New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-19
NEW HAVEN'S FINANCES
ROTTEN SAYS BULKELEY
Road Controlled by Large Inter-
ests Which 0utvote Minority
Stockholders, He Says.
WOULD SELL BONDS DIRECT
Opposes Underwriting Of Pro-
posed Issue-Bay State Troll
legs Still Owned by Road,
Despite Courts Order.

Boston, Sept. 1S.-The case for the Ne"
York, New Haven & Hartford Railroad
which is seeking the authorization or the
Massachusetts, Public Service Commis-
sion for a 100000 issue OF convertible
debenture bonds. was closed to-day. Ex-
Governor Morgan G.. Bulkeley, of Con-
necticut and his counsel. James F. Jack
son, ex-charman Of the Massachusetts
Railroad Commission, appeared In ooJec-
ton to the proposed issue.
Two features OF the bond issue the un-
derwritlng proposition and the convert-
bility Of the bonds are condemned by the
directors. Mr.. Buckley contended that
the issue could be sold direct to the hold
ers of New Haven stocks and oohds
without underwriting. To support TINS
contention he said that the rights on the
proposed issue were selling in the market
at a premium. and he believed that even
though the issue should be offered on D
per cent instead OF a per cent basis II
could be sold just as readily.
The need Of 100000 issue was
doubted by Mr.. Buckley, who sugSested
that the commission approve only enough
bonds 10 take care OF immediate neces-
stiles. such az outstanding short term
notes and the amount necessary for new
equipment
Il am not scared by the suggestion OF
receivership a suggestion which mas
come principally from New Haven direc-
tors" he said. THE financial affairs OF
the road have been rotten for ten years.
The road has been controlled by the large
nf
the minority stockholders when the latter
disapproved buying trolley and steamship
lines"
He added that his experience at stock
holders meetings had indicated that the
small stakeholder was given small consid-
Grafton
During his talk Mr.. Buckley said that
the proposed new s.. go 600 station at New
Haven was the widest eXtravagance'
and should not be permitted. The con-
nectlcut trolley properties. he said. should
be disposed Of. but not under the ham
NOR. lie considered inevitable dividend
reduction from per cent 10 per cent.
Mr.. Jackson criticised severely the
roads affairs under the administration OF
President Mcllen. Both Messrs Buckley
and Jackson stated emphatcally that
they did not deny that the company
needed money. but they thought the pro-
posed bond issue was not the best way
I'm which to raise H.
, Before the New Haven closed the pres
entatlon Of SIS side T.. y. Robbins. general
counsel OF the road. admitted under ques-
tioning that the Massachusetts, trolley
holdings which the Supreme Court OF
Massachusetts, ordered sold were owned
by the Billiard Company. a New Haven
subsidiary.
MIR Robbins testified that the Ne"
Haven road sold its holdings in the troll
leg companies TO the New England In
v,stmcnt and Securities Company. by
which they we're transferred 10 the Ne"
England Navigation Company. The lat
ter concern subsequently turned them
over 10 the Billiard Company. The en-
tire stock OF the Billiard Company Is held
By the New Haven road.
Commissioner George ". Anderson in
qured whether the commission was
asked 10 authorize bond issue for noat-
Ing Indebtedness. which would include the
New Ravens holdings i'm the Billiard Com
pany. and II 70. whether such an act by
the commission would not be In defiance
OF the courts.
Charles r. Choate, jr. counsel for the
New Haven. argued that the New Haven
had DISPOSED OF its Massachusetts trolley
holdings as required by law 10 the BIZ
lard Company. Under the laws or con-
nectlcut the New Haven road was per-
mitted 10 own and control stock OF other
corporations. and. therefore. he said the
commission might assume that the rail-
road company had carried out the man
date OF the court.