The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-11-20
NEW HAVEN ENTERS DEAL
W|TH.THE GRAND TRUNK
Directorate IndOrseS - Year
Agreement Signed by
Presidents.
GOVERNMENT NAY ACT
New Englanders Ask Mr.. Wick
prSham to Proceed Under
sherman Act.


positively announced here tonight that
twenty-five year traffic agreement
with the Grand Trunk Railway has
been 1ndorsed by the directors of the
New York. New Haven and Hartford
Railroad. signed by President Charles $.
Mellen and submitted to President
Chamberlin Of the Grand Trunk and to
the directors OF that road in London.
Gov. PothIer tonight. when asked
about this announcement. said that IL
the General Assembly would stand be-
hind him at the next session he would
break the monopoly which the New
Haven road has in this State Of trans
portation facilities.
WASHINGTON, Nov. l9,-The impress
sion is growing in Washington that the
Department Of Justice will take some
action under the Sherman antitrust
law to give relief to the New England
cities that are complaining of the dis
continuance by the Grand Trunk Rail-
way Of work on its proposed Palmer
Providence branch.
Members Of the Rhode Islsn Public
Utilities Commission and the Railroad
Commissioners of Massachusetts, had a
long talk with Attorney General Wick
ersham to-day and they came away
convinced that the Department Of JUS
tice will move in the matter II evidence
can be produced Of conspiracy be-
tween the Grand Trunk and the New
York. New Haven and Hartford Rail-
road to restrain competition. IL the De-
partment Of Justice decides to act 1t will
probably ask for q temporary Injunction
restraining the Grand Trunk and the
New Haven road from entering the
traffic agreement which Is supposed TO
be the basis OF the discontinuance of
work on the Grand Trunk line.
As the result Of the visit of the Rhode
Island and Massa chusetts commission
ers to Washington II IL possible that the
money trust committee of the House
may investigate the supposed deal be-
tween the New Haven and Grand Trunk
interests. Ii was learned to-day that a
suggestion that this matter be referred
,fficially to the money trust committee
came from Samuel Untermyer, counsel
for the committee. Mr.. Cntermyer Is
said 20 have wired to certain parties in
Providence suggesting that 1t would be
we'll to refer this matter TO the money
trust committee.
The phase OF the situation which the
money trust committee would investi-
gate would be the report that J. p. Nor
gan. controlling factor in the New Ha-
ven system through his powerful in
fiuence in London banking circles,
brought pressure to bear which COM
PEELED the Grand Trunk Railway to
suspend work on its projected extern
sions in New England and to seek
traffic agreement with the New York.
New Haven and Hartford. The only
ground for this report seems to have
been the random suggestion that came
from an Interstate Commerce Commits
sioner and a few members Of Congress.
1t was pointed out that the Grand Trunk
was obligated to depend in large
measure upon London banking sources
for money to finance its railroad con-
struction.
The railroad commissioners from
Rhode Island and Massachusetts have
not decided as yet whether they will
lay the matter before the money trust
committee Of the House. They are.
however. considering such a course and
will decide before they leave Wash
ington.
While the visiting railroad COM
mlssioners were pleased with their con-
ferences with the. Department of
Justice. It Is apparent that the Attor-
ney-General believes II will be difficult
o frame case under the Sherman
law II such action Is deemed advisable.
The railroad commissioners laid before
the Attorney General the substance
Of the proposed traffic agreement be-
tween the New Haven and the Grand
Trunk Railroad. This traffic agree
ment was shown to the commits
sioners yesterday by Vice. President
Chamberlain OF the Grand Trunk. The
agreement contains no stipula ton that
construction on the Grand Trunk eX-
tensions is to be abandoned and no
provision for the reimbursement of
that road for the S2,000.000 or more
that has already been expended on the
proposed new line into Providence. It
has been the contention Of Mr.. Cham
berlain and other officials OF the Grand
Trunk that there was no connection
between the extension Of work on the
new lines and the negotiation for q
traffic agreement with the New Haven.
The railroad commissioners in pro-
testing to Attorney-General Wicker
sham contended, however, that an
agreement in regard to the discon-
tinuance Of work on the Grand Trunk
extension at least exists inferentialiy
and can be made the basis Of action by
the United States Government.
The new traffic agreement as out
lined by the commissioners provides
for the continuance for twenty-five
years Of the agreement now in force
for a one year term allowing an ex-
change OF traffic by the Grand Trunk,
the Central Railroad Of Vermont and
the Boston and Maine over the lines
between Brattleboro and Windsor and
White River Junction. The agree
ment further provides for a joint traf-
fic arranuement hetween tha Grand