The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1909-06-26
GOVERNMENT new
HAVEN SUIT IS
DISMISSED
For Alleged Violation of Anti
Trust Law
ATTY GENERAL S STATEMENT
Act of Massachusetts, Legislature Au-
thorizes Consolidation of New
Haven and Boston & Maine

Washington, June 26.-The Attor-
new General has directed the dismis-
sal of the Governments suit against
the New York, New Haven & Hart
ford and the Boston & Maine Rail-
roads, and others, for violating the
antitrust law. The Massachusetts
Legislature had expressly authorized
the consolidation of those roads.
The Attorney General issued the
following statement:
THE Attorney General has received
certified copy of the act passed by
the Legislature of Massachusetts, and
approved last Friday by the Governor
of that State, creating the Boston
Railroad Holding Company. ms act
authorizes the new corporation Great
ed under il to acquire and hold all or
any part of the stock and bonds OF
the Boston and Maine Railroad Com
pany: and further authorizes any
railroad corporation heretofore incor-
porated under the las of Massachus-
etts to acquire and mold the stock
and bonds of the Boston Holding
Company.
THE purpose and effect OF this
statute. as publicly announced, and as
contemplated by it's terms, is to
authorize the consolidation OF the
Boston e. Maine Railroad Company
and the New York. New Haven
Hartford Railroad Company. This Is
to be accomplished, first by the Bos-
ton Holding Company acquiring the
control of the Boston & Maine Rail
road Company, and next, by the New
York, New Haven & Hartford Rail
road Company acquiring control of the
Boston Holding Company
The statute further provides that
the stock of the Boston & Maine TO
be acquired by the holding company
shall not hereafter be sold without ex-
press authority from the Legislature,
and that the stock of the holding COM
pany, if required by the New Haven
road, shall not hereafter be sold with
out express authority Of the Legisla-
ture. Finally it is provided that the
Commonwealth of Massachusetts
may, at any time, by an act of the
Legislature, upon one years notice,
take for its own use by purchase or
otherwise, all the stock and bonds of
the holding company upon certain
terms designed to protect creditors
and secure just compensation, the
whole plan and purpose being to per
nit the consolidation Of the Boston
g. Maine with the New Haven COM
pany, and to provide for their opera
ton hereafter under one Management,
with safeguards to protect the inter
ests of the people of Massachusetts.
I'm view of the fact that the suit OF
the United States now pending
against the New York, New Haven &
Hartford and the Boston & Maine
Railroad Company for a vocation of
the Antitrust act rests almost entire
ly upon claim that these companies
had already consolidated by means OF
stock ownership, and since the COM
munity most directly affected is the
State of Massachusetts, whose law
now expressly authorize such consoli-
dalton, the Attorney General has de-
termined to dismiss the Governments
action.
'In that action the further COM
plant was made that the New Haven
railroad had acquired number OF troll
ley lines in Massachusetts and adjoin-
ing states, and that this was COM
bination in restraint OF interstate COM
merce. Since the governments suit
was determined upon, however, the
supreme judicial court of Massachu-
sets, in a case involving the right OF
the New Haven road to acquire trolley
properties in Massachusetts, has de-
cided that the railroad company has
no such power, and that company mas
been parting with such trolley proper
ties.
Upon this question the attorney
general is convinced that whatever
may have been the merit of the claim
when the suit was begun, there is not
now in this case any such element of
competition in interstate commerce by
reason of sucn ownership of trolley
lines as would justify further pros
ecution of the action