The Bridgeport evening farmer., 1914-05-26

or the transaction instead Of $l0,- 100000 of Consolidated stock and s20,-s 100000 of Navigation stock remain ing in the New Haven treasury there remained in the New Haven treasury as the result of the consolidati on $30. 000.oeO of the New Haven. stock.
 Q. If any of the New Haven stock was worth s15O. in the market. was the other stock worth the same in the
 A It depends on what the New Haven Railroad should. ever dispose. or 1t at-at what price. do not think they ever sold any at less than 50. a share. think they got more for a. great deal Of it.
 O. What. dividends was the Consol- dated Radlroad stock paying before the merger?
 A. do not think any U do not recall. It may bell can not tell.
 O. Did they ever pay a dividend
 A. do not think we considered 1t very important whether it did or in the property, and Whatever it earn ed belonged to the New Haven RaiI- road. ssss 5ss. E sz.s F E
 e. wos11d De of some tmportances in deterninins the answer
 A. Not the slightest in the world.
 e. Why2
 A Because the stock rer1aained in the treasury Of the New Haven Rail- road; and 1t was Of no value, never conAid cred of value until it was dis posed Of Ss ss & z z
 Q. would It not be of some imp ance in dsterrnining the advisability Of the merge such purpose It was never voted at any election of directors. It was dormant stock treasury stock.
 @. And after the merger this stock received dividends of per cent
 If it did they were immediately igation Company which owned the stock.
 O The Navigation Company. of course, is not included in this mer-. ger. One Of your answers indicated that. but you did not mean it. sup- pose?
 MeIIen Confused. ss A will tell you. got confused, for this reason: the steamboats were turned into company called the New England Steamship Company. The Navigation was not merged think 1t was the New England Steamship Company and the Consolidated Com pany which were merged. The Navf- gatfon Company used to be our Steam other one which was called the New England Steamship Company. and I sometinnes get the two confused. The Navigation Company was never merged. It was always an outside cor poration. ven owned all of the Navigation Coraa- pany,s stock
 A. Yes sir.
 @. And all of the Consolidated Railway stock?
 Yes sir.
 e. By dea1
 A. By a what?
 70. By an arrangement between these two companies the capita1sof the Consolidated company was increased $2o,O00,0o02
 A. That was by the purchase Of the Steamboat Company.
 Q. From the Navigation Company?
 What Steamers Were Worth.
 O Do you know at what those steamers had been purchased?
 A. They had been appraised sew erai times during my administration I have the impression that there
 .. They cost s7.5oo.ooo. did they not2
 A T think more than that. | cannot tell you exactly.
 o. They were appraised at about s8. .600, 900, were they not2
 A think have seen the ap-
 MT Grim Governor, there have been two appraisaIs of those steamers in recent years. My recollection is that the last appraisal was $I7s5O0.- 900. about 1911
 By MT. Folk $.
 o. Then this $20. .000, ,0oo increased stock of the Consolidated Company by a merger with the New Haven auto maticaI1y became New Haven stock 2
 A. Surely, and remained in ex- actfy the same position as the stock that it took the place of. Q. You say this was done for the purpose of securing the stock of the Boston & Maine Railroad
 A. A part of it was used for that purpose. 109, ,948 shares were ac- quired, exchanged share for share. s75c commission on a share paid by the New Haven road or Navigation Com pany, and 75c commission paid by the owner of the stock, the commission. going to Lee Higginson & Company. and representing sI.5o share for the two parties.
 O. That was the purpose in issuing this stock of the Consolidated Rail- way Company, was 1t not ;?
 A. That was one of the purposes A great deal of the stock has been sold for cash It gave the New Haven Railroad so much free stock that it could use without going to it's stock holders except as the stock holders voted to ratify the consolidation That gave the authority to the stock holders to place this stock at the discretion of the board of directors.
 @. So you were accomplishing by merger. what was prohibited by 1aw?,
 A. The merger was provided for by law, and everything accomplished under the merger was distinctly rat flied after it was merged by law, special act of the Connecticut 1egisIa- ture.
 They Liked Mergers
 Q. If you could do this without merger under the law, then why the merger?
 A We liked the rnereaer