New Britain herald., 1915-01-28
PLAN 10 FINANCE
 NEW HAVEN ROAD
Bills in Connecticut and Rhode
 Island Legislatures.

Boston, Jan. 2S.-Bills calling for legislation to permit financing of the New York, New Haven and Hart ford railroad, in a form advocated by the directors, will be filed by the legislature of Rhode Island and Connecticut next week. according to a statement issued last night by How ard Elliott, president of the road. A similar measure will be introduced in the Massachusetts legislature in the near future, he said.
 The New Haven at present." said MT. Elliott, ''has a floating debt of about s53,00o,00O. about s30,000, ,000 of which will mature by May 1 and about $3,00O,00O more by August l. At present the only available means of financing that debt is by further issue of short term notes, but there is always difficulty in obtaining money that way and when obtained high rates of interest must be paid, which makes it still harder for the railroad to provide adequate service and to make the improvements and better ments which are constantly needed to keep the property in proper condition and to serve the public"
 To Issue Preferred Stocks.
 Legislation is especially desired to make clear the right of the railroad companies to issue preferred stocks as a means of raising money: or to legalize a plan to convert the float ing debt of a road into a long time mortgage bond carrying a much lower rate of interest.
 The issue of preferred stock is desirable method when practicable" | said MT. Elliotts statement, but it is not clear that the right exists un- der the present laws. Connecticut has given the right but there is doubt whether Massa chusetts gives it to railroad corporations. This doubt has been removed by certain Massachu- setts legislatures as to street railway, gas and electric light companies. There is also some uncertainty in this respect under the statutes of Rhode Island. It is now important there fore to have the laws made clear so that steam railroad companies can issue preferred stock as a means of raising money if market conditions justify
 To Acquire Lines.
 It was much to be desired, Pres- dent Elliott added that Massachu- setts should "give 10 the New Ha- ven the right to acquire it's leased lines upon terms satisfactory to the commonwealth and to the respec- tive stockholders of lessor and lessee lines"
 The public service commissions of the New England states have been conferring with each other and with railroad officials on the matter of finances for several months and it is expected that their reports will be placed before the legislature when the latter is asked ito pass the laws needed to bring about har- mony and to remove unnecessary re- strictions," according to MT. Elliott.
 Decrease in Earnings.
 Discussing the present financial condition of the New Haven, MT. Elliott said:
 "In spite of drastic economies, the decrease in gross earnings has l been so great that the balance for l the first five months of the present l fiscal year is practically tho same as | for the corresponding period of the | previous year.
 "As the business of the subsidiary | companies has also fallen off, the re- | ceipts by the New Haven from these | companies during the current year | now promises to be less than last | year.
 Warrant Balance in June.
 "On the other hand, advances In rates. some of which have already | been permitted, recent improvements in the volume of business, together with further economies and in- creased efficiency warrant the expec- tation on June 30 next, the close of the fiscal year. of a balance above all operating expenses, taxes, rentals, and discounts of all kinds"