The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-29
CONDITIONS DELAY
NEW HAVEN SALE
Financial and Public State
Prompts Court to Set Time
as July I, 1921.
MONEY STILL PROBLEM
Early Disposal Of Securities
Would Not Produce Salts
factory Result.
STILL PROBLEM

Judge Julius NJ. Mayer caused a |
memorandum to be filed yesterday with
me clerk OF the United States District
Court In which he explained his order
or the day before extending until July
1, 1871, the period during which the
trustees Of New England land and water
transportation lines may dispose OF Sc
curities affected by the dissolution decree
directed against the New Haven Railroad
In October. 1914. When the New Haven
system was ordered dissolved, the trus-
tees appointed for the Eastern Steam
snip Lines, Inc. and a number OF trolley
companies took possession OF the o.
curities OF these lines and held them
subject to the direction of the court.
IN the memorandum explaining the
extension OF time, Judge Mayer said:
In determining how the applica ton
shall be dealt with. II seems to me that
the situation divides itself into what may
be regarded as two fundamental PROPOSE
lions: First. the financial situation. and,
second. what might DO spoken OF as
the public situation.
AT the moment. financial conditions
are undergoing readjustrnent. There 10,
IL 10 hoped. q gradual and orderly ap-
proech to normal conditions. but, in view
OF the large sums Of money lent by the
people at large to the Government and
the various avenues in which money
was Invested in connection with the war
II will unQuestionably take some time
before there are moneys In hand Of Q
sufYiciently liquid character to encourage
Investments In securities Of this kind.
1T is unnecessary to 60 into detail,
but It may be added that each Of these
securities or sets OF securities has It's
own peculiar relationship-questions OF
majority or minority control, questions
Of the local laws affecting the corpora
lions, the securities OF which are held.
ana many similar questions which are
familiar to counsel and the court which
need not be recited at length.
1T II perfectly plain that II these
securities were sold at an carly date the
prospect OF n satisfactory result would
be very slight. The trustees in these
Eases were carefully selected. they are
, men OF integrity and judgment and II.
at any time. they think market condi-
tons are such that the securities may
| properly and justly be sold have no
doubt they will % advise the court and
| make such application as may be appro-
pirate In the circumstances.
THE court Ia concerned as are the
! trustees and their counsel with the ulti-
| mate result to the stockholders. whose
/ rights must be carefully sateguarded so
| far as possible, In view Of the great
| losses to which they undoubtedly will be
subjected even under the most favorable
circumstances. While ths learned coun-
sci for the Government. Frank NJ.
| Swacker, has made some differentiation
| in his recital Of the facts between the
sets of securities think in principle
| upon what / have called the financial
| aspect they stand IN the same position.
Nov. in regard to the public situa-
tion. At the time the decree was made
! II was deemed In accordance with the
| statutory economic policy of the coun-
| try that there was control which
should be, to the extent set forth IN the
| decres, changed or released. That situ-
alton by force Of events which was re-
| garded as an unwise situation has been
very much changed. The Government,
by reason of the exigencies OF war, Is In
| control OF the entire steam railroad stu
alton of the United States. There is no
| such thing as competition at the mo-
ment.
Therefore. there is no darger. II
there ever was such. Of that control al
the moment from every practical stand
point. which this consent decree was
Intended to obviats. The situation ID
entirely different practically from the
situation which was presented In 1914
at the time these railroad DIS were under
so-called private control"
The securities affected are the stock
of the Eastern Steamship Lines. Inc
the New York and stamford Railroad
Company, the Westchester Street Rail
road Company, the Shore Line Railroad
the Connecticut Company. the Rhode
Island Company, Berkshire Street Rail
road Company. the Vermont Company
and the gold notes Of the New Englant
Investment Company.
Morgan J. O'Brien appeared for thu
; New Haven Company, Walter Z. Noye'
and Rathbone Gardner for the trustees
Judge Mayer fixed the compensation .
the trustees at $4,000 a year ana al
lowed the chairman Of each board $3.50
| additional.