Evening journal., 1914-07-23
Government Files
NEW HAVEN SUIT
Equity Proceedings To Dis
solve Alleged Monopoly
Is Begun in New York
CRIMINAL ASPECT
NOT TOUCHED ON
BY The United press.

BY The United Press.
NEW YORK, July 23.-The De-
parlment Of Justice today filed suit
IN the United States district court
Tor Southern New York for the dis
solution of the New York, New Haven
and Hartford railroad. steamboat and
trolley lines in New England
The government asks that the con-
tract and combinations in restraint
OF trade and commerce together with
the attempts to monopolize be declar-
ed in violation of the Sherman anti
trust law. Il asks for the separation
81 an the railroads, steamboats, and
trolley lines, and for the breaking up
OF the control OF steamboat lines
through the navigation company.
It is further asked that the court
declare the acquisition Of the Boston
and Maine stock Of the New Haven IL
legal and that the New Haven COM
pany and the Boston Railroad Hold
ing Company be directed to sell all
the stocks and bonds held BY them in
the Boston and Maine and It's leased
lines.
Finally the government prays that
all of the sales necessary to the
breaking up Of the alleged monopoly
be made under the supervision and
direction of the court to persons not
stockholders or agents, or otherwise
under the control OF influence of the
New Haven Company.
II Is charged in the suit that IN ae-
curing railroads. trolleys and steam
ship lines necessary to traffic
monopoly. complicated and elusive
methods have been resorted TO In or
der to conceal the real character Of
the transactions.
The suit was filed by IL Snowden
Marshall, United States attorney for
the Southern District of New York
II bears the signatures of Attorney
General McReynolds. G. Carroll Todd
assistant attorney general; 4. W.
Gregory and Frank NJ. Swacker. spe-
cial assistants In the New Haven case
The suit has nothing TO do with the
criminal aspect of the New Haven
case. Today's proceedings were an
equity suit The department Of JUS
tee Is now preparing a mass OF eyi-
dence to submit TO a Federal grand
jury in New York. when It asks
criminal Indictment Of New Haven
directors.
The action today was brought about
BY the New Haven's refusal TO obey
the recently enacted Massachusetts
law providing for sale of the New
Hsven's Boston and Maine shares
with the provision that the State
have the right to purchase the securi-
ties at any time at a value to be fixed
The directors refused TO comply with
this law on the ground that its con
ditions would weaken the market
value Of the securities.
The New Haven's railroad and wa
ter alleged monopoly extends
throughout New England and it has
acquired trolley monopoly in Con-
necticut, Rhode Island. Southern and
Central Massachusetts, and the ex-
tieme southeastern portion Of New
York the government alleges
Going into the history OF trans
pcrtation in New England. the bill
States that by 1893 most OF the New
England railroads had become parts
OF ten competitive systems and that |
these ten systems had at that time |
6.49S miles of main line with rev.
enues OF SfS.000,000 out of a total Of |
Z 7.129 miles of main line with rev. /
enues Of SSi,000.000
There We're p steamship lines and few 4
trolley lines at that time The railroads /
aud steamship lines were nearly all in
The New Haven, III 1898,
only one Of the railroad lines,
controlled two boat lines and owned no
-rolley lines
lt is alleged the New Haven has ac-
Iuired control Of nine Of the ten rail
'oad systems and that it has repeatedly
attempted to purchase the tenth and
hat this control embraces about 6.54l /
miles Of main line with revenues Of
1921 100000 out Of total Of s,233 miles
With revenues Of Sl3000000
The New Haven controls S5 per cent
IF the water transportation OF New
england and 0l per cent Of the trolley
ines and traffic.
but for the monOpolies and unlawful
charged there would be
for practically all Of the
Interstate and foreign traffic now carried
N the New Haven system" the bill re-
tics among the evils resulting from
hese monOpoles are unreasonable de-
~ in delivering freight, the use Of i'm
orior and unsafe rolling stock, the lack
proper signal systems and safety de-
ices, the destruction Of the autonomy
( the different transportation units in
he making Of rates, the suppression Of
ompetition among the several units, the
version Of freight traffic to the New
Iaven proper from other lines under its
the effort to increase freight
ates and dilatory and arbitrary meth
ds in dealing with patrons"