The Bridgeport evening farmer., 1917-02-21
LECISL ATORS DECLARE PUBLIC UTILITIES COMMISSIONERS DO
 NOT INSPIRE PUBLIC CONFIDENCE
NEW HAVEN ROAD
 WILL PAY NOTES FOR $43,000,000

New York, Feb. 21.-It was an-
 nounced yesterday afternoon after a
 special meeting of the directors of the
 New York, New Haven and Hartford
 Railroad in the Grand Central ter
 minal that the $43,000,00O of notes of
 the road and a subsidiary company
 falling due on May 1 would be paid
 or refunded at maturity. A statement
 to this effect and a report of the if
 nancial position of the company since
 1914 was authorized and will be
 printed and mailed to stockh elders as
 soon as possible.
 The maturity of these notes has
 been the source of. much anxiety on the part of New Haven stockholders
 because. of reports that the directors
 might start receivership proceedings to effect readjustment of the roads
 financial difficulties. Last week these !. rumors sent the stock to 36 3-4, the lowest point in history. The bonds also weakened under the strain.
 It is probable, according to the statement, that the notes will be ex- f'tended for a short time at maturity
 in order to give time to the New Eng
 land Navigation company to liquidate k SEQ, 100000 of notes falling due. In
 this case the extension or the refund ing will be only a preliminary step in
 connection with the financing of the company's short term debt. The state ment says that the company probably l Will then sell further securities with view of reducing it's short term debt. ] A summary of part of the state ment shows that since June 30, 1914, the floating debt of the New Haven and New England Navigation com pany in the hands of the public has been reduced by $10,520,00O. In. that time there were paid out in cash for equipment $4,1S7,00O and for addi- tions $5,S50,000, making a total of l $2O,557, 900 raised by the New Haven | for these various purposes since that date These expenditures have re- 1 suited in an increase in net earnings l of from $26S, ,O00 for the year ended | June 30, 1914, to $4,546,000 for the six months ended December 31 last. | Statement by the Directors. "A careful estimate of the probable results from operation for the six months ending June 30, 1917. always 1 the lighter half of the year, leads the directors to hope for final result of I the years operation of we'll over per cent. upon the capital stock, includ- ing the undistributed surplus of com- | panies which the New Haven controls. This represents what the capital stock is earning and what the directors in ordinary circumstances would use as l a basis for considering the question l of dividends, but it is clear to the l board that, pending the final settle ment of the various questions which have arisen as a result of the decree | requiring the company to dispose of part of its assets. all the net earnings
 should be devoted to provide the ad- ditional facilities which the above figures indicate will amply repay the expenditure.
 The company and the New Eng land Navigation Go. together own se- 1 curities the sale of which is required by court decree having an aggregate par value of nearly $125, 5000, 900 and | a present value of at least $75,000,- l 900. The sale of some of the sec,lri- l ties, if made within the next two | yOCAA S,s< WAiA Oll0OoOCSuly represent d
 substantial book loss to the company.
 On the other hand the physical valu- l ation Of the company's property.
 which in common with the valuation l of the other railroads in the country
 is proceeding under the direction of the Interstate Commerce Commission, leads the directors to the conclusion
 that the value of the company's phy-
 sical property engaged in railroad%op- eration is largely in excess of it's book 1 value,> and that the increased value from this source will materially exceed whatever loss may be sustained from l the saSe of assets not required by the company in it's railroad transportation l business.
 I Securities to Be Sold.
 It is the intention of the directors I to sell such of these, securities as the l court decree requires to be sold and l apply the proceeds to paying off the 1 indebtedness and to. increasing the company's facilities, with the expec-
 tation of offsetting by the increased value of the companys railroad facil- I tiles any losses which may result from l such sales. The directors have no T hesitancy in stating their firm convfc- tion that this will leave the com pany with a substantial surplus and
 will permit the completion of plans heretofore held in abeyance, permit
 ting the company to finance on a per-
 manent basis the short term indebt-
 edness which has been outstandine for some years.
 ''The present floating debt in the
 hands of the public, including the
 notes of the New England Naviga-
 tion company. is about $43,O0O,O00 Al one time within the last three years
 it was little over $56, 6,OOO,0 900. The
 company has on hand cash working
 balance of about $5,0OO,OO0 and is carrying fuel and materials of g value of more than $3,0O0,O0O great.
 CT than that on June 30, 1914, all o1
 these materials and fuel being pai6 for.
 The company, has every reason te
 believe that the $25, 100000 of its di.
 rect obligations and the $18,OOO.O0t