The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-09-06
Firm Gives 30 Days Notice
to Directors Of the
System.
COMES As A SURPRISE
Bankers Want to Leave New
Officials Free in
Financing.
MAY RENEW CONTRACT
j. p. Morgan Denies Plan to
Leave Railroad in
LuWh.
TIRED or THE CRITICISM
Member Of Concern Explains
Attitude-Dcbenturcs Syn.
dicate to Go On.
TIRED or THE CRITICISM

y y. Morgan & Go. notified the New
York. New Haven aud Hartford Railroad
yesterday afternoon that /; would end its
services as fiscal agent at the termination
or ninety DAYS. according to a clause in
the contract between the two.
The Morgan firm also sent a ninety dav
notice to the Boston and Maine and Maine
Central roads. New Haven subsidiaries.
for which II has been fiscal agent.
j. y. Morgan presented the firms notice
to tn" New Haven executive committee q,
the regular meeting. The matter was
referred without discussion to the nex,
meeting OF directors
Mr.. Morsan in an interview at his Long
island home last night. said:
The action was taken wholly in orasr
to leave the new administration Of tb.
road free handed. II In no aense ,mpIes
hostility or III feeling toward the road
We are In thorough accord with tho now
communication and the action WAS taken
simply to leave it entirely unhampered.
III IL now up to the New Haven AZ I,
Its future banking arrangements. II has
free hand to do what it sees hest.
May Make New Coatrsct,
Mr.. Morgan said further that il tn.
New Haven desired to secure the service.
OF the Morgan Arm. or IL IL wished ,o
make new contract the bankers would
consider II.
President Howard Elliott of the New
raven said he did not know whether or
not the hrm would continue as tn. rail-
roads banker under a new contract. He
would not comment at length on the
Morgan letter
on authority second only to Mr.. Nor
gan The Sun was told that !. y. Morgan
4 Co. were thoroughly tired of being at
tackled in CONNECTION with the New
Haven's misfortunes
At the Pujo inquiry. in certain news
papers and at the hands Of certain mon
such as Samuel Untermyer and Louis
Brandeis said this authority, every effort
had been made to fix blame for the rail
roads troubles upon the bankers.
The Arm has no idea of aba n,loninr ths
railroad. THE SrN was told. and il the
new management is satisfied with tho
Morgan company's offices the firm will
undertake New Haven financing in the
future AZ in the past
The railroads executive committee "a
ceved the resignation az director of Sid
ney w Winslow Of Boston. head of the
United Shoe Machinery COMPANY. and
recommended that the directors make OK
t'nitaI
OF Massachusetts membs Of the execu-
tive committee. There was no talk about
asking President Hadley of Yale to h..
come director.
President Elliott was authorized tn
conduct searching inquiry into the com.
potency OF the roads engineers An ex
penditure OF 1885,. 900 TO rush the install
laton Of new signals was authorised Mr
Elliott said he would push the work with
n" speed The policy OF all steel passen-
ger equipment hereaf fter was reaf,,rmea
M Effect on Deb~ntures.
j, p. Morgan & Co.'S action will bave
no effect on the New Haven's prnpossd
pew issue OF 3s1.55?+O0 debenture bonds
The hrm formed an Underwriting syndi-
cat" to handle this ISSUE and Mr. Morgan
said that the syndicate would stand.
The announcement that J. T.. Morgan
Co. had ended its fiscal Relationship
with the New Haven. a relationship tina,
had continued by direct contract and
otherwise for more than twenty years.
was at frst interpreted in Wall Street
az brought about through the WEAKNESS
OF the firm OF general legislative and
other public attacks upon 1t in connec-
ton with New Haven financing.
The latest attack was at the stock
holders meeting made upon the commls-
sion charged by the underwriting syndi.
cate headed ny the Arm to look out for
the new S67,55o. 400 debenture issue.
Not Deserving Road.
In giving notice ~ its termination Of
the nscal agency contract the Morgan
Arm In no sense is deserving the New
Haven in the time OF its financial need.
which is more acute AT this period Of its
life than it has ever been.
Mr.. Morgan made II very plain - in
terviewers iasr nisht that II the Nev
Haven desired 10 secure the services ~
the Morgan Arm IN its financial busi.
, ness or II II should wish tp make new
contract for Q hscal agency or 70 0Aoo