New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-27
PLANS TO BID IN STEAM
SHIP COMPANY.
Facing Fftecn-Ycar Sentence. the
Former Banker WOrks to Build
Up Fallen Fortune. &.

HdhhiuS laws ana tle nTJeen-yedr sentence
hanging over him caused him to lose his nerve
Nor has IT quenched his determination TO re-
habilitate his fallen fortune
Although only released from the Tombs
June rs under $4,000 ball. furnished by twenty
of his friends, Morse has so far rehabilitated
himself, 1t was learned yesterday. that he has
been able to buy up a majority of the claims
against the Metropolitan Steamship Company
now in the hands OF receivers. He purposes TO
buy I'm the company. in which he once held a
substantial interest. at the foreclosure sale TO
be held i'm about a month.
AS the claims against the company aggregate
S1,15T.O12 and Morse practically penni-
less when he left the Tombs. II is apparent that
he has lost none of his ability organizer
and money getter. which formerly made him
such a power in Wall Street and II is also ap-
parent that great many must still have
faith in him
Mr.. Morse. when asked yesterday IN his Office
on the twentieth floor Of the National Bank OF
North America Building the home OF his for
mer banking institution. II he would confirm the
report that he planned to buy in his old line
smilingly said that he would attend the sale"
He admitted that he had bought up certain
claims against the company" and said that
other claims were coming in fast.
HOW MORSE RAISED MONEY
Asked how he had obtained the money 20 take
up these claims. he said the Morse Securities
Company. a concern he organized recently In
Bath Me- had been the medium through which
he had raised the necessary funds This com
pany was organized ostensibly TO deal in Sc
curities' but it is presumed that IT raised the
money by the sale OF stock.
II was learned in this connection that during
Morse's recent visit To Maine he succeeded In
interesting a number Of his friends there In his
new venture. and that man invested 10 the
extent of 100000 Whether any OF the friends
who went on his bail bond invested In the en-
terprise Is not known. but it Is believed 10 oe
more than likely that some Of them may have
done
Among Morse's bondsmen are<F'rederick Wag-
ner and Joseph d. Carroll president and treas
urer. respectively. OF Fiss. Doerr & Carroll;
Oakleigh Thorne. president Of the Trust Com
pany of America: William o. Allison. president
of the National Reserve Bank Warner van
Norden president Of the Van Norden Trust
Company; EIverton r. Chapman. president Of
the Hudson Trust Company; Augustus Van
Wyck: Henry steers. OF the Bradley -Ciafney-
steers Company. and William II. Chesehroush.
vice-president OF the United states Realty and
Improvement Company
According 20 a report fled yesterday by Ed
ward L. Parrish. special master appointed In
the consolidated suits brought in the United
States Circuit Court by the Berwind- White Coal
Mining Company and the American Trust Com
nany against the Metropolitan Steamship Com
pany, the principal claims are those OF the Mer-
camille National Bank. s2s5.4Os: National Bank
~ North America CAforses old insttutionl and
Receiver Hanna. $4,000: New York & Porto
Rico Steamship Company. $4,000; Horn
blower & Weeks. s97.474; receiver OF the
Consolidated Steamship Lines. $4,000: John
wL-g~ N~,N liz
ing Company. s3sOls; Delaware River
iron shipbuiIding & Engine Works. s31.sss;
winfield r. Casswell. s35.O0O; Garfield National
Rank s2sss7. and New York & Cuba Mail
steamship Company s25.27s- These claims were
contracted both before and after the appoint
roent OF the federal receiver for the Metropolitan
Steamship Company on February 8. 1908.
ARRANGEMENT WITH BONDHoLDERs.
The present first mortgage s per cent sinking
Fund bonds Of the Metropolitan Steamship Com
pany. of which there are S2.59l9si outstanding.
come ahead OF some of these claims. hut Mr.
Morse said yesterday that he had arranged with
the bondholders TO take securities of the new
steamship company. which is TO be formed after
the foreclosure sale. in exchange for their hold
ngs.
Under the reorganization plan formulated In
Nav and agreed to by the reorganization mana
mittee for the holders of notes and claims A
new company is to be formed under the laws of
Maine or any other state that may be agreed
upon This will be known the Metropolitan
Steamship Lines. with capitalization OF
s6OOO.OOO. consisting of 100000 stock and
the same amount of per cent thirty-year sink
ing fund bonds There Is also TO be an issue of
SJOOOO0 two-year 8 per cent gold notes.
Under the plan. holders OF the existing bonds
IL 1eDosited with the American Trust C,omnanv
of Boston. trustee. are to receive. first an
amount OF the new bonds equal In face value To
the face value of the bonds deposited: second,
new stock equal in face value to the coupons
due November /. 1905 and May l. 1909. upon
the bonds deposited. and. third. cash equal 10
the interest between May /. 1909. and the date
of the mortgage. The creditors under the
plan are to receive new stock equal in face value
TO the face value OF the notes and claims de-
posted under the creditors agreement OF April
II, 1905. Therefore. IL Mr.. Morse succeeds in
buying up all the outstanding claims he will
have majority of the stock in the reorganized
company.
RECEIVERS ALL OLD FRIENDS.
The receivers of the company are all old
friends of Morse They are William T. Cobb
formerly Governor of Maine: Calvin Austin
formerly Morse's right hand man in the Con-
soIdatai Steamship Lines. and Abel l. Culver.
president OF the Hudson Navigation Company.
former Morse concern. He is an old friend and
associate of Morse. George Il. Shaw and John
W. McKinnon two of the reorganization man
ayers OF the Metropolitan Steamship Company
can also be classed friends Of Morse. They
are president and viee-president, respectively of
the Assets Realization Company which took a
prominent part i'm the liquidation of the National
Bank of North America. Mr. MeKinnon being