Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1909-09-03

the bondilolders ought not to lose any
thing. He said the; road was one of
the best CONSTRUCTED lines in the state.
The bonds were issued for $3.50. 000 and
as the cost of constructing the road
was about $1,250,000, he considered the
security to be ample.
The officers of the company are:
President, A. E. Locke, Boston; treas
urer, H. p. Phelps, Norwich; secretary,
C. ID. Noyes, Norwich.
One of the, not unexpected features
in the local financial situation, says
the. New Haven Journal-Courier, came
about Wednesday in consequence OF
the report that the Norwich and West
erly company, owners of the twenty
four miles of trolley track from Nor
witch, in the eastern part of the state,
to Westerly, r. l.. and incidentally to
Watch Hill, had defaulted the interest
on its bonds for the present quarter.
A large amount of the three quarters
of a million dollars bond issue involved
is held here in New Haven, where 1t
was Comparatively recently.
The result is bound to attract atten-
ton because there is a possible chance
of the foreclosure of the road and also
because it is possible that this line,
which is one of the very few indepen-
dent trolley lines in Connecticut, may
finally fall into the hands of the Con-
necticut company. However, this lat
ter is something matter of specula-
ton.
The welfare of the Norwich and
Westerly trolley concern has been
watched by Connecticut investors with
Interest 1t was constructed about
three years ago, and ii was believed
that it would be a money maker for
its owners, inasmuch as it connected
central eastern Connecticut via his
toric Lantern Hill with the Watch Hill
beaches. incidentally it may be said
Hartford and Springfield it is fohdly
hoped, will ultimately be brought into
touch with Norwich trolley wire. The
road was well built and, perhaps, the
finest trolley rolling stock in the state
cars of the western type-were put
upon it. 1t, however. has never paid.
Its length is twenty-four miles.
The road is said to have been pro-
NOTED by Saunders & Jones, at 80 Wall
street, New York, who are also said to
be the promoters of the Shore Line
electric railway now in progress from
Essex on the Connecticut river toward
this city. The history of this latter
road is very well known in this city.
The Shore Line road has a prospect of
a good earning capacity IL completed.
The Norwich road has carried along
large floating debt which it cannot
pay off and now it is found that 1t
cannot pay the per cent. interest due
ON its issue of s750,000 of gold bonds
which were taken out to aid in the
construction. Morton F. Plant. the
well known eastern capitalist. is inter-
ested in the road.
1t is believed by local financiers that
the road has been too heavily capital
lied, having been mortgaged to the
extent of s31,250 a mile.
The remedies in its present serious
condition are a scaling down of the
bond issue, the consent of the bond
holders to the passing of the payment
of interest or foreclosure.
The stock Of the road is 3450.000 with
preferred stock of $16S.200. Over this
hangs the three-quarter million dollar
bond issue alluded to above. These
bonds are subject to call at lis and in
terest. They were f1oated here at be-
low par The road has eight trolley
cars and twenty four other cars.
Its earnings for the year ending
June 80, 1908. were gross s67,30s; net
s2.50s. Charges $50. $50; deficit. $50,s52
No trouble of this sort has been ex-
perienced by "a Connecticut railroad
lately, it is said.