The Detroit times., 1912-12-23
r. r. OFFICIALS FACE
GRIMM Ill INDICTMENTS
tcoatInusa from PaEe onsI


dcfendant Chamberlin caused the
work OF extending the line OF the Cen
trail Vermont from Amer TO Proyi-
dence, II. l., to be abandoned.
The indictment describes in great
detail the two systems of the New
Haven and the Grand Trunk. II points
out that the New Haven and tAe
Grand Trunk were engaged I'm inter
state and foreign commerce between
various cities in New England. Mon
treal, Chicago, Detroit and Milwau-
kee. II points out that the Grand
Trunk controls line of steamers be-
tween New York and New London,
and that then through its control OF
the Central Vermont it's lines extend
into Canada, and that in this section
II was an active competitor OF the
New Haven. 1t Is further pointed out
that the Southern New England or
poration, which was a part of the
Grand Trunk, was given permission
TO extend its lines into Providence.
According TO the indictment IL was
the intention OF the Grand Trunk 10
build this extension TO Providence.
and then to operate a line of steam
ers between that city and New York.
Between May %, 1912, and Nov. II.
1912, IL is claimed, the Grand Trunk
had expended on this extension, and
on the steamships which were TO be
used, $2,000,000, and had agreed 10
spend 100000 additional. II is
stated that at the present time he
: New Haven road carries most OF the
interstate and foreign commerce OF
New England but that II the proposed
Providence extension had been com
pleted that Grand Trunk would have
Immediately become an active COM
petitor throughout New England as
Il is at present for through western
business.
The three defendants, il is alleged,
have been since Aug. 8, 1912, engaged
In an unlawful conspiracy to prevent
the transportation OF interstate and
foreign commerce over the proposed
extension and have been active fac
tors In a conspiracy to restrain BON
passenger ard freight business in New
England.
\ Special Atty.-Gen Jesse Adkins, al
ter the indictments had been report
\ ed, said that the investigation OF the
alleged conspiracy began within two
days after work was stopped by the
Grand Trunk on the proposed eXten-
sion Two special agents were as
4 signed TO investigate the combina-
ton, he said, and at the direct order
OF Atty.-Gen. Wickersham, every pos
sible angle in the case was covered
T.. he grand jury was not discharged
y by Judge Hough. but recessed unti
early in January. Consequently, II
Will be available for additional in
vestigations should they become
necessary.
The memorandum which was agreed
to by both President Mellen and Pres
ident Chamberlain, and which consti-
tuted the chief overt action complain
ed OF, was made public in the after
noon by the special deputy in charge
OF the prosecution. 1t Is as follows:
Grand Trunk too:
"One-Sell all its interest in Cen
trail Vermont railroad and its sub
sidiaries.
'Two-Grant to Rutland and Cen
trail Vermont railroads right to joint
use Of tracks between Rouse's Point
and Montreal, and between Saint John
and Montreal.
"Three-Grant rights TO New Eng
lands joint use OF Grand Trunk termin-
ais in Montreal and joint use or
freight terminals, preferable on a
rental value for such property as is
used In common, with maintenance
and operating costs assessed upon pro-
portionate use or on basis of toll per
ton OF freight handled, or switching
charge per car.
"Four-All the above is to be on an
equitable basis of compensation, pre-
ferably upon cash payment or cash
hoo hf1f IN he
bsis of division OF rates, il being the
intention OF the New England lines 10
put Motreal as a local station upon its
system of lines, and TO compensate
the Grand Trunk in a rental TO be
paid rather to compensate it through
any division OF revenue obtained.
New England lines to:
"One-Agrce upon a satisfactory
tasis for division OF all joint rates,
such division to be based upon Mon
tfeal as the point OF interchange be
tween the two systems of roads.
'Two-Agree upon such mutually !
satisfactory service as will give the
Grand Trunk fr its passenger and
freight business in New England, az
opportunity 10 compete for all bust |
ness at all stations reached by New
England lines, and with no handicap
or discrimination to overcome in COLI
nection with such competition, il be
ing the intention TO place the Grand
Trunk in connection with joint bust |
Iess with the New England lines. |
upon the most favored nation basis.
Third-Agree and assure satisfac- !
torily to Grand Trunk 1t shall not lose |
any tonnage to and from points |
reached by the New England lines !
and to guarantee to the Grand Trunk !
minimum yearly tonnage which |
shall be the equivalent amount to |
that handled by the Grand Trunk IA |
any OF the last five years, which shall |
be inserted in figures In the agree |
ment.
"Fourth-Agree that the existing |
differential rate basis prevailing on
Nbusiness- blythe Grand Trunk into
and out Of New York shall not be !
changed without the consent of the !
Grand Trunk.
"Fifth-Agree that the New Eng
land lines rates by other lines shall
be such as to preserve the Grand
Trunks existing situation in New
England. and that the rates by the
Grand Trunk shall always be such
that at all times It may as satisfac
torily compete for business through
out territory reached by the New