The Bridgeport evening farmer., 1913-11-19
NEW HAVEN ROAD
 SELLS NOTES TO
 MEET GREAT DEBT

New York, Nov. 19-To meet the sit uatton arising from the litigation which is delaying the railroads pro posed issue of $67, 900. 900 convertible
 debentures the executive committee of the New York, New Haven & Hart ford yesterday arranged to sell $45.- 100000 notes, the proceeds of which will be used to retire the $40 GOO, 900 notes maturing December and for other purposes The committee is- sued this statement at the close of its meeting:
 f'The directors were advised by their counsel that under the terms of. the decision of the Massachusett 1 State Commission the proposed issue l of $67, ,552, 600 convertible debentures Is legal, and that they could, therefore, under the provision made properly is- sue the same. In view however, of
 pending litigation in regard to this is | sue, the board has deemed 1t wise to Idefer the issue of said securities until the matter shall have been finally passed upon by the supreme court of l the state. "
 :It is well understood that the com pany has maturing on December 1 1 $40,000,000 of notes and other imme- diate cash requiremen The result therefore of the litigation has been 1 to make it necessary to provide this I very large amount of money under
 exceptional conditions which certainly could not have been foreseen or con tempIated.
 'tAt a meeting of the executive com
 nittee held this day it was voted that arrangements should be made imme- diately for the temporary financing of 1.-the company pending the issue of the debenture bonds. Messrs. J. P. Nor pany under their contract expiring December 5, were therefore called up on to render their services in this emergency They, together with
 Messrs. Kidder, Peabody & Co. and
 Messrs. Lee, Higginson & O., of Bos-3 ton. have arranged a loan for the company to the amount of $45, GOO 900,
 said loan represented by six per cent. notes taken at 99 1-2> and payable on
 or before six months from date, and in any event upon the sreceipt by the eompany of the proceeds of the de
 benture bonds, an agreement having been made to- extend the contract in regard to underwriting the debenture
 bonds to January 2Ss 1914.
 -ceeThe executive committee has rec commended to the board, which meets on Friday November. 21, a, further ex-
 tension of the time within which sub-s scrfbers must pay for the debenture bonds, and these dates will be, an- nounced4 Friday. All subscriptions to these bonds received pending the final Issue are h6Id- a 1uEld apSEL rom the other deposits of the company,
 zEx~Senator Morgan G. Bul11efey, who
 has led the fight against the debenture
 issue, and has taken it to the supreme
 court of Massachusetts because Of his
 disappToval of the contract with Nor gan -Sk GsO-aoys which bankers would re- eetve rn1ore than s1,6eO0, 600. for under
 writing the issue, said last night that the temporary loan to meet the matur- ing notes was what he has expected. t'It couldn't be otherwise, 2 he remark ed. That was the only thing the di-
 rectors of the road could do, and it will relieves a great stress on the public mind.
 1T still believe" he went ons '.that
 the debenture issue would have been
 taken up before December if offered
 to the stockholders without restriction
 The directors seem determined to pay the whole commission in any event,
 without giving the stockholders a chance to put their money into the
 debenture issue. In my opposition to
 the issue, as proposed, and providing
 for the payment of this commission, [ am only trying to save little money
 for the stockholders which the sdirec- tors seem determined to spend.
 2 t'It would be three or four weeks be- fore counsel for either side could pre-
 pare and present their. arguments on
 the debeIture issue to the supreme
 court, and the temporary loan was the
 only way out for the road"