New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-24
Agreemen, Initialled by New
Haven's Head, Shows Original
Plan to Stihe Competition
Was by Purchase of Gen.
trail Vermont Lines.
WILL CONTINUE INQUIRY
Investigation Ordered by Attorney
General Broadens to Include
Sweeping Search Into Alleged
Traffic Monopoly of New
Haven in New England.

1AGNOA An 1'OU biSidhu'
Charles s. Mellen, president Of the
New York, New Haven & Hartford
Railroad, Alfred w. Smithers. char
man Of the board of directors of the
Grand Trunk Railway of Canada, and
Edison J. Chamberlin, president of that
road, were indicted i'm this city yester-
day by a federal grand jury, charged
with conspiracy to violate the sherman
antitrust law. The penalty is one
years imprisonment OF a fine of 5000,
or both
The crime was committed, the indict-
ment charged, through an attempt to
bring about a traffic agreement be-
tween the two railroads that would
have removed the last vestige OF COM
petition from the path OF the New
Haven and made absolute its traffic
monopoly Of New England.
The indictments returned yesterday
were considered only first step in the
effort of the administration to break
up the New Haven's monopoly of traf-
fic in New England The grand jury,
which formulated its charges after
three weeks of deliberation and eXami
nation Of witnesses, will resume its
work on January I. and fur her indict-
ments are expected.
1t is known that the scope Of the
grand jury inquiry was broadened dur
ing the second week of the iavestiga
ton far beyond a mere inquiry into the
Grand Trunk-New Haven agreement.
and a sweeping search into the traffic
conditions in New England is expected.
Inquiry Covers New England.
The control Of the Boston & Maine,
traffic arrangements with the Boston
& Albany. the New Haven's control OF
water transportation to New England
and its grip on the trolley systems in
those states are among the matters to
be investigated. according to govern
ment officials.
The indictments found yesterday dis
closed for the first time that the origi-
nal intention of the New Haven was
to buy outright the Central Vermont
Railroad and it's subsidiaries, now con-
trolled by the Grand Trunk.
The memorandum betraying that in
tention was attached to the indictment.
The terms il proposed were discussed.
according TO the charges, at meeting
held in New York on August be
tween Messrs. Mellen, Chamberlin and
Smithers. and. being considered salts
factory Mr.. Chamberlin the next day
wrote TO J. l.. Dalrymple, vice-presi-
dent of the Grand Trunk, TO meet
nuiet,v' I'm Mr.. Mellen's office Benja-
min Campbell. ice-president of the
New Haven, to arrange the details OF
the agreement
Early in September the New Haven
found itself confronted with protests
from various public bodies in the New
England States against its control OF.
all traffic. A further meeting was then
held by the defendants on September
20 the indictment charges and, follow
inc that one on October !, at which
Mr.. Nellen gave to Messrs. Chamberlin
and Smithers a memorandum inltialled
nv him proposing a somewhat differ
mt agreement The principal change
was tha4 the Grand Trunk was Ito re-
ain Central Vermont and existing con-
rolled lines and continue its existing
business as at present" The two
agreements. or memoranda, together
With a third one. appear in another col
INN of The Tribune.
Mellen Pleads To-day.
The news Of the indictment reached
Mr.. Melien at New Haven. He de-
Jared he did not think it proper TO
discuss a matter that was TO be tried
,efore the courts. Mr.. Mellen arranged
brough his counsel, Krauthoff, Harmon
|, Mathewson. to appear before Judge
Tough at | o'clock to-day to plead to
he Indictment
Mr. Chamberlin. who was al the
also declined to say
INVITING about the indictments. Frank
=. Crawford, his counsel, arranged to
,roduce Mr.. Chamberlin in court at
he same time with Mr.. Mellen. The
will ask that bail be fixed
t $4,000 in each case.
The third defendant, Mr.. Smithers, Is
n London. His legal representatives
Informed the government that he would
ONE TO New York as soon as he was
Informed of the Indictment
1t was 12:J5 o'clock when the grand
No Christmas table complete without
ottle OF Anuostura Bitters. Delicious an.