Putnam patriot., 1916-02-11
NEW HAVEN BOND
 ISSUE DELAYED
Pending Report of Bay States
 Public Service Board
S27,00O,OOO DUE MAY 1
Plan to Spend Large Sum Within Short Term of Years for Addition to
 System.

New Haven-Howard Elliott, presi- dent of the New York. New Haven and Hartford Railroad company and chair man of the board, in view of the inter- est manifested in the reports as to the re-financing of the $27.000.000 one year 5 per cent. notes of the com pany due May 1 and because of the further interest in the company's f. nancial condition, issued the following statement:
 There was a meeting of the special finance committee of the board Of directors of the New York, New Ha- ven and Hartford Railroad company on Feb to consider the payment of $27 ,O00, ,000 of 5 per cent notes, due May 1, 1916.
 During the winter of 1915 certain changes were made in the laws of Connecticut Massachusetts and Rhode Island, under which the company nov has the legal right to obtain new cap ital by creating mortgage and issu- ing bonds hereunder and by issuing preferred stock, conditional upon the approval of the stock holders and pub. lie service commissions of those three states The general court of legisla- ture of Massachusetts ordered at the same time the public service commits sion of that state to make an investf- gation into and report upon the finan- eial affairs of the New Haven road, and it is expected that this report will be made public in the latter part of February It is hoped the report will contain recommendations that will en- able the legislature to take any action necessary to remove any doubts as to the legal status in Massachusetts 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 i. "The committee also considered the advisability of recommending an in crease in the capital of the company by an issue of preferred stock. There are good reasons why such plan would strengthen the financial posi- ton of the company. The proportion of capital stock to indebtedness at par is in the ratio of 100 to 171-that is to say. for every S100.00 of capital stock issued the stockholders have authorized the company to borrow s171.00. This is a disproportiQnate amount of indebtedness to capital stock creating unusually heavy fixed charges and it would be much bet ter if the relations of stock and debt were on a more even basis. The com panv's credit would be strengthened if the stockholders were to show their confidence in the property by contrib uting to an increase of it's capital, which would result in a corresponding decrease in it's indebtedness and fixed charges. The committee concluded, however, that it is not best to ask the stockholders for action on any such plan prior to May l, although they feel that the stockholders should give this method of raising money their careful consideration, so that debts may be paid and needed i'm pTONtHeuiS Ildue piOluplly. 4No amount of new stock has ever been determined upon and the report that S75 900 000 or any other amount was to be recommended is without foun- dation.
 "The committee decided that, for the present, the amount of the in debtedness maturing May should be reduced as much as practical from the resources of the company and that the remainder should be renewed up on the best terms obtainable.
 'The changes in the debt of the company during the last three fiscal years have been made as follows:
 Year ending June 30, 1914, h. crease. s3,364. .250.
 Year ending June 30, 1915, de crease, s3,6S9,OOe.
 Seven months ending Feb. 1. 1916. decrease. $2.940.o00.
 Total decrease since July 1, 1913. s3264750.
 Capital expenditures and better, ments and equipment for the same periods were:
 Year ending June 30, 1914. s4.s15.- 7s7.7s.
 Year ending June 30. 1915, s2,- 351 .s7O.2s.
 Six months ending Decf 31, 1915. s1.524.2OSS7.
 Total, ss.7s1 .s66s6.
 "The total debts paid and new mon- ey put into the property in the last two and one-half years was s12,056,- 716S6.
 During the next few years much more than this sum should be spent for additions to the property" Wesleyan Swimming Dates.
 Middletown-The Wesleyan swim ming teams schedule was announced as follows:
 Feb 12, Amherst at Amherst; Feb. p Brown in Middletown; March 4. Williams in Williamstown; March 10, Springfield Y. NJ. c. A. college in Springfield; March IT, Yale freshmen in Middletown.
 Children Cry
 FOR FLETchER'S
 c A SToRl