New Britain herald., 1920-10-11
Company Has $292,27S,OO0
 Debt and Some Advocate
 Stringent Economy to In- sure Dividends.
OTHERS OPPOSED
 TO GIVING PASSES

New Haven, Oct. 11.-Stockholders Of the New York. New Haven x Hart ford Railroad company met here this afternoon in special meeting to act upon three financial propositions:
 First, an issue of bonds for fund ing or refunding of indebtedness and the securing of the same by mort gage; second. an issue of equipment notes or debentures, and third, in the matter of extending the term of the loan to be obtained from the United States from five to 15 years.
 Directors Advise Approval.
 The directors had recommended ap- proval of these propositions and President E.. J. Pearson, in a letter, had explained the conditions which have made necessary action by the stockholders. In the matter of a. mortgage President Pearson pointed out that the road has never had a general mortgage upon its property, but it is now purposed to have a suit able mortgage to protect all bonds, notes and other evidences of indebted ness previously issued. The amount of the proposed mortgage would cover $66, 100000 of indebtedness as well as the bonds to secure such amounts as the government will loan the company under the vote of the annual meeting last April. The exact amount of tho bond issue is not fixed, but a maxi mum will be set. The directors opin- ion was that the mortgage is good method in which to ref1oat the float ing debt for a period up to 10 years. Largely Attended Meeting.
 The meeting was largely attended by stockholders President Pearson at the outset made general statement concerning the roads affairs and the object of the mortgage. He then was followed by Nice-President Buckland. who gave an analysis of the financial condition. The present indebtedness is S292, 27S,000, which is an increase of s23,325,o00 over that which the present management took over in 1913. MT. Buckland stated that the roads business is growing and it is a big problem to keep up development with the demand made upon the prop erty.
 MT. Pearson said that in order to' fund the company's' indebtedness to the United States government in cured during the period of govern ment control, the director-general re- quires bond issue to be secured by a first and refunding mortgage. A suit able mortgage has been prepared and will secure on a parity all evidences of indebtedness. The president outlined the nature of the mortgage, and the government is expected to accept a note of s65,00o, 900 due it by the com- pany to ruin for 10 years to be secured by $S0,000,000 par value in bonds.
 MT. Pearson also explained expen- ditures for equipment since spring, which have been altered somewhat than forecast at the annual meeting owing to conditions.
 Queries Mir. BuckIand.
 After MT Buckland had gone into the finances of the company he was questioned at length by Hagop Bogig- ian of Boston. The answers were in some detail and then Mir. Bogigian acked about the Rhode Island trolleys. MT. Buckland said they cost S34.OoO.- 900 and were sold for S2,2OO, although the road has sA note of S4OO0o0O on which something may be realized. MT. Bogigian asked if the Connecticut trolleys would Joe disposed Of the same way, and Mr. BuckIand said he hoped not, but at this time the future of that subsidiary property could not be forecast
 MT. Bogigian asked about salarfes paid to officers, and whether the management was practicing economy. He said that rich people were turn ing their garments inside out in order to get more wear out of them and it was to be hoped the railroad man. agement was trying to save every cent possible.
 Want More Economy.
 A. Maxcy Hitler, of New Haven, wanted. to offer resolution provid- ing for a comnittee--two directors and three stockholders-to investigate the total receipts and expenses of the company in an effort to recommend to the stock holders and officers some measure of retrenchment that will enable the company to pay a divi- dend. President Pearson said the matter could not rightly come up at ought to be considered in some form as a suggestion.
 After some discussion the matter was dropped and Morris Spier of this city. discussed various matters lead ing up to questions about employees riding on passes on the property while on pleasure trips. He said that it was not right for employees to ride themselves and with their families at the expense of the stockholders while the latter were not receiving any re- turns on their investment President Pearson said that this was an ac- cepted practice by all roads. Mir. Spier said hc thought the time was here when employees only on business should ride free.
 Fear Canadian Enterprise
 MT B1gigian when 2 motion was