The daily morning journal and courier., 1907-01-31
PRES. MELLEN BEFORE
 LEGISLATIVE COMMITTEE
SEEKS EQUAL RIGHTS FOR THt HOLDERS OF CONVERTIBLE
 DEBENTURE BONDS

OAASAS abAlA An0l OlNG AOAH SuNh
 Rights in Subscribing for Shares of
 Capital Stock of the Consolidated
 Railroad to be Issued About July L.
 Recent Remarkable Development of
 the New Haven system and Purchase
 of Electric Lines--An Ally of the
 PennsyIvania-COntra Let for S21,-
 100000 Worth of Rolling StOck--Pur-
 chase of Trolley Lines-Watered
 Stock of c. E. & l.. Co.--CriticIsms
 Answered.
 Hartford, Jan. 90.--President Charles S. Mellen of the New York, New Ha- ven & Hartford railroad appeared be- fore the committee on railroads in the senate chamber this afternoon in be- half of a petition presented to the gen. eral assembly in which legislation is sought which will give holders of con- vertible debenture bonds equal rights in subscribing for shares of the capital stock, which are to be issued at fu- ture date, under authority already held by the company, MT Mellen gave to the committee draft of & bill to take the place of the house petition, which had been scheduled for the hearing. This bill was in two parts, the first re- lating ito subscription for stock, as mentioned in the original petition and the second part having to do with some further details of the merger of a number of subsidiary lines. The hearing was not largely attended. Mir. Mellen spoke extemporaneously for about half an hour. In opening he ex- plained what he desired i'll the way of authority, to give holders of the de- benture bonds the right to take the new stock which probably will be issued about July 1. Then he described the recent remarkable development of the New Haven system, and the purchase of certain electric property. He said that the new issue of stock was made imperative by the great growth of bus mess, saying that already contracts had been made for new rolling stock to the amount of $21 100000, to be de- livered within fifteen months.
 Later on in the hearing, when at the request of the committee he spoke briefly of the present denaurrage law Tn the state, he said that one item of new nolling stock was 17,OOO freight cars. He told of the acquisition of the Con- necticut Railway and Lighting compa> ny and other properties having a to- tai trackage of 1,40O miles, and that prospective development and equip ment of these properties will take at least $12,000000. He said that the New Haven company has had such remark able growth in the last few years that it now stands fifth in size in the coun- try, and seventh in the amount of it's gross earnings. He referred to his an- pearance before the general assembly a few years ago, when conditions were fin stress of weather" and he felt confident that now he could point to re- suits which in a measure had been &C., complished, or at least progressed to that point where confidence could be placed in his ability to make good his promises. He said that not one dollar of stock of the New Haven company has been issued except under the laws of Connecticut, and for every dollar of liability there had been paid out more than one dollar in construction of the road Everything that has been done, has been done under authority of the state laws. He said that the la titude of a company in the issuance of stock should not be restricted. The New Haven road was an ally of the Pennsylvania road, which has issued $10O 900 GOO in stock at one time. He said that no corporation of the char acter of the New Haven road has so many stockholders, and control is not vested in any small number of persons He came before the committee, he said, as an independent president looking after the welfare of fourteen or fifteen thousand stockholders, and not to pre- sent the view of two or three individu- als. It is said that it is necessary that the company should have latitude in it's capital stock requirements, for emer- gencies may arise.
 He referred to the purchase of the Ontario & Western road as an instance wherein the New Haven company was able to thwart the designs of the roads that were trying to control the anthra- cite coal traffic, which would have meant the increase of the price of coal to New England manufacturers.
 MT Mellen explained some of the req sons which have impelled him to pur- chase trolley properties, and he said that it was the intention to merge all these roads, as far as they are able, and wipe out their corporate existence. He said that the public press had criti- cised him on the purchase of the water ed stock of the Connecticut Railway & Lighting Co.,, but he said the criticism doe not justly lie against the New Ha- ven road. There was a large amount of water in this company, but he said that a great deal of water had been squeezed out of the Housatonic, the New England, the Air line and other roads. which had been merged. He said the public was getting the benefit of what the New Haven road was doing, He said that the matter of merging presented many difficulties. For in- stance. a stockholder had one share of New England, and the latest price it was offered at was $1,O00,00O. In reply to a question from member of the committee as to the merging of roads in Massachusetts, President Mellen said that he had been given author itv for every merger he had asked for, As regards that part of the bill which he had presented, he said that he want ed the stamp of approval of Connectl- cut on all the mergers.
 paFora he concluded President Mel-