The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1908-02-04
APPLICATION FOR RECENlR
of the Consolidated Steamship
Co Made in Three Cities
Suits Brought BY Friendly Creditors
Proceedings do Not Affect the
Clyde, Mallory, New York and Por-
to Rico and New York and Cuba
Lines-Proceedings VIII Be Heard
February 4th.

W IkiCo dAIu We" AoEA All SaDa
Lines-Proceedings VIII Be Heard
February 4th.
New York, N. Y, January 30.-Ap-
plication has been made in Portland,
Me-, and In Boston and in this city
for the appointment of a receiver for
the Consolidated Steamship Company.
A representative sof the Bondholders'
Protective Committee said that the
suits have been brought by creditors
who are friendly to the company.
and that 1t Is believed a r~eceivership
will best protect the security holders
and other interests concerned.
1t Is announced also hat the pro-
ceedings do not affect the Clyde, NAL
Tory, New York and Porto Rico, New
York and Cuba lines, the u Of
which are considered to be ample. The
lines affected principally are the Net
ropolitan and Eastern Steamship Com
panies.
The proceedings will come up before
the United States circuit court in
Maine on February 4, when app;tca-
ton for the appointment of a receiver
will be decided. The lines for which
a receiver is asked are the Consolidat-
ed Steamship Lines, a Maine corpora
ton which is the holding company and
for the Metropolitan and Eastern
Steamship companies. The CONSOLIDATE
ed Steamship Lines, organized under
the laws of Maine, was formed by
Charles w. Morse, to carry out his
plans looking to the control of practi-
cally the entire American Atlantic
coastwise steamship business. The ag-
gregate capitalization of the company
consists of $50, 000, 600 collateral trust
4 per cent. bonds and an equal amount
n stock, making the grand total $780,
000, 900. Later additional bonds were
Issued by the various companies which
brought the amount to $24, 624 900. A
greater proportion Of these bonds are
held by private individuals, but the
stock of all is owned by the Consoli-
dated Steamship company.
Up to within a comparatively few
months, the ambition of Morse appear.
ed to be in a fair way toward realiZa-
ton. One after another half dozen OF
the big companies which operated
steamships along the Atlantic coast
and from New York to Cuba and
| Porto Rico had come under his direct
command. With the financial crash
OF October, which carried down SEA
eral financial institutions in whiet
Morse wss heavily interested support
was Withdrawn from his steamship en-.
terprise and talk Of a reorganization
gained wide circulation While nc
| such reorganization has taken place
a committee at work pon plans tt
| that end and component companies
have been operated under separate
arrangements. AS a result of the ctrou'
! bles which came to the big ihDldins
company the January interest on tn,
100000 900 issue of collateral bond.
was not paid.
The financial condition of the Con
las0lidated Steamship company during
the latter part of the summer began tt
attract attention especially when i
was learned that over 100000 hat
been taken from the earnings of tn
Esix companies in order to pay for tw'
new steamships, the Harvard and Yale
Ia month later came the crash in Wal
street and the resignation of MI
4 Morse from a number of financial in
situations in New York. The marke
price of the consolidated four Fer cen
bonds declined rapidly and in Novem
I Der a protection committee was organ
feed with the following members: E
J. Berwind, president of the Berwind
White Coal company, r. M. Mallory
Fl, P. Booth, w. H. CRANBERRY, and A
w. Krech, all of New York; Galel
Stone and Henry Hornblower of Bos
ton and Governor w. M. T. Cobb, o
Rockford, Maine.
Through the efforts of this commit
tee the former owners of the fou
New York lines, Ward, Clyde, Mallory
and New York and Porto Rico, effereC
to meet the current bills of these line
provided bonds of each were pooled
On October Bird, the floating indebt
edness of the Consolidated Steamship
company was comparatively small, blu
there were a number of bills and in
stallments On steamships in course o
construction coming due.
-----
Two Unwelcome Visitors Here.
At this season La Grippe an