Morning journal and courier., 1888-12-20
PRESIDENT cLARK's STATEMENT.


 PRESIDENT CIARK's STATEMENT.
 LAS you are aware, the railroad commissioners of Connecticut have appointed hearing at their office in Hartford tomorrow upon the application proval of petition to the General Assembly at it's
 ssThis application is for the increase of capital stock to such an amount as will enable 1t to provide for it's bonded and hoated indebtedness, to acquire the capital stock and obligations of those compa- nies whose property it may hold by lease for term exceeding fifty years, and to make permanent ao- dtions and improvements to it's railroad prop
 'sThere are three distinct and well defined pur,; poses the first being to provide for the funded ana
 ssYo9r company has issued two millions of bonds four per cent. interest," due fifteen years hence. It has floating debr, payable on short notice amounting to two millions and half. This debt has been incurred in the purchase of real estate in the construction of four tracks through the State or road Nsm as set forth in detail in the When the bonds were issued provision was mace
 0T Bo h oes h the owners Of this property ye sh01a for pe fbe nr pose pose of afTording additional facilities Grant; ed that we owe to the pubic @ s ana ta transportation by the routes we occupy, the best and cheapest service. To provide this service we vestment, but should not be asked to go in debt for incidental and remote benefit to our share holders. And in asking for increase for the pur- pose of providing for our debts, we ask what can do man any injustice, but for that which is in justice due to us
 ssAs to the requirement. of lines in which we have leasehold interest for fifty years. It is for the ad vantage of all concerned that property should be united. When property or necessity exists for an improvement apon any part of this property, agers as to whether the call comes from leased line or from the main line: The whole should be of operation but unit in interest and with mon obligation Welcome the day when there is no Line or the Shore Line the Northampton. but many shareholders of the New York, New Haven and Hartford company, with identical interests moral, financial, sentimental if you please. This cannot be affected by any process of coercion The market value of both the stocks and bonds of these leased roads Is based upon an income of four per
 To us representing the lessee it is an advantage that should have no fixed charges Tn the way of rentals.
 But it will be for the individual holder of any share bond of either of these leased roads to de- ter mine whether he shall continue to mold Dis pres ent investment or become partner of ours upon terms acceptable to both parties. Otherwise the situation will remain as it is.
 'For the third purpose, to wit, provision for the of future improvements the field is unbounced for the use of the Harlem road have in ten years in creased nearly fifty per cent This represents busi Who can tefl what may be needed in cars and en- gines in lands. in tracks and in buildings during the ten years to comef We must be ready to do all the business that seeks our lines and so to do it promptly and economically.
 ''For many years past we have been criticised for investing surplus income in our plant. The wis dom of this policy cannot be doubted, but with and greater provisions for the future must be made But your directors feel the need of still greater
 
 not prudently increase indefinitely, and they now recommend as permanent policy such an increase of the capital stock as shall be adequate for future
 'For those reasons it is evident that no definite cd, your bonded and floating debt is substantially four millions and a half. The stock and bonds of dollars The owners of this eighteen millions re ceive on an average trife over per cent. on the par value, rent roll being S340o00. How many of them will desire to join our fortunes and ex oor ho all al ffN 7n so it is probable that twelve and one-half millions of additional stock vii be required and so if the increase of SC enteen and half would be sufficient for the stock and bonds of our leased roads With our present capital of fifteen millions and haif two and half millions less than the par of the now existing stocks and bonds
 But for the third purpose, that of increasing your property and keeping 1t up to the highest standard of progress and efficiency, no one canesti will be required as time goes on The grade cross ing question is a serious one. No one of us can alter these crossings in Massachusetts Connecticut and New York. No one knows what proportion of | this road and what part by the committees inter | ested. The company now needs four tracks upon the New York division and double track upon the Shore Line estimated cost eignt millions of dollars And therefore following the precedent al- ready repeated in Connecticut legislation, neither the petition, the application, the proposed bill, will attempt to fix 2 definite amount. If it | lars could not be considered excessive. So far capital is increased for the purpose of paying our debts or of making improvements to
 our property, it is expected that shareho ders
 in oportion to their holdings, will have the option
 of taking the additional stock at par. This ad- vantage rightfully yours. But these improvements \ should not be represented by stock to greater | amount than the actual cash cost
 'If this increase is authorized by the General As | semby your directors intend to go on vigorously with the Improvements already named. Four tracks | are substantially completed through New York State and within a few days expect to have the benefit of them But we must stop four tracking
 there unless and until provision is made for paying
 the bills. If authority is granted additional shares \ will be issued from time to time funds re. Qured.
 'In all this there is suggestion Of what is com monly called water by revaluation of the prop
 erty as basis for an increase of it's stock Nor is ! there to be any gleaning or groping through the years that are gone, to determine what amount of
 surplus earnings have been invested in the proper ty. Real estate purchased frem year to year. has
 increased in value, like adjoining properties, large
 ly by the beneffcent influence of the road itself. These values to remain and abide with it's own | CTS tenants in common. But we must keep abreast of the times and continue to improve our
 facilities and our service To this end and for these
 purposes, shall ask the operation of the Gen. | eral Assembly in making company in fact, ! '-The Consolidated Railroad
 THE STOCKHOLDERS RATIFY.