The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-07
LAWS UNRAVEL
NEW HAVENS TANGLE
Chairman Elliott Says the Remedial Legislation Will
Build Up the Road and Will Help Restore
Confidence and Credit.

Boston, June Elm response to re-
quests for a statement In regard to the
legislation recently enacted Howard
Elliott. chairman Of the board OF direc-
tors and president Of the New York.
New Haven and Hartford Railroad
Company. issued the following to-day ;
During the past ear a large amount
OF work has been done by the officers
Of the company, the Public Service COM
missions. the legislatures and the State
executives In studying the complicated
corporate and financial relations of the
New Haven system and the differences
In the laws Q; Connecticut. Massachu-
sets and Rhode Island. AS the result
Of this study and of numerous confer
ences between the Public Service Com
mlssioners and the officers Of the COM
pany various bills were drafted which
have been passed as follows
"In Rhode Isla nd.
"A general law curing certain minor
defects In the corporate stock status
If the company end maising legal under
suitable restrictions the Issue Of pre-
ferred stock and Of mortgage bonds
This law was approved by Gov Beck
man on March 26.
"In Connecticut.
"a law permitting the compsn, IL
make uss OF certain of its treasury Ger.
tificates as collateral for short time
loans which must be mad from time &c
time until some permanent plan OF
financing Is adopted by the stockhold
ers. This law was approved by Gov
Holcomb on March 10.
"a general law reducing tho powers o.
the New Haven company and providing
for increased supervision by the Publ,
Utilities Commission OF Connecticut
providing that at least two-thirds OF tn,
directors OF the company shall live II
Connecticut, Massachusetts M Rhod,
Island and permitting, under suitabl,
restrictions. the issue Of preferred stool
and Of mortgage bonds. This bill wa
approved on May 10.
"In Maasachusrtts.
"A law prohibiting the issue OF frac
tional shares Of stock. making the prac
tice in Massachusetts similar to that o
Connecticut and Rhode Island. This bill
was approved by o Walsh on Ma.
81.
"a law permitting the issue of pre-
ferred stock. approved on May 81.
"A law removing the obstacles an,
defining the limits to the issue of mort
gage bonds and evidences OF indebted
ness and permitting this kind of lnano
Ing in accordance with modern bust
ness requirements. This bill was ar
proved on June I.
"a Law validating the New Have
securities as Of May l5. 1915. and pre-
viding for IN investigation by the Pub
lie Service Commission OF the capita
expenditures. Investments n contir
gent liabilities Of the New Haven con
pany and their validity under the law
OF Massachusetts and under the law
of any other state In which the con
pary Is organized their report to /
made out not later thar February
1916. At an expense not exceeding SO
300. to be paid by the New Have
company.
Also for an investigation by the Pul
lie Service Commission. the port dire,
tors n the Attorney-General Of IL
rates to and from the Commonwealth
Pier in Boston under the contract {
July /, 1912. between the State an
the New Haven and Boston and MAR
companies. h last bill was approve
late Friday night. June 4, after whic
the Legislature adjourned.
''rIRn for Financing.
THE passage Of these various bill
gives the company the legal right TO gu,