New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1927-08-17
new HAVEN ROAD
Will MEET DEBTS
Bagopian and Stockholders in
Frequent Clashes

were present at tne HOTEL Garde
today when the special meeting
called to vote on plan to finance
and refund the Indebtedness of the
road to the United States govern
ment was called to order by Presi-
dent f. J. Pearson.
Secretary \. E. Clark read the
call for the meeting, which was
made July Is.
preferred stock at 800 par value
each will net the road sufficient to
meet government notes of some
s4S,00o,00O which are due October
a.
f. j. Buckland. vice president.
explained the six ballots on which
the meeting voted.
The first ballot provided that the
| company increase its stock by IS
suing 490,367 shares of preferred
stock to the par value of 500 each,
the holders to receive dividends not
/ to exceed Z per cent per annum.
This preferred stock will be redeem
able at lis under conditions which
| were explained in the ballot at
length.
The second ballot had to do with
the offering of the preferred stock.
The third ballot provided for issu-
ance of 490,367 shares of preferred
stock at 500 a share.
The fourth ballot covered an I'M
| derwriting agreement with j. P.
| Morgan and company. The fifth
ballot had to do with certification
of the new issue to the interstate
| commerce commission for its ap-
prevail. The sixth ballot had to do
with authorizing the directors to at
test and deliver the new stock to
purchasers.
Adjourns to Aug. 81
The seventh ballot provided for
adjournment of the meeting until
August 81. Throughout the explana-
ton of the ballots by Mr.. auckland,
Hagop Bogigian Of Washington.
d. c., who had opposed the new is
sue. interrupted to ask questions.
most Of which were ignored by Mr..
auckland, who asked that all ques-
tons be postponed until he had
concluded his explanations.
After Mr.. Buckland had COM
pleted his explanation and moved
that the ballots be taken up for ac-
ton, Mr.. Bogigan began his attack
on the officials program.
What is the hurry for this is
sue?" he asked Mr.. auckland.
1.-The government will sell the Sc
curity as it has an offer of 100000
90 foOr two notes the latter replied.
Bogigian Differs
II don't believe Mr.. Mellon is as
tricky as that" Mr.. Bogigian said
Il have statement that such will
occur" was the reply.
Starting to stray from the sub
ject. Mr.. Bogigian was interrupted
by stakeholder McMasters of Eliza
beth. n. j., who vigorously opposed
Mr.. Bogigian's statements.
Il object to his speaking in be-
half of stockholders" Mr.. McMas
ters said.
He praised Mr.. auckland for his
preparation of the statements he
gave the stockholders.
Il come here year after year and
listen to Mr.. Bogigian. He is al
ways off the subject and against the
progress of the country"
D. A. Blakeslee of New Haven
started to criticize Not the officials"
but himself for not trying to get
onto the board of directors so that
he could influence" the placing of
stock.
He was shouted down but Ben
jamin Silvethaw of New Haven chal-
lenged the right of thA Stockhold
ers to impose preferred stock on the
common stockholders. He was
brushed aside in a wild scramble
for the floor.
When order was restored stock
holder Gardner admitted that the
board of directors had sufficient
proxies to carry through any
proposition but said he hoped the
meeting would continue along prac-
teal lines.
Mr.. Spear wanted to know II It
were true that the secretary of the
treasury had said he would sell the
roads notes before they We're due in
1880. Assured by Mr.. auckland that
he had letter to that effect Mr..
Spear said he would doubt such a
ctter until he had seen it.
Mr. auckland declared that he
did not have the letter here but if
his honesty was doubted he would
see that the stockholders had it. He
explained that a 100000 note had
been sold by the government without
notice.
Mr.. auckland in the course of his
review of events leading up to pre-
| ferred stock issue said: "Stockhold-
ers had asked why preferred stock
issue should now be recommended
requiring dividends ahead of the
common stock at rate of one per
cents more than the interest being
paid on the company's debt to the
government-why there should be
this preference over the common
stock.
The shortest and most direct an
swer to questions is that seven per
cent dividend, payable if earned, Is
much less preference than the
existing per cent notes of the COM.
pany secured by its first and refund
ing mortgage bonds pledged at IS;
that through the preferred stock is
sue this preference is not only light
ened but the stockholders are given
an opportunity to make an invest
ment in a stock whose dividend re-
quirements have during the last two
years been earned three and quar-
ter times over.
10 Pay on Debt
The proceeds of the stock issue
will all be devoted to paying off the
company's indebtedness to the gov
eminent bearing interest at the rate
of six per cent, reduce its mortgage