Morning journal and courier., 1889-09-16
CONSOLIDATED ROAD AFFAIRS.

A New Director Elected and . quar-
 terly Dividend Declared-Doings or
 she Directors on she Increase Of fStock
 a aSecret-Meeting of she Stock holders
 at Loomis' To-Day.
 The directors of the New York New Haven and Hartford railroad held Q meeting In New York on Saturday. Prssident Clark was present. Tho meeting was an important one, as action was to be taken on the proposed increase of stock and new director elected to All the vacancy caused by the death of George H. Watrous.
 When the three New Haven directors re- turned after the meeting they were as dumb as oysters regarding what had been done about the increase of stock, reserving the statement of what was done for the meeting today of the stockholders.
 Leverett Brainard of Hartford was the now director elected, and quarterly dividend of 2k per cent. was declared.
 The stockholders will meet at Loomis' this morning at Il o'clock, when the amendment to the charter will be voted on. The direc- tors will also present their plan for the in- crease of capital stock. A director states that the stockholders will be allowed to pur- chase in proportion to their present holdings and at par. This would give the smallest stockholders @ chance, and none would be frozen out. The directors will meet again after the stockholders' meeting today, to carry out the wishes of the stockholders.
 The new director, Mr. Brainard, is of the firm of Case, Lockwood & Brainard of Hart- ford and owns considerable stock of the road.
 Popular rumor has 1t that an issue of $5,- 900, 900 will be recommended by the directors kn ha aknor rbnIdaro o1Ioupfnv chc for each three shares now. But 1t is as yet all conjecture, and It is possible to guess that If 30, ,O00, 900 of stock is authorized, some of that may be used to absorb subsidiary stocks like the Valley road, which the company now owns. That belongs to the stockholders al- ready, so do the Harlem 4 Portchester and the New Canaan and some other lines. There is nothing to prevent free distribution of the stock representing these companies pro rata among the stockholders of the Consoli- dated road apart from any issue of new stock at par.
 The sale at 285 is of interest as fixing basis for guessing at results. Two new fac- tors are about to enter into the market value of this stock. One is the chance of future increases at par, which will tend to keep prices up; the other is the possibility, if the capital becomes too big, of a reduction of the dividend rate Perhaps these may balance each other. If party buys three shares at 285 it's cost is $7O5. If he is allowed one new share at par that adds another $10O, and we have
 shares at 265.. .................,S S795 sare at par 100 shares cost. .$895
 That would make each share after the in- crease worth about $223. In other words, the new share sold at $10O would be worth $223, and therefore the fright to subscribe" for one such share would be worth $123 If that is so, then the saleable rights attaching to the present stock would be worth about $41 share 6 shares making the $123), and shareholders can either get the new stock or go on as now and pocket in cash about $40 a share of the premium on their stock. All this ''if."