The morning journal-courier., 1908-11-25
Morse Steamship Company Is Saved from Wreck by Mallory and Boston
 Bankers.
STARTS WITH CLEAR SHEET
ReCcivcrship to Be Wound Up at Once Assets of Consolidated Com pauy to Re Sold at Auc.
 ton To-day.

Boston, Nov 2f-The incorporation at Portland, Me- today of new S4O,- OOO,OO corporation to be known as the Atlantic, Gulf and West Indies Steam ship lines, with Henry R. Mallory of New York as president, and substan- tial backing by Boston bankers, was in line with q plan Formulated by inter- estod parties to save from complete wreck tho Consolidated Steamship CO.,. promoted by Charles w Morse c' New York, Tho lines to be taken over by the new corporation are those operat- Ing from New York southWard, The Boston men among the lncorpOrators arc Henry Hornblowcr of the banking firm of Hornhlowor and Weeks, and Gacn L. stone of the banking firm of Hayden, stone & Co.
 The Morse corporation practically controlled tho steam water transporta- ton facilities of the Atlantic coast when Morse was caught in tho panic of 1907. After a few months of strug- gng, the company on February { last, passed into the hands of receiver. From that time onward some of the expert nnauclers have beon working almost day and night upon reorEan- ization plan, and the filing of articles of incorporation for the new company, today, is regarded IS formally announc- ing the success of their efforts
 The new company has canital of S20,0OoO0O and tho same amount in com- mon stock, as well as S15ooo,ooo in . per cent bonds,
 IL will be holding company for four of the six lines which Morse brought under the Consolidated company namely, tho Ward, Clyde, Mallory and New York and Porto Riro all running south from New York The other two Morse lines, tho Eastern, running east from this city, and the Metropolitan between this city and-Ncw York, win remain under separate manaEomcnt for a time at least.
 rho reorganization committee found that there was outstanding sf20loolo of per cent. bonds of the Consolidated steamship O., held hy more than a thousand companies firms and indIvid- uals. all Of whom must consent Co q reorganization before the courts would hermit transfer of the property Of the company The committee also found floating debt of s2,iooo0o which had 10 bo financed.
 A month ago the promoters of the concern succeeded in obtaining the ap- rYoval of q7 per cent of tho old hon1- holders representing S599S56oo worth or bonds. and the project was se- cure. Tho reorganization plan pro vidcs that the old boudhodcrs shall receive for their holding % per cent in tho per cent bonds of tho nov company cj per cent ln tho preferred stock, and i2H per cent in common stock. inc balance, 37la per cent, be ing a total loss The hondho'd5rs however. put their original holdings o' stock iu tho subsidiary companies on a haais of "i cents on the dollar. so that their loss win not be large The non .assrutng bondhOldors will be paid off in cash at a price to hf
 rho new company starts of with q clear sheet It has no floating debt and no interest charges untn 1910 Tho uid floating debt of S2 io0Doo ie tnko, care of hv the Issuance of short tIml notes. which become due somi-annUally and uf ihr total amount SGO0 0N0 haEt been taken by the hOndholcrs and the balance hv Boston banks and bank . CTS The first batch or theso notes hc comes due January |, 1909. and the last year from that time,
 It is expected that tho new company will be iu active working operation hN December l5. with Headquarters i'm New York N has control of the Metropoli tan luc, and eventually will probably take that company under lts yan1re mcut lt has 21 per cent. of tht stocl
 i'm the Eastern Steamship Co. but it l' expected that this organization vii maintain separate existence for many years.
 lt ie expected that the rccelvership will bo wound mp within a short time.
 The assets of inc Consolidate, Steamship lines will he sold nt auctio, in this city tomorrow afternoon. pur
 suant to tho decree of the Unite States circuit court They include shares uf tho Mallory, Eastern Metro poltau. clyde, Now York and Cubi Mall. and Now York and Porto Rlc
 steamship companies Thrsc share were mortpaEod on January f. 1907, h, t,. ,s,y..,ly.l.t.J lst..n,,,pbi, t,,,p