New Britain herald., 1917-04-26
ment for an extension of time for the

ment for an extension of time for the sale of this property.
 A member of the committee asked him what this stock would sell for, and he answered that he did not know, but in answer to . suggestion that 80,0OO,O00 might be a disposal price, he answered that if anyone of fered him that amount he would lock the door quickly before he escaped with the offer.
 In explaining fully the issue of the bonds he said it is so safeguarded that the stock cannot be issued except it be ratified at a special meeting by two-thirds of the stockholders. Pro- vision is made for the cancellation and retirement of bonds, and the rate of interest not to exceed seven per cent. is to be fixed by the stockhold- ers' meeting
 All conditions are subject to the approval of the public utilities com- mission. An issue of $5O.OOO,OO0 is asked for of which $45,000.00 is to be paid on short time notes. In ex- plaining the reason for an issue over the amount which they wish to pay in short time notes he said, the road may need the additional $5,000,0OO shortly.
 Views of Yale President.
 President Hadley told of the neces- sity for improving the physical con- dition of the road, of the poor trans portation facilities. defective sidings. all of which are inadequate to do the states business. The road must float a bond issue or face the contingency of sacrificing its securities. It is inn portant, he said, not to entirely ex- haust the credit in paying its bills, but to have some money left for pay ing current expenses. Then there will be no more car shortages, transporta- tion will be gotten into shape and there will be fifty per cent. more bus mess with a slight advance in cost. He thought, too, cheaper transporta- ton could be provided. He said that the road would be able to add $25,- 0o0.00O to its borrowing powers, and therefore all to the earnings which would net an improvement in value of from three to four millions. Hav- ing good credit the road could borrow at five per cent. and reap ten per cent. on it's new capital. For the past five years it had been in a condition of a business with no credit. The refusal of the legislature to authorize the issuance of preferred stock would mean putting all the earnings into equipment. The equity of the com pany, at present, is $SO,O00,OOO and the debt $120,000,00O.
 In answer to the question whether the stockholders would approve of the issue he said it is the one hope of the road that they will. He did not doubt that they would not approve it at the present time, but he believed such explanations would be offered and the matter put before them in such light at the meeting that they would not fail to accept the plan.
 Director Milligan, of Hartford, who said he was at first opposed to the
 issue, added about the same testi- mony. saying that the road couldn't market the mortgages that it would have to put in the market. It is pay
 ing $7.50O a day for rental of cars.
 Eli Whitney, of New Haven, an- other New Haven director, said he hoped that the road would not be obliged to issue stock. but he had come to the conclusion that it is necessary. The bankers will not re-