The Bridgeport evening farmer., 1915-04-09
SUBSTITUTE FOR
 EL1LIOTT'S BILL
4 Principle for Which The Farmer Long Has Con- tended is Recognized In Radical Measure Which Soon will Bring Connecticut Into Line With Other States.
fspec1a1 to The Farmer.)

Hartford, April 9.The New Haven Railroad Company made. a complete surrender to the public, before the committee on railroads, yesterday, assenting to the principle that the. conn., pany shall not issue securities except with the approval and assent of the Public Utilities Gommi ssion, and in 8 manner that takes the state of Gonnec- ticut out ofsits position of hos tilitY to the railroad laws of other New England states
 The aarrendsr took the form of a biIl. agreed to between the railroad ofncers and the, Public Utilities Com mission, by which the New Haven company is stripped of much of the by the state, and is further stripped of it's power to issue securities at It's own will
 This bill $ subst5tute for t1e measure originally introduced by President Howard Elliott. and in sweeping terms embraces every prin- cip1e for which The Farmer, alone among the newspapers of Connecti- cut and almost alone among the newspapers of New Eng1and has con tinuously contended during the long term ef years in which the state, through the agency of railroad poli- ticians. and the railroad, under the domination of Morgan and MaIlen, was slowly being stripped of it's pros perity and financial strength.
 Section one of this bill deprives the New Haven Company of the powers which it received when it ceased to be the New Haven Company and be- came the Consolidated Street Railway Company, under the name New Ha- ven Company.
 So many of these powers are re-. served as enables the New Haven to operate and administer the properties it has acquired.
 Section enables the New Haven Company to advance money to it's subsidiaries for Improvements and 3betteEmen4s, for operation. to pay guaranteed dividends and interest
 But such advances must be approv- ed by the Public Utilities Comnnis- sion, except where the improvem ents are on property in some other state, and the loan has been approved by the commission having jurisdiction in that state.
 Section three provides that the New Haven Company shall not hereafter hold evidences of indebtedness of it's subsidiary corporations. except in cases approved Dy the PuDl1C Ot1l1- ties Commission, upon finding that such action Is consistent with the 4 public interest. but the commission need not approve if the action ap- plies to subsidiary in another state, in which the New Haven is also in corporaeed., and if it shall have the support of law and the approval of the proper commission of such state.
 Section six permits mergers, when they are consistent with the public interest, and permitted by law and approved by the commission of this and the other states in which the New Haven is incorporated.
 Section eight contains the sweeping provzston for which The Farmer long has contended, which subjects the is- Gue Of all New Haven securities to the public utilities commission. The company must petition for the per- mission, the commission must give public notice of hearing, and make finding. If the issue is lawful and reasonable for the purpose set forth, 9lae commission may make the neces- saEy order permitting 1t, specifying therein what purpose the proceeds are to be used for.
 4 final provision repeals the clause requiring that a majority of the resi- dents Of the company shall be citi- zens of Connecticut. and substitutes q provision that two-thirds of them shall be citizens of New England
 The bill gives the right to the Pub He Utilities Commission to permit the the company to issue bonds to twice the value of it's capital stock, if the public requires.
 This permits an additional bond ng in an amount of sS3,00O, 900.
 Bonds and indebtedness outstand-
 Ccontinued on Page 2)
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