New-York tribune., 1909-06-25
DROPS NEW HAVEN SUIT
MR. WICKERSHAM'S ORDER
No Further Opposition to Merger
7cith Boston s Naine.

washington June 24-Attorney General
wickershan to-day directed that the govern
ynents suit against the New York New Haven
& Hartford and Boston & Maine railroads and
others for violating the antitrust law be dis
missed. The Massachusetts Legislature has ex-
pressly authorized the consolidation of those
roads. The following statement was issued at
the Department of Justice:
The Attorney General received to-day Ger
tined 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. This act authof-
ICES the corporation created under 1t 20
acquire and hold all any part of the STOCK
and bonds of the Boston Maine Railroad Com
panV; and further authorizes any railroad cor
poration heretofore incorporated under the laws
Of Massachusetts to acquire and hold the stock
and bonds Of the Boston Holding Company
The purpose and effect of this statute, as
publicly announced and contemplated by its
terms. is to authorize the consolidation OF the
Boston & Maine Railroad Company and the
New York, New Haven & Hartford Railroad
Company. This is to be accomplished, first. by
the Boston Holding Company acquiring the con-
troll Of the Boston & Maine Railroad Company
and. next by the New York New Haven <
Hartford Railroad Company acquiring control
Of the Boston Holding Company.
The statute referred to further provides that the
stock Of the Boston & Maine to be acquired by
the holding company shall not hereafter be sold
without express authority from the Legislature,
and that the stock of the holding company, II
acquired by the New Haven road. shall not here
after he sold without express authority Of the
Legislature. 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 stocks and bonds or the
holding company upon certain terms designed 10
protect creditors and secure just compensation,
the whole plan and purpose being to permit the
consOlida ton Of the Boston & Maine with the
New Haven company. and to provide for their
operation hereafter under one anagement, with
safeguards 70 protect the interests of the people
Of Massa Chusetts
In view Of the fact that the suit of the United
States now pending against the New York New
Haven 6 Hartford and the Boston & Maine
Railroad companies for a violation Of the anti
trust rests almost entirely 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
Ma ssa chusetts. whose laws expressly au-
thorize such consolidation the Attorney General
has determined TO dismiss the governments
action.
In that action the further complaint was made
that the New Haven Railroad had acquired a
number Of trolley lines in Massa Chusetts and
adjoining states and that this a CO-nbina-
tion in restrain Of interstate commerce. Since
the governments suit determined upon.
however, the supreme Judicial Court OF Massa-
chusetts. in a involving the right OF the
New Haven road to acquire trolley properties
in Massachusetts, has decided that the railroad
company has such power, and that company
has been parting with such :. Clley properties.
Upon this question the Attorney General Is con
WINGED that. whatever may have been the merit
Of the claim when the suit was begun. there IS
in this any such element Of com
petition in interstate commerce by reason of
such ownership Of trolley lines would Justify
a further prosecution Of the action.