The news-democrat. (Providence, R.I.) 1906-1909, 1906-11-01
PRES. MELLEN
TELLS Of NEW
HOLDING CO.

Boston, Nov. 1.-The fret official In
formation 20 be given out about the
newly formed New England Investment
and Security company is contained in a
letter from Charles s. Melen, president
of the company and OF the New York,
New Haven and Hartford railroad, to
the banking firm OF Mackay & Co.
The letter states that the New England
Investment and Security company is
voluntary association formed on June Is.
Its officers are Charles 8. Mellen, Nath-
aniel Thayer OF Boston, Charles +.
Brooker OF Ansonla, William Skinner OF
Holyoke Robert W. Taft Of Providence.
Edwin Miner OF Providence and Moosup
and ID. ~ Barney OF Pennington.
Its capitalization is sl00O0.OOO in 4 per
cent. preferred shares and SO 100000 coin
mon shares.
II hods In trust stocks and bonds OF
the Worcester and Southbridge Street
Railway company, Worcester Railways
and Investment company, Springfield
Street Railway company, Springfield
Railway company. Berkshire Street Rail-
way. company. Western Massachusetts
Street Railway company Hartford and
Worcester Street Railway company. II
also holds 5000 shares of stock OF the
New York New Haven and Hartford
Railroad company
These are the trolley properties formerly
owned by the New Haven system until
the enactment OF legislation IN Massachu-
setts making illegal the ownership by
steam railroads OF competing electric
reads.
The trustees named for the new cor
poration, among whom are two Prov-
dence men, are all directors of the New
York, New Haven and Hartford.
Mackay * Co, have notified stockhold-
ers OF the Worcester Railways and in
vestment company that the firm has
purchased majority OF the shares In
that company and has exchanged them
for preferred stock OF the New England
Investment and Security company, offer
ing the stockholders the privilege OF ex-
changing their outstanding holdings at
the rate OF 20 shares OF Worcester In
vestment company stock for n shares
OF the per cent, preferred stock OF the
new holding company.
President Mellen's letter Is enclosed
with the circular OF the banking cor
poration The letter concludes:
Provision is made in its present capt.
talization for the requirement OF GER
tain other securities which have not as
yet been exchanged for the preferred
shares. The conmanys intention is 10
acquire only securities from which the
income will fully meet the dividend re-
quirements OF its preferred shares But
IN order that the interests OF the pre-
ferred shareholders shall be fully and
amply protected, the Consolidated Rail-
way company, by Endorsement. has
guaranteed the punctual payment OF
semi-annual dividends at the rate Of 4
per cent. per annum and also sos per
share and accrued dividend In the event
Of liquida ton.
This guarantee Is further protected by
three-party agreement between this
company the Consolidated Railway com
pany, and the New York. New Haven
and Hartford Railroad company. under
the terms OF which the New York New
Haven and Hartford Railroad company
agrees TO indemnify tae Consolidated
Railway company against loss resulting
from such guarantee, as follows:
The New York New Haven and
Hartford Railroad company hereby re-
quests the Consolidated Railway COM
pany 10 make such guarantee upon such
consideration, and agrees that 4. will
indemnify the Consolidated Railway COM
pany against loss upon said guarantee
This. in the opinion OF our counsel.
j. III. Benton. Jr., under whose direction
and supervision all steps and proceedings
relating TO the formation OF the company
have been taken is I'm effect a valid
and binding obligation of the New York
New Haven and Hartford Railroad cam
Tany, which, OF course like other valid
and binding obligations. takes precedence
OF payment OF dividends upon it's stock "
On June 30. 1906. 500 shares OF stock Of
the Worcester Railway and Investment
company were held by the Rhode Tsland
Hospital Trust company. according To
the annual statement OF State Auditor
Gray