Norwich bulletin., 1917-04-25


 who resigned today ss president of tiIs NsW York, New Haven and Hartford Railroad company, issued 4 statement tonight iH which HB e0BtfAst61 tbls depressing condition Of bls company when bs became its president Best1T four years ago sB1 tbs accomplish msHtE since tBsH Co tgs WaH Of "HGs jHstiBG tbe affairs 0f ttls company 1B1 lsylgE 6 foundation gD0B WbtHb t0 bBti1" He outlined i've Gf tiBs jfgy D0FtABt problems now confronting tile company, chief Of which is tD decide upon plan for handling tbs floating debt SBd tO obtain new capitol for BlT Df0HeBRHte,
 ta asking 10 be relieved of tbe work sDd responsibility as tgf t0Dp9pH'e president, bs said he felt the need 0f sD occupation that VII permit bim "a little more fiBls" for biBgssjf and bis family, He aeded tb9t ne considered taking this step 9 year ago, bBt dss eided not to do so then because tbs work of Fe0FgaDjZjps thf staff of the company had pot gone far enough 10 justify his FFtipemeDt
 ststenpept by Mr. Elliott
 "rbe actual conditions surrounding the New Haven and the obstacles 10 it's progress that developed shortly 'afteP1 ean3a were unusual, unexpected and AufoFeseen," dee.ared Nr. Elliott fin bsC statemeFG,s .tT.i,e attitude of thS federal government, resulting tn s complete dissolution of the New Haven system; the declaring illegal by the Massachusetts courts of a plan which guaranteed S67, ,50G, 900 fin cash to pay floating debts and make needed ip~ pFoVements; the numerous inFeStlga- lions of the eomDany's affairs; the very serious business depression be- ginning early in 1914 and lasting until the summer of 1915; the European war and the disturbed industrial conditions. all combined 10 complicate the work to be done and to delay obtaining the results desired in the interest of the public. security holders and the em- pIoyes. Then, too, public opinion was excited and adverse to the company
 Agreement With Government.
 After nearly a year of negotiation with the department of justice. an agreement was made in 1914 which, took from the control of the company very large amount Of it's property. This agreement with the government was entered into by the company to save it and changed the entire situa- tion.
 '0The failure of the plan to issue $67. 500, 900 convertible debentures left 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 $56, ,000 GOO. but it has been reduced in the last three years to $43, ,o00.0 and notes have just been sod for $45, 900 900 to care for that indebtedness and leave $2.00O, 900 for improvements.
 Earnest efforts have been continu- ous for several years to have the laws affecting the company in Massachu- setts, Connecticut and Rhode Island made harmonious. and there is a good chance of success this spring. Such legislation should permit the adoption of a plan for caring for the floating debt which hangs like a millstone about the neck of the company.
 Depression in 1914.
 'sHow serious the depression of busi- ness and the demoralized condition of the affairs of the company were in 1914 is evidenced by the fact that for the year ending June 30, 1914. the com pany had only $26S, 900 left after pay Ing expenses, taxes and fixed charges, For the three calendar years ending Dec. S1. 1914. 1915, and 1916. the bal ance above fixed charges was; 1914, S1Ss,sSo; 1915, $4,s5s.1S9; 1916, $5,5S4.-
 "The various departments have been reorganized and strengthened and the new methods have been and are being introduced, Some of the important problems of the company now are;
 Problems Confronting Company.
 "1-To adopt a plan for handling It's floating deht. and for obtaining new capital for improvements, In eensid. ering this the stockholders should realize that they are the owners of the property and ought to come to it's res- cue by furnishing seFoe new capital and not rely indefinitely upon hanks and bankers for temporary leans which create a very uncertain and dangerous situation,
 "s-Ta dispose of the Se-ealled out, siae prenertieS' (which must be sold under the federal deereel at a mlNl- mum loss, and use that money for im- nrevementS er paying debts,
 "S--Te obtain FateS~fceteht paSseN- ger, mall and exnrcSS-that wtl en~ able the company Co meet the steadily Increasing wages and the increasing prices Of materials and the SeFloea eonattiehS imposed by the war,
 "4-Te perfect every detail ot man ARement so as to save the maximum Amount Of money,
 "a-Ta spend from earnings or from new capital enough money tn the next I've years to moderntke the plant and make it adequate Co the needs ot New provide better working conditions resulting in eubstantiat la the hope Of paying re- turn to che ahareho4ders,
 eesFsN.m vSNwaHAAekg Nm fRa AAeAAN a.a4WnAlkAaW.