The Washington times., 1912-02-24
ASSAILS RAILROADS
FOR VIOLATION OF
ANTITRUST Law
Criminal Prosecution of Of
fcials Urged by Inter
myer Before Senators.

"Flagrant and shameless violation Of
the anti-trus law, for which the Of
ficiaIs of the two roads ought to be
prosecuted criminally," was the lam
,guage used today by Samuel Inter
meyer, of New York, the prominent cor
poration lawyer. in attacking before the
Senate Interstate Commerce Committee
the efforts of the New York central and
the New Haven roads to apportion
among themselves the control of a large
share of the region in New York and in
New England.
Mr.. Untermeyer urged on the commit
tee not only that the officials of these
two railroads ought to be subjected to
criminal prosecutions for transactions
which lie characterized as shameful,
but that by legislation such things as
he charges them with doing should be
made impossible.
Railroad Situation.
When 1t was given out that the COM
mittee was to hear Mr.. Utermyer today
it was generally expected he would talk
on the money trust. But he disap-
pointed the spectators in the committee
room by not doing so.
Instead, he discussed phases of the
antitrust law question, charged the law
was being openly and frequently Vio-
lated and gave specific instances. lie
dwelt on the railroad situation In New
York and New England at length. Wha'
he objected to especially was the at
tempt of the New Haven to acquire the
Rutland road and the requirement OF
the New Ontario and western Dy the
! mittee that the minority stockholdert
of the Rutland were being UNJUST!
dealt-wlth, that he represented these
stockholders in litigation, and that ioI
that reason he was especially 1amliai
with certain phases or trust Ia" Nloi"
| tion by railroads.
Suggests Remedies.
Mr.. Untermyer was asked by Chair
man Clapp to present suggestions as u
| the best methods of Strengthening IN
| sherman antitrust law.
First, Mr.. Untermyer coptended tina
the remedies now provided by the anti
trust law shall be made available to al
the stockholders of corporations or othe
| persons aggrieved. That includes tn
| remedies which are now available onl
| for the Government. He suggested
| in order to avoid unfair advantage be
| ing taken of the proposed law by an
| stockholders, that the Government b
made a party to every such suit.
| Mr.. Untermyer then proceeded t
declare the Sherman law was beini
| openly and hagrantlY violated b!
some of the great railroad corpora
tions and he referred in this connec
tion to the attempt of the New Yorl
Central and the New Haven to pu
| through "a scheme for division y
| territory and the elimination of eX
listing competition between them"
| As he elucidated the scheme befoT
the committee, the New Haven in
tends to get control OF the Rutlan
which will eliminate competition t
that extent in New England and tn
New York Central to get the New
| York. Ontario and Western thus elm
mating the competition OF the New
| Haven with the New York Centra,
He charged the two roads had enter
ed into a partnership with respect I
the profits of the Boston and Al
hany, thus eliminating to that eXtcn
competition with the FitChburg roa
which is owned bV the New Have
through the Boston and Maine.
After dealing with this question, Nj
Untermyer took up monopoly throug
be enacted to prevent COmbinatio
among the owners of competing patent
and that this legislation should pro
vide a summary method by authon7
ing the Commissioner Of Patents to re
woke any patent of any owner VIII
combines with the holder of a con
peting patent or buys up competin
patent.
He illustrated this by the preser
state of the picture business wherei
a single concern has. centralized I'll
business formerly done by large nun
Der of separate concerns.