The daily morning journal and courier., 1898-05-17
THE CONSOLIDATED ROAD.

In soliciting proxies to vote for the proposed lease of the New England railroad by the New York, New Haven & Hartford, President Clark of the latter roads sends a circular to share holders presenting argument in favor of the adoption of the plan. The circu- lar recites that:
 Since the purchase of the New Ha- ven of controlling interest the stock | holders of the New England have been unanimous in the selection of a board of directors. The facilities of each road have been thrown open to the custom CTS of the other at all junction points Economies have been secured by the 1 joint administration of the properties, and a manifest improvement in the physical condition and equipment of the New England has been made from it's own earnings. The result of this partial consolidation has proved bene- ficial to the public and to both com panies
 "The situation, however, cannot re- main unchanged, because certain stockholders of the New England pro- pose to begin litigation in the hope of receiving a distinct revenue upon their | shares. It is manifest that any conse- quent waste or expense must be largely borne by the New Haven company, as the owner of majority of the New England stock. Whatever the outcome of the litigation might be, it's pendency would interrupt traffic relations, incon- venience the public, and become an in | definite additional burden. Negotiations have resulted in an adjustment by | lease and contract with the representa- lives of these minority stockholders, approved by the directors of both com panies.
 "In addition to this lease, contract has been agreed upon for the benefit of all the holders of both outstanding common and preferred stock of the New England railroad, one clause of which is as follows:
 ''It is hereby agreed that if this lease shall be legally authorized and duly approved, the New York, New l Haven & Hartford Railroad company as the lessee named in said lease, cove nants that as soon after the first day of July, 1898, as 1t lawfully may, it will offer to issue in the proportion of one share of it's own capital stock in ex- change for five shares of the common capital stock of the lessor, then out standing, and in the proportion of one share of it's own capital stock in ex- cange for two shares of the preferred capital stock of the lessor then out standing, and will give notice thereof by mail to each stockholder of record of the lessor, and after said exchange shall ba thus offered to the stockholders of the lessor, upon the assignment to the lessee of the shares of the capital stock of the lessor or any multiple thereof in the proportions above stated, and the surrender of the certificate or certificates thereof, the lessee will, prior to January 1, 1900, whenever it's stock transfer books are open, issue to the owner of said shares in exchange thereof certificate for a proportionate number as above provided, of shares of the capital stock of the lessee
 "The contract further provides for a payment of $450 in cash with the de- livery of each share of New Haven stock issued in exchange for preferred stock of the New England subsequent to July 1, 1SeS and prior to January 1, 1898.
 "A mortgage lien of $10000,000 upon the property of the New England ere ated by the New York & New England Railroad company will mature July 1, 19O5 The interest upon this mortgage is now $660,000 year, met by the earn ings of the New England property. With the New Haven as lessee, and so guarahtor of securities issued in re- newal, it is anticipated that a saving of over $500, annual burden will be made by refunding. If all outstanding shares of the New England are ex- changed under this contract, their owners will ultimately derive the bene- fit in the earnings of the consolidated properties of this saving in interest. But for this it would be difficult to formulate any plan for a lease satisfac- tory to both parties.
 "The lease is recommended for ap- proval by the shareholders of both companies as constituting fair, prac- tical and permanent adjustment of the relations of these properties for the best interests of the stockholders and of the public.''