The daily morning journal and courier., 1907-11-11
NEW BOND ISSUE
 OF NEW HAVEN ROAD
$4O,OOO,0OO New Convertible 6 Per Cents, Dated January 15 and Payable in
 Forty Years.
FULL DIGEST OF THE PLAN
Company Saves $8oO,O0O in Interest Payments-Previ- ous Trading in Rights
 is Void.

N. Y, N. H. and H. R. R. stock last week touched 12S, sold at 13O for 50 shares Saturday morning in Boston, with a closing sale of 13S for ten shares just at 12 o'clock. N. Y. city sales were all at 1S3; the sudden increase in price was caused by rumor of an entire change of plan in providing for new capital It was known that the direc- tors at 12;0O were to have the usual monthly meeting.
 The new plan as given out later in the day provides for an issue of $4O,- 100000 new convertible six per cent. bonds to be dated January t5, 1908, pay able in forty years-January 15, 194S, but convertible into stock at the option of the holder on or after January 15, 1923 fifteen years.
 Holders of December End, 1907, will have the privilege of subscribing at par to a convertible six per cent. bond at the ratio of $100 bond for three shares of stock Holders of the present l 3 1-2 per cent bonds, convertible in 1911 to 1916 who are all prospective
 stock holders will have the same priv l ilege of subscription to the new bonds l and at same ratio as if their bonds were already converted. That is the holder of six shares of stock on Decem-
 Der End, can subscribe for $20O new six per cent. bonds and the holder of $900 of 1-2 per cent. convertihles may also subscribe for same amount of S200 new bonds, The privilege of the present convertibles was to take the stock at $50 per share The holder of thirty shares of stock may sub scribe for $1,000 bond, and the holder of $450O of 3 1-2 per cent. convertibles may also subscribe of s1,OOO new bond and all other holders of the stock or | 3 1-2 per cent. bonds in the same pro- portion This will necessitate q large number of fractions. both with stock holders and present convertible, but bankers and brokers will readily adjust these for their customers.
 The new rights will accrue Dec. 2nd 1 and expire January 15, 1908, Subscrp-
 tions are payable in four equal install- ments six months apart-January 15,
 1908, January 14. 1909, July IS, 1909 In stallment receipts, assignable, will bear
 six per cent. interest. Subscribers can Ipay in full on any installment date and
 receive bonds either coupon or regis
 tered. Denominations will be $l00, $500
 and $1oOO, though registered bonds may
 be issued for S5,000 and $l0000.
 ! Holders of the present coupon 1-2
 per cent. convertlbles, to establish their right to subscribe for the new six per
 cent bonds will have to present their
 bonds after December 2nd, to have the
 ownership entered on the books of the
 company and the fact of subscription
 or it's assignment stamped on the bond
 or on the next two coupons, the latter
 course will probably be pursued and will leave the bond clean" The com Ipany for the convenience of bond hold CTS, will appoint agencies in the prin-
 cipal eastern cities who will enter the | tlunD5TS anu DWHfISlflp Hpl CDuptll
 bonds and give the off1claG stamp. This issue will call for an annual in- terest payment of $2.400,000, whereas if the company had issued $40,000,000 stock l it would to have had annually $3, 200 000 provided the eight per cent, dividend is continued The modified plan win un- doubtedly be approved by bankers and
 conservative stockholders and a, result | in the market sustaining or even ad-
 vancng the price of the stock. Upon
 the fear of $30,000,00O to $40,00O,O00 new stock coming on the market the prices
 has recently dropped from about 150
 to 12S with a seven point rally on Sat- urday
 i The general opinion is that stockhold-
 CTS, brokers and dealers who have dur
 ing the past few weeks traded in ] rights" which had no existence and
 had not been authorized either by the
 officers or stockholders of the company
 have waited their turn. And, if con- tracts we're made they are void. The
 dealings were based on guesses that
 when the company did make a new is- sue it would be of stock, perhaps on
 a ratio of one to four, and at a price
 guessed to be $125. Now, however, the
 stock and bondholders have definite
 proposition to figure on, Street talk
 makes the new rights worth from three
 to six dollars per share, but in a few
 days the metropolitan bankers and
 brokers will have settled upon a closer figure probably between the amounts. |