The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-09-10
BEGGED MORGAN
TOILET BOSTON IN
ON NEW HAVEN
Counsel Palmer Tells How
New England Got Its Share
Of Bond Issue.
INTEREST RATE HIGH.
But Six Per Cent. Attracted
People Like Sheep to
Subscribe.
INTEREST RATE HIGH.
BIZ Samuel N. Willianss.

BIZ Samuel M. Wiui0nss.
(0sa9 0sssssDsaAsas Of ne DvnAng
WsssA.l
BOSTON. Sept io.-Nsw England
bankssU have allied themselves with J.
p. Morgan . Co. In forming the under.
writing syndicate 70 finance the New
Havsn's o0.suo.ooe bond issue The e.
tails wsfs rsvsalsd-Aii except the per.
csntasss and prohts-osfors the Public
Service Commission to-day. After
hours Of probing. B. W. Palmer. coun-
eel for the Dondhoidsrt Protective
Committee. volunteered 10 tell the story
in order to save the eminent gentlemen
composing the committee from rehso.
lions upon their action. Charles Francls
Adas. Second Treasurer Of Harvard
College. WAS on the witness stand un-
der characterization when Mr.. Palmer
interrupted.
Il intervsnsd with Mr. Morgan in New
York." he said. land proposed New
England financial institutions Joining In
New Haven financing. acted on my
own initiative because I believe Il would
b to tho advantage Of New England
to have this financial connection and
support given TO the New Haven Com.
pany. spoke to three or four gentle.
men about II and when this dsbsnturs
Issue came along Mr.. Charles A. Stone
OF Stone q Webster. a member Of the
stockholdsrs' committee. and I went to
New York and called on Mr.. Moran.
We ssked him whether he would invite
New England capital to participate In
this loan. This was In July. before the
loan was announced. Nr. Morsan then
informed " OF his contract with the
New Haven 70 act - its hscai Agent
That was the first had heard Of Il,
although Mr.. Morgan said Il had been
made public At the money trust invssti.
CATION In Washington.
NEW ENGLAND INTERESTa
MUsT % AGcooNizGp.
'Mr. Morgan said he intended 70 with.
draw from that contract l urged HIN
not to do %. or at least to defer unit
the company eot further out Of it, din.
ouiuss. NJ. Stone and I suggested "a
Mr. Morgan the desirabiity Of HAVING
New England financial institutions par.
ticipats In future financing Of New
England railroads. I did not mean e
assume the whole OF Il for New England
could not furnish the necessary capita
for such great undsrtakings. but I be.
Iisved that Il was desirable that what.
ever foreign bankers undertook the
hnAn.ing should have strong partner,
In New England.
my suggestion had nothing to do with
prohts. but I urged thlt New England
should assume an interest In its rail-
ways MIR. Morgan said no welcomed
the idea heartily. and would b giad 4
have cooperation OF The kind 20 lonl
a. his house was the banker for the rail-
road.
AT that meeting was not aware o.
the proposal for these dsbenturss.
knew the directors had the financing. bu
not the terms OF the issue on consider,
alton. then requested Mr.. Stone I.
name the strongest financial institution
In Boston who would havs the creates
influence In making such . syndicate I
success. He named the OLD Colon!
Trust Company. First National Bank
National shawmut Bank. Lee HiRGin
son 4 Co. and Kiddsr. Peabody 4 Co.
When We returned to boston We laid
before the 6tockholdsrs' Protective
Committee OUT recommendations. The!
| ssreed that II was an excellent idea
A. q result the members Of the commit
tee used their efforts IN formation o
the syndioats to participate in the un
derwrtting on terms which DO no
know. This underwriting and financing
arranssmsnt has not played the slight
est part In formulating the opinion o.
this committee and cannot do co."
Charles Francis Adams. second. mad,
vigorous denial OF any financial In
fiuencs bearing upon the committee
He SAID: II personally had no motive
In assisting the OLD Colony Trus,
Company. No one Of the gentlemen