The Birmingham age-herald., 1917-10-09

of the New Haven line represents the
 movements of great industrial com
 modities from other parts or the
 United States to the manufacturing
 centers of New England, as well as the return of commodities manufactured in New England to other parts of the country. Today the New Haven and the Pennsylvania are Jointly operat- ing through passenger trains between
 Boston and Washington and by and by this service is likely to be increasec- Howard Elliott Is one of those who have always had great confidence in the latest strength of the New Haven railroad system He devoted the two and one half years of his presidency of the company to the upbuilding of tho system and also to the difficult fi- nanoing which was necessary to keen. the railroad on its feet, so to speak, financially He believes that all. that Is needed to restore this system so that it will regain it's former prestige and high credit will be careful nursing and response from the stockholders to an offer to sell to them $45,000,000 of pre- 1 ferred stock.
 | Other railroad systems in the United States that have been in trouble have appealed successfully to their stock holders. There was line when the faith of the stockholders of the Burlington sys- tenn served that great but then imperiled l property so well that 1t at last attained I a position among the pre-emine1tly great
 railroad systems of the country.
 l Although MT. Elliott has been much occupied with his service as a member of the railroad war council in aiding the government and also with his du-
 ties as chairman of the board of the Northern Pacific railroad, yet he has, very likely by soverworking, perfected proposition which. If accepted by the stockholders, should serve to put the
 New Haven system upon it's feet. The company is in the peculiar position of
 possessing property that is inherently very Valuable, such, for instance, as stock of the Boston and Maine railway trolley systems and steamboat lines which have book value of nearly s1o1.- | 00O,O00 These properties must be sold some day, but if they were offered for sale now a very large sacrifice would be involved. In the future they may be marketed for approximately the book value. If that could be done now 1t would not be necessary to ask the stock holders to subscribe to an issue of pre- ferred stock, which if sold will discharge tho floating debt. The problem is a very interesting one and Is being care 1 fully watched by railway managers all ! over the country. There are factors in l it which differ from those which were discovered in other problems that 1t was necessary to work out, in order to re- 1 store the credit and prestige of other 1 railroads. The New Haven railroad has 1 never before transported commodities In 1 amount and in money value such as has been it's experience in the eight months of the present calendar year. On the 1 other hand, it is now the experience of the New Haven as well as all other rail- roads, noticeably the Pennsylvania and 1 the New York Central, that notwith- standing the great increase in gross earnings, so that net earnings are pro- portionately smaller than they have been
 at any time in recent years. The New
 1 Haven railroad system situation and l New England's relation to 1t are of fn- terest and importance to the entire coun-
 try, especially to the Industries of the
 country.