Omaha daily bee., 1914-07-24
ITS DISSOLUTION IS ASKED
New Haven and Boston q Maine
Divided New England.
EACH ABSORBED COMPETITORS
Southern Half of Combine Then
Swallowed Northern Half.
CRIMINAL PROCEEDINGS ON WAY
Assistant Attorney General who
Drew Brief VIII Lay Result Of
InvestiEation before the
Federal Grand Jury.

NEW YORK, July 2s.-Civil suit 60
force the separation Of the New YORK.
New Haven and Hartford Railroad COM
pany from it's subsidiary rail. trolley
and steamship lines under the Sherman
antitrust act, was filed in the federal
court here today by Attorney General
McReynolds.
The suit begun today has no actual
connection with the criminal indict-
ments. which the attorney general will
ask federal grand jury to return against
New Haven officers and directors oon-
cerned in upbuilding OF the alleged un-
lawful combination In restraint OF trade.
The criminal proceedings will be con-
Quoted Independently OF the civil suit
and tho failure or success of one is not'
expected to affect the other.
T. W. Gregory, special assistant to the
attorney general, who wrote and filed
the brief and f. NJ. Swacker. an expert
from the Interstate Commerce commits
sion, who has worked many months on
the case. are expected to lay the svi-
dence before the grand jury hero on
which indictments will be asked II was
understood here~ today that these OFF,
cials feel they have sufficient evidence
to make out a prma facie case against
many New Haven officers and directors.
and II this view ls correct. indictments
may be returned within a few weeks.
such action will mark the beginning
of what may prove to be the most inn
portant criminal proceedings ever under
taken under the Sherman antitrust act
in the twenty-four years II has been on
the statute books To the civil suit the
New Haven may not offer any great de-
fense, but government officials would
be greatly surprised II the attempt To
convict directors and officers does not
lead to great legal battle. which
probably will not end this side Of the
United States supreme court
Statements In Brief.
The brief written by Mr.. Gregory
charges the New Haven with being an
unlawful monopoly. which controls mora
than 70 per cent Of the railroads aud
trolley traffic OF all New England and
more than IS per cent OF the steamship
! transportation OF that region. The court
! ls asked to restore competition by or
doring the separation OF the New Haven
! from the Boston & Maine railroad. from
| it's sound and outside steamship lines
and from its trolley system In Rhode
Island and Connecticut.
The brief suggests that II the court
deems best II appoint a receiver TO take
over the property and bring II in har-
mony with the law and asks for the GUS
tomsry general relief" II the court finds
Il necessary. The brief carries with It
an exhibit purporting to be a copy OF
an agreement between representatives of
the New Haven and the Boston & Maine
railroad. made on March 6. 1893, by which
! those two roads divided New England
between themselves. This agreement pur-
/ ports to have been made at the home OF
/ the late J. Pierpont Morgan in New
! York. At that time the two roads con-
cerned were entirely separate go
Division and Addition.
Under the agreement the New Haven
! was to aid the Boston & Maine to ac-
quire transportation lines north of a cer-
tain line, the Boston & Maine to aid tho
New Haven TO the same end south OF
that line. The bill does not show any
termination OF this agreement. but years
afterwards the New Haven, after II had
secured the lines south, and after the
Boston & Maine had taken up most OF
those north, in turn took over the Boston
& Maine and became the almost undis@
puted master Of the field from the coast
! -