The news-democrat. (Providence, R.I.) 1906-1909, 1907-10-31

New Haven. oct. 3i.-President Charles
s. Mellen's policy OF expansion was at
tackled sharply at the meeting OF the New
Haven stockholders here yesterday
MIR Mellen replied vigorously to the
criticism OF his course and was sustained
by the stockholders by practically
unanimous vote when the test was made.
There was "A pointed discussion, how
ever, between the head of the system and
United states Senator Morgan q. Bulke-
ley. which aroused great interest.
The friction manifested itself early In
the meeting and called forth an cxhatis-
tive explanation from President Mellen
of the reasons why the directors wanted
10 issue about S40,O00000 worth OF new
stock and also full explanation OF the
per diem controversy In which the road
Is now concerned. He assured the stock
holders that he expected the road 10
maintain its usual per cent dividend al
though nc would not promise anything OF
the kind.
There were two meetings. One was the
regular annual stockholders meeting ana
this was followed by an adjourned meet
jnr OF the stockholders to vote on the
issuance OF s5ise5 shares of new stock
The original plan of the directors year
ago, President Mellen explained. caiieu
for the issuance OF this amount Of stock
at 15o, but. he went on TO say. that since
then times had changed so much that IL
was advisable TO issue the stock at 10.
Some OF the stockholders wanted ire
stock at par Cl0o). and very emphatlcaliy
said so at the meeting.
In this case, President Mellen explained
the directors would hare to issue more
shares of stock. and he intimated that
N the stockholders wanted TO run the
chances OF having the dividend possibly
reduced in consequence II was the stock
holders property.
INCREASED STOCK.
AS a result OF the controversy u was
voted to make the maximum number ot
share sto be issued 431, ,2l9 one share TO
each three outstanding, and that IL be
left to the directors whether that tsnumber
should be issued at loo or that So4os'
shares one TO each four outstanding,
should be put out at 10
Senator Rulkeleys criticism came at the
regular stockholders meeting just ms
motion had been made and seconded 70
accept the annual report OF President
Mellen for tho past year. He said
.In comparing this report with that OF
one OF a few years ago l have observed
that tho outstanding securities OF the
company have now been Increased from
about ssO0oo,0co to about S30oooo.0oo. Tho
Indebtedness Of the company In the same
time has Increased from sl0.Ocoooo to SOS, .
100000. Interest payments by this CONF
many have been advanced since fsa4, -rxhen
the sum total was only $4,000. into the
millions at the present time. and this
fact I'm itself is worth some explanation
20 those who have their finances in the
stock OF this corporation"
President Mellen at once took exception
20 some Of Senator Bulkeley's figures
declaring that II was absurd 90 say that
si94,o00 represented what the road was
paying a half-dozen or less years ago In
interest.
A.o.ho~ - H. etocLbnidars oroac a.
ask II there was any truth I'm the report
that the dividend was TO be reduced soor
from per cent.
ANY man." replied President Melien
"who can state what may happen I'm tn
future is fool. can state that I cal
sec no reason from the reports Of this
road OF the last three months which
have AZ hand. for any apprehension OF
that score. Most OF us. I think. have Sc
curities over which II would be wiser "a
worry than over this dividend question.
and leave the New Haven road dividends
alone"
The motion was finally passed accept
ing President Mellens report for the year
and also electing three new members 10
the board OF directors Tho total mum
bcr of votes east were 80. G.G67 Of which
al but 5000 were IN favor of accepting
tho report.
AS soon the result was read United
'toNcs ofHatVI bulkeleN announced tnat
his vote was not against the motion. hut
that he simply withheld his vote. and the
report was thus changed.
While the voting was In progress Presi-
dent Mellen explained TO the stockholders
the present needs OF the road that made
the issue OF the stock necessary. lie
said:
This new issue will be used principally
Tor new equipment. Tho New Haven
roac st present kas 20 have a very large
euuipmcnt ard ERsEcG y1u~t he S,aie