The Bridgeport evening farmer., 1915-01-28

a
proposed in this status, would have,
among other results, the withdrawal
of substantially ali the security which
the New Haven endorsement now
gives to such obligations, for the bill
reads:
Nor shall account be taken of the
contingent liability of any such rail-
pany upon which It is liable to the
holder only as guarantor or indors-
orr
such a debt is to be considered as
limiting the amount of the mortgage,
only when it has been actually de-
fau1ted
A further bill, also a blanket mea-
sure, gives to the company the right
to sell, or pledge, any stock or Sc
curity now owned by it.
It was pointed out today. by those
who have followed the methods by
which the New Haven was looted,
that these two measures will place in
the possession of the managers of
the corporation a complete instruIn ent
for Withdrawing from beneath the
stock of the company any support
which it may now have, by the pres
ence of values over and above the
debt existing,
Like every measure which has come
out of the Connecticut General As
senbly, relating to the financial af-
fairs of the New Haven company,
the bills confer plenary powers un-
restricted in nature, to be exercised
in substantial freedom from public
supervision likely to be in any way
effective.
After making provision for the is
suance and registration of bonds by
the comptroller the bill says: Bonds,
of Indebtedness may be issued by any
such railroad or street railway com
pany to an amount which, when add
ed to the amount of its then outstand-
ing bonds, debentures, notes or other
Eevidences of indebtedness, shall not
cause the aggregate amount of all its
bonds, depentures, notes or other evf-
dences of indebtedness to exceed
twice the capital stock of the cor
poration then actually paid in, but
such of the bonds issued, or to be
issued, under a mortgage, as are de-
posted to retire, on or before ma
turity, bonds or other evidences of in
debtedness previously issued and out
standing at the date of such mort
gage, shall not, while so, deposited,
be taken into account, in applying this
Limitation, nor shall accounts be tax
en- of the contingent Inability of any
such railroad company or street rail-
way company, upon which it is liable
to the holder only as guarantor or en-
dorser, except when and so long as
such contingent. liabilities constitute
an actual liability Of such railroad
company or street TaiIroad company
by reason of default of payment by
the company primarily liable. In
computing the amount of capital
stock actually paid in for the pur-
pose OF determining the maxinun4
amount of bonds, debentures, notes or
other evidences of indebtedness,
which the railroad company or street
railway company may have outstand-
ing under the provisions of this act,
there shall be added to the par value
of the outstanding capital stock, all
cash premiums paid into the corpora
ton on all shares issued by such cor
poration subsequent to July 9, 1894.
Any mortgage hereafter executed by
a railroad or street railway corpora
ton shall secure all its outstanding
bonds, debentures, notes or other evi-
dences of Indebtedness previously is
sued by such corporation, or assumed
by such corporation through the mer-
ger of any other steam or street rail-
way company, except outstanding
bonds, debentures, notes or other evil
dences of indebtedness secured by di-
rect mortgage, or secured by COLA
teral in the hands of trustee, and