Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1893-04-05

hon Of, but do not cancel the old con-
Eracts) therefore do substantial Justice and
ensure the control of these properties for
ninety nine years from the first of April.
Both of these leases have been already rat
lied by the stockholders of their respee-
tive companies.
"A more Important question Is present
ed TO you In the matter of the lease of the
Old Colony railroad.
In the form submitted IL has been APP
proved both by your directors and by the
directors Of the Old Colony Railroad com
pany. It has also been ratified by the
nearly unanimous vote Of the stockholders
OF the Old Colony railroad.
Its terms contemplate the guarantee of
all Its fixed charges and rentals, and div
less they elect to exchange their stock on
the basis of ten shares of Old Colony for
nine of New Haven.
The Old Colony system owns or con- |
trolls about 603 miles of railroad In the |
eastern part of Massachusetts, and in Rhode |
Island. Il owns substantially all the stock
OF the Old Colony Steamboat company,
popularity known as the Fall River line.
Some years ago it acquired control by long
lease OF the Boston and Providence rail-
road, an extension Of our own line, via
Providence, into Boston.
1.-THE territory served by 1t is situated as
to Boston and Providence substantially
as our Connecticut territory is situated as
to New York. Both systems are free from
local competition. Both have been man
aged go as to command the confidence of
the communities which they reach. More
than that, both systems have been managed
in harmony with each other, and there ia
no reason growing out of friction which
hov r,rn fod ktao mil
proposed If the past policy could be ensured
for the future.
sThe fact remains, however, that your
property, notwithstanding Its termini at
Springfield, Willimantic and Providence,
10 dependent for its Boston connections
upon independent roads. It Is neither for
the interest of your property nor of the
public that such a state of things should
continue. Control Of the Old Colony by
any adverse interest would place our in
vestment east of New London largely at Its
mercy. The acquisition of the Old Colony
might have been postponed, but in the end
necessity would have obliged us to extend
our rails to Boston by new line should it
have proved impossible to have acquired
one already existing. By leasing 1t now,
future dangers and Complications are for
ever prevented.
''The Old Colony railroad will bring to
Piled with raw material for Its manufacture
| ing: and will increase our revenue by fur
| nishing freight upon which the average
| haul will be 200 miles. Unifcation of the
interests will place upon this company the
| responsibility of conducting substantially
| all the traffic between Boston and New
York, whether by rail or by water.
"By recent understanding reached
with the great system north of us, our
1 1fyac will no In
| close and cordial relations with the Boston
and Maine territory, and there can be no
doubt that if these properties are managed
with an eye to the public good, which is in
| the true interest of stockholders, no ques-
ton can ever arise as to the perpetuity,
| Independence and proftableness of the
united properties.
'Your directors, therefore, recommend
the approval of all these leases by your
vote to-day.
"One other subject and have done.
1889, the capital stock Of the New Haven road
had been SIS. 900. It had earned handsome
outgrown it's facilities It had not kept abreast
| with the public demands, nor with the advances
in modern IailreadiDg By the permission OF 1 me
to increase its capital stock to 900 for the
| following purposes: First, to pay the debt In
which had been commenced; second, to provide
the means for such further improvements as
IN
| stocks and bonds of any road si!uat. In whele
eht at apy tme Soid u lease exoesding sixty
| years, but upon such terms as might be approved
by committee constituted in the amendment.
"Within the two previous years it has leased
| the Stamford and New Canaan railroad, Manga
tuck railroad, New Haven and Northampton
| company and the Hartford and Connecticut Val.
ley railroad. 1t held by leases the Air Line and
| the Shore Line railroads.
"The first increase, Of s. eco Of its capital
with the provisions of the BILL to the saarehold
ers FATALLY being one Of new for five Of old, and
| being paid for at par in cash produced that
amount of money, which was all expended IL
. permanent improvements
the Stamford and New Canaan stock. $loo, 600
. | This being treasury Stock the proceeds were
to in
| Haven. .
| stockholders in the proportion Of one share o.
sempsny s4s75,ooo 9making the ospital stecl
! I'm 1893 the New York, Providence and Bog
| Of 81, OOo, 600, for which our stock was issued
/ share for share and onr capital then STOOD al
an September, 1892, leases Of the Housatonic
New Haven and Derby and ID Panp1sy and st MSI
qaea IN eaef
case as provided by the leases
meanwhile the improvements on Inc ROAD hne
| the increase Of traffic following them made more
apparent than ever the necessity ror muct
, larger outlay and upon more eompIehensiyt
scale, and it was agreed by the board that the
improvements largely FOR four-tracking the New
York division) should be made BY the issue Of
stock, but at a deferred date, and that mean
while, certificates bearing, per cent. Interest
| should be offered to the shareholders pro rata
to furnish the amounts for completing these i'm
| provements.
simutansously it was agreed that the stock
| Housatonic Derby, Danbury and Norwalk, All
Line, Northampton, Naugatuck and the Shore
upon the rental income, to become by exchange
: shareholders in the present company and 81
: entitled to subscribe for these certificates fol
which at the end of ten years capital stock Is tt
l be issued dollar for dollar.
Under this plan, $780, $780, at par, of stock il
leased lines has been retired. and our stock hai
been issued in exchange as follows:
Boston and New York Air Line. .......$ 500 00l
| Nav Havan and NorthamDton Q0