Evening star., 1940-04-12
Plan for New Haven
Cuts Fixed Charges,
Capital Sharply
I.C. c. Proposal Makes
No Provision for
Stockholders
BY the Associated Press.

BY the Associated Press.
The Interstate Commerce Com
mission issued plan Of reorganiza-
ton today for the New York. New
Haven g. Hartford Railroad Co.
which reduces capitalization from
$464 1888 ,806 to $685., 900, 900 and an
nual fixed charges and guarantees
from $l9 9.531 1923 to $6.232.3 .33l.
The I. c. c. made no provision for
the participation of holders Of COM
mon and preferred stock in the re-
organization, finding that their
equity was of no value.
The plan calls for inclusion of the
Providence, Warren & Bristol, the
Hartford g. Connecticut Western
and the Boston g. Providence Rail-
roads in the reorganized New Haven
system.
Old Colony Ignored.
In view of the unfavorable earning
position of the Old Colony Railroad,
the I. C. c. made no provision for
its reorganization at this time.
The Old Colony had submitted a
reorganization proposal calling for
the transfer of its so-called Western
and Cape group properties to the
New Haven, and abandonment OF
operations, both freight and passen-
ger services, on it's so-called Boston
group of properties by January /,
1941.
Today's plan provides total fixed
interest debt of s137,059, ,266 for the
reorganization New Haven system.
This would include $12,872,00O of
equipment trusts, S22 2,422,O 900 of un-
derlying bonds. $12,834905 of COL
lateral trust notes and S88 ,930, ,36l of
fixed interest 4 per cent bonds.
Additional capitalization would
include $88,7S6,567 of Az per cent
income bonds, s7O,525, ,06l of per
cent preferred stock, and $68, SIS, ,160
of common stock.
Equipment Issues Left.
Present equipment obligations of
the New Haven would remain undis-
turbed. while the New York & New
Haven Railroad Co-Boston Termi-
nal first mortgage bonds, and the
Dutchess County Railroad first
mortgage bonds would be paid off
in cash.
The New York, Providence g.
Boston Railroad general mortgage
bonds, Naugatuck Railroad first
mortgage bonds, the Harlem River
& Port Chester Railroad first mort
gage bonds, and the Providence
Terminal first mortgage bonds also
would remain undisturbed.
The following treatment is pro-
vided for other holders of outstand-
ing securities:
Housatonic Railroad bonds, 100
per cent in fixed interest bonds;
New England Railroad bonds, IS per
cent in fixed interest bonds and Is
per cent in income bonds; Danbury
& NorWalk bonds, 20 per cent in
fixed interest bonds, 40 per cent in
income bonds and 40 per cent in
preferred stock; Boston & New York
Airline bonds, so per cent in income
bonds and so per cent in preferred
stock; New Haven & Northampton
bonds, so per cent in fixed interest
bonds, Is per cent in income bonds
and 25 per cent in preferred stock;
Central New England bonds, 100 per
cent in fixed interest bonds; bonds
secured by first and refunding mort
gage, 20 per cent in fixed interest
bonds, 40 per cent in income bonds
and 40 per cent in preferred stock:
15-year secured gold bonds, 1885 per
cent in fixed interest bonds and 54.65
per cent in income bonds.
Secured notes held by the Recon-
struction Finance Corp. and the
Railroad Credit Corp. would be ex-
changed for new collateral trust
notes for the full amount of the
remaining balances.