New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-11
new HAVEN MUST
MEET ITS NOTES
J. p. Morgan Denies Firm
Had Agreed TO Extend
S45,000,0 600 issue.
BANKERS SURE ROAD
WILL OBTAIN FUNDS
In Sale of Boats or TrOllcys, or
New Bonds. They See way
Out Of Difficulty.

j. J. Morgan denied Yesterday report
that his firm had agreed 10 extend me
Si5.p1"nO issue OF New Haven notes fai-
inc duo juno T. The notes were sold last
November to syndicate Of bankers
headed by the Morgan firm TO tide the
company over ue financial difficulties
pending the outcome of litigation over
the So7.1o),oO dcbouturcs. which Ucro do
clarod ILLEGAL 10y thu Massachusetts Su-
prcmc Court Friday.
The financing was made necessary TO
meet "a 100000 note issue Ealing due
December e. and 10000 IN bonds ma
TURNS February g. There arc no other
obligations of this character to hc met
until the maturity OF the dcbcnturcs.
40 definite announcement rcsardinc It's
financial policy will bc made 10y the Ncw
Haven probably until after Il meeting of
the executive committee Thursday. The
company may apply for permission TO
issue bonds that will meet the approval
of the courts. while negotiations with the
Department of Justice may result I'm
some plan that Will provide the Ne" Iia-
ven with funds.
Several bankers thought funds might
Ice obtained through the sale Of its troll
10y and steamship companies. There
would bc 100 objection by the adminSua-
ton or tho Massachusetts authorities tc
such plan. and it would be approved
also 10y the more rahd critics OF the
read financial policies.
BY reason of the courts decision. j. 7.
Morgan Il co. aud other underwriters of
the dcbcuture issue will lose their COM
mission Of -. per cent. amounting to
$50. 500 The Morgan share i'm this ~1s
20 have been $.$54.o00. The New Haven
road must also write off an absolute loss
FOR the printing Of the bonds, which arc
said TO he expensive.
ON the stock Exchange Yesterday New
Haven opened at 49, 4 decline Of "a.
points compared with Fridays closing
quotation but belief that some plan would
be devised To meet the roads financial
needs caused final rally 10 -. following
a second decline TO 7$, after the stock
had gone 20 15i4 on heavy purchases. The.
total loss was ~ points.
There was general cancellation OF The
subscription warrants of the convertible
{ per cent deLotUnrc contracts. There had
been large amount of trading in the
issue when. a. and if ISSUED" and some
paper profits. it was said, ran into five
figures.
Transactions in the dcbcntures when
Issued" for the twelve weeks in which
the bonds were traded in on the tx
change amounted to S24oS6.o0n On the
curb where the market wa first made
for them. il was estimated that between
100000 and 100000 changed hands.
According TO the brokers on the outside
market ii was figured that individual
losses had run from 81 .Ooo TO $3.50 while
on the big board" estimates of losses in
commissions and paper profits were be
tween $4,000 and $4,000.
The subscription warrants for the DC
bentures were issued in october 10 stock
holders Of record September 9, and deal
incs i'm the rights have been heavy.
Because some of the transactions were
closed by cash payments there will be a
vast amount Of confusion and nconvcn-
fence as a result of the Massachusetts
Supreme Courts decision.
It was suggested that lawsuits may be
resorted TO in unravellinC the transac-
tons that have taken place. IT was
pointed out that the subscription war
rants are not at once cancelled by the
annulment Of the issue. as in the case
of the when issued transactions.