Norwich bulletin., 1913-09-19
in Opposition
 to Bond Issue
6ULkELEY AT NEW HAVEN R. R.
 HEARING
sWICKEDLY TASTEFUL"
Financial Policy of MeIlen Regime go characterized-No Need of Under writing Bonds, He Declares.

NFitlnS GSHoSy TIC gSSiHT0Ss
 Boston, Sept. 18.--The case for the New York, New Haven and Hartford railroad. which is seeking the author ization of the Massachusetts public service commission for a $67,00e,0e0 issue of convertible debenture bonds, was closed today. Former Governor Morgan 6. Bulkeley of Connecticut and his counsel James F. Jackson, former chairman of the Massachusetts rail- road commission, appeared in objection to the proposed issue.
 To Sell Direct to Stockholders.
 Two features of the bond Nissue are condemned by the obJectors, namely, the underwriting proposition and the conVeCtibil1ty of the bonds. Mir Bulke- ley contended that the issue could be sold direct to the holders of New Ha- ven stocks and bonds without under writing. To support this contention, he said that the rights on the proposed issue were selling in the market at premium, and he believed 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.
 T am not scared by the suggestion of a receivership-a suggestion which has come principally from New Haven directors he said. The financial af- fairs of the road have been rotten for ten years. The road has been con- trolled by the large interests, which have always outvoted the minority stockholders when the latter disap- proved buying trolley and steamship lines.'
 New Haven Station an Extravaganza.
 He added that his experience at stockholders meetings had indicated that the small stockholder was given small consideration.
 During his talk MT Bulkelev said that the proposed new $5,000,000 station at New Haven was the widest ex- travagance" and should not be per mitted. The Connecticut trolley prop critics he said, should be disposed of, but not under the hammer. He con- sidered inevitable dividend reduction from six per cent. to four per cent.
 MT. Jackson criticized severely the roads affairs under the administration of President Charles s. Mellen. Both Messrs. Bulkeley and Jackson stated emphatically that they did not deny theT thought the proposed bond issue was not the best way in which to raise it..
 MelIen Regime "WickedIy Tasteful" 2 "Our criticism today" continued Mr. Jackson, lis not of the ambitious plan for railroad monopoly, but of the folly of the methods employed to bring it about The Mellen regime was pro- gressive and brilliant but wickedly Wasteful, as well as indifferent to pub lie 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 trouble and not a funeral over it."
 Governor Bulkeley protested against a waste of nearly two millions of dOl- lars in an underwriting commission. The company. in it's original petition, sought to capitalize 1t, Now 1t pro- poses to pay it in some other way.
 No Need of Underwriting.
 announcing the proposed issue first went out-and that was before the meeting of stockhOlders-tO the pres ent time, the market for these bonds has proved that there was no need of underwriting. TWo-thirdS of the pro- ceeds were to be used in taking up old obligations. Can anyone doubt that the holder of these obligations would be more than glad to make the ex- change?
 But there is another trouble with these bonds-their cOnVertibility into
 
 sion to pass upon the price at which stock is issued. These bonds call for an output of stock five years hence. All experts have agreed that what this stock will be worth at that time is a mere guess. Can this commission per form it's duty by making that guess today? If you can. We shall be con- tent for a convertible bond is wholly satisfactory from our point of view"
 No Better Railroad in Country.
 Asked what he thought of the New Haven as a financial proposition, Mir oulkeley said that there was no better railroad in the country, although it could have been mana aged better than it had been during the past twelve years. Connecticut people, he said, considered New York. New Haven and ment. Referring to the Billiard com pany, MT Bulkeley claimed that it was organized mainly to permit the shifting about of certain New Haven holdings which the Massachusetts courts had ordered the company to dispose of. The Billiard company had no direct assets, he said, but held 9, valuable equity in the stock of the New England Navigation company, one of the New Haven's subsidiaries.
 The need of the $67000,000 issue was doubted by MT. Bulkeley, who suggest ed that the commission approve only enough bonds to take care of inmedi- ate necessities, such as outstanding short term notes and the amount necessary for new equipment.
 Still Control Massachusetts TroIIeys.
 Before the New Haven closed the presentation of its side ID. D. Robbins, general counsel of the road. admitted under questioning that the Massaehu- setts tPeI1ey holdings which the su- pFeme court of Massa 6husetts ordered sold were owned by the Billiard cem- pany, 8 New Haven subsidiary,
 ReferenduH7 eH l. o, 0. P. Age Limit
 aManeaBeiis, Nina, Sept. la.-The grand ledge eff Odd Fellows which fer Years has heeH a eeuFt ef last reseft decided today te feii4auisil safAe fa# it's bowers and te submit ts a refeE- eadafa ef tfle delegates the e34esti e4fs of age required feE entrance, The grand lsdge aise went ea FeesRd as in faEeE sf the referendum fer deciding vital questions in the future