New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1918-04-17
Vice President Buckland Says One
Per Cent. May Be Paid
YEAR FINANCIAL SUCCESS
at Annual Session, Dis
cuss Finances and Taking Over OF
System by Federal Government
-LaShar Elected to Board.

New Haven, April 17.-There was
a new angle Of interest for the stock
holders O. the New Haven railroad
who met here in annual session to-
day Financial troubles did not bear
down so hard as at meetings IN re
cent years, the federSl government
having taken over the property and
assumed the $43.00O,000 OF floating
Indebtedness watch had been repre-
sented by short term notes.
The topic of discussion among the
early corners was as to the prOSpeC-
tive return upon the shares Of the
company. The annual report for the
Joint calendar and fiscal years end
ing December 81 was distributed yes
terdav \ change in bylaws made
the last year one of six months
length as books have heretofore
closed June 80. with the annual meet
ing i'll October.
The meeting had before it the prop
ositiOn to issue SIG, ,758,000 IN de-
bentures to refund or authority Tor
raising funds for extensions; better
ments and equipments and to ratlfE
an agreement with the government
regarding compensation for use and
operation of the cOmpany's property.
Eli Whitney of New Haven retires
from the directorate. the ballot
proposed Walter B. Lashar, Of Bridge
port in MI Whitney's place. other
wise the board members names were
UNCHANGED. Attendance was light
when President f. j. Pearson called
TO order. less than so persons being
In the hall.
A brief review of operations OF the
road improvements, economies ard
financing of S43,00O,000 by the gov
to ampIify the annual statement. He
laid stress on increase tonnage hauled
and number of passengers carried, ana
the betterments of bridges, trelSht
terminals and trackage, which, he
said, will soon show results.
Venncr Objects to Issue.
Charles H. Venner of New York
protested against action on the rs
suance OF $16,75S, 900 in debentures to
exchange for Providence Security
companys debentures of equal value,
as a suit brought by certain holders
of debenturc bonds in New York, TO
determine the validity of hnanclal
transactions following the purchase OF
the Rhode Island lines is pending in
the New York court. He had his
written statement spread on the rec
ords.
Vice-President Bucllland explained
the agreement under which the gov
ernmcnt took over operation OF the
road Hp also explained the REIN
anCing Of the floating Indebtedness,
represented by short term notes, py
the government. He said that IN as
certaining what the president should
pay to the company for use OF the
prODcrtv it was necessary to find out
tho net operating revenues. This was
placed at about 81 ID million. Out
of this the company must pay $751;
100000 for rentals of leased lines and
interest on indebtedness, leaving about
S3.O0O.OOO available for dividends, to
which will be added the benefit Of one
: per cent saved in interest in the re-
tinncing of S43,OO0,000 by the gov
eminent The law, however, gives the
president power to compel the putting
back into the road for betterment of
all kinds a portion the whole OF
the not revenues available for divi-
dends.
Forecasts 1 Per Cent. Dividend.
Stockholders asked what the fdivi-
dend would amount to and Mr.. Ruck-
land thought it might be one per cent.
The matter rested with the president
and will be determined by the amount
Of net surplus made available. Whlle
on the face of things, the amount
available might appear to be hlgh as
3 IL per cent. there was no GER
tainty that the dividend would be
that.
Mr.. Buckland, in reply to a question,