The Bridgeport evening farmer., 1913-09-19
BULKELE WOULD
 HALT DEPOT PLAN
Proposed $5,OOO,OOO New Haven Station Widest Extrava- gance He Says at Bos-
 ton Hearing.
ROADS FINANCES ROTTEN
Former Governor and J. F. Jackson Condemn Two Big Features of Bond Issue.

/ | Boston, Sept. 1s-The case of the
 New York, New Haven and Hartford ] railroad, which Is seeking the author 1 izatfon of the Massachusetts public
 service commission for a. $67,OO0,O00 l issue of convertible debenture bonds, | was closed yesterday. Former Cover l nor Morgan G. Bulk eley Of Connectf- | cut and his counsel, James F. Jack l son, former chairman of the Massa- | chusetts railroad commission, appear | ed in objection to the proposed issue. Two features of the bond issue are condemned by the objectors, namely the underwriting prop position and the
 convertfbi1ity of the bonds. MT. BuIkeley contended that the issue
 could be sold direct to the holders of New Haven stocks and bonds without underwriting. To support this con
 tention, he said that the rights on the proposed issue were selling in the market at premium, and he be- lfeved that even though the issue should be offered on a five per cent. instead of a, six per cent. basis it could be sold just as readily.
 ''1 am not scared by. the sugges- ton of receivership-a suggestion which has come principally from New Haven directors" he said. ttThe f1nan- cial affairs of the road have been rot ten for ten years The road has been
 
 have always outvoted the minority stockholders when the latter disap- proved buying trolley and steamship 1ines.''
 He added that his experience at stockholders meetings had indicated that the small stockholder was given small consideration.
 Station Wild Extravagance.
 During his talk, MT. BuIkeIey said that the rTnnosed new &E 000 OO0 fa tiOn at New Haven was the 'fwildest extravagance'' and should not be per mftted. The Connecticut trolley. prop critics, he said, should be disposed of, but not under the hammer. He con sidered inevitable a dividend reduc- ton from 6 per cent. to 4 per cent.
 MT. Jackson criticized severely the roads affairs under the administra- ton of President Charles s. Me1len. Both Messrs. Bulkeley and Jackson stated emphatically that they did not deny that the company needed money. but they thought the proposed bond issue was not the best way in which to raise it.
 Before the New Haven closed the presentation of it's side, B. D. Rob- bins, general counsel of the road, ad- mitted under questioning that the Massachusetts trolley holdings, which the supreme court of Massachusetts ordered sold, were owned by the Bill lard. company. New Haven sub sidiary.
 { Mellen Regime WastefuI.
 "'Our criticism today contfnued MT. Jackson, "is not of the ambitious plan for railroad monopoly but of the folly of the methods employed to bring it about The Mellen regime was progressive and brilliant but wicked1y wastefu1, well as indifer-i ent to public policies and mindless of law With Morgan to finance the cost, the Mellen idea was to buy, buy anything that went on wheels and at any price. But it is idle to mourn What is wanted is a way out of trou- ole and not a funeral over it.
 '.Governor Bulkeley protested against a. waste of nearly two millions of dollars in an underwriting com The company, in it's original petition, sought to capitalize it. Now t proposes to pay it in some other way.
 seFrom the day when the circular Lnnouncing the proposed issue, first vent out-and that was before the meeting of stockholders-to the pres mt time the market for these bonds las proved that there was no need f underwriting. Two-thirds of the roceeds were to be used in taking 10 old obligations. Can anyone doubt hat the holder of these obliga t1ons TOuld be more than gIad lo Hl1he ele  ..But there is another trouble with hese bonds-their convertibility into tock Our laws require this com lission to pass upon the price at which tock is issued. These bonds call for n output of stock five years hence. II experts have agreed that what ! ois stock will be worth at that time a mere guess. Can this commis- ion perform it's duty by making that uess today? If you can, we shall be ontent for a convertible bond is wf1ol- 2 7 satisfactory from our point or few. |
 Road Needs Whole Amount.
 t.In our Judgment, the railroad needs ,e whole amount it asks, and we be- T eve a. Iong-terrn bond was in august, \ nd is today, the only wise and sound lethod of financing the situation hort-time notes and Piecemeal 1s- les mean only uncertainty annoy nee and expense. They only post one evils.
 .@rhe convertible feature of a bond | opeals of course, to the gambling 1n- .inct which we all have in greater | less degree, but these bonds. in our n dgrnent do not need it. The New | aven railroad is not going into bank 1ptcy even if it's stockholders are told c , go back and take the steps they O 1ght The credit of the New Haven e lay have been shaken, but its roots p e in a splendid property, magn1fcent- a
 located Only curbstone critics and s -ofessional pessinists question it's fu- Ire prosperity. No one who knows e le facts doubts it. We only urge e prompt decision.'' f Former Governor BuIkeley, who is n resident of the Aetna Life Insurance j.. told the commission that the bonds n ,uId be quoted without underwriting Id sold direct to the holders of New e aven stocks and bonds
 Bu1AeIey And the Road Asked what he thought of the New aven as a financial proposition, Gov O nor Bulkeley said that there was no k ,tter railroad in the country, al- n ough it could have been managed D ,tter than it has been during the T Lst 12 years. Connecticut people, he ot