New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-10


that it would be ruinous for the New
Haven to adopt such a. course at this
time although the matter had never been
discussed
There was n lively discussion between
Commissioner George w. Anderson and
Samuel Rea as to the reasons for the big
commission TO be paid the underwriting
syndicate for floating the issue. Mr.. Rca
said the state Of the money market had
not been so serious in years as 1t was
last June. when the contract was made
10 pay the underwriters o.. per cent for
handling the debentures.
Developments Of the Day.
The Developments in the hearing to-day
were:
First-Chairinan Mcleod stated the
commission would exercise it's discretion
not only as regards tho issue itself. but
also all its terms and conditions.
Second-Commissioncr Anderson asked
President Elliott if the New Haven would
have taken the advice Of the Interstate
Commerce Commission and sell It's trolley
and steamship holdings TO raise money.
President Elliott said ne was unprepared
10 answer. lie declared that the actual
value would not be realized on them II
sold now.
Third-Samuel Rca defended the Nor
gan 4 Co fiscal agency contract. lie
said ONLY the late j. i. Morgan's faith
i'm and affection for the New Haven IN
duced him 20 make such an advantageous
contract for New Haven
Fourth-Mr Rea testified that II woua
be ruinous for the New Haven to sell
trolley and steamship holdings at short
notice
Fifth-Mr. Rea said he has always
been opposed to a railroad being inter-
ested in any other line Of business than
railroad transportation.
Sixth-Georgc Won l.. Meyer denied the
gtockholders' committee had been used 10y
New England bankers TO force from the
Morgan syndicate a large share OF the
bonds to be underwritten.
President Elliott endeavored 10 impress
the four members OF the commission
Frederick J. Macleod. chairman; George
W. Anderson. George ". Bishop and
Clinton White-wth the importance 10
land OF the immediate approval by the
commission Of the railroads plan to
realize large sums Of money al once by
the floating Of 1882 ooo debenture bonds
through an underwriting syndicate
He outlined TO them the improvements
that have already been contracted FOR bv
the New Haven TO provide for the safety
and convenience Of the roads patrons.
More than 100000 is needed AZ once.
he said. TO pay for these. as well az
so 900 90 more TO pay off obligations com
ing due the first Of next year.
Associated with Edward d. Robbins.
General counsel for the New Haven. was
charles T. Choate. ir, WHO defended the
New Haven before the Interstate Com
merce Commission. President ElAou h'n
several directors with him, INCLUDING
Samuel Rea. president Of the Pennsyl-
vania Railroad Vicc-President ". NJ
ILocborspcrger. and ]. ". Tomlinson, gen
eral auditor Of the New Haven system.
George Won l.. Meyer appeared In nc
half Of the stockholders protective COM
uitteo Robert L. Warner, Elliott Wads-
worth. Dudley p Bailey. Charles >. Ell
eion and others announced that they ap-
peared for themselves and othcr stoch-
| holders.
Ex-Governor Morgan q. Bulkeley OF
| Connecticut, who said he repreSch''u
J about l. 900 shares. appeared Win three
| attorneys-James r. Jackson, a former
member Of the Massachusetts Raiiroad
| commission; Congressman Lewis Sperry'
! Of Hartford and Andrew f. Gates. OF
Hartford n former member Of the Con
necticut Railroad Commission. Mr.. BULK
eley has denounced the terms granted the
| underwriting syndicate by the railroad
| and will lead the opposition TO 1t.
| Commissions Jurisdiction Questioned.
The hearing began in the railroad com
rn,ssioners' office at 1890 o'clock thin
! morning. The first question 10 come mp
was that Of the commissions jurisdiction
in the matter OF the roads petition to
issue the bonds.
Chairman Macleod declared that while
the roads original petitions had set forth
I'm full detail the terms and conditions OF
| the bond issue, this was not done In the
| amended petition. and asked why 1t had
been left out.
Edward u. Robbins, general counsel
| answered that they were only asking FOL
the commissions approval OF the issue
| as a proper amount OF Indebtedness fol
| the road to assume. Mr.. Macleod then
| asked Mr. Robbins IL he based the amend.
ed petition on the theory that the com
! mission had no jurisdiction as TO the de-
| tails Of the transactions.
81 am taking the responsibility on be-
half Of the road for asking only for the
| approval OF the issue as an issue only u
replied Mr.. Robbins.
Then I will state now" returned
Chairman Macleod, "n behalf OF Tho
commission. that we claim and propose
TO exercise discretion not only as regards
the issue itself but with regard TO al
it's terms and conditions We will con.
duct this hearing from that standpoint. u
Mr. Robbins stated that the road would
so amend its petition as TO include the
| terms of the bonds. as well as those un-
der which they are TO be underwritten
Chairman Macleod requested him to pre-
sent il tomorrow morning.
Mr. Robbins explained that there was a
noating debt of t4e. 900 worth Of notes
due January ], 1914, which must be paid
and that SCI 10000 was needed for i'm
provements in rolling stock and to fulfil
] outstanding contracts.