New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-26
MORSE LINES. SOLD
BONDHOLDERS STIRRED.
Consolidated Brings $1,000. 900
E. c. Jones Questions Valuation.

-rna foreclosure sal. OF the Consolidated Steam
snip Lines formerly known the Morse lines TOOK
place yesterday az Portland. Me, and the property
was bio in by Alvin ". Krech. Henry r Booth ana
Eenrv r Mallory as a sub purchasing committees
81 the hon6holders' protective committee ior So'
6aOca. Theirs the only bid made, ano was
accompanied by 8 certified cheek Tor SIV'Vo' o
Havden Stone & Co. q guarantee OF purchase
On the acceptance OF the bid the committee onered
q certificate Of deposit on the Old Colony 1rust
COMPANY. q Boston for 100000 in Consolidated
Steamship bonds nrst payment winch was
accepted
1f+sr ,hs s,nrovsi Of the sale By the court which
IA largely 8 formal matter, the holding com
pany, the Atlantic Gulf and West Indies steam
ship Company which was incorporated last 1ues-
dar viii take over the Ward. the Clyde. the NAL
Iory the New York and Porto Rioo and possibly
The Metropolitan Steamship companies. from the
Consolidated Steamship Lines The Eastern Steam
ship Company already announced IN The IT'D
une viii not be taken over by the new company
but will be managed by the New England inter
ests. for whom Hayden. Stone & Co. are acting as
agents.
There is some dissatisfaction among the bond
holders il was learned yesterday. over the manner
in which the bondholders protective committee has
conducted the reorganization z Clarence Jones'
u no has 100000 Consolidated Steamship bonds
and IS the largest individual holder Of these securi-
ties said that neither he the other large bond
holders had been consulted by the committee in
regard 20 the reorganization, and that all its pro-
ceelings had been OF e star chamber nature
The fact that all the corporators OF the new
company were members OF the protective commit
tee and that another member OF the committee
Henry r. Mallory. had been elected president
showed he said. that the members Of the commit
tee DID not Intend 70 let anything get away from
them. In regard 10 the presidency Of the new
concern. Mr.. Jones said further that two men had
been suggested by OF the largest bondholders
Of the Consolidated. either one OF whom was i'm
u4easurably superior 10 Mr.. Mallory for the place
but the committee ignored the wishes OF the bond
holders and elected its own man. without consult
ing any one.
He said he understood that none OF the big
bondholders would get representation on the
board. but that all the places would be taken by
members OF the protective committee, ana that in
fact the former were 10 have no representation
whatever In the new company. He added that he
had written letter after letter TO the committee
making pertinent inquiries as 70 what they were
doing and what they proposed to do. but that he
rad got acknowledgment or his
letters Mt. Jones said that he and the other
bondhoiders would like TO know upon what the
committee had based its estimates of the value OF
the various properties and why, If the Eastern
Steamship Company was good enough for one of
the members OF the committee TO take over, It was
sufficiently valuable 10 be retained for the
stockholders
II was reported IN the Street that some OF the
bondholders proposed TO take legal action TO COM
pei the committee 10 explain its actions but Mr..
Jones said he was not certain yet what steps
would be taken. Il any. He said, however, that
he intended TO keep right after the committee
with requests for information and hoped some
time to get answer
Mr. Jones pointed out that Mr. Mallory. who
has been elected president Of the new concern,
owns only about $4,000 Of the bonds OF the old
company, and none OF the other members OF the
COMMITTEES, he said. were among the largest hold
ers OF the securities,