National Bank of North America (New York, NY)

Article Text

New York, Jan. 27.-The National Bank of North America, unable to withstand heavy withdrawals of deposits which came as a result of the recent financial flurries, was forced to close its doors for liquidation today. The comptroller of the currency appointed Charles W. Hanna, bank examiner, as receiver. The bank owes the clearing house $2,200,000. President Havemeyer in a statement lays the blame to rumors that the bank was not able to meet its obligations and these rumors caused the heavy withdrawals of deposits.

Article Text

ASSETS

ans and discounts $5,640,318.76 nited States bonds and 58,902.78 premiums anama and other bonds 986.348.50 and stocks ank house and other real estate 215,500.00 ash and checks in other banks 442.476.55 304,281.31 ue from collection banks Total $8,737,827.90 LIABILITIES. $2,000,000.00 apital stock 536,345.48 rrplus and profits relation 50,000.00 120,000.00 onds borrowed earing house certificates. 2.200.000,00 dividual deposits 2,449,060.30 1,082,422.04 ank deposits 300,000.00 nited States deposits Total $8,737,827.90 William A. Nash, acting chairman the clearing house committee, is ed the following statement to-night: The National Bank of North merica has decided to withdraw om membership in the Clearing ouse association and to liquidate der authority of the comptroller of e currency. This redempt of the nk is regarded as the simplest ethod of liquidating The exchanges ith the bank will not be made at e clearing house to-morrow morng. While the clearing house comttee regard the growing surplus and proved condition of the banks as ghly favorable to a complete rempt of the loan certificates the atement that the banks are being reed to retire them has no fountion in fact." President Havemeyer said to-night at he believed the bank was entiresolvent and that with careful liquition the stockholders will receive for their stock. The National Bank of North Amer has a capital of $2,000,000 and on ugust 22 last. when a report was ade by it to the comptroller of the Irrency, it showed deposits of $19.7.000. This sum had been largely gradually decreased by withawals during and subsequent to the nic and on December 3. the date of next report. the bank showed desits of $6,926.000 and cash on hand $381.000. Since that time. accordg to President Havemeyer's stateen. the deposits have shrunk still ther and to-day they amount of ly a little over $3,000,000. The nk which had been know as the ggest of the seriou of Morse finaninstitutions, Gerwent a reorgantion in October.

Article Text

these certificates, and thereby get possession of the securities against the deposit of which they were issued. The first moneys received by the receiver must, therefore, be used for this purpose, and not until all the certificates are retired can the depositors be paid a dividend. As Clearing House certificates were issued to the extent of only 75 per cent of the conservatively estimated value of the securities deposited, it was necessary for the bank to place nearly $3,000,000 in securities with the Clearing House loan committee to obtain the $2,200,000 of certificates. As the total assets of the bank when the receiver took charge were only $8,737,827, of which $5,640,318 represented loans and discounts, on which Clearing House certificates were principally issued, a large part et the bank's negotiable assets was deposited with the Clearing House. About $750,000 of Clearing House certificates was retired yesterday, and the total amount outstanding was reduced to $5,590,000. The bulk of the day's retirement was understood to have been for the account of the National Bank of North America.

Article Text

Big New York Bank Fails

New York, Jan. 28.-Comptroller of the Currency William B. Ridgely has ordered the National Bank of North America closed for liquidation, and ap pointed Charles W. Hanna, national bank examiner, as receiver. The bank's indebtedness to the clearing house is $2,200,000. President Havemyer in a statement laid the blame for the trouble upon the persistent rumors he declared were the cause of the withdrawals, which on Saturday became SO heavy that it was believed the bank would not be able to meet the obligations on Monday.

Article Text

Big New York Bank Fails

New York, Jan. 28.-Comptroller of the Currency William B. Ridgely has ordered the National Bank of North America closed for liquidation, and ap Charles W. Hanna, national bank examiner, as receiver. The bank's indebtedness to the clearing house is $2,200,000. President Havemyer in a statement laid the blame for the trouble upon' the persistent rumors he declared were the cause of the withdrawals, which on Saturday became so heavy that it was believed the bank would not be able to meet the obligations on Monday.

Article Text

WITHDRAWALS break BANK

National North America in the Hands of Bank Examiner. Comptroller of the Currency William B. Ridgely Sunday ordered the National Bank of North America at New York closed for liquidation, and appointed Charles Hanna, national bank examiner, as receiver. The failure and persistent withdrawals, the result, according to President Havemeyer, of insistent rumors set afloat respecting the bank's condition.

