Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-07-22

Civil and Criminal Prosecution
to Be Started in New York
Immediately.

WASHINGTON. July 22.-Prepara-
tons for the actual filing of the gov
ernment's long delayed suit to dis
solve the New Haven railroad sys>
TEN, in accordance with President
Wilson's instructions, We're being
made today by the department OF
Justice. In a letter to Attorney Cen
eral McReynolds the President not
only directed that civil actien be
instituted against the New Haven,
hut ordered that the criminal aspects
of the case" be laid before a Federal
grand jury.
Decision to proceed against the New
Haven ended the long continued eff
forts to solve the case without 1itiga-
ton. The President and his cabinet
had discussed the case and the course
of the department of justice was APP
proved.
The civil suit was to be filed against
the New Haven in the United States
Court at New York Immediately. The
attorney general also Immediately
was to direct the United states dis
trict attorney at New York to sum-
mon grand jury and work of laying
evidence before it on which to ask
for criminal indictments against Of
ficers and directors of the New Haven
under the management of former
President Charles S. Mellen was to
be begun at the earliest moment
Gregory to Be in Charge.
T. W. Gregory, special assistant in
charge of the case, was to have full
charge of the civil suit, and before
the grand jury was to have the aid
of F. NJ Swacker, an Interstate Com
merce Commission expert, who as
sisted him in preparing the evidence.
ITfssrr H. 49,. -
sought had not been divulged early
today, but correspondence made pub
lie plainly indicated that Mr. Nc
Reynolds expected to ask for a bill
against Mr.. Mellen.
The most significant fact in con-
nectlon with the proceedings was said
to be statement made public by Mr..
McReynolds months ago, when the
Interstate Commerce Commission be-
gan its New Haven investigation,
in which he warned the commission
to consider whether immunity might
be given to certain men if made to
testify as to their actions as directors
of the road. The names ne men
| toned were: Charles S. Mellen, Will
| liam Rockefeller, George Maculloch
Miller, Charles F. Brocker, Edward
Miner, Lewis Cass Ledyard, George
F. Baker and Edward B. Robbins.
In his letter to Mr.. McReynolds
directing suit the President declared
that the decision of the New Haven
directors not TO keep their agreement
to dissolve peacefully had caused him
"the deepest surprise and regret"
and that their failure upon SO slight
a pretext" was "inexplicable and en-
tirely without justification" The de-
/ partment's course, he asserted, was
| just, reasonable and efficient and
should have resulted in avoiding suit.
| Correspondence Made Public.
In the correspondence made public
| by the department which accom-
panied President Wilson's letter were
communications between the attor,,
| ney-general and the President and
the attorney general and President
Hustis, of the New Haven.
A feature of the correspondence
was Attorney General McReynolds' s
/ letter to the President, which con-
tanned a rebuke for the Interstate
! Commerce Commission in subpoean-
! ing Mellen, 'and perhaps others flag
rantly eulpable,2 with the possible re-
suit of embarrassing the department
by claims of immunity in return for
their testimony In this connection
Mr.. McReynolds stated that criminal
Prosecutions tldQ always DtSil III lllltiu
and that there had never been "the
slightest hope that parties guilty of
criminal violations of the law would
escape"
1t is known that the department has
what it believes is evidence that Mr..
Mellen gave testimony to the COM
mission contradicting evidence in the
possession of the attorney general,
and it is possible that if any claim
of immunity is raised it would be
fought on this issue.
Mr.. McReynolds's letter to Mr.. Hus-
tbs plainly showed that the depart
ment took the position that the New
Haven directors had not lived up to
their agreement of last March for
peaceful dissolution and their refusal
to sell their Boston and Maine stock
Under conditions imposed by Massa-
chusetts and placed the blame for
what might follow upon the heads
of these directors.
NEW YORK, July 22.-Although
there was no regular meeting today
of the board of directors or of the
executive committee of the New
York New Haven and Hartford Rail-
road Company, President Hustis and
other officials attended a series Of
conferences. the result of which IT
was said. might be made known later.