Norwich bulletin., 1913-04-23
Accountant Brown Estimates That New Haven
 Roads Annual Profits Suffer to That Extent
TERMS OF CONTRACT WITH PULLMAN COMPANY
Copy of Agreement Put Evidence Before Interstate Com
 Pullman Company Paid $5,3Oo,- 900 For New Haven's Cars-Review of Numerous Tram sections Which Finally CuIninated in B. & M Merger.

to the navigation company not less than 55.00o shares of the Boston and Maine in exchange for an equal mum Der of shares of the New Haven rail road to be delivered by June 1, 1907, to Lee, IItgginson and company of Bos- ton, the brokers commission to be $1.50 a share, of which 15 cents would be paid by each party.
 Navigation Go. Sold Stock at $125.
 Still earlier. or on April s, 1907, at a special meeting of the directors of the New England Navigation com pany, held at New York, a resolution was adopted authorizing President MSIlen behalf of the company tN purchase any or all of the common stock and to pay share for share witF the capital stock of the New Haven railroad.
 After the navigation company had secured 109,94s shares of Boston and Maine stock, it sold the stock to J. L. Billiard for $125 a share, ex-dividends June 30 1908. At the time the stock was purchased it was charged on thE navigation company's books at tha rate of S116.15 a share. There was nothing on the books, MT Brown saids to explain why the price was increased to SIPS.
 Navigation Co. Buys Back Stock at
 $f5o. To pay for this stock MT. Billiard gave $11,00O,000 in cash and $2,743,- 500 in notes without collateral. It ap- peared from the records that MT. Bill Hard secured the cash from the Ma tional City Bank of New York, de- posting the Boston and Maine stock as collateral for the loan.
 In 1909 the stock came back to tha navigation company, which paid Bill lard $50 a, share, but MT. Brown said he had been unable to get any eXplan- ation for the transaction, nor had hs any direct knowledge whether ths money had been paid by MT. Billiard personally or by someone else.
 Liquidation of Billiard No4es.
 On November 10. 1908. MT. Billiard fqmda1ed his original notes by giv- ing four additional notes for S25O,O0 each, for which the records indicats he received cash from the navigation company, leaving 8 balance of S9,743- 900 in Billiard notes Further Hquioa- tion by MT. Billiard on February 19s 1909, and on July 1. 1910, was describ- ed by Mir. Brown.
 An additional note for S11, ,101, ,13s was Hquidated by MT Billiard. giving new notes for $2,422, 993 and old notes of the Billiard company, which had not appeared in the records earlier, amounting to $12,257.125.
 Stock Passes Through New Haven Bank.
 The New Haven railroad paid an S11, ,00G, 900 note 10 the National City Bank of New York. with accrued in terest and 8 commission of SS1 900 which was charged to the profit and loss account of the navigation com pany.s
 The Boston and Maine stock 1atelE was transferred to the Second Nation al Bank of New Haven, then to the New Haven railroad, back again to the navigation company and finally TO the Bosten Railroad Holding company, g, corporation formed in Massachusetts to hold the stock.
 Considerable time was devoted to detailed testin ony concerning various notes given by Mir. Billiard and by the Billiard company and the manner in which these were credited in various accounts. Several of the transactions could not be explained by Mir. Brown.