The Bridgeport evening farmer., 1916-02-07
TELLS OF +
NEW HAVEN NEEDS;
DEBT IS REDUCED
Head of Railroad Says Many
Millions Must Be Spent
For Additions.

New York Feb. Howard Elliott
president of the New York., New Ha-
wen & Hartford Railroad company
and chairman of the board, in view
of the interest manifested in the re-
ports as to re-fnancing the $27, ooo,OoO
one. year 5. per cent. notes of the com
pany due May 1 and because OF the
further interest in the company
financial condition, has issued the LoI-
lowing statement:
s.There was a meeting of the special
finance committee of the board of sdd-
rectors of the New York, New haven
& Hartford Railroad company on Feo.
ruary 1 to consider the payment OF
$27, 900, 900 of per cent notes, due May
| l. 1916.
During the winter of 1915 certain
changes were made in the laws. Of
Connecticut, Massachusetts and Rhode
| Island, under which the company now
has the legal right to obtain new cap
ital by creating a mortgage and lssu-
ing bonds Hereunder and by issuing
preferred stock, conditional upon the
approval of the stoc l0he1defts and PUB
lis Service commissions of those three
statesa The general court or leg1sla-
ture of Massachusetts, ordered at the
same time the Public Service commits
sion of that state to make an investi-
cation into and report upon the hhan-
cial affairs of the New Haven road,
and it is expected that this report will
! be made public later in the latter CART
| of February. 1t is hoped the report
| will contain reconarn that
will enable the legislature to take any
action necessary to remove any doubts
as to the legal status in Massachu-
sets of investments of the company
made by and under lawful authority
/ of other states.
pending. the receipt of this report
| and action thereon it seems to the
committee unwise to attempt to make
a mortgage and to issue bonds there
under to take up the notes due May l.
/ 1.-THE committee also considered the
ladvisability of recoInrn ending an in
crease in the capital of the company
| by an issue. of preferred stock. There
are good reasons why such a plan
would siren CITIZEN the financial posi-
ton of the company. The proportion
| Of capital stock to Indebtedness at par
| is in the ratio of 100 to l71-that is to
say, for every 500 of capital stock is
sued the stockholders have authorized
the company 10 borrow $171. This is a
disproportionate amount of indebted
ness to capital stock creating unusual.
1y heavy fixed charges and it would
be much better If the relations of
stock and debt were on a more even
basis. The company's credit would be
strengthened if the stockholders were
to show their confidence in the prop
erty by contributing to an increase Of
Z
corresponding decrease in its indebt-
edness and fixed charges. The COM
Inittee concluded, however, that it is
mot best to ask the stockholders for
action on amy such plant prior to May
l. although they feel that the stock
holders should give to this method of
raising money their careful consider
alton, so that debts may be paid and
neened improvements made promptly.
No amount of new stock has ever been
determined upon and the report that
SIS, 000, 900 or any other amount was to
be- recommended is without .founda-
ton.
1.-THE committee decided that, for
the present, the amount of the in
Idebtedness maturing May should be
reduced as much as practicable from
the resources of the company and that
the remainder should be renewed upon
the best terms obtainable.
1.-The changes in the debt of the
company during the last three fiscal
years have been as follows:
Year ending June 30, 1914,
year ending June 80, 1915,
decrease, 3, 689, 900
.seyen months ending Feb
i, isis. decrease, 2,s4o 900
'sTotal decrease since July /,
1913, 1924 $50
Capital expenditures for additions
and betternents and equipment for
the same periods were:
Year ending June 30
1914. s4.s15, 1915
year ending June 80.
1915, 1881. s7o.2s
six months ending Dec
81, 1915, 1.524, 2o8.s7
t"Tota1 1871, 9e6. SO
THE total debts paid and new mon
ey put into the property in the last
two and one-half years was $12, o56,-
ZIG. Sc,
During the next few years much
more than this sum should be spent
for additions to the property if it is
to be made adequate for the business
! of New England and. the highest econ