Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-05
Receivers Appointed For
Morse Steamship Lines.
PeTmanentFor Holding Company
Temporary For Others.
Action Taken In Interests Of Stock.
holders In the Companies.

PortiaIu, NE, rep. 4.-ReceiVerS for
the Eastern Steamship Co, the Metro
politan Steamship Co. and the Con-
soidated Steamship Lines of Maine,
also two joint special masters, We're
appointed by Judge Putnam in the
United states circuit court today after
q nearing which lasted nearly two
hours. The receivers and special mas
tcrs are as follows:
Eastern Steamship Co.-Wiliiam T.
Cobb, Governor of Maine; CALVIN Aus
lin Of Boston, president and general
manager of all three companies.
Metropolitan Steamship Co.-Nilliam
T. Cobb, Calvin Austin ard A. 1. Gull
Yer of New York.
Consolidated Steamship Lines of
Maine-William T. Cobb, General
Thomas II. Hubbard of New York, and
in case the latter cannot accept, Rob-
ert F. Hernick Of Boston.
Joint special masters-John F. A.
Merrill and a. s. Woodlnan cr Port
land.
The receivers appointed for The hold
ing company are permanent while
Cos. are introductory, or temporary
Whether or not the latter will be madt
permanent will depend entirely upon
the court and the results they accom-
plish
In appointing the receivers Judge
Putnam said:
Il Will appoint only temporary re-
cCiverS Of the Eastern Steamship Co.
and the Metropolitan Steamship 90
The probability is that the permanent
receivers will be the same as the re-
ceivers of the Consolidated Co"
After naming the receivers for tins
Eastern and Nc tropolitan Cos, he said !:
''They will be simply intr~lpcutory
receivers. The decree which You gen
tlcmer submit will provide distinctly
that the appointment OF these receivers
in each case is subject to all the rights
legal and equitable Of the trustees I'M
der the various mortgages and the
holders of the bonds under the mort
cages, rot to interfere with the rights
in any way OF those trustees CT bond
holders and that no obligation, incur
red by the receivers for the interests
shall effect in any way the rights of
the mortgages or the holders OF til,
bonds secured by the mortgage. In
other words | want it to appear clear
that these receivers are receivers only
of the equity and Of nothing else.
1.-The decree appointing the receivers
shall provide that they shall wind UT
the company in accordance with tie
laws of Maine of 1905 and that they
shall on nr before the first day Of April
in writing recommend to the court the
proper course to be pursued IN refer
ence to the other two corporations.
at may be found advisable 70 wind
them up, and it may lie found adViS-
able to re-organize them, and it may
be found advisable to run them
No opposition was anticipated as it was
believed a receivership would best pro-
tect the security holders and other inter
eStS concerned.
The actions were brought by William A
Muller of Arlington, Mass, whose coun-
sci filed three bills OF complaint. one
against each corporation, and by the
Berwird-Whyt Coal co. The imInedi-
ate cause of the petitions was the failure
of the Eastern Steamship Co. to pay 4
demand note FOR $4,000 to Mr.. Muller. In
the bill. of complaint Mr. Muller declared
II his neUet tilal inc f-stStttn SStcdHiSllI
co. has total floating indebtedness OF
Sl."5o, ocG. and that the Metropolitan COM
pany has a floating Indebtedness of ST.
$50 o00 with unpaid bills OF S250,uoo and in
terest on outstanding bonds of $l,2O0,000.
At the same time ancillary bills were
filed in the Mass2 chusetts and New iorl:
circuit courts
Clarence A. Hight OF Boston appeared
for the petitioners. d. Roy Smith of New
York represented the Consolidated Steam
ship Lines OF Maine. Seth NJ. Garter of
Lewiston. the interests of Clarence Jones
Of New York. Frederick Hale of this city
the City Trust Co. of New York. and Jo'
seph NJ Trott of Bath. creditors of the
Eastern Steamship Co. living I'm that city
Mr.. Hight first took up the case of the
Eastern Steamship Co. He said the conf
parry was organized in 1901 with S30G.oOl
capital stock and 100000 in bonds. the
Continued on page Ten.)