The daily morning journal and courier., 1895-06-19
ITS INCREASE OF STOCK
F0RlI.1L ANN0 LING OElLENT BY CON-
 SOLID1TED ROAD.

That Which Was Expected Has Taken
 lnce--Vice-President Hall Gives Excel
 lent Reasons for tine Action of the Direc.
 tors-The Dividend Outlook.
 Vice President Hall of the New York
 New Haven and Hartford Railroad
 company formerly announced yesterday
 forenoon that the board of directors
 had voted an increase of capital stock
 on the first day of october, 1895, of 25
 per cent, to be issued to stockholders of
 record on the first day of September,
 1895, for subscription at par in the
 proportion of one share of new stock to
 each four shares of stock then held by
 them respectively An additional issue of certificates to
 the amount of $3,2S7, 800 has also been authorized, said certificates to mature at the same time as the present out standing debenture certificates and of | similar tenure, and to be offered to the holders of outstanding convertible de- benture certificates, or their assigns on
 the first day of September, 1895, for sub
 scription at par in the proportion of one new debenture certificate of $100 to $400
 them respectively.
 In reply to question as to the neces- sity of the issue of this new stock and
 debenture certificates MT. Hall said:
 "In the first place the improvements between New York and New Haven are to be continued upon the same scale and upon the general plan already com menced, but there remains the four tracking the Harlem river branch and the work in Stamford and Bridgeport, which will require large expenditures. Improvements at New Haven rendered necessary by the increase in the com pany's business will also absorb con- siderable amount. The work in elimi- hating grade crossings generally Is also to proceed.
 "At the time the convertible debenture certificates were authorized in 1892 there was no expectation of leasing the Old Colony railroad with its mileage of about 625 miles. The business into the territory occupied by the Old Colony had only in a very small measure come over the New Haven road Since its lease a constantly increasing proportion of business destined to and from Old Colony territory has been transferred to the main line between New York and Boston. The increase In this business has required unforeseen expenditures for terminals. The company has al- ready purchased in and about Harlem river real estate to the amount of three-quarters of a million dollars. It has also been obliged to invest very large amounts of capital in the city of Providence and elsewhere for terminals and station facilities.
 Taking all together the money pro- vided by the last issue of debentures has substantially all been expended, but there is another need and use for money for the benefits of the owners of the property. The Ideal position for them to occupy would be to acquire all the fixed obligations, whether by leasehold or by interest upon mortgages, and to own the entire property managed by the company free from any burden upon the income except the inevitable taxes
 Considerable investments have also been made in the purchase of the stock and bonds of the leased lines in &C., cordance with the company's charter, and as time goes on this policy of the will undoubtedly be contin- ued, The largely increased business which the company has assumed in its traffic arrangement necessitates @ cor increase in ready capital | with which 10 handle 1t.
 "The present business of the com pany is as good as could be expected, and the outlook for the future seems | bright. While there is no probability l of an immediate resumption of divi- dends on a 10 per cent. basis yet there | is great confidence that regular divi- | dends at the rate of per cent. per | annum can be maintained upon the in- | creased capital"
 OF INTEREST ON THE |
 SUBJECT.
 The following additional on the sub l feet in last evenings New York Post | from its New Haven correspondent will | Interest many:
 "The plan of delaying the official an- of the new issues of the | NtW IOIh dIlQ NSW I1dNen ItdlTOdQ until next dividend day has | been given up, and the official state- nent was made this morning. As suggested, the ratio is 25 per cent--debentures to debentures and stock to stock. All is made payable not in installments, as here -ofore, but on the first day of next Oc- .ober; but stockholders may pay on or before the first day of November or in hree, six or nine months after October !, subject to an addition for interest at he same rate as the dividend in case of he stock 6 per cent.) and as the inter ,st rate (4 per cent) in the case of the lebentures. Holders thus will merely make good accumulated dividends and interest. Fifty per cent. must how ver in any case be paid on the list of October. The rights will begin their egal existence on the first of next september, the books closing on the day ,efore. At the present quotations of he stock, say 216, these rights are worth a trifie more than $23 for each hare of stock now held and represent cash dividend of about 23 per cent n the case of the debentures at the resent price, say 145, the rights are 1orth 800 per $1,O00 of debentures held, asny1 11@.- A. q