Norwich bulletin., 1913-09-10
for
 Public Safety
NEW HAVEN ROAD TO SPEND
 IT IMMEDIATELY
IL OTIS STATEMENT
Urgency of Debenture Bond Issue I'm pressed Upon Massachusetts Public Service Commission at Hearing

proposed $67.000,000 issue of debenture bonds is the only feasible and prac- tIcable method for raising money nec- essary for meeting the floating indebt- ednesS, purchasing equipment and eff fecung necessary improvements, on the New York, New Haven and Hart ford railroad two railroad presidents, Howard Elliott of the New Haven, and Samuel Rea of the PennsylVania, ad- dressed the Massachusetts public ser vice commission today in support of the New Haven's petition for permis- sion to issue the bonds.
 $7,o00,0o0 for Safety Appliances.
 President Elliott set forth the needs of the New Haven road, and said that while a greater sum of money must be raised in the near future, the pro posed issue is an emergency measure and is for immediate needs. T pro- pose" said he, ito spend seven mil lion dollars of this issue immediately for the safety of the travelling public It will be spent for steel cars. revision of our signal system and other like purposes"
 The new president frankly admitted that he was ignorant of many things concerning the road He had little knowledge of steamship and trolley subsidiary lines, he said, and he was not familiar with the contract between the road s directors and the banking firm of J. F. Morgan and Company. under which the Morgan firm was made the roads fiscal agent.
 The Morgan Contract.
 President Req of the Pennsylvania. railroad, appearing as a New Haven director, said that the present none tary conditions made the proposed is sue necessary.
 After declaring that he would not 9 nf al an the boards banker, MT. Req defended the contract between the New Haven directorate and J. P. Morgan and Company, making the bankers the roads fiscal agent. This contract, he said, was entered into by the late J. Pierpont Morgan because of his faith in and fondness for the New Haven's former president. Charles s. MelIen, and his own belief in the future of the road. The contract was favorable to the road according to Mr. Rea, but was not good contract For the Nor gan firm under present financial con- ditions.
 Disposal of Trolley Lines.
 Tn reply to a question as to <he fees- lbHity of the New Haven dispoSing of it's steamship and trolley properties, Mir Rea said that they would have to be disposed of piecemeaI and could not be realized upon in time to meet the roads present needs.
 Desirable as it would be-" said 1Ir. Req, ito sell the trolley and steam boat properties assuming that the road must divest itself of these hold ings-it would mean ruinatton and enormous loss to the stockholders if they were compelled to make forced sales"
 Opposition Not Heard.
 George L. Won Meyer former secre- tary of the navy. the head of the stockholders protective committee, said that the committee, representing 330, 900 shares, had voted in favor of the proposed issue.
 The opposition, headed by former United States Senator Morgan c. Bulk eIey of Connecticut, was not heard today.
 Louis D. Brandeis, who has voiced his opposition in letter to the public service commission, did not appear.