The daily morning journal and courier., 1897-11-11
THE CONSOLIDATED ROAD.
And It's Control of the New England
 Road

And Its Control of the New England
 Road.
 A New Haven dispatch to the New
 York Evening Post yesterday says: The reported negotiations at Boston on the subject of lease of the New Eng land road by the New Haven company, which holds controlling interest in New England stock, are given some color by certain facts known here bear ing upon the relations of the two com panies. Under existing conditions of control the New Haven is unable to handle the road with the freedom, flexi- bility and unity of the two systems which it desires. Matters of permanent improvement legal powers, and the ad- JustmentS of various interests between the two corporations are much compn- cated as the case now stands; and otti- cerS Of the New Haven company have often spoken of lease as an ultimate outcome. But the most serious and 1m- mediate question has been the discoSl- tent of the New England preferred stockholders who have been threaten ing an appeal to the courts to test their charge that the New Haven company since it acquired control has been di- verting traffic from the New England to it's own lines. The attitude of the New England preferred stockholders it is certain has been causing the New Haven management some anxiety.
 Not long ago the form of proposed lease was outlined by officers of the inf1G
 in substance, were a guarantee of the New England fixed charges and of divi- dends on the preferred stock on slid- ing scale over series of years rising to 4 per eenct., where they stopped-the plan thus following the analogy of that adopted in the case of the Northamp- ton Railroad company, the stockhold- CTS of which were discontented after the New Haven, had bought control many years ago to keep the property from the Boston and Albany. Under the suggested lease the common stock of the New England was left to take it's chances after the preferred stock had reached it's maximum of dividend. At last reports this lease was held in l abeyance, but it may represent in sub | stance and general features the plan | finally to be adopted to satisfy the | New England preferred stockholders. | Naturally the subject is one on which | the New Haven managers are reticent. There have also been reports from | Boston of possible purchase by the | New Haven company of the blocks of | New England common stock held by | the Vanderbilt and Boston and Albany | interests and acquired by them in the | struggle for New England control To l obtain these shares alone would prob- | ably cost the New Haven company sev- | eral millions of dollars, and the ru- mored plan of purchase finds little be- lief here and would hardly be approved | by the New Haven's stockholders, who realize already the size of the New | England problem which the controlling company must solve. The New Eng | land company has a number of costly | improvements ahead and is in arrears | as to the Connecticut grade crossing | law, while lapses which were condoned l by the public and the state in days of 1 the corporation's poverty are much
 more likely to be demanded when a wealthy corporation is behind 1t.
 | The last report of the New Haven company shows that out or the total or
 ,00O shares of New England common
 stock the controlling corporation owns | 117,700 shares and also owns 12,549 shares or almost exactly one-quarter of
 teh total of 50,000 New England pre- ferred shares. This leaves holders of
 but 37451 New England preferred
 shares to be dealt with to that extent
 simplifying the question of a readjust-
 ment which is also suggested by the
 large net earnings of both companies
 during the last quarter The matter of
 an adjustment which will take in all l New England interests is, however at
 it's best, a difficult one. The New Eng | land common stock held by the New | Haven company cost it about $40 a 1 share, the New England preferred | stock about $67 share. The New Ha- ! ven's total investment in the New | England stocks was $539S, 4S0 besides | S5,000,000 of New England second mort
 gage bonds bought at 95 and subse- 1 quently sold at about 125, under the | New Ravens guarantee.