The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-25
RAILROADS NOT
PROSFCUTEDFOR
MERGING LINES
Policy of AffOrding Relief Is
Shown by Action in New
England Case
Sugar Trust, However, Will
Face Indictments Under
Antitrust Law
Especial Dispatch 10 The Call


WASHINGTON. June 24.-Two impor-
tant announcements were made at the
department of justice this afternoon.
one was that the action begun against
the New York. New Haven and Hart
ford and the Boston and Maine rail-
road companies for violation of the
sherman antitrust law would be dis
missed. The other was that the fed
eraI grand jury in New York would re-
turn indictments in a day or two
against the officials Of the sugar trust
charging them with violating the anti
trust act The first announcement was
official and the second unofficial.
The suit against the two New Eng
land railroads mentioned was begun
late in the administration of President
Roosevelt by Attorney General Bona
parte In that action it was complained
to the government that the New York,
New Haven and Hartford company had
taken over the Boston and Maine and
also had acquired a number of trolley
lines in Massachusetts and adjoining
states and that thus a combination had
been effected which was in @-5traint of
trade
REASONS FOR DISMISSAL
In q statement issued by Attorney
General Wickersham il is claimed that
the reason for dismissing the suit was
tpofold. First. that the legislature of
Msssachuets had just passed law
permitting the merger of two railroad
companies; and. second, that under a
recent decision Of the supreme court
OF Massuchetts the New Haven road
had no legal right to acquire trolley
properties and that in obedience TO that
decision the trolley lines were being
disposed Of as fast as possible.
The act of the legislature authorizes
The consolidation of the two railroads,
first, by the incorporation OF the Bos-
ton holding company. which shall
acquire the control of the Boston and
Maine road, and next. by the New Ha-
ven road absorbing the holding COM
pany. Another provision Of the statute
reflects the growing soeialistic tenden-
cies Of the people Of Massa chusetts, for
il prohibits the sale in the future OF
both the Boston and Maine and the
holding eompany's stock and bonds
without express authority of the legis-
lsture and provides that the state al
any time may by act OF the legislature
upon one years notice control by pur-
chase or otherwise the railroad sys-
TEN mentioned.
NEW POLICIES on MERGERS
The dismissal OF the suit is of far
greater significance than IL appears in
the statement Wickersham gave to the
press. 1t indicates that it viii be the
policy Of the department OF justice I'M
der this administratio not 10 invoke
the Sherman antitrust law against
mergers Of railroad lines. This policy
has already been fOreshadowed by pub
lie utterances of officials of the depart
ment, and only two months ago, Wade
II. Ellis, the assistant to the attor-
ney general in charge of the trust
prosecutions. was specific on the sub
ject in an address to the bar associa-
ton Of New York.
In messages to congress President
Roosevelt recommended a modification
Of the antitrust law which would tend
10 relieve the railroads from the re-
strictions it places upon them.
President Taft in his inaugural ad-
dress said that relief of the railroads
from certain restrictions Of the anti
trust law have been urged by my pre-
deeessor and viii be urged by me-