Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-01-31
MARINE TRUST
IN FINANCIAL
DIFFICULTY
RECEIVER ASKED FOR
CONSOLIDATED COMPANY


tBy Morning Jonrnal Special Leased Wire J
Boston Jan Proceedings m
this city for a reccIvership for the
Consolidated steamship company were
instituted simultaneously with those
tn the courts at Portland, Mo- and
New York today The action WAS
brought by William A. Muller of Ar
Ington, Mass. whose counsel filed
three bills Of complaint against the
Consolidated company and also
against two subsidiary companies, the
Eastern and Metropolitan steamship
companies In his bill Of complaint.
Mr Muller declares that the Eastern
steamship compauy has total float
ing indebtedness of SL35o,uo0, ana
that the Metropolitan company has q
floating Indebtedness Of Sl,SG0OO0,
with unpaid bills of S2ao,o0u ana in
terest ON outstanding bonds of Sl200,-
000 The immediate cause of the petit
tion was the failure of the Eastern
steamship company to pay a demand
note TO Nr Muller OF 10000.
The difficulties of the ConepiJatta
steamship company are regarded oN
bankers in this city as the result "
excessive steamship building ana ILL.,
urc on the part of the company 10
provide a sinking fund for the under
lying bonds OF the six companies that
were consolidated by Charles Mo HA
Of Bath, Me. II was Mr. Morsc's ant
bition to control a large steam-hto
line engaged IN The coastwsc trade
Two years ago he consolidated all the
steamship lines running between Nos-
ton and Maine ports, under the dedd
OF the Eastern steamship CumplUh
He then went further and obta,d,d
control Of the Metropolitan Steamship
company, with q line Of boats between
this city and New York, the New York
and Cuba mail route, known ~ the
Ward line: the Clyde steamship COM
pany, The Mallory steamship c'a@
pany and the New York and Porto
Rico Steamship company The Con-
solidated steamship company Maine
corporation, was then formed as "A
holding company for these six lines.
with an authorized bonded debt Of
$50 600 .O00. at per cent. ANA S62.-
100000 in stock.
The total amount of bonds for the
six companies was ;2l.96aOUO, at 8
per cent, and stock of $G2,OOOO00
Later additional bonds We're issued by
the various companies which brought
the amount to $2iG2A00O. A great
er proportion of these bonds are held
by private individuals bat the stock
Of all rs owned by tn" Consolidated
steamship company
As soon as the consolidation was
effected a contract was made for the
construction Of number of additona
steamships, and the first production in
this line was the Harvard and yale,
which ran between this city and Me-"
York for two months last fan The
financial conditions OF the Consoll-
dated steamship company during the
latter part Of the summer began to
attract attention. and particularly
when it was learned that over $4,000
GOO had been taken from the earn
ugs Of the six companies in order to
nav for the Harvard and Yale. a
month later came the crash in Wall
street and the resignation Of Mr.
Morse from number Of financial IN
sttutons In New York, Tha market
price Of the Consolidated 4 pat c.nt
bonds declined rapidly, and la Mo-
vember a protection committee Was
organized with the following mem
bers: E. J. Berwnd president of lat
Berwind White Coal company, r. }.
Mallory. II. p, Booth. W II Gran
berry A. W Krcch, All Of NcW york;