New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-13
Amster Starts
Fight to Save
The New Haven
Condition Of Road Is De.
scribed as Critical, but
Not Hopeless

Nathan J.. Amster, the Boston cor
poration lawyer. who gained prominence
when he started successful revolution
in the affairs of the financially broken
down Chicago, Rock Island & Pacific
Railroad, announced yesterday that he
lad taken steps to organize commit
tee Of the stockholders Of the New
York, New Haven e. Hartford Railroad
for the purpose Of formulating plans to
rehabiitate the company's finances and
protect the equity of the stockholders.
This development aroused much in
terest in Wall Street owing to the fact
that the recent weakness in shares of
the New Haven, which have fallen this
week TO low record Of 2IH, has given
rise to talk Of an impending financial
reorganization of.the property.
Calls Condition Critical
In a letter sent to stockholders Of the
New Haven last night Mr.. Amster stated
that after careful study of the com
pany's affairs he had reached the con-
clusion that while the situation is In
some ways critical, it is not hopeless,
nor rs grave as some people would nave
the stockholders believe.
81 am convinced" Mr.. Amster says,
chat there are substantial equities be-
hind the New Haven stock; that the
present market value of S22 does not in
any way reflect the equity nor the
value of the stock. The New Haven
needs financial assistance, but the equi-
ty back Of the stock is such as TO make
il quite simple for the stockholders to
finance themselves"
The letter to the stockholders further
states that the company's financial con-
dltions and its needs are apparently
greatly exaggerated. "The same peo-
pie who were optimistic when the stock
was selling at over $3.50 share" it
says. ARE pessmistic to-day with the
stock selling around $40. The views
of these people are naturally warped,
and they are of very little value 70 the
stockholders in their present crisis"
Rock Island Episode Recalled
Mr.. Amster declares that the claim
that the New Haven needs hundreds
Of millions OF dollars is as baseless as
were the claims Of the Wallace and
other protective committees in 1914
that the Rock Island was a broken
down derelict-two streaks of dust
requiring hundreds OF millions OF dol
lars to put it in shape. 81 feel" says
Mr.. Amster. that the same distorted
views held by certain financial inter
ests regarding Rock Island in 1914
are held to-day by certain people re-
specting the New Haven"
Announcement will be made within
the next few days OF the names of the
other members of the protective COM
mittee. No deposits of stock will be
asked at this time.
II has been stated in the past few
days that the Pennsylvania. with its
holding OF over S5,000,000 OF New
Haven stock, is playing dominant part
in the New Haven situation. plan
under way at the present, which would
provide the New Haven with the funds
necessary to meet its Si5.000,000 note
obligation next April, involves the is
suance of $4,000 900 of per cent pre-
ferred stock. The annual meeting OF
the stockholders will take place next
month, and it is said that the directors
will urge the approval of the new
stock issue. The legislatures of Con-
necticut and Massachusetts have al
ready approved this form of financing.