Article Text

The National Bank of North America has gone into the hands of a receiver, which would indicate that they are still treading on dangerous financial ground in New York. The boasted Republican prosperity seems to be skittish these days.

Article Text

WOULD DECLARE MORSE A BANKRUPT.

New York, N. Y.—A petition asking that Charles W. Morse, the former banker and steamship promoter, be declared a bankrupt, was filed in the federal court Friday. The petitioners are Charles A. Hanna, receiver of the National Bank of North America, of which Morse was at one time vice president; Frank G. Pringle and Edward B. Shotwell.

Article Text

Bankers' posted rates were as follows: Demand. Sixty days. 4.86 4.88 Sterling 95 1/2 95% Germany, reichsmarks. 5.17 1/2 5.14 % Paris, francs 5.20% 5.161/4 Belgium, francs 5.18% 5.15% Switzerland, francs 401/2 40% Holland, guilders HAMILTON & EXCHANGE CINCINNATI DAYTON BONDS FOR NOTES.-The committee of holders of the 4 per cent refunding mortgage gold bonds of the Cincinnati, Hamilton & Dayton Railway Company, of which James N. Wallace is chairman, announces that over 80 per cent of the outstanding bonds have been exchanged for the five and a half year purchase money 4 per cent gold notes, maturing July 1. 1913. AMERICAN CAR AND FOUNDRY.-The - annual meeting of the American Car and Foundry Company will be held to-morrow, when the company's report for its fiscal year ended April 30 will be made public. Though the business of the company was poor in the last quarter of the year earnings will approximate, it is understood, 18 per cent on the common stock and 10 per cent available for dividends after all deductions for new properties, renewals and other purposes. There were few new orders on the books at the beginning of the company's new year. SECOND DIVIDEND BY MORSE BANK-The depositors of the National Bank of North America have received checks from the Controller of the Currency for a second dividend of 25 per cent declared on June 2 last. MONEY RATES DOWN.-Call money declined to 1 per cent yesterday, the lowest rate since March 30. The demand was light. Timo money also was soft in tone. The premium on New York exchange in Chicago was reduced to 30c. STOCK EXCHANGE HOLIDAY.-The members of the Stock Exchange have voted to suspend business on Friday, July 3. The governing committee will act on the vote to-day.

Article Text

MORSE WON'T GIVE UP

To Continue Fight for Assets of North America Bank. Charles W. Morse was plainly chagrined yesterday at the action of the Controller of the Currency in vetoing the plan of the Assets Realization Company to pay off the depositors of the suspended National Bank of North America and take over the assets for liquidation. Mr. Morse was in conference most of the day with his friends and advisers, but said last night that he was not ready to announce what his next step would be. Those who know Morse, however, do not believe for one instant that he has given up his plan to get possession of the assets of the institution over which he formerly presided. It is generally believed that he will shift the offer of the Assets Realization Company so as to conform strictly with the federal banking law, in which case the Controller of the Currency will have no apparent reason for refusing the proposition. The position of the Assets Realization Company, however, even if Mr. Morse shall be unable to obtain the consent of the Controller of the Currency to a remodelled plan for liquidation. is not an unenviable one. It has purchased, according to its representations, receiver's certificates of the National Bank of North America to the amount of $1,012,550. on which two dividends of 25 per cent each have been paid by Charles A. Hanna, the federal receiver. For these certificates it paid out approximately $500,000. The company assumes, therefore, the position of a depositor. The receiver's certificates were purchased, however, at face value. or in some cases a slight concession, and no interest was allowed to the sellers. Mr. Hanna expects to have sufficient funds not only to pay all depositors in full, but also to allow interest at 6 per cent, as required by law, from the time the bank closed its doors, on January 27 last. As over six months of interest has already accrued, it can be seen that the Assets Realization Company is sure not only of getting back all its money invested, but also of a 12 per cent profit on the capital tied up, assuming that the affairs of the bank are wound up in the next six months. Mr. Hanna had no comment to make yesterday on Mr. Morse's statement that he (Mr. Hanna) wanted to keep the receivership berth as long as possible. Friends of Mr. Hanna, however, know that he would be very glad to be relieved of his work as receiver, as he has plenty to do in connection with his duties as national bank examiner for this district.

