The Washington herald., 1914-01-12
M'REYNOLDS IS
GIVEN THECRED|T
New Haven Road Agreement
Regarded as Feather
in His Cap.
DETAILS TO BE SETTLED
Much Work Remains to Be Done.
Government Did Not Yield Any
Essential Point.
DETAILS TO BE SETTLED

The agreement for the reorganization Of
the New Haven road. reached Saturday.
was the chief topic Of conversation
among officials yesterday. On all hands
the adjustment was hailed as a feather
in the cap of Attorney General Mercy
nolds, and congratulations poured in upon
him. Officials spoke words of praise for
the Attorney General and his assistants
in the negotiations. Confident statements
were heard that their consummation
ought to be regarded as among the most
important accomplishments of an execu-
tive department of the government since
President Wilson and his Cabinet took
Office.
The Importance of the agreement, as 1t
affects the general business situation, is
regarded as equal. IL not superior, TO the
specific results which il will procure for
transportational competition in New Eng
land. The New Haven agreement, linked
with those for the reorganization OF the
American Telegraph and Telephone Com
pany and the dissolution of the Union Pa
cific-Southern Pacific merger. is consid
cred to have created a wholesome situ-
alton for the disclosure of President Will
sons program for antitrust legislation
which is to come within the next fort
night in his special message to Congress.
"PeacefuI" Policy.
In view of the special attention which
thus has been directed toward the So
called peaceful policy, Mr.. McReynolds
last night was asked to define it. II
was recalled to him that the three agree
ments, referred to, had been described
as compromises" by the government
The Attorney General said:
We are charged under the statutes
with the duty of enforcing the Sherman
act We must, therefore, examine a
situation for the purpose of finding out
IL competition exists in il. II 1t does not
We must make demands for its restor-
alton. We are. of course, always de-
lighted when a corporation announces
that it IS willing to meet these require
ments voluntarily
The Attorney General considers that
the application of the term compromise.
TO the policy examplified in the three
agreements has resulted from misun-
derstanding of the governments pur-
poses.
1t is known now that no essential
feature of the governments requirements
was yielded in the negotiations with the
New Haven officials.
President Elliot left Washington for
New York last night Having agreed
nary agreement, he will entrust the work
of formulating its details to Walter F.
Hines, Of Boston. and L. F. Storrs, of
New York. who have been retained as
special counsel for this purpose. It is
known that much remains TO be done in
the forthcoming conferences between AS
sistant Attorney General Atkins, special
assistant to Attorney General Gregory,
and the special counsellors for the road.
DisposaI of Holdings.
Perhaps the most important problem
which awaits solution is the fixing of a
method for disposing of the roads hold
ings in trolley lines and steamship prop
critics. The agreement, as il stands, pro-
vides merely that these properties shall
be relinquished.
1t Is by no means certain that the de-
partment will sanction "a trusteeship
plan, similar to that been fixed upon for
the New Haven's enforcement from the
Boston and Maine road. 1t was recog-
nized in the conference just ended that
peculiar situation existed as far as the
Boston and Maine was concerned and
the approval of the trusteeship was in
recognition of that fact.
Mr.. McReynolds does not for a minute
believe, as has been stated, that a long
period will be required for carrying out
the provisions of the agreement in every
important detail. The suggestion that
many months or even years will be taken
up by the various steps of reorganization
and sale is looked upon by him as un-
reasonable.