The Washington herald., 1913-09-09
new HAVEN MAY
BE SUED BY u. S.
Agent of Attorney General Is
Preparing Necessary
Papers.
TOBE FILEDBY OCTOBER /
Action Probably Based on Criminal
and Civil Sections of Anti
Trust Law.

Thomas w. Gregory, special assistant
\ to the Attorney General, is preparing a
bill for a suit under the Sherman anti
trust law by the Department Of Justice
against the New York, New Haven and
Hartford Railroad. 1t has been suspect
ed for some time that the Wilson admin
istration would begin a suit for the dis
solution of the New Haven from the
Boston and Maine, but information OBJ
tanned yesterday is the first substantial
indication along this line.
The Federal governments action
against the New Haven may not end
with civil proceedings. Resort may be
had to the criminal provisions of the
antitrust law. On high authority il was
said that Attorney General McReynolds
and Mr.. Gregory are considering the ad-
visibility of criminal proceedings against
officials of the road.
For the last ten days Mr.. Gregory
has been hard at work upon the COM
plant in the New Haven suit, and
more than once in that time he has
been called upon by the Attorney Cen
eral to use all possible dispatch. The
Attorney General has desired to have
the papers ready for filing by the mid
die of this month. According to The
Washington Herald's informant, there
is a possibility that the preparations
may be concluded this week.
Probe started Earlier.
Attorney General McReynolds. as
soon as he returns to Washington from
Montreal, where he attended the con-
vention of the American Bar Associa-
tion. will make a careful eXamina ton
of the papers as they stand. and II is
probable that a final conclusion as to
whether the suit shall allege both civil
and criminal violations of the act will
be reached.
Special Assistant Gregory was chosen
by Attorney General McReynolds in May
to make a detailed investigation into
the affairs of the New Haven road with
view to determining if there had
been violations OF the Sherman law. At
this stime the investigation by the Inter
state Commerce Commission was in prog
ress, and public interest had been direct
ed to the road anew because OF recent
accidents.
Mr.. Gregory is a lawyer of Austin.
Tex He came to Washington in May
for a series OF conferences with Mr..
McReynolds. and then proceeded to New
York. Later he went to Boston.
The special assistant went carefully
over the data. which it was possible for
him to gather in New York and Boston,
giving his attention TO all phases OF
the charges Of Sherman-law violations
which had been banded back and forth
bv enemies Of the New Haven in the
past few years. He investigated the con-
nection of the carrier with trolley lines,
steamship companies, and sought intor-
stion also on their non-railroad prop
' holdings.
here are good reasons for believing
It the ideas of Louis d. Brandeis were
.TraH zHsHWu uFNF
and played some part in the conclusions
against the road which he has reached.
Throughout the investigation Mr.. Bran
deis has been visitor at the Department
of Justice. and it was known that he
came to present his opinions and 10 make
suggestions as to where Information
against the road might be gathered. He
was received by the Attorney General
who in turn had conferences with the
special assistant in New York and Bos-
ton.
Late in August Mr.. Gregory returned to
Washington to make a study Of the data
which he had gathered. II was not long
before he assured Mr. McReynolds of
his conviction that the Sherman law had
been violated and that he had the ma
terial at hand to procure decision to
this effect in a New England Federal
Court.
As the special assistants conclusions
became more definite, he reported them
to the Attorney General and submitted
brief sketches of the evidence he had in
support of them. He was directed to
proceed with the preparation of a suit
against the corporation.
OF course. in this as in all anti trust
cases. the Attorney General will reserve
his final decision as to the filing of the
suit until he has the bill itself before
him and can pass upon 1t as completed.
The fact that after frequent conferences
with the special assistance he has that
urged the latter to make haste in his
work, has removed all doubt from the
minds of Mr.. MGReynolds' friends as to
what his intention is.