The Bridgeport times and evening farmer., 1920-09-04
$24,O0O, ,OOO STOCK
 SOLD FOR $2,2OO
(Continued from Page one)

one-sixth of it's original value.
 Accidents increased on the railroad lines. Misfortunes piled up. The Connecticut trolley properties were put into the Connecticut company, which is capitalized at $4o,000,000, the stock being entirely owned by the New Haven.
 The conditions finally attracted the attention of the Federal authorities, who began criminal and civil prose cutions against some of the officers and directors of the board, including c. s. Mellen, the active agent of the directing forces of the New Haven in procuring it's ruin.
 Criminal proceedings did not pros per, but as the result of civil pro- ceedings the trolley lines, and some of the railroad lines which had been ab- sorbed, were separated, and it was or dered that the trolley lines should be sold.
 one group of trustees, and the Con- necticut Company to another.
 Last year the earnings of the Con- necticut Company were scarcely more than enough to pay the rental on its leased lines. It is held by the trustees almost solely to secure the sale of the property, the original order being that any stock remaining unsold at cer- tain date, should be sold at auction to the highest bidder. If this sale should be consummat- ed, upon the same ratio as the sale of the Rhode Island property, the price would be very small. The Connecticut properties were acquired on the basis of more than hundred millions of valuation, and this inn possible load, weighting them like a mill stone, has brought them to bankruptcy, as the officers of the company freely say, in their com munications to the people of Bridge port.
 Some of the suburban lines in Rhode Island will be junked, but the main lines will be operated by the new organization, and it is expected that a liberal profit can be made, on the actual physical value of the property.
 The stock, amounting to 96,855 shares was bid in by Harry Parsons Cross of this city, who said he was attorney for other interests, which he refused to name.
 All the ''New Haven's'' h>rdings in the Seaview and Providence & Dan- ielson railways were also sold. Seven thousand shares of common stock ot
 
 Cross for $200. Nathaniel T. Bacon, president of the Narra agansett Pier railroad, bought the s6o0,000 gold bonds of the same property for $1,400 The Danielson road stock was sold to F. Sherman at private sale for $100,- 900.
 F. The sales mark the practical disap- pearance of the "New Haven's'' for mer extensive trolley interests in Rhode Island. While ex-President Charles S. Mellen was acquiring con- trol of the trolley situation in south ern New England. the Rhode Island Company was formed to operate his lines in this state. It held but few physical assets and was largely capi- talized on the ''New Havens' faith in the future. Beside the $24,000,000 which the railroad paid for stock in the company. it loaned the trolley concern $4.00O,O00. For it's entire equity it now receives $2.2O0. Under a pending reorganization of th> leased properties, the Rhode Is- land Company will disappear and many of the suburban trolley lines built by the "New Haven will proba- ply be junked.
 Inquiry at the offices of the New Haven Railroad this morning bearing on the sale of the Rhode Island troll icy lines yesterday e1icited the fact that all officers of the. corporation conversant with the facts, B. J. Pear son, president of the road; B. G. Buck1and, vice president; and, A. s. May, treasurer, were away on vaca- tions.