New Britain herald., 1915-04-09
PROPOSED LEGISLATION
 FOR NEW HAVEN ROAD
fxpgunded by Elliott in Address
 at Norwich.


 In an effort to obtain a platform upon which to place the New Haven financial structure, the company has asked to have the laws of Connecti- cut Massachusetts and Rhode Island amended in certain particulars so that the laws of these states will be in harmony The reasons for this leg islation and the changes proposed are as follows:
 Short Term Notes.
 The New Haven company and it's subsidiary, the Harlem River and Portchester Railroad company have issued and now outstanding in the hands of the public, short term notes amounting to 32,3O4,OoO of which S29,399,0 ,000 become due May 1, 1915, and 1000 between that date and August 1, 1915.
 The New England Navigation com pany, of which the New Haven is the sole owner, and for which it is re- sponsible, has, issued and now out standing in the hands of the public, short term notes of s20,000,00 due May 1, 1917.
 Under the laws of Connecticut, Massachusetts and Rhode Island, there
 
 large debt in any way except: r
 1. Renew it from time to time for short periods.
 ?. To pay all or part of it from earnings the sale of securities and other prop erty that may be disposed of Earnings Not Sufficient. Every effort is now being made to utilize the two last named plans, but l the volume of earnings of the com pany and the prices at which securi- | ties and property can be sold under present conditions, are not such that any large amount of these notes can 1 be paid off in this manner. | The company has, therefore, ap- piled. to the proper authorities of Con- l necticut, Massachusetts and Rhode Is- 1 land the remedial leislation that, if enacted, would permit the adoption 1 of some plan of permanent financing as follows:
 l l.. By the issue of preferred | stock, provided that the holders of at least two-thirds of the present cap l itaI stock vote to adopt such plan. | ?. By the making of a mortgage which would permit the issue of first and refunding mortgage bonds, from l the proceeds of which the short term notes could. be paid off. Presumably 1 long time bonds of this character 1 could be issued at a much lower rate 1 of interest than is now paid upon un- secured short term notes, and there | would be a saving in interest of the difference between per cent, which I ic al vy1o hot rY,-o Ioh ;c,c l ing the company, and the rate of in- terest carried by the bonds. Massachusetts Legislation. l 1. Any mortgage executed by the | company shall include outstanding unsecured notes and debentures upon l which the company Is the original and principal obligor, but may exclude bonds already secured by another mortgage, also. contingent liabilities. 1 2. The company may issue obli- 1 gations up to the amount of it's cap~ ] ital stock and premiums, also to such | further amount up to twice the amount of it's capital stock and premiums as the public service commission 1 3. The company may issue pre- l ferred stock subject to the approval of the public service commission. 4. No fractional shares shall here 1 after be issued, but stockholders may combine them by purchase or sale of rights to subscribe. 5. The capital stock and indebted ness issued and outstanding and pre- | mium account on June 30,. 1914, shall
 be validated. ...%#
 l 6. The public service commission | shall have power to secure full infor- | ;,, 1 pany's subsidiary corporations and
 their affairs.
 l '. The holders of convertible de- ] bentures shall have the right to sub- | scribe for future issues of stock 1 s. The company shall be required 1 to account to the public service com | mission for the proceeds of the sale of l securities of it's subsidiary companies. l The laws suggested In Massac chu-
 setts were drafted by the public ser ] vice commission of that s,ate, and are ] unanimously recommended by them l to the general court for passage in | their report dated February 16. 1915. and are now before the railroad com
 mittee of the house and senate.
 Connecticut Legislation.
 1. The company is to be prohibited | from exercising any of it's rights under l The Consolidated Railway Company | charter except such as may be re- | duired for dealing With properties | which it now owns, operates or con- | trols.
 | ?. The company is not hereafter to | acquire, hold or guarantee the stocks 1 or securities of or make mergers with 1 ether corporations, without the ap- ] proval of the public utilities commits l sion.
 8. The company hereafter is to is- l sue stock only after approval of the