Article Text

MORSE BANK EMERGES FROM BANKRUPTCY Final Dividend Paid Depositors of North American National. New York, Sept. 15.-Following receipt of advices from Washington that the comptroller of the currency has authorized payment of the fourth and final dividend of 25 per cent to the depositors of the suspended National Bank of North America, Receiver Charles A. Hanna today announced that checks would be ready for depositors on Friday. This means the early turning over of the bank to the stockholders and final arrangements for that process, it is expected will be perfected at a conference on Wednesday between Receiver Hanna. Comptroller of the Currency Murray and Charles W. Morse, formerly vice president of and still the largest stockholder in the bank. Mr. Morse has been active ever since the bank suspended eight months ago, in raising the funds to rehabilitate the institution. That Mr. Morse will again take contro of the bank is assumed here.

Article Text

I MORSE BANK EMERGES 8 FROM BANKRUPTCY 0 Final Dividend Paid Depositors of North American National. New York, Sept. 15.-Following receipt of advices from Washington that the comptroller of the currency has authorized payment of the fourth and final dividend of 25 per cent to the depositors of the suspended National Bank of North America, Receiver Charles A. Hanna today announced that checks would be ready for depositors on Friday. This means the early turning over of the bank to the stockholders and final arrangements for that process, it is expected will be perfected at a conference on Wednesday between Receiver Hanna, Comptroller of the Currency Murray and Charles W. Morse, formerly vice president of and still the largest stockholder in the bank Mr. Morse has been active ever since the bank suspended eight months ago, in raising the funds to rehabilitate the Institution. That Mr. Morse will again take contro of the bank Is assumed here.

Article Text

Financial Meetings

TOTICE IS HEREBY GIVEN TO THE SHAREHOLDers of The National Bank of North America, in the City of New York, that a meeting of the stockholders will be held at the office of Charles A. Hanna, Receiver, 43 Exchange Place. New York City, on the 21st day of October at 10 o'clock A. M., for the purpose of electing an Agent to whom the assets of the Bank will be transferred and delivered, in accordance with the provisions of Section 3 of the Act of Congress, entitled, An Act Authorizing the Appointment of Receivers of National Banks and for Other Purposes, approved June 30, 1876, and an Act amendatory thereto, approved August 3. 1892, and March 2. 1897: or for the purpose of continuing the Receivership in accordance with the provisions of the last named Act. LAWRENCE O. MURRAY, Comptroller of the Currency. Sept. 18, 1908

Article Text

WANT TO START ONE MORSE BANK THAT FAILED Minority of Stockholders Think National Bank of North America Would Pay. The stockholders of the National Bank of North America, which succumbed during the panic to the high financial treatment administered by Charles W. Morse, met this afternoon in the offices of the bank in Exchange place to consider the problem of Mquidating or resuming business. The creditors and depositors have been paid off by Receiver Hanna and the remaining assets are in the hands of the Assets Realization Company, of Philadelphia, which purchased them for profit. The Assets Realization Company and a majority of the stockholders are in favor of a speedy liquidation and a distribution of the income from the assets. A minority, representing New England holdings. is in favor of resuming business with added capital and a new deal

Article Text

PLANS FOR BANK OF NORTH AMERICA

Stockholders Hope to Avoid LiquidationAssets Turned Over To-day. A general meeting of the stockholders of the National Bank of North America has been called for to-day by the Controller of the Currency, L. O. Murray. At this meeting Receiver Charles A. Hanna will turn over to the stockholders the assets of the bank. Informal conferences have been going on recently among the stockholders to determine whether the bank shall be placed in liquidation or resume business. A decision in the matter is expected to be reached at to-day's meeting. Colonel Robert M. Thompson said the other day that several of the stockholders, including himself, Charles M. Schwab, William F. Havemeyer, John W. Gates, John H. Flagler, Henry P. Booth, John F. Carroll and Morgan J. O'Brien, were trying to form some practical plan under which the bank might resume business, instead of going into liquidation. It was said yesterday that in the event of the institution being liquidated the stockholders might get as much as $150 a share for their holdings.

