The Bridgeport evening farmer., 1917-04-25

l
| come
critics. I considered taking this step
| a. year ago, but felt that the work OF
reorganizing the staff of the company
| had not gone far enough to justify
me in retiring.
NEARLY four years ago the directors
l. of the company asked me to come to
New England anu help adjust very
complicated Transportation situation.
Iwanted to take up the work because
it involved interesting railroad and
economic problems; because I am a
believer in New England and it's fu-
ture, and because of personal interests
in New England.
.The actual conditions surround
ing the New Haven and the obstacles
to it's progress that developed shortly
after I came were unusual, unexpected
| and unforeseen. The attitude Of the
federal government, resulting in a
complete dissolution of the New Ha-
ven system; the declaring illegal by
the Massachusetts, courts of plan
which guaranteed $67,500,O00 in cash
to pay floating debts and make needed
improvements; the Numerous investi-
cations of the companys affairs: the
very serious business depression be-
ginning early in 1914 and lasting I'M
til the summer of 1915; the European
war and the disturbed industrial con-
ditions, all combined to complicate the
work to be done, and to delay OBJ
tanning the results desired in the in
terest Of the public, security-holders
and the employees. Then, too. public
opinion was excited and adverse to
the company.
'gThe directors, officers and the en-
ployes, and the bankers. who have
helped to carry the floating debts,
have all worked diligently and much
has been accomplished in adjusting
the affairs Of the company and laying
foundation upon which to build.
..After nearly year of negotiation
with the Department Of Justice an
agreement was made in 1914 which
took from the control Of the COM
pany a very large amount of it's prop
erty. This agreement with the gov
eminent was entered into by the COM
pany to save it, and changed the en-
tire situation.
t'The failure of the plan to issue
SCI, 900 convertible debentures lett
the company confronted with a float
ing debt Of nearly $50,000,000 and no
means of meeting 1t except by short
term notes. The floating debt at one
time was nearly $5e,000,O0O but It has
been reduced in the last three years
to $43,00O,000 and notes have just
been sold for s46,o0O,0oO to care for
that Indebtedness and leave $2,000,000
for improvements.
Earnest efforts have been contin-
uous for several years to have the
laws affecting the, company in Massa-
chusetts, Connecticut and Rhode ISL
and made harmonious, and there is q
good chance Of success this spring.
Such legislation should permit the
adoption Of plan for caring for the
floating debt which hangs like a mill
stone about the neck of the COM
pany.
.sHow serious the depression of
business and the demoralized condi-
ton of the affairs Of the company
were in 1914 is evidenced by the fact
that for the year ending June 80, 1914
the company had only $268,000 left
after paying expenses, taxes and fixed
charges. For the three calendar
years ending December 81, 1914, 1915
and 1916, the balance above fixed
charges was:
1914 ;. 5 182,960.36
1915 ... 4,659.139.76
1916. !. .,.... 5,554.977.36
''The various departments have been
re-organized and strengthened, and
new methods have been and are be-
ing introduced. Some Of the impor-
tant problems Of the company now
are:
81. To adopt a plan for handling
its floating debt, and for obtaining
new capital for improvements. In
considering this the stockholders
should realize that they are the own
ers of the property and ought to come
to its rescue by furnishing some new
capital and not rely indefinitely upon
banks and bankers for temporary
loans which create a very uncertain
and dangerous situation.
SO. TO dispose of the so-ca1led out
side properties (Which must be sold
under Federal Decree) at minimum
loss, and use that money for i'm
provements or paying debts.
%. To obtain rates-freight, pas
senger, mail and express-that will
enable the company to meet the stead
lily increasing wages and the increas-
Ing prices of materials, and the seri-
Gus conditions imposed by the war
A. TO perfect every detail of man
agement so as to save the maximum
amount of money
5. To spend from earnings or from
new capital enough money in the next
nve years to modernize thet plant and
make it adequate to the needs of New
provide better working
conditions resulting in substantial
economies, in the hope Of paying q
return to the shareholders
The property is wonderful one
and It's success now depends very
largely upon the willingness of the
stockholders to help pay it's debts and
OF the public to pay rates sufficient
to meet the rising expenses and have
enough left with which to make i'm
provenents and to improve the credit
OF the company; also, upon the condi-
tons, that will result from the en-
trance Of the United States into the
World War. The burdens on this
country because Of this war are not
yet realized to the extent tina tthev
should be. Everyone will have to
help-there must be self-denial-
much inconvenience and probably
some suffering. The transportation
systems of the country will, without
doubt, have to give less service along
some lines so as to conserve. fuel.
equipment and men for war purposes,
and doubtless travellers and shippers