The Bridgeport evening farmer., 1915-08-14


 The New Haven road has got to do some more high financing in the near future if it gets out of it's present hole. There was an issue of note amounting to $53eOO,o 900 due on the 18th of last May. These were deferred by a new issue. We have got to do some extensive f1nanci ing-either issue preferred stock or mortgage the road. which. understand has always been kept clear of debt from New York toProvidence.
 ''If they issue preferred stock they have got to pay stiff dividends or the people won't buy it-and then WHERE WILL THE COMMON CO.,
 Answering his own question, MT. Giles said: Probably where much of the stock that was once issued for roads that are now part of the New Haven system has gone in years long past-into the fire and the garrets of the farm houses. 4
 Do you know that far back in the 40's, when the Housatonic railroa d was built, Bridgeport went into debt for the common stock, farmers sold their land and loaned money on the common stock, which never to this day has paid one cent and that what is left of this is but memory and age stained paper lying in many a farmer s garret near which the big four track system now passes? Of course, the man who gave his land that the rail road might pass his door may have lived to see his values increase and his crops marketed to better advan- tage, but on the other hand the widows of many may have suffered by the non-payment - of these evil dences of obligation. But when pay ments are not made on stock What good does the paper avail?
 .sEven the city of Bridgeport was ] n the road was built the city guaran- teed that amount and received com mon stock which was never paid and was afterwards disclaimed by the New Haven road.
 s.The consolidation came through the Starbuck crowd, who, remember ing the attempt of Henry R. Parrott and others to build a parallel road, the excavations for which cost for tunes and may still be seen through out New England. decided that they could do this by building short lines from the road then running as indiyid- uals. They issued bonds from the roads they controlled but when they got through with the legislature they had less votes for the project than when they began.e
 "Where they had not been able to buy outright they had arranged leases for long periods. There was no way to SLOp stfllS, as d1I they ndQ to QO was to get a certain control and then. vote the lease. It was rfgi-t here that the enormous expense to the New sHa- ven system that is still borne by the system came about as each road had to guarantee the other such a per centage of the gross earnings. NFor in stance the Naugatuck lease carried 8. guarantee of 10 per cent for 9e years. The Housatonics had a lease on the New Haven & Derby guaranteeing 4 per cent
 Ut was thus that when the Starbuck crowd found their cumulative divf4 dends on the '. 8 control of the Hous- atomic, eating up the profits, the road was dumped into Morgan's s hands and Morgan and Rockefeller began their dominion. Austin Corbin found him self the possessor of over half the stock and he woke up to the situation first
 .'Corbin came to Bridgeport. He walked straight over the bridge and went to see Nathaniel Wheeler. He said:
 ' MT. Wheeler, want you to do me a favor At your directors meeting next Saturday, I want you to bring up before the board a proposition to the effect that I will sell my interest in the Housatonic railroad for $50 a share.
 sNo.s said MT. Wheeler. T do not think care to bring such a proposi- ton before the Aboard.
 will have to wait until MT. Morgan comes horle.'
 : aHe went to see Morgan in his of fee in New York, and put the same offer before him. to which Morgan said tNo.s but as Corbin was about to leave the office Morgan stopped him:
 @ - I'll tell you what will do. I will give you $50 a share
 ..To realize why Corbin wanted to sell it is only necessary to know that the New Haven road was already formed, running from Mount Vernon anteed leases on the Shore Line to New London, the Housatonic, and other roads, and that there was a cumulative dividend on the first pre- ferred stock which was eating the road up. If they did not pay per cent that year they would have to pay double the next year.
 When MT. Morgan said: T will take it at 3o,' Corbin replied:
 MT. Morgan, you can have it if you will take starbuck's, McCauley's s and Eeney's stock, too.
 s'All right the fnancier said, bring them in to me-
 "Corbin went over to another building where the others had offices and told them what he had done. :. Why; you have dumped us, Star buck retorted, My stock cost me over hfty.'
 = How much have you got, MT. Starbuck 9
 :. Over 800 shares .sI'Il give you fifty for it.
 ssMcCauIey also had over 500 shares which CoFbin paid hfty-two for. He did likewise with the others in the ring that controlled the Housatonic after their attempt at getting Iegisla-- tfon, for short lines that would make a parallel road to the New Haven practically failed
 ssGoing back to Morgan's office Corbin threw the stock on the desk with the curt statement:
 't MT. Morgan, there is over seven eighths of s'ae stock of the Housa- tonic railroad at thirty
 Turning to an attendant, whom he addressed as Billy Morgan sid la conicaI Ify.@ @sC5Ount if I'D and if it stallieS