The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-12-24
Three RAILROAD
HEADS INDICTED
Charles S. MelIin, Edison ].
Chamberlin and Alfred w.
Smithers Named.
FACE CRIMINAL CHARGES
Conspiracy to Monopolize and Re-
strain Interstate and Foreign
Commerce Alleged.

New York, Dec. 23.-Charles S. Mellen,
President of the New York, New Haven
and Hartford Railroad, and by virtue of
that office overload of all of New Eng
lands transportation facilities, was in
dicted to-day by the Federal Grand Jury
under the criminal section Of the Sher-
man antitrust law. Tomorrow he will
face Judge Hough in the criminal
branch of the United States District
Court to plead to the Indictment.
Indictments were also returned against
Edison ]. Chanberlin, President of the
Grand Trunk Railroad, and Alfred w.
Smithers, of London, chairman of the
Grand Trunks board of directors.
All three defendants are charged with
conspiring to monopolize and restrain in
terstate and foreign commerce. The in
dictment is not based on the proposed
new traffic and trackage agreement be-
tween the New Haven and Grand Trunk
copy of which was turned over to
Attorney General Wickersham by Pres
ident Mellen with the intimation that
in that document was contained the sole
ground upon which the government
thought it could proceed against the two
roads under the drastic Sherman law.
Instead, it is based upon secret docu-
mentary evidence obtained from the Of
fee files of both corporations by repre-
sentatives of the Department of Justice
These documents show that as long ago
as last August the chief executive heads
nf the two roads had begun to conspire
to bring about a hard and fast-work-
ing arrangement whereby the Canadian
corporation would completely withdraw
from New England and leave the Mellen-
Morgan mon opOly in absolute enjoyment
Of that rich field.
Give No Bonds.
As soon as the presentments were sub
mitted to Judge Hough the grand Jury
was excused until January :, when it
will resume the investigation.
Neither President Mellen nor President
Chamberlin, the former being in New
Haven and the latter in this city, would
make any comment upon the grand
Iury's action when news of it was con-
veyed to them by reporters.
On the assurancea of the lawyers that
their 'disting,Ii.Ied clients would appear
At the Das Of the court whenever their
ort sence should be demanded, Judge
Hough waived both the issuing of ar
rest warrants and the fixing Of bail, with
Instructions that they present themselves
before him Tomorrow. Nothing was said
by either lawyer as to the appearance Of
AVA t1Al4lLAtfS - hui NONlO II De dSCeTIdlu-
cad whether formal efforts have yet been
initiated to bring the chairman of the
Grand Trunk board here from England
TO plead to the presentment.
No such high ranking or powerful rail-
road officials have ever before been call
ed upon to face a criminal charge for
violating the Sherman antitrust law.
The penalty. II their guilt is established
before trial jury or II they plead guilty,
thus avoiding trial. is a maximum fine
of 5000 or one year imprisonment, or
both fine and Imprisonment.
Both President Mellen and President
Chamberlin had requested to be per-
mitted to appear as witnesses before the
grand jury, each offering to waive the
statutory immunity. but neither was al
lowed to do this because of the apprehen-
sion on the part of the government
that they might automati-
cally be given immunity by the court in
the final proceedings.