The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1908-01-31
REcEIVERSHIP ASKED
CONSOLIDATED STEAMSHIP COM
FANNY IN FINANCIAL STRAITS.
Bflis Of Con,plaint Were Filed Against
Both the Steamship and Two
Subsidiary Companies by
william Muller.

Bostos. Mass. Jan. 30.--ProceedinEs
IN this city for a receivefship for the
Consolidated Steamship Company were
Instituted simultaneously with those at
Portland. Me-. and New York TODAY
the action was brought by William
A Muller. Of Arlington, Mass. whose
counsel filed bills Of complaint against
the Consolidated and also against two
subsidiary companies. the Eastern anu
Metropo1itan Steamship Company.
Petitions for an injunction against
these companies were also nied py
counsel for Mr.. Muller for the Der
wynd White Coal Company. In MS
bin Of complaint Mr.. Muller aeclsles
Il his belief that the Eastern Steam
ship Company has a total floating IN
dabtedness of ti.350.ooo. and that the
Metropolitan Company has a noatins
fndebtedness of 81 $4,000 with the UNI
protected debts of $4,000 and inter
est, on outstanding bonds Of si,zoo.ooo.
The Immediate cause of the petition
was the failure Of the Eastern Steam
to Mr.. Muller for $4,000.
The dificuIties of the Consolidated
Steamship Company are regarded by
bankers In this city as the result OF
excessive steamship building and fall
ura on tho part of the company 70
provide a sinking fund for the UNDER
lying bonds of the six companies that
were consolidated by Charles w. Morse
Of BATH Me. Ita was Mr.. Morse's am
bftion to control q large steamship
company, engaged In the coastwise
trade Two years ago he consolidat-
ed all the steamship lines running be-
tween Boston and Maine ports under
the head Of the Eastern Steamship
Company. He then went further and
obtained control of the Metropolitan
- n
boats between this city and New York
and later secured four lines running
south from New York. the New York
and Cuba Mail Route, known as the
Ward Line, the Clyde Steamship COM
pauy, the Mallory Steamship Company
and the New York and Porto Rico
steamship Company. The Consolidated
poration, was then formed as hold
ing company for these six lines with
an authorized bond issue OF $60,0O0,-
900 at per cent. and se2,000,000 in
stock The total amount of bonds is
sued for the six companies was SAL
$4,000 at per cent. and stock se2,-
100000. Later additional bonds were
issued by the various companies which
brought the amount to s24.624.000.
"A great portion Of these bonds are
held by private individuals but the
stock OF all IL owned by the Console
dated Steamship Company.
The financial condition of the Con-
solidated Steamship Company under
the latter sum began to attract atten.
ton and especially when 1t was learns
ed that over $4,000, 900 had been taken
from the earnings OF the six companies
in order to pay for the Harvard and
Yale, new steamships which were tn
stalled last fall. A month later came
the crash in Wall Street and the re-
signation of Mr.. Morse from a number
OF financial institutions in New York.
The market price of the Consolidated
4 per cent. bonds declined rapidly and
in November a protection committee
was organized. headed by E. H. Ber-
wind Of the Berwlnd White Coal COM
pauy.
tee the former owners OF the four New
York lines, Ward, Clyde, and Mallory
and New York and Porto Rico pfrered
to meet the current sbfiis Of these
linas provided bonds of each AeFefe
pooled. On October the floating In.
debkedness OF the Consolidated Steam
ship Company was comparatively small
but there were . number OF bills and
installments on steamships in COURSE
OF construction due, notably, $250.00O
on January ], 1908, 100000 on aJnus
airy I, 1903. This years claims were
paid, but it came from the earnings OF
the company Of the previous year, leav-
ing so much less for coming operating
expenses. This lack of money in the
treasury during the past few weeks
nseeaeltated the postponement OF paye
mett OF comparatively small bills and
finally results In the application for 3
receiver today by interests understood
to be friendly TO the corporation,