president of the suspended Bank of North America to the stand in his own behalf, former Judge W. M. K. Olcott, Curtis' attorney, announced that he had persuaded his client "to tell all the facts." "My client hopes," said he, "that his testimony will not injure any of the other directors or officers who had to do with the management of the affairs of the Bank of North America. It is not his purpose to point his finger at any one individual and say 'you did it, not I" He will, however, tell the the facts and state things as they really happened. Mr. Curtis began his testimony by relating his early career in the banking business. He had started at 14 in the office of a Wall street broker, he said, graduating in ten years to a clerkship in the Bank of the State of New York, the institution subsequently purchased by Morse and merged with the Bank of North America. There he had advanced through the various grades to the position of cashier, in which capacity he had over-certifed checks to the amount of $40,000,000, he declared.
22.
November 6, 1908
The Evening Statesman
Walla Walla, WA
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C. W. Morse, Ice King and Financier, Gets 15 Years NEW YORK Nov. 6.-C. W. Morse Judge Howe, in passing sentence, Curtis was cheered by hundreds as until a few months ago, ice king and a declared that Curtis was under the he left the postoffice building where prominent man in the financial world, the court was located, with his wife. influence of a stronger mind and said They hurried home. was this morning sentenced to 15 Curtis' efforts to reform conditions years. The sentence in the case of Morse ranked among the richest and were blocked by the bank's supine most powerful men in New York. Alfred Curtis, former president of the board of directors. The room was During the summer of last year he Bank of North America, was suspendcrowded when the judge took his seat. reached the height of his career when ed. The men misappropriated funds When he announced he would sushe controlled practically all the coastbelonging to the bank and falsified pend sentence in the case of Curtís, the records. wise steamship lines on the Atlantic. the latter's wife collapsed and was r He was director and president Morse and Curtis arose in the carried unconscious from the room. many big companies and belonged to Tombs prison at 6 o'clock this mornMorse did not flinch when the senthe Metropolitan, Union League and ing, and ate a hearty breakfast. They tence was passed. His face showed University clubs. His home on fifth appeared in court at 10 o'clock. Mrs. little expression. With his wife, his avenue is a palace. Morse greeted her husband calmly, counsel and his sons he conversed Morse's attorney this afternoon obneither showing any emotion. The in the marshal's office until noon, tained a writ of error from Judge La. greeting of Curtis by his wife was difwhen he returned to the Tombs. combe in the United States circuit ferent, as she is a complete nervous Morse will serve in the federal court, which acts as a temporary stay wreck. application prison in Atlanta. Ga.
23.
October 8, 1911
The Washington Herald
Washington, DC
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ber marks two important American an-
niversaries. On October 12, 1492, Colum-
bus discovered America, and on October
1, 1907, began the most serious money
panic in the experience of the country,
marked by the most stupendous issue of
unauthorized or wildcat currency in the
history of modern nations. Of the two
events the latter is unquestionably of
greater concern to the average business
man, for, while Columbus is not likely
to discover America again, nothing has
been done as yet to prevent a recurrence
of the conditions that made 1907 a black-
letter year in the memory of most Amer-
ican citizens.
Events moved so rapidly and in such
confusion during the closing months of
1907 that many of the developments of
the panic and the devices used in the at-
tempt to stay its course are unknown
history to the average citizen. Probably
not one person in 10,00 is aware that the
people of the United States were carry-
ing on much of their business during the
latter part of 1907 with substitutes for
money such as had not been seen in any
other country in a century or that the
premium on coin reached a higher point
than it ever did in Europe in modern
times except on one occasion in France
during the Commune. Few except resi-
dents of the Pacific Coast are aware
that as an incident of the panic the
people of California had a continuous
holiday of more than seven weeks. These
holidays were declared from October 21
to December 21, in order to enable the
banks to decline payment and to pre-
vent the forcing of collections that would
have driven many business houses into
bankruptcy. In Nevada and Oregon sim-
ilar holidays were declared for shorter
periods.
# Pay Checks in Pittsburg.
In Pittsburg $4700.000 of pay checks
were issued by various concerns, and
throughout the country $500,000,000 of panic
money was issued-much of it real wild-
cat currency made useful only by com-
mon consent of the people. In nearly
every large city of the country bank pay-
ments were partly suspended, as they
were in a vast number of smaller pieces,
one village in Georgia of only 400 popu-
lation resorting to the issue of certifi-
cates in lieu of cash.
Up to the middle of October, 1907, the
business situation of the country was re-
garded as highly satisfactory. While there
had been predictions from financial ex-
perts of a serious recession in the expan-
sion which had been proceeding at a tre-
mendous rate for three years, there was
nothing in view to suggest to the ordi-
nary man any greater likelihood of an
immediate and serious interruption of
prosperity than there had been for a year
or more before. In fact, the bank state-
ment at the beginning of September, 1907,
was slightly more favorable than it had
been a year previously.
In the old-fashioned school readers there
used to be a story of a loose stone that
set an avalanche in motion. It was so
with the panic. The stone that set it
going was a seemingly unimportant hap-
pening in New York, an event that or-
dinarily would have caused scarcely a
perceptible local flurry.
A well-known copper speculator had
been trying to engineer a corner in the
stock of a copper company. With his as-
sociates he controlled the Mercantile Na-
tional Bank, a relatively small institution.
Four other banks, of which the largest
was the Bank of North America, were
held in speculative control by men asso-
ciated in one way or another with the
interests dominating the Mercantile Na-
tional. As a result of the collapse of
the copper corner, the withdrawal of
deposits and the fact that their funds
were tied up in unmarketable securities,
these banks were unable to meet their
balances at the clearing house. The total
deposits of the five institutions were
only $56,000,00. In response to their re-
quests for assistance a committee of the
clearing house examined their affairs, en-
forced changes in their management, and
raised a fund of $10,000,000 to tide them
over their difficulties. At various times
many banks have undergone similar reor-
ganizations without any unfavorable after
effects. These events took place in the