New-York tribune., 1918-03-15
Plan Issue of
New Haven r. r.
Preferred Stock
Would Provide Funds tc
Meet $43,OOO,O0O Note
Maturity

Directors Of the New York, New
Haven G. Hartford Railroad Company
have prepared a circular to be sent to
stockholders outlining the terms of
ne~ issue Of preferred stock, which,
if subscribed for in full will raise
s43, ,5S8,3oo, sufficient to pay off the
S43, 100000 OF the company's 5 per cent
notes falling due on May 1, next.
The circular, information concern
ing the contents Of which was OBJ
tanned yesterday, states that stock
holders of record at the close Of busi-
ness on March 20, will be offered one
share of the new preferred stock for
each four and one-half shares now
held, and that holders of the com
pany's per cent convertible bonds
viii! get one share Of the new preferle ed
fer every $3.50 unit of the bonds in
their possession. The total amount
OF stock now outstanding is $157, Ill.,
900, all of one class, while S39,029,0O
of the bonds are in the hands of the
public.
1t is stipulated that the new stock
shall be paid for in full on or before
April S. or in four quarterly install
ments, the first on that date. and those
made later on July 1, October 1 and
January 2, 1919, respectively. The
stock is to be a per cent cumulative
issue, the dividends to be paid semi
annually.
Government Aid Still Possible
Owing to the many conflicting re-
ports recently as to how the New
Haven would meet its maturing note
issue the letter to shareholders stat
ing that efforts to raise the money
would be made through the medium Of
a preferred stock issue came to the
financial district as distinct sur
prise. According to an opinion ex-
pressed last night by banker who has
been closely associated with the COM
pany's past financial operations, the
plan to issue stock does not preclude
the possibility of government aid in
the even the offering is not successful.
1t is understood that every effort
will be made to pay off as much of
the notes as possible from the pro-
ceeds of the stock sale and that the
remainder will be taken care of under
the provisions of the railroad bill.
The amount of the notes soon to
mature was originally S45,0O0,O00. but
the New Haven, from its own treasury
funds, has retired $2,000,000 by pur-
chases in the open market.
Authority to issue enough new pre-
ferred stock to meet the notes was
granted the company last October by
the stockholders The terms under
which any public subscription was
fourths of the cash proceeds which
may be received by the New Haven
from the sa le Of its securities under
the decree of the Federal Court should
be applied to the retirement of the
shares in amounts of not less than
10000 shares, either by call for re-
demption, or by purchase from the
lowest bidder.
Elliott to Confer
Dispatches from Washington yestcr-
day stated that conferences between
officials of the New Haven and John
SHELTON Williams, director of the di-
vision of finance in the Railroad Ad-
mnistration, will continue until a plan
rived at. This plan will be submitted
to Director General McAdoo for his
approval.
Howard Elliott, representing the New
Haven, and New York bankers are
expected to be in WASHINGTON to-mor-
row to discuss with Mr.. Williams and
Mr.. McAdoo the latest move to raise
the money to meet the notes.