The daily morning journal and courier., 1895-06-19

l estimate of prominent officer for the present fiscal year shows nearly 10 per cent. earned on the stock, although about $750,000 that most companies
 would charge to construction account
 has been charged to operation since the | 1st of last January. This indicates, the | company's officers say, an ample mar
 gin to take care of the new issues, even
 without computing the added earning power from Improvements and the gen. eral betterment of the times. Manifest | ly, however, there Is some danger ap- prehended from the competition of the reorganized New England
 The total sum of about $12,7S5,725 to be obtained from both the new issues will be used in paying the floating debt, which Is estimated at somewhat over $3,000,000; paying for the new Harlem properties, of which about $750000 has been spent for land alone; meeting the cost of the Stamford, Bridgeport and New Haven Improvements none of which have yet been begun, of the Nor walk improvements, of four-tracking the Harlem branch, paying for the cost
 ly new terminals at Providence, and for considerable outlays on the Old Col-
 ony division. All but some 1,500 shares
 of the Providence and Stonington
 Steamboat company has been acquired
 at $150 share, and a part of the new
 funds must be used in payment. Presi-
 dent Clark also believes that the money
 will suffice to absorb a considerable
 amount of the leased branch line stocks
 and the balance can be taken in by new
 est6 o1r Hxyt hn a V1x if 1n
 sary, possibly under the new compulso-
 ry appraisal law just passed by the
 Connecticut legislature. An amendment
 of that law which has not been noticed
 gives a minority of one-quarter or less
 of the right to take the majority stock
 by appraisal, so that the rule works
 both ways.
 The stock of the New Haven road
 with the new issue shows the enormous increase in five years from $15,500, GOO to $47, 42S, 625, though a large part of the latter Is made up of exchanges of stock
 with valuable merged lines, while the $16, 100000 of convertible debentures is an absolute addition to debt The de- veloping of business, especially in through freight, which has enabled the company during hard times to meet dividends and fixed charges, Is unique in American railroading as an example of reserve power in one direction of new business.
 A curious phase of the present situ- ation is the Indirect loss of the Old Colony stockholders, representing near ly two-thirds of the stock of that com pany, who refused to enter the recent A ol fa ,p oh .Nf the stocks--ten shares of Old Colony for nine of New Haven-and taking the present market price of Old Colony at IFS. the New Haven price for even ex- change would be about 19S. The diff frence between the latter and the pres- ent price of New Haven stock indicates what the Old Colony stockholders might have gained by entering the mer- ger.
 The belief here Is general that the present Is the last of the New Haven many stock divisions, and that the utmost that can be hoped now Is the maintenance of its 8 per cent rate, under the shadow of the $16,- 1000 of debenturesl convertible into stock eight years hence.
 The May gross earnings of the com pany show gain of about S250000 over last year.
 In the adjustment of the new stock and debentures fractional parts will not be recognized until unified into deben- lures of the denomination of $10O and l Into full shares of stock.
 The almost complete absorption of the | and Stonington Steamboat l stock undoubtedly foreshad- ows important changes in the part of l the line between New York and Ston- | Ington during the coming year-very | likely its reduction to a freight line, md possibly its complete extinction, on the ground of economies of operation. l IS the company has two other sound | boat lines.
 The official announcement of tho new ssues produced little or no effect on | prices here, having been evidently dis counted. The stock Is quoted locally at | ,l5 bid and the debentures at 145 1-2 Did, but almost none of either is of- tered,