The daily morning journal and courier., 1907-11-11
NEW HAVEN MAY
 GET MORSE LINES Great Steamship Properties Pass Into Control of J.
 Pierpont Morgan.
TRANSFER BY HIM
 EXTREMELY PROBABLE
International Mercantile Ma rine Go. Considered as
 Well as Consolidated.

New York, Nov. 1O.-Reports, un- confirmed but persistent, were circu- lated in the financial district yester- day that the steamship properties which comprised the Consolidated, <, Steamship company, formerly con Itrolled by Charles w. Morse, had passed to the control of J. P. Morgan. No one connected with the companies could be found who would confirm the report, but it was said statement might be made this week. If the re- ports are correct the big steamship combine, controlling practically all the coastwise Mines except those owned by the New Haven system, fell into Morgans hands in much the same way that another big corporation, the Tennessee Coal and Iron company, did namely, through Morgans hand ling of the financial disturbance.
 Shortly after the financial storm broke the former owners of the vari- ous lines comprising the Morse com bine busted Morse completely and re- sumed control of their properties At the time there was much speculation as to how they had been able to do this so easily, but if 1t develops Nor gan was the guiding spirit the mys- tery will be easily unraveled.
 It IS said the passing of the Consol- idated Steamship company to Morgan came about in the same way as the ownership of he Tennessee Coal end Iron company, It was forced by the action of the clearing house commit tee, which made a demand that the banks which were to be protected, should clear up all unsatisfactory pa per held as collateral for loans.
 When the committee went into the Bank Of. North America and discover cd, 1t is said, tho Consolidated com lpany had borrowed from it $2,e00, 900, More was told to meet the notes at once. He had until 12 o'clock the next day to clean up the transaction. He sent his brokers to the curb and tried to sell enough of the Consolidat- ed bonds to get the cash. But the bonds dropped under the pressure, eNlAQ III t1 bllOAb lAlllC tlO lCdIU II would be utterly impossible to raise such an amount in the market by the sale of the bonds.
 Then. Wall street has 1t, he made his appeal to Morgan Negotiations were opened, and the transfer off a large amount of bonds and enough stock to change the control was made. The price paid to Morse is not known, but 1t is said that the bonds were talk en for less than 10 and the stock, which had been selling at 3-4 and g was passed at price between 1 and IA. At this remarkably low rate the control of the corporation that | started business with $60, 900, 00C | bonds and Ss0,oo0,O0o stock, passed to Morgan for an actual cash expendi. ture of little more than $500, ,0o0 But this outlay, which technically gave control of the concern, was the . smallest part of the expenditure. The essential part of the transaction was to furnish enough cash to take up the , loans of the Bank of North America and other financial concerns. This
 amount was about $2,600,000 If tht ; reported figures are at all correct } Morgan obtained control of the larg
 est aggregation of coastwise lines 1T
 this country for very small sum.
 If Morgan has control of the former
 Morse lines he will probably turr
 them over either to the New Haver system or the International Mercantil,
 Marine company, as he turned tn,
 Tennessee Coal and Iron over to thu United States Steel Morgan Is tn,
 dominant factor in the Mercantil
 Marine, and Is important in New Ha
 ven. The New Haven has announces
 recently it does not want any of tn
 Morse lines, no matter how cheaply
 can buy them, but 1t will be remem
 bered all of the New Havens man
 recent acquisitions, steamships an j. otherwise, have been violently denie a until after the deals we're complete 3 Besides, the New Haven has recent 0 bought many steamship lines and T about to issue new securities, part s at lease, of the proceeds of whic,
 would be available to buy the Mors - lines.
 George W. Perkins last night de
 nied shat Morgan had taken contro T of the Consolidated company.
 I