New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-08
Dissolution Question To
Be Discussed To-day
in Washington.
DIRECTORS IGNORE
NEW BAY STATE LAW
McReynolds May Have to Sue
Though Roads Are Managed
Independently.

The executive committee of the New
Haven yesterday afternoon accepted
the resignation Of James II. HuStis as
president of the company, to take eff
feet August 10, when he becomes presl-
dent of the Boston & Maine, vice Nor
RS Mcdonald, who retires TO resume
MS former position as president OF me
Maine Central, a subsidiary of the Bos-
ton e. Maine, as the Boston & Maine IS
q subsidiary of the New Haven.
Howard Elliott, who resigned as
president of the New Haven to become
chairman of the board, will be elected
TO fiji the vacancy caused by the reslg-
nation of Mr.. Hustis, who will remain
in charge OF the New Haven's affairs
until Mr.. Elliott returns from the
short vacation he is now spending IN
New Hampshire.
The executive committee also infor-
mally discussed the matter of dispOs-
ing Of the Boston & Maine, and agreed
TO stand pat" on the position 1t an
nounced June %, when formal notice
was served on Governor David /. Walsh
Of Massachusetts, that the bill then
pending before the Legislature of that
state looking TO the divorce of the Bos-
ton e. Maine from the New Haven
would not be accepted, even though
failure to accept it should mean SUIT
10 compel dissolution. That bill passed
the Massachusetts, Senate and was I'M
ncdiately signed by Governor Walsh,
thereby becoming q law.
Just what Governor Walsh will now
do is a matter of doubt. He was
party TO the treaty arranged in Wash
ington last spring by President Will
son, Attorney General McReynolds,
representing the federal government,
and Howard Elliott and DR.. Arthur
Twining Hadley, representing the New
Haven, at which II was agreed that the
state of Massachusetts, would permit
the New Haven to dispose of its Bos-
ton G. Maine stock. 1t was further
agreed that unless the road did so by
July 10 Mr.. McReynolds should file a
suit to dissolve the two companies un-
der the Sherman act.
Gives State Perpetual Option.
This treaty. unpleasant in its terms
though it was, was ratified by the New
haven stockholders on the advice of
their officers. For the company Mr..
Elliott then asked Governor Walsh for
the enabling legislation agreed upon.
This the Governor has been unable
or unwilling 10 secure from the Legis-
iature. Instead. an act has been passed
giving the state a perpetual option on
the Boston & Maine stock owned by
he New Haven, which act, while pre-
venting any one else from buying the
took. does not compel the state to take
L over at any time. 1t has the further
disadvantage of not providing any
adequate means of fixing price tina.
would be fair TO the stockholders or
equal TO what the stock might be eX-
pccted TO bring at auction In the open
market.
The refusal of the directors 70 agree
10 what they term a "Jug-handled
agreement, with the other fellow hold
ing the handle" leaves il for Mr. Nc
REYNOLDS either TO let the company
continue as the owner of the control
of the Boston & Maine or TO file dis
solution suit. This the Attorney Cen
cral has been loath to do, but he has
been unable 10 figure way out, II
Massachusetts, persists in the stand II
has taken.
To adjust matters Governor Walsh
was invited TO call at the White House
ten days ago. For some reason he did
not 20, though II is most unusual Tor
suCn invitations 10 DC utCIlhtu' INV
appeal Of Massachusetts, for assistance
for the fire victims of Salem and the
refusal of the House Of Representa-
tives 10 act. however. have put some
what different complexion on things.
Governor Welsh is expected to call at
the White House to-day to take up the
Salem matter. and it is expected that
the New Haven situation will also be
discussed.
Meanwhile the Boston & Maine il
being managed independently OF the
New Haven. no officer of the former
being an officer Of the latter, and the
boards also being differently consti-
tuted. the interlocking directorate hav-
ing been dore away with.
The Boston e. Maine organization ~
further strengthened BY the election Of
Mr.. Husts, who is rated as an unusu-
ally able executive, to the presidency
Of the system. AS Mr.. Elliott will now
have more time 70 devote to strict rail-
reading. the New Haven organization IS
not weakened, and big salary is elm
mated.