Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-12-24
Officials of~Sig Railroad Sys-
TENS CHARGED with Conspir-
acy in Restraint Of Trade
Under Sherman Act,
PENALTY MAY BE FINE
AND IMPRISONMENT
Among 0ftenSeS Alleged is
Agreement to Stop Building
Line to Providence by Grand
Trunk of Canada,
,,s Moru,uu Journal special Leascd Wire,

New y ork, Dee. 23.-~Crarivs =
Mellon. president of the Ma York.
New Haven a Hartford railroad, Ed
son j. Chnmherlin, president OF the
Grand Trunk railroad of Canada, ana
Alfred w Smithers. chairman of the
board of directors of tn Grand Trunk,
were indicted Jointly ~ the federal
grand Jury here today, under the
sherman antitrust law.
Tncv are charged with conspiracy
TO restrain trade In connection with
"a memorandum Of agreement be-
tween the two roads under which II
is alleged the Grand Trunk proposed
to ahandon the extension of it's rail
er with projected steamship line be-
tween Providence ana New York.
The penalty for the crime charged Is
one year In jan, or S5.u0o fine, or
both.
Mr. Mellcn and Mr.. chamherlin,
upon being notified OF the indiet-
mcni, promised the federal authors
ties through their counsel that they
would appear at | o'clock tomorrow
to enter pleas. Mr. Chamhcrlin,
whose homo Is IN Montreal, Is now IN
New York, and Mr. Melen VIII come
from New iaven Mr.. Smithers Is q
British subject and il said to he IN
London Unless he voluntarily sur
renders extradtion proceedings will
lc necessary to bring him within the
inredicton suf the court u ~ po-
lioved ~ the federal authorities, how
ever. that ne VIII sail for this country
as soon as he hears Of the Indictment
"But for the commission OF th'
crime set forth, the Grand Trunk sys'
tenn" the Indictment charges, would
have actively competed with the New
Haven system for interstate and for'
oign traffic between southern New
England cities and the west. Through
their connections, il ls recitcd. hotl
systems reach the same cities IN the
west, both IN the United states and
Canada.
At Il "quiet meeting between Mel
len. Chamberlin and Smithers in New
York, on August 3, 1912, the indlct-
mcnt charges the defendants engaged
in an unlawful combination and con
spracy to prevent the construction
and completion" Of the proposed ex-
tension of the Grand Trunk railroad
system in New England and the oper-
alton of the Grand Trunk steamships
between Providence and New York.
TWO other meetings, 1t is alleged
were held in New York ON Scptembel
90 and october /, 1912, for the pur-
pose of completing the alleged con
spracy Seven. overt acts are sci
forth in the Indictment.
They include the meetings in New
york and the exchange OF two mem
orandas between Mcllcn and Cham
berlin the first Of which provided the
Grand Trunk should sell TO the New
Haven system all its interest in the
Central Vermont and It's subsidiaries,
which would include All Of the pro-
posed extensions in New England"
The second and final memorandum
which "the defendant. Mellen, initiat-
3D." provided however that the
Grand Trunk was to retain the Cen
tral Vermont and existing controlled
lines and continue its existing bust
ness as at present"
This memorandum arranged for in
tcrchanse of traffic at certain points.
Joint use OF certain lines and set forth
that the New Haven should protect
the Grand Trunk in every way in iis
power in It's present difiercntial rates
from New England points and such
new territory which it Is proposed to
open up to it hereby
Another act alleged was that Cham
berlin wrote to J. T.. Dalrymple vice
president of the Grand Trunk, stating
that "hc aud Mr. Smithers had long
and satisfactory interview with Mt.
Mclen and that It was agreed that Mr..
Dalrymple and Mr. Campbell. vice
president of the New Haven, should
meet quietly at Mr. Mcllens office for
the purpose Of discussing new divisions
on Ncw England business and deter
mining whether We could come To an
agreement with that company. some
thns on tire lines suggested by Mr..
Melicn.
The sixth act charged was that
Nfclien caused 10 be Withdrawn a pc
tifion filed by his direction to the pub
lic service commission of New ilamp-
shire. asking authority To- extend one
3f the New haven lines. paralleling
and competing with portion OF the
Central Vermont" The seventh was
tho alleged abandonment "by the de-
fendant Chambcriin. Of the work Of
rorstruetins the southern New Eng
land line from Palmer. Mas. to
The Grand rruuk. through it's sub
sidiary. the Central Vermont pro-
posed the Indictment rceiies. 4" ope-
rat. a line incorporated as the south
.rn New Fnnland Railroad Company.