The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-11-29
Attorney General Reported to
Be Planning to File a
Suit Soon
BOSTON & MAINE
FROM THE NEW HAVEN
And the Fitchburg from the Boston &
Maine Will be the Aim of the Suit
Boston & Maine.

Possibilities of a Receivership for
Boston & Maine
BOSTON. NOV. 29-The Globe re
ports that within a few days probably
within q week, the att Orney general -
the United States Will file suit
against the New York, New Haven &
Hartford railroad under the Sherman
antitrust law to compel that corpora
tion to dispose Of IFS interest in the \
Boston & Maine. In the same or III !
another action, Attorney General Me- 4
Reynolds viii seek to secure the an
nulment Of the lease OF the Fitchburg 4
railroad to the Boston & Maine.
| The evidence which the special in
vestigators for the department of JUS
/ tice procured has convinced Attorney
General McRevnolds that the New
! Haven and the Boston x Maine are
/ competing lines, and also that the
Fitchburg railroad, which has been IN
der lease to the Boston < Maine since
/ 1900, is competitor Of the Boston
< Maine.
The intent Of the Sherman antitrust
act as defined by the United States su-
preme court in the recent Union Pa
cific Southern Pacific decision, in the
opinion OF the attorney general. makes
Maine railroad by the New York. New
Haven & Hartford illegal, but also the
lease OF the Fitchhurg 10 the Boston 4
Maine q violation OF law, even If the
lease was ncootiated with the approval
Of the Legislature Of Massachusetts.
Attorney General McRcynoldsrs pro
ceedin2s which h. is prepared to m
. stitute any day, are intended 70 ac-
eomplish the separation Of the New
Haven and the Boston & Maine and
the termination Of the Fitchhure lease
) If the court decides that the Fitch
burg railroad is a competitor Of the
Boston & Maine the consequence will be
the return of that property to the stock
holders, who may operate the road or
make such arrangements rs they can
(. for it's lease and operation by a cor
= lporation which does not own or control
a competing railroad.
The probable effect Of a dissolution
i, suit against the New Haven viii toe a
7 receivership fer the Boston < Maine.
\ In the opinion Of the head Of the de-
!. partment of Justice, which ne has eN-
pressed TO several interested persons il
, j. inevitable that the Boston & Maine
: shall be petitioncd into a rcceivershiI
: and operated by such agent OF the
! court until it has been tchahilitated
:. and its Improbable leases and other
= contracts modified.
q The financial condition of the Bos
IS ton q Maine has been plainly sat fortl
i. i'm the report filed with Attorney Gen
1t era McReNnoldS. and great deal o
n. material hearing on this issue has beer
ID secuted from Commissioner Prouty, TIL
=. member Of the interstate commcrc,
n commission who has investigated tn,
- Boston 4 Maine thoroughly twic,
:, within year.
= The expectation OF y reccivership i
=. based upon the knowledge that mex
, February %lo.o0a.0Uo iii notes fails due
:. and in june the Boston < Maine mus
o. meet an additional Sl7 100000 in notes
- total OF 27,n00.o0O which that raj
road must take mp or renew With
r practically seven months.
h. In addition, according TO the state
- meut of Commissioner lrouty. the I}o>
~ ton x Maine needs almost ~ niue
~ more for Improvements in order To o.
n. crate efficiently and increase its earn
or ing power.
o. It is the prevailing opinion that tn
"a Boston x Maine bankers viii not j
=, willing to advance this money esp,
IL ciailv with a sut for the separation (
Il. the New Haven and that company o
Il, file and to lie tried.
i, 4 rcceivcrship for the Boston
III Maine is not viewed in Washington f;
III q calamity, or rs a hardship to II
III stoc kholdcIs. 1t is explained that
~ la receiver is appointed the sharcholde
VI. would not lose either their interest
their rights, except the right to opera
the railroad
eF. The receiver could also terminate ii
ny contract Of the Boston & Maine wit
mp the American Express company. viii,
in; Charles s. Mcllen told Commission
ind Prouty was q very unfair contract +
S.; the railroad, and the contract Wit
En- the Pullman company. lie could elm
ct: nate al expensive and Improbable 90
~. tracts made by the directors Of Il
inc Boston & Maine.
ec When the receiver had rehab
w tated the railroad the property Won
sna be returned TO the stockholders. {
~. the termination OF the reccivership
the old leases and the contracts won
a revive on their original terms. but I
w wv receiver could procure aereemer
which would insure the permanency
nS' the modified leases and contracts aft
the the railroad was again in the posst
f.n sion of the shareholders.
1-6.