Norwich bulletin., 1915-01-28
New Haven Roads
 Plan of Finance
BILLS TO BE FILED WITH LE0Is-
 LATuREs 6F THREE STATES
ISSUE OF PED. STOCK
Is the Privilege Wanted as Means ss Raising MOney-Ffoating Debt sf S3o,0oo,ooo Will Mature May 1.

Boston, aJn. z7.-Bills calling for laz- lSIauon to permit financing the New I oFII' New Haven and Hartford rail- road in form advocated by the df rectOrs, will be filed with the legfsia- lures of Rhode Island and Counecti- cut next week, according to a state ment issued tonight by Howard Elliott president of the road. A similar meas ufe Will be introduced in the Massa- chusetIS legislature in the near future. he said.
 S3oooo,ooo Debt Natures May 1.
 The New Haven at present" said MT. Elliott "has a floating debt oF aoout S55,VO0,0 GOO, about S3O, 100000 Of which will mature by May 1, and about S5.0O0.000 more about August Az present the only available means of financing that debt is by a further is- sue or short term notes, but there is always difficulty in obtaining money that way, and when obtained high rates or interest must be paid which makes 1t still harder for the railroad to provide adequate service and ro
 make the improvements and better lnenLs which are constantly needed to keep the property in proper condition and to serve the public
 Wants Privilege to Issue Preferred
 Stock.
 Legislation is especially desired fo make clear the right of the railroad companies to issue preferred stock "a a means of raising money; or to legal lze a plan to convert the floating debt or a road into a longtime mortgage pond carrying a much lower rate of interest.
 The issue of preferred stock is . oesIrapie method when practicabla,'' said Mr. E4lliOtt'S statement sshrlf i+ ia not clear that the right exists 1ndar the present laws. Connecticut gives the right, but there is doubt whether Massachusetts gives it to railroad cor poratons. This doubt has been re- moved by reYenC Massachusetts Iegis- iaLureS as to street railways, gas and electric light companies. There fs alSo some uncertainty in this respect under the statutes of Rhode Island II IS now important therefore to have tbe l laws made clear so that steam railroad ] companies can issue preferred stock ] as a means of raising money if market conditions justify"
 Right to Acquire Leased Lines. l. was much to De desired. PresI- dent Elliott added, that Massachusetts should give to the New Haven fhs rIShL to acquire it's leased lines Tnoy, terms satisfactory to the commons wealth and to the respective stockhold- CTS of lessor and lessee lines"
 The public service commissions or ! the New England states have been ! conferring with each other and wifh railroad officials on the matter of f nances for several months and if sx pected that their reports will be plac- ed before the legislatures when tbs
 latter are asked ito pass laws neded to bring about harmony and to ron0vs unnecessary restrictrons,'' according to ] Mir. Elliott
 i Balance About Same as Last Year ] Discussing the present financial con. ] dltl0n of the New Haven, MT. Elliott
 said: ] Tn spite of drastic economies the de ! crease on gross earnings has been so ] great that the balance for the first l live months of the present fiscal wear i Is practically the same as for the cor l responding period of the previous year 1 As the business Of the subsidiary com ] panles has also fallen off, the reciDts l by the New Haven from these com i panies during inc current year now ] promises to be less than last year. On j the other hand. advances in rates some of which have already been per i Initted, recent improvements in ths ] volume of business. together with fur ! ther economies and increased ef7ciencv , warrant the expectation on June s0 i next. the close of The fiscal wear. of a l balance above all operating expenses ] taxes rentals, interest and discounts of all kinds"