New-York tribune., 1908-07-29
REORGANIZATION PLAN
MORSE STEAMSHIP LINES.
BondhoIders' Committee to Organise
Ne5c $40. 900 900 Company.

The bondholders' committee of the Consolidated
Steamship Lines representing the holders OF mere
than 30 per cent of the sso.0oo,oo per cent col
lateral trust gold bonds OF that company 'ile
interest which was defaulted on January J.
made public yesterday its reorganization pian inns
provides for new company to be incorporate
with capital stock of 100000. divided equa1ly
into preferred and common stock Inc pfeIefreu
is to be non-cumulative per cent nterest-bearing
stock. and 50.oN0 shares of each issue par Value
500 to be reserved in the treasury 'o 10
disposed of only upon a two-thiros 'ote vi
majority of all the outstanding preferred stoch'
The properties owned consist practcaliy ol tiio
entire capital stock of the following steamshp
corporations: Clyde Steamship Company Niaiioiy
Steamship Company, New York ana Cupa ' Ha"
Steamship Company New York ana foflo rN'O0
Steamship Cornnanv Eastern Steamship Company
and Metropolitan Steamship Company. con'roi VI
which acquired by Charles w. Morse iot e0--
soldation under the holding company
To meet urgent needs of the four southern cum
a,iae tho committee will offer for sale s24oOcO
mar yaIue of rer cent collateral trust notes o. the
new company and s7,0ooooo par value OF the ne"
company's common stock The new notes WIZ pe
secured by like amount Of notes OF correspond
ing due dates made by the four COMPANIES, @4p
these in turn will be secured by the pledge OF mrs.
mortgage bonds of those companies, not TO eAceeu
90 per cent of their face value.
Upon the acquisition of the four Southern COM
panies at foreclosure sale the new company VIII
issue s15oo0oo0 collateral ftyyear per cent
holders of the bonds deposited to the amount OF
20 per cent of their par value; S.eoWo Will De Is
sued for the expenses of reorganization, cash re-
uuirements under decree of sale and other expenses
incidental to the organization of the new company
and the discharge of prior liens of the old COM
pany and 100000 will be reserved for future
needs.
total of $1,000 900 preferred stock will be issued
the holders of the old bonds deposited to 1he
amount of % per cent of their holdings, s7,0ocn
common stock. equal to 1212 per cent on lhelr
bonds will go to holders of the old bonds, s'Ho"V
to subscribers to the 81 400 900 collateral trust notes
and sS00000 for bankers commission
Under this plan the holder Of certificate for one
Consolidated Steamship Lines bond VIII receive as
follows: Bond of the company of the par
value of $500 non-cumulative preferred stock OF
company at par $3.50; common stock of the
company at par, $25; a total par value OF so'o
AS the committee has been unable TO determine
the requirements of the Metropolitan and Eastern
companies, 1t is planned to acquire the stock OF
those companies held under the lease OF the
old mortgage, and the stocks of the four Southern
companies reserving the right to transfer the
stocks of the Metropolitan and Eastern companies
either the trustee OF the mortgage or to the
company.
If the plan becomes effective Hayden. Stone & Co..
of Boston and New York, will underwrite the en-
tire issue s. 100000 collateral trust notes. having
agreed to pay the committee the cash required
under the decree and terms of sale to complete
the purchase of the property. to be sold at fore
closure. Bondholders who desire to avail them
selves Of the plan must deposit their securities
before August II.