Article Text

WANT TO START ONE MORSE BANK THAT FAILED Minority of Stockholders Think National Bank of North America Would Pay. The stockholders of the National Bank of North America, which succumbed during the panic to the high financial treatment administered by Charles W. Morse, met this afternoon in the offices of the bank in Exchange place to consider the problem of Mquidating or resuming business. The creditors and depositors have been paid off by Receiver Hanna and the remaining assets are in the hands of the Assets Realization Company, of Philadelphia, which purchased them for profit. The Assets Realization Company and a majority of the stockholders are in favor of a speedy liquidation and a distribution of the income from the assets. A minority, representing New England holdings, 18 in favor of resuming business with added capital and a new deal

Article Text

AGENT APPOINTED To Handle Affairs of National Bank Of North America. New York, Oct. 21.-In an effort to settle the affairs of the National Bank of North America, one of the Morse financial institutions which suspended at the time of the recent panic, John W. McKinnon of Chicago today was elected as agent by the shareholders of the institution. All depositors having been repaid, the remaining assets of the bank will now be turned over to Mr. McKinnon. A meeting will be held soon to decide whether the institution shall liquidated or re-organized and resume business. Minority stockholders of the bank today chose Joseph H. King of Hartford. A. W. Damon of Springfield, Mass., and Frederick R. Eaton of New York a committee to consult with the directors as to the advisability of the bank's resumption. Eugene P. Carver, attorney for Mr. Morse and also representing the Assets Realization Co., of which Mr. McKinnon is president. said after the meeting of the stockholders that the Assets Realization Co. hoped that a re-organization of the bank could be effected and the company would in no way interfere with any such a plan. This also is the desire of Mr. Morse.

Article Text

BANKER CURTIS

TURNS ON MORSE

Former President of Suspended Institution Promises to Tell All Facts

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 Unites States court.

Before the beginning of Curtis' examination the court had heard argument on behalf of both defendants on motions to dismiss the indictments, and had yielded on minor points, dismissing the counts charging conspiracy and misappropriation in one specific instance, but maintaining 55 counts charging overcertification, 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 facts and state things as they really happened."

Article Text

To Reorganize a Morse Bank

New York, Oct. 23.-In an effort finally to settle the affairs of the Na. tional Bank of North America, one of the Morse financial institutions which suspended at the time of the recent panic, John W. McKinnon of Chicago was Wednesday elected as agent by the shareholders of the institution. All depositors having been repaid the remaining assets of the bank now will be turned over to Mr. McKinnon.

Article Text

Makes a Good Appearance on Stand PLAUSIBLE EXPLANATION Of His High Finance-Denies Curtis Said He "Busted" the Band-It Did Not Close After He Was Out of It for Three Months. New York, Oct. 31.-Charles W. Morse had this turn yesterday at the trial of himself and A. H. Curtis in the United Statescourt, to explain his transactions with the National bank of North America which he and his co-dedefendant are accused of wrecking. And he made the most of his opportunity so far as the interests of the defence were concerne; he was a much better witness than Curtis had been. There was no whining in Morse's testimony and in his direct examination at least, he was able to give a very plausable explanation o his "high finance" of a year ago. had more the appearance of a man adveating a new scheme at a meeting of low directors than of & defendant timg to stave off averdict guilty, calls for a minimum pendity of years in prison. His transact ons in bulk with the bank of North America in the course of the three years ending on Oct. 18, 1907, the day of the collapse of the Morse-Chrtis administration, amounted to $65,000,000. His average daily balance on deposit for that three year period, he said, had been $190,000. He denied point blank the testimony previously given by W. W. Lee, vice president of the bank, that Curtis had said to him on Oct. 16, 1907, "Morse, you have busted the bank." "Did Curtis say that to you?" asked Wallace MacFarlane of counsel for the defence. "He certainly did not," replied Morse "and the bank was not burst." "Did the bank close its doors on Oct. 16, 1907?" "It did not. It did not close its doors until Jan. 21, 1908, three months after I had ceased to be an officer and a director of the bank." "Have the depositors been paid in full since then " asked Mr. MacFarlane. This and similar questions were objected to on the ground that the last date named in the indictment was Oct. 18, 1907, and that what had happened after that was not relevant. Morse's lawyers made a hard fight for the admission of evidence to show that no depositor had lost anything as the result, of their client's financial activity, but judge Hough sustained the objection of the prosecutor, intimating to the defence at the same time that it should be satisfied with showing that the bank did not suspend until three months after the retirement of Morse. Contrary to expectations, Morse did not deny that Curtis had written him a long letter of warning about the bank's affairs on June 11,1907. to "Oh, yes; I recall that letter," said the witness. "It was just before I sailI ed for Europe. Mr. Curtis was always very timid when I was about to go away ,and brought up all the bugbears e he could think of to keep me in the city." t As had already been told in court, e Morse fixed matters up to reassure Curtis, his president, and sailed on June 19. h

