The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1912-11-15
MELLEN ADMITS
RAILROAD DEAL
Says Traffic Negotiations Are
Under Way.
MONTREAL OFFICIALS SILENT
Governors and Trade Bodies Of Two
States Aroused and Federal In
vestigation is asked.-Gov.
Foss Threatens Action.

The United States attorney gen.
erals office at Washington has been
asked to investigate the relations of
the Grand Trunk and the New Haven
roads, in connection with the sus-
pension of work on the Canadian
roads extension in New England.
Congressman George O'Shaugnessy
OF Rhode Island is the author Of the
request
This and the admission OF Presi-
dent Charles S. Mellen of the New
Haven of a tentative traffic agree
ment between his system and the
Grand Trunk, and that in connection
with this "it may be that the Grand
Trunk has seen fit TO stop work upon
the Southern New England" was the
principal development Of the day.
Il believe it is within your prov
ince to take immediate steps to pre-
vent the performance Of or execution
OF this agreement, which is plainly in
restraint of interstate commerce, and
a violation of the antitrust act"
Congressman OShaugnessy wrote to
Washington. He cites the case Of the
United States VS.. Union Pacific Rail-
road Co. page 305, volume 4 OF the
Federal antitrust decisions of 1912,
in which the United States District
Court in Utah ruled that "a con-
tract to strangle threatened compe-
tition by preventing the construction
of an Immediately projected line of
railway, which, If constructed, would
naturally and substantially compete
with an existing line for interstate
traffic, is in restraint of interstate
commerce and in violation Of the
antitrust act"
The traffic alliance between the
New Haven system and the Grand
Trunk, which the latter has decided
to make, after getting charters to
build from Massachusetts and from
Rhode Island. has come into full view.
1t explains fully the stopping OF
work on the Grand Trunk in Southern
New England. The situation is told
well and compactly by Charles S.
Mellen head of the New Haven
system, who modestly tells the story
of his final success in the contest
started by his great rival to the
North. the late Charles NJ. Hays, head
of the Grand Trunk.
President Mellen of the New Haven
system authorizes the statement that
negotiations have been in progress for
some time.
Despite the New Haven statement
however, officials of the Grand Trunk
still maintain that the cessation OF
work on the Southern New England
is only temporary and is due TO the
stringency Of the European money
market. Both Mr.. Chamberlin and
L. H. Fitzhugh, president of the Cen
trail Vermont railway, positively re-
fused, though, TO discuss the situa-
ton.
Mr.. Mellen states further that abso-
1utely no payment or money consider
alton has passed in any form whatso-
ever In reimbursement of the Grand
Trunk for it's expenditures upon the
Southern New England extension.
Investigations, seeking to bring out
all the facts behind the sudden order
for the stopping OF work on the
Southern New England have started
in Boston and in Rhode Island. The
first steps in Boston were taken by
the Chamber OF Commerce.
The general impression in railway
circles here outside the chiefs of the
Grand Trunk, is that the work has
been abandoned as the outcome OF an
agreement whereby the Grand Trunk
will quit the New England field and
an Atlantic port entry at Boston in
exchange for an entry into New York
and other concessions in regard to
running rights and traffic exchange.