Norwich bulletin., 1917-10-05
STOCKHOLDERS MEETING.
 TO AVOID BOND ISSUE N. Y, N. H. A H.'s Call to Authorize $45,o0o,o0o, Proeeeds to Be Used in Payino Of Notes

Directors of the New York, New
 Haven & Hartford railroad have
 issued a statement urging upon
 stockholders the necessity of approv-
 ing the proposed issue of .$45, ,000,-
 900 new 2 per cent. preferred stock
 to raise funds to pay off "a like
 fall due April Is, 1918. 'The pro-
 posed stock issue will be voted upon
 at a special meeting to be held fol-
 lowing the annual meeting of share
 holders in New Haven on October
 24th.
 Howard Elliott, chairman of the committee on intercorporate relations of the road, explained that this form of
 financing is preferable at this time to
 a bond issue or an extension of the
 preferred stock issue offers the soundest method of finance. It allows
 every stockholder to subscribe. but compells no one to do so. It will stantially equal in. amount and so strengthen the company's cred. '
 It. will lift the burden of short term notes which each year has meant refunding and substitute pre- ferred stock which can be called when the company is able to sell some of it's assets.
 The company is HOW plying. more than seven per cent. ia interest and discounts on its short term notes: it can as easily earn and pay seven per cent. dividends on $45, 100000 of pre- ferred stock, with the great advan- tage of not being required to make re- newals every year. su | issue of bonds the company it is pointed out by the directors, would be required by the laws of Massa- chusetts and Connecticut to aathor- ize mortgage sufficient in size to pay off the notes, but in, addition l would have to provide for the fu- ture issue of bonds to take mp $751; s10,791 of obligations now outstand- | ing, or total of s232.s1o.7s1.
 Objection is raised to forced ! sale of the Boston and Maine, the trolleys and any other property not nece ssary for the operation of the 1 New Haven proper and it's supple mentary steamboat lines as a. means that they. would have to be disposed of at a great sacrifice if sold be- .ween now aud next April. These properties have a book value of
 As to outlook for earnings, it is stated that the s"15 per cent. rate case" will t.ing in. beginning with September) s1,5oo, 900 new revenue year Three millions more an lua1ly will accrue to the company through expected increases in pas 'enger rates. There is also a move nent to increase fares on rhe troll ey lines.
 From slightly increased rates."l 'ays the directors statement, bet CT operation and sales of mis- ,ellaneous property more than $12,- '00,0 floating debt has been paid If in. the last four years and at the ,een spent for Improvements, bet ermentsi and equipment. These ex- and others now being made increase the permanent value # the property, but will not enable to pay the. $45,0O0.Oe0 due April 5,- 1918
 If the s45,ooo,ooo is not paid next April the trustees may be forced to sell the . collaterial securing the totes. If it should not bring the ace of the notes the company must 'ay the differe---e and the future 7alue of the collaterial will have 'een sacrificed. The collateral tands on the conpany's books at 96, .516, and includes some of he most substantial and valuable ailroad securities in New England:"
 To make it possible. for the New Haven to sell the proposed preferred tock issue two-thirds of the 1,571- 19 shares outstanding must vote n favor of it. Some of the most important stockholding interests. i the PennsyIvania railroad. l he Mutual Life Insurance company nd the American Express company. { a ve Sienif7ed their