Article Text

MORSE JURY LOCKED UP Fate of Promoter and His Banker Undecided-Morse Not Nervous. New York, Nov. 4.-The cases of Charles W. Morse and Alfred H. Curtis, jointly indicted and on trial In the United States court here for violation of the banking laws in connection with the suspension of the National Bank of North America, were given to the jury this afternoon, and to-night the fate of the two defendants was still undecided At 8:30 o'clock, the jury into Whose hands the case had been placed five and one-half hours earlier, retired for the night going to their hotel and suspending their deliberations. Charles W. Morse was in court accompanied by his counsel, and a number of friends when the announcement that 110 verdict would be announced to-night was made. He seemed to be unmoved at the news. Alfred H Curtis remained at home and received word of the jury's action by telephone.

Article Text

MORSE CASE WITH JURY

Five Hours of Deliberation and No Verdict. New York, Nov. -The cases of Charles W. Morse and Alfred H. Curtis, jointly indicted and on trial in the United States court here for violation of the banking law in connection with the suspension of the National Bank of North America, were given to the jury this afternoon and tonight the

Article Text

Morse Jury Still Out NEW YORK, Nov. 4.-The cases of Charles W. Morse and Alfred H. Curtis, jpintly indicted and on trial in the United States court here for violation of the banking laws, in connection with the suspension of the National Bank of North America, were given to the jury today, and the fate of the two defendants was still undecided at a late hour.

Article Text

Texas saving bank, placed in receiver's hands. 18—John R. Walsh, president Chicago National bank and several railroads, convicted of misappropriating institution's funds. 21—Capital State Bank, Boise, Idaho, suspended. 22—Traders and Mechanics' Bank, Pittsburg, Pa., closed doors. 25—National Bank of North America, New York, closed for liquidation, by order of government. 29—New Amsterdam National bank, capital $1,000,000, and Mechanics and Traders' bank, both of New York, taken in charge by comptroller of currency. 31—Oriental Bank of New York closed doors, following run. Feb. 13—W. B. Ridgely, comptroller of currency, accepted presidency of reorganized National Bank of Commerce, Kansas City, Mo. 26—International and Great Northern Railroad Co., a Gould line, placed in receivers' hands. 27—Financiers E. R. Thomas and O. F. Thomas indicted on charge of mismanagement of funds of Provident Savings Life Assurance society. Mar. 13—John R. Walsh denied new trial; sentenced to five years in federal prison. 16—People's National bank, Aspin, Col., closed. Apr. 1—Pike County Bank and Trust Co., Macomb City, Miss., placed in receiver's hands. 21—Bank of Wauseon, Wauseon, O., closed doors. 24—T. A. McIntyre & Co., with houses in many cities, failed for $1,000,000. May 8—Euclid Avenue Trust Co., Cleveland, O., assigned. 14—Reserve Trust Co., and American Savings bank, Cleveland, O., closed their doors. 28—G. W. MacMillen & Co., Pittsburg, Pa., stockbrokers, failed; liabilities, $1,800,000. Jun. 3—Kosciusko Company bank, Warsaw, Ind., closed by state auditor. 23—Citizens' bank, Dover, Ky., closed doors. Jul. 14—National Deposit bank, Philadelphia, Pa., closed by comptroller of currency. 17—Farmers and Merchants' Banking Co., Cleveland, O., failed. Aug. 6—First National bank, Belle Plaine, Minn., closed by order comptroller of currency; bank was insolvent; President J. G. Lund committed suicide. 25—A. O. Brown & Co., one of largest New York brokerage firms, failed; liabilities over $1,000,000. Sep. 10—A. Booth & Co., largest fish house in country, forced into receiver's hands. Oct. 16—Union National bank, Sommerville, Pa., closed by government. Nov. 5—Charles W. Morse and Alfred H. Curtis, great financiers, found guilty of misapplication of funds and falsifying books of National Bank of America, New York. 6—C. W. Morse sentenced to 15 years; Curtis given liberty on suspended sentence. 23—Eldred bank of Eldred, Pa., suspended; capital stock, $100,000. Dec. 7—National exchange bank at Springfield, Mo., closed; excitement caused by effort of W. O. Oldham, cashier of State Savings bank, to shoot President H. B. McDaniel, of Union National bank. 11—Springport, Mich., State Savings bank closed by bank examiner.