The Bridgeport evening farmer., 1917-04-26
President Hadley of Yale,
Speaking for Directors to
Legislative G 0 m m / ttee,
Urges Immediate Neces-
sity of Encouragement Of
the Roads Finances.
Especial to The Farmer)

Hartford, April 26.-Receivership
Is the fate that hovers over the New
Haven road. unless the Connecticut
legislature will authorize an issue OF
s50.000.00o preferred stock to meet
impxtding pbligation OF the road. &C
cordYniEsst 't w THIS statement Of Arthur
r. Hadley, a member of the road s
directorate and president OF Yale
University.
This statement was made before
the committee on railroads of the
general assembly, at hearing, In the
capitol late yesterday. on belated
bill emanating, from the railroads le-
gal NeparttU4nk under the terms or
whisAIll't 81 go 9se ri l|hseas W get the
Frances r. Maxwell OF Rockville,
Eli whitney of New Haven, also d.
rectors, E.; G. auckland, first vice
president Of the road, and other rail-
road officials, concurred in the views
of Prof. Hadley as to the prospects
of receivership for the road within q
year, unless the financial support OF
the proposed new stock issue Is forth
coming.
The directors set forth the roads
fiscal policy in lengthy statements
which summarized, are:
The roads present capital
stock is $50 millions. It's debts
total 233 millions. With the pro-
posed bond issue, the road will
pay off r45 millions Of debt,
bringing its debt down to- .lSS Ii
ilisReas H. The Ds'a w STOCK e snen
~ re-
the roads credit will be enhan-
,ced.
This method Of financing did. not
appeal strongly to George j. Smith,
a merchant, who attended the hear
ing in the capacity OF a minority stock
l1older-he said he had bought $15,-
600 worth Of New Haven stock at
par. Eft closed yesterday at Al 3-4.
Me- Smith was the only person at
the hearing to oppose the PROPOSE
! tion. He objected especially to the
fntimation that the stock might car
ry per cent.
ssMake it five per cent. You'll have
no trouble selling them. I'll buy
some at s" he said.
Mr.. auckland, explaining the need
OF the road for money, said that ex-
penditures on equipment are absolute
ly necessary. He said that engineers
estimating an expenditure Of Is mill
lions for sidings, locomotives and
other equipment, estimated that the
return from this particular fund
would be 33 1-3 per cent. yearly. Ex-
penses Of this essential nature, he
said, were what had prevented divi-
idends;j and with the preferred stock
issued, he said the day of dividends
would be brought much nearer.
The measure before the railroad
committee provides that the propos-
ed issue shall be made only when
ratified by two. thirds Of the stock
holders, the stockholders also to pass
upon such features as the dividend
rate. and whether it shall be cumula-
tive.
Attorney Edward M. Day Of Hart
ford who closed for the road stated
that, the directors believe this move
Is the best thing that can be done for
the stockholders; that the directors
seek to the authority to take before
the stockholders the entire PROPOSE
tionSOf the roads pressing need for
| money, in the belief that the stock
holders, by lending their support to
! the measure, ultimately will profit
through 1t.
It was explained during the hear
ing that the court orders to the road
to dispose Of its holdings outside OF
its railroad properties, coming almost
simultaneously with the European
war, had been. most inopportune, for
the worlds finances had been SO dis
ttrbsd that to sell at any time since
the decree would have been to sacri-
/ dce large portion Of the value OF
the various holdings. However, the
company expects, under these condi-
lions to obtain an extension Of the