New-York tribune., 1907-08-25
NEW'HAVEN ROAD WARY
4scaiting Result of Governments
Merger Investigation.

New Haven Aug 24.-In railroad circles here the
report that the government is making investiga-
ton OF the alleged illegality Of the purposed ner-
ger OF the New York. New Haven & Hartford
Railroad and the Boston & Maine is not regarded
as serious unless it be followed by steps to prevent
the merger.
In that case the result might be grave not only
to the New Haven company. but 20 other great
railroad interests of the country which have ao-
sorbed competitive roads. In the mean time the
rolicy Of the New Haven corporation Is 10 await
developments and the next meeting of the Massa-
ch1,setts Legislature, when the merger viii, PROB
ably after election. figure less actively in Massa-
chusetts politics
4 high railroad authority. referring TO the gen
e.ral subject to-day said it had threefod aspect
As regards the element Of competition. bringing the
merger under the antitrust law. it applies practi-
cally only Fitchburg and the Fitchourg line OF
The Boston & Maine remote and comparatively
,lnirnportant competitor with the New Haven on
through Western traffic. The Boston & Maine and
the New Haven occupy essentially separate and
non-competitive territories. exchanging with each
other a great volume of traffic For all practical
purposes the purposed merger is one of non-com-
peting systems
The second aspect of the situation is that in the
Northern Securities case New Jersey corpora
ton acting a holding company. carried through
a kind of railroad non-competitve trust In direct
violation of the law of Minnesota. In the present
case there IS the simple and direct absorption Of
one railroad system by another. with presurnptlVe
assent of stockholders, and. as the New Haven
has asserted without any violation OF state law.
Even I'm the case Of the acquired Massachusetts
troieys the New Haven corporation has contended
il was within the law Connecticut corporation.
A third phase of the is the direct bearing
Of the merger upon the question Of public con-
z,enieuce and necessity The New Haven COM
many its officers assert. WILL by the merger, be
able 10 reduce rates. not raise them. and improve
fofar and
carving through also large scheme of railroad
and terminal improvements. The recent reducton
of fares to two cents a mile the New Haven
=vsten which forces the Boston S Maine TO adopt
largely the same policy, is pointed out as an illus
tration OF the policy of the New Haven company
and of the public service benefit of consolidation.
The foregoing may be taken representing in
substance the railroad view here OF the suggested
interference by the government in the New
Haven and Boston & Maine merger II such In
reference should come it seems possible it might
apply 90 such recent mergers as the Highland
division with the New Haven, the control by the
latter OF the Central New England and to mergers
ratified by the in which the merged property
lies.
President MeIen, who is at his summer home
IN StockbIidge Mass confirmed the attitude OF his
company as simply awaiting any results Of the gov
ern1nent investigation which. he said, would dis
close nothing of an Illegal character on the part
of the New York, New Haven & Hartford Rail
road regarding the merger of railroad, trolley or
steamboat transportation lines. He added that in
q recent interview with Attorney Asa i. French,
United States District Attorney, every facility on
the part of the New Haven corporation was
rendered for furthering any federal investigation
of the acts OF the company.
In regard to the trolleys owned or controlled py
tbe New Haven corporation, he stated that none
=. .a,, anna under the antitrust interstate
Jurisdiction The Worcester & Eastern system,
the only property owned by the company that
.-ossee a state lint. had competitor except the
Norwich & Worcester division OF the New Haven
ooroYanv itself and hence did not come under
.r rro11sions of the antitrust with reference
70 the suppression Of competition