Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1893-01-10
DIRECTORS DISAGREE.

A Diversity OF Opinion in the Board
OF Direction of an Important Cor.
poration in Which New Haven
Takes Pride and is Well Repre-
scented by stockholders and in the
Management.
The Bear Valley Irrigation company is
an institution in which many New Haven
ers are interested'pecuniarily, and in which
New Haven aud West Haven take pride,
as one of its principal founders is Mr..
Frank Brown of West Haven, while quite
number of leading New Haven and West
Haven men are among the managers and
officers of the corporation, which has been
very prosperous and has paid very hand
some dividends. The preferred stock, a
large quantity of which is owned in New
Haven. pays per cent. right along-in
| fact this dividend is guaranteed. Then be-
side this, there is large amount of COM
mon stock on which Is per cent. per an
mum has been paid. A large amount of
| this common stock has been foated in Eu-
| rope, through the sgency and eff
orts of Mr.. Green, one of the
active directors and has been paying 10
per cent. Mr. Green foated 1t readily
! finding ready market for it, and the price
| of the common stock has reached 1850 The
affairs of the company are very prosperous
| and fattering, but just now there ia big
| tempest among the directors and deter
mined effort is being made to GUST Mr..
| Green. The reason therefor is that there
| is difference of opinion in the board as
to line of policy to be pursued. Mr..
Green claims the right to promise future
| dividends of Is per cent. on the comm on
| stock, and some of the other stockholders
claim that it IL not wise policy to pledge
the company to the payment of 5 per cent.
| indefinitely Mr.. Green claims that he was
authorized to pledge the company to pay
the Is per cent. to subscribers to the com.
| mon stock and that that was one of the
pledges he made in floating the large
amount that he was instrumental in float
ing, He claims that he is bound by his
! pledges and that he did what he did by
authority. Others of the directors hold as
is stated, that it Is not wise nor prudent to
pledge 30 large dividend for all time. as
the company might want to enlarge its
| plant. In fact, the growth of population
| and business is such in that section that 1t
is already for the best interests of the COM
| pany and its stockholders to enlarge Its
| plant and be in a position to furnish water
| as fast as required by the people. 10 en-
| large it's field of operations means an
enlargement of business and of income,
but handsome sum of money would
have to be expended to bring this result
about. This money, it is held, should
come from the dividend surplus rather
than by borrowing The dissenters from
Mr.. Green's policy hold that the money
can be thus obtained they suggest, and
without suspending dividends at all, and
the board of directors has already just
voted a semi annual dividend on the com.
mon stock of 5 per ceut., feeling that that
is all right, safe and judicious even with
the enlargement of business in view. A
small temporary curtailment of the common
stock dividend is, in their opinion, all that
is necessary, but the dissenters objec,
strenuously to Mr.. Green's pledging thu
company to payment of Is per cent. pei
annum on the common stock for all time
to come. They acknowledge the value OF
Mr.. Green's services and energetic work
but differ with him on the issue named
The directors meeting promises to be
warm one, and it is believed in New Have1
that Mr.. Green's policy will be voted dowr
and that he will be oasted as director.