The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-03-13
CONSOLIDATED DEBENTURES
HENRY T.. GOODWIN ARGUES ron
REPEAL or THE Law.


Henry c. Robinson Appeared in Opposition
to the Bill Now Before General Assembly
| Other Matters of General Interest-Elll
Regulating Observance of Sunday-Fe-
male Factory Inspector Wanted.
| Before the judiciary committee on
| Thursday afternoon there was a hear
ing on bill to repeal the Consolidated
road debenture law passed in 1895.
Henry L, Goodwin, the author of the
bill, appeared for it.
| Mr. Goodwin said that when the first
| issue of debentures was made, In 1893,
each stockholder was given the oppor-
tunity to subscribe for an amount equal
to 40 per cent of the par value of his
or her stock. Those who We're not able
| to subscribe were able to sell their
rights" for SIG per share, and many
did sell at least part of their rights.
The Aetna Insurance company, of
which Ex-Governor Buckley is presi-
dent, had the right to subscribe for
some 100000 of these debentures, and
must have bought upwards of $500, 900
more, for in 1895 the company held $780,
| 900 of them.
1t was at the instance of Ex-Governor
Buckley that the present law was
passed. 1t required the directors of
the Consolidated Railroad company,
whenever they issued an increase of
capital stock, to make the same pro-
portionate issue of debentures and to
issue them pro rata to the then deben-
ture holders, whether stockholders or
not, Governor Buckley gave as rea-
son for proposing the law that every
increase Of capital stock would tend to
diminish the value of the debentures.
The same year the capital of the Con-
solidated railroad was increased % per
cent, and a corresponding increase of
debentures was made. The Aetna In
surance company was entitled under
the law to take 100000 of new deben-
lures, on which it could realize at once
a profit of $4,000.
| The trustees and others who had had
| to sell five-sevenths of their rights to
the first issue of debentures in order to
provide for the payment of the remain
ing two-sevenths, instead of being al
| lowed to subscribe for the new issue in
proportion to the stock which they held.
were permitted to subscribe only in
proportion to their debentures.
Mr.. Robinson appeared in opposition
to the bill He said the law of 1895
was passed to prevent the depreciation
of debentures consequent upon an in
crease of capital The company had
authority to increase its capital now
about 50,000000 to $100,000,000, and
should this be done the market value
of the debentures, now commanding a
premium of 50 per cent, would be ma
terially reduced.
Mr.. Goodwin said in reply "a that
those who purchased the debentures
did it with full knowledge that the
company had obtained authority to in
crease it's capital to s10O, 900, 900, and CO.
a decline in the value of the stock and
of the debentures might be avoided by
making all further issues of stock at its
market price, rather than at sl0O per
share.
The woman suffrage committee has
arranged for two general hearings to be
held in the hall of the house on We'd
nesday and Thursday, 18th and 18th
on all pending bills relating to voting
by women.
Several survivors Of the general as
sembly of 1875 met Thursday and ar
ranged for a general reunion of the
members at Merwins Point in Milford
on Wednesday, May g.
The Judiciary committee, on Thurs
day afternoon, took up the bill regulat
ing the observance of Sunday, as draft
ed by the committee appointed at {
Congregational conference in Winsted
last fall After remarks by Lawyel
Henry G. Newton of New Haven, tht
subject went over to Tuesday after
, noon, when there will be a genera
hearing on the several bills of t