The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-03-18
Plan for the Government to
Raise One-Half of S43,-
100000 Due April Is
ROAD MUST RAISE
BALANCE OF AMOUNT
Director General McAdoo Is Said to
Have Told Officials He Would Sane
ton Raising of s75, 900, 900 Additional
Bonds.

Bonds.
NEW YORK, March lS.-lt was
learned Saturday that plan had been
practically agreed upon by Director
General of Railroads McAdoo and the |
management of the New York, New
Haven 4 Hartford Railroad company, |
which provides for meeting the New
Haven : $40 900 900 of notes falling
due April Is. next 1t is proposed that
al least one-half of the amount shall
lie taken up by the railroad company
through the sale Of part of its author
lied new issue of Z per cent preferred
stock, with the assurance on the part
OF Mr.. McAdoo, that he will draw on
the revolving fund TO be appropriated
for his railroad administration by
congress for the balance. The question
OF meeting this note issue, the largest
amount of outstanding railroad secu-
Iities falling due on single date in
the year 1915 formed the first big
problem in railroad financing laid be
| foge Mr. McAdoo. Mr. McAdoo in
| Washington Saturday night said that
j a final decision had not been reached,
and that he did not feel that he could
| discuss the matter.
1t was also learned that Mr. McAdoo,
/ i'll conference with officials of the
PENNSYLVANIA Railroad company, had
assured them Of his approval, and pos
| sihlv of his active assistance, in plac-
! ing the $4,000 900 additional bond Is
sue authorized 10y the stockholders Of
that road al their recent annual meet
ing. The Pennsylvania, as the largest
individual stakeholder in the New Ia
ven. will draw on this fund to subscribe
It's quota of the New Haven preferred
stock issue, the balance being used by
the Pennsylvania. it IS understood, for
the purchase of new equipment. This
$4,000 600 of the Pennsylvania 5 oh.
legations NAV be either taken up OF
underwnttell.b the goyernment.
4 year ago the New Haven PLACED
on the market $4,000, 900 Of one Eeal
; per cent collateral trust notes, an(
figuring in discounts and bankers ant
underwriters commissions, the cost I,
the railroad on the sum realized
amounted to about per cent. \ plaI
was worked out by the directors 70
refunding the note issue by the sale o
S4j 900 600 of : per cent cumulativ
preferred stock The new issue wa
: approved by the legislatures of Massa
y | chusetts and Connecticut on condition
that the new stock must not be sol
under par. Subsequently, on informa
> ton that the New Haven by purehas
+, and redemption, had reduced the tota
/, of notes outstanding to that amount
, the authorized stock issue was cut I
: S44 200, 900 10y the Massachusetts put
bic service commission. The stocl
holders approval for the new 6toc
: issue was obtained, after lively di'
cussion and some opposition, at spt
\ cial meeting held last October.
Since that time the company has II
duced the amount of the issue ou'
. standing by further purchases on tn
q market, totaling upward of $l,000,00
S and by calling for redemption Apr
70, at l0l and interest, $24l, 600 of til
notes. At the time that the preferre
stock plan was laid before the stool
holders it was stated that the large:
stockholders had been approached an
had agreed to take up their share of II
new issue, which was TO be offered
all stockholders at par, in the propo
ton Of one share of preferred to ever
IN 4.5 shares of common held by eac
j stakeholder.
~ The three largest owners of New II
n ven. and virtually the only large stoe
"A holders ora tho pnong,yl,.aui RaiIroe
company, which holds 53,125 share
the Mutual Life Insurance compan
III which owns about 10000 shares, Al
X the American Express company, whi'
" owns about 100000 shares. No 9th