The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-10
ELLIOTT HAS NEW PLANS.
lie says Road WINS Prepared Tor Ad-
verse Decision.

Howard Elliott chairman Of the New
Haven railroad directorate. before leaving
for Washington last night said concerning
the decision Of the Supreme Court OF
Massachusetts.
81 have lust received word from Boston
Of an adverse decision by the Supreme
Court of Massachusetts about the pro-
posed issue of s per cent. convertible
dcb,nturcs
Il have not a, this time received de-
tails Of the decision and cannot comment
on the case. I desire to say. however,
that tn. company has not been un-
mindful of the fact that the decision OF
the supreme Court might be adverse ana
that 1t has been making preparations Tor
taking care Of its finances in such event.
Steps will he taken promptly to perfect
plans and to carry them into enect.
AS no short term notes mature before
the middle OF May there Is abundant
opportunity for the company TO make the
necessary arrangements.
|. was said by high authority in the
affairs OF the road that II the court
decision is accepted as final II VIII not
seriously affect the New Haven road or Its
shareholders.
The decision Is against the BOND issue
primarily because OF the conVertioie
aS"tu'e' '''' 'N'' 49,
clude the directors from changing the
form OF the Issue ana bringing ou' ai'o'''e'
class OF bonds.
The Massachusetts law torDius an Is
sue Of convertible bonds, the Buckley AT
torneys held. without "a special a't OF
the Legislature Another feature OF
which tn. opposition won it, case Wa
the contention that the Massachusetts
law limiting offers OF new stock To stock
holders had been violated III the otcr %
the convertibl. bonds with STOCK o"e'
attached to bondholdcrs 81,
The New Haven directors probably WI
arrang. at an early date Tor an Issue o.
another class of bonds with the i'icsa
features eliminated.
The adverse decision does not aHec'
the roads interests now as II might nave
done last November. before the nhahc,ht
OF the $40,0oO.OUO D per cent. ilotes ina
matured on December ! had been ar
ranged. Payment OF the notes was u
be made out OF the proceeds or the oon'
issue.
When II was seen that the decision o.
the court on the bond issue could not b'
made until after the date or maturity
IA syndicate composed OF j. J.. Morgan
Co. kidder. Peabody co. ana Lee
Higgnson & Co. extended loan or sto.
OOC, 900 to the company. This was IN uh'
form Of 6 per cent. six months notes
Wnlcn mature 7hay TO-
Chairman Elliott announced at the tim'
that he was greatly relieved when Uni!
financing had been accomplished. 1t 81
f,ctually brought the company out OF ~
financial troubles. All the maturing In
dcltedncss WAS provided for until 1918.
The directors OF the company, II wa
said last night, will have plenty OF tlila
before May IS In which To arrange IN
terms OF another issue OF bonds. TIT
! only way in which the road may n
| affected by the courts decision, u was De
| clared, is that It may have to pay highe
rates for it's money under an issue no
containing the convertible feature.
The convertible debenture plan was on
| that the directors considered would com
mend Itself to stockholders and therefore
| be easily disposed of. \ new bond con
| talning less attractive features. u wa
said, would probably cost the road more
Ey-Gov. Buckley fought the debcntur'
issue because he IL president OF the .ftn'
Life Insurance Company Of Connecticut
| which holds between 5000 and i,oO'
shares OF stock and about &:,5oo,ooo II
bonds of the New Haven. lie made hi
| fight before the Massachusetts Public Ser
vice Commission last September chief!
1 on the ground that the commission OF 81;