New-York tribune., 1908-01-31
MORSE LINES RECEIVER
ASKED BY BONDHOLDERS.
For Consolidated, Metropolitan and
Eastern Steamship Com pdnies.


Steamship Lines and for the Metropolitan and
Eastern Steamship companies, two of its sub
sdiaries. filed in the United States Circuit
Court at Portland, Me, yesterday, and ancil-
larry bills were filed in the United States courts
at New York and Boston The Consolidated
Steamship Lines defaulted the January interest
on its S60O0OOOO collateral trust bonds. and the
report of firm of accountants on the financial
/ condition of the company and it's subsidiaries
I to the bondhoders- protective committee a Few
days ago showed that the holding company was
not earning the interest on its bonds and that
the Metropolitan Steamship Company was oper-
ated at loss of 100000 last year
Members of the bondholders protective COM
n1ittee in this city said yesterday they We're not
familiar with the details of the suits. which had
been brought by Boston interests, but that they
would not interfere with the work of the COM
r17ittee which is formulating plan for the re-
organization of the Consolidated Steamship
Lines A man closely identified with the COM
psny said that the receivership action was de-
cfded upon several days ago by the bondholders
committee and the controlling interests in the
Consolidated Steamship Lines to stop annoyance
from creditors and also to anticipate similar
action on their part. He said the action was
friendly one. and would not in any way inter-
fere with the plans of reorganization
DISPATCHES from Boston yesterday quoted C
r Hight counsel for the bondholders' protec-
tive committee, making the following state
ment in regard to the receivership action:
hill in equity has been filed in the United States
Circuit Court Portland, Me and anciIlary ollls
ton New applying for Ieoeirer f@F fne
co9sodatsad a Lnei and for the Meropota
and Eastern steamship companies -,
on these applications the several courts nave
issued injunctions TO protect the property and re-
straining all persons from interfering WIN Iiie
ing that the business may be properly conducted
usual by the present ofceTs- fT ,br.s subsidiary
companies has been taken into custody Of the
df Maine nen has issued an order notice
returnable February when' IL Is expected re-
The suits have been brought by creditors not
,,nfrendly 10 the Consolidated steamship lines, the
Netropolitan and Eastern steamship companies 1t
is believed that these proceedines WIN Dest pro-
It is believed that the appointment of receivers
necessary step towatd 'e Oh conanies e
and the Consolidated steamship lines on an edul-
table and conservative basis. ,.,,..o +,,o ,,.rorz
the Civde the New York and Porto Rico or the
resources of these last named companies are con
sidered ample meet requirements without re-
course to the protection of the courts
Roston Jan. 3O-The difficulties of the Con-
solidated Steamship Lines regarded by
bankers in this city as the result of excessive
steamship building and failure on the part of
the company to provide sinking fund for the
underlying bonds of the six companies which
were consolidated by Charles W. Morse. 1t was
Mr. Morses ambition to control large steam
ship company engaged in the coastwise trade
Two years ago he consolidated all the steam
ship lines running between Boston and Maine
pnrts as the Eastern Steamship Company. He
then obtained control Of the Metropolitan Steam
ship Company. with line between this city
and New York. and later got four lines running
south from New York-the New York and Cuba
mail route known as the Ward Line; the Clyde
Steamship Company. the Mallory Steamship
Company and the New York and Porto Rico
Steamship Company.
The Consolidated Steamship Lines Company, a
Maine corporation, was then formed hold
ing company for these six lines with au-
tborzed issue of S6O.OO0.00O 4 per cent bonds
and S62 00O,0 600 in stock The total amount Of
bonds of the six companies was S21.969,O0O and
stock. So 100000. Later. additional bonds were
issued by the various companies, which brought
the amount to So. .624, 600. A greater proper
tjon of these bonds held by private indi-
viduals but the stock of ali is owned by the
Consolidated Steamship Lines.
AS soon the consolidation was effected a
contract was made for the construction Of a
number of additional steamships, the first being
the Harvard and the Yale, which ran between
this city and New York for two months last fall.
The financial condition OF the Consolidated
Steamship Company during the latter part Of
the summer began to attract attention, espe |
ciallv when II learned that over So 100000 |
had been taken from the earnings Of the six
companies to pay for the Harvard and the Yale. |
A month later came the crash in Wall Street |
and the resignation of Mr.. Morse from a number |
OF financial institutions in New York The mar !
ket price OF the Consolidated per cent bonds |
declined rapidly and in November protective |
committee organized with the following |
members: E. ]. Berwind. president Of the Ber- |
wind White Coal Company; II. r. Mallory II. |
y Booth. W H. Granbery and A. W. Krech. all |
OF New York; Galen Stone and Henry Horn |
blower. OF Boston. and Governor William T. |
Cobb OF Rockland. Me
Through the efforts OF this committee the |
former r".ners of The four New York lines. |
Continued Cd sseend page. .