The Birmingham age-herald., 1914-01-11
Announce a Preliminary
Agreement With Depart
ment of Justice to Prevent
Dissolution Suit
ELLIOTT EXPLAINS
BRIEF STATEMENT
ROADS POSITION IN
Road Will Dispose of Holdings in
Boston and Maine Railroad and
Various Other Systems-Final Ad-
justment Is Not Expected at Once

Washington, january i0.---Tke New
York. New Haven and Hartford rail-
rond and the department of Justice to-
night announced a preliminary arree-
tion of the New Haven and TO prevent
suit for it's dissolution under the
sherman law.
In compliance with department de-
mands. the New Haven will dispose of
It's holdings in the Boston and Maine
railroad, cancel its joint agreement con.
trolling the Boston and Albany, gi4e
up its trolley lines and several of its
steamship lines. The question of its re-
tention of the so-called Sound lines of
commerce commission.
Under the Panama canal act the road
Is required to give up all steamship
holdings by July /. unless the commits
sion finds their continued operation by
The railroad is to the commercial ad-
vantage of the public and not In re.
straint OF competition.
Every Point Gained
It was conceded tonight that the de-
partment of justice gained virtually
every point demanded Announcement
of the agreement was made in the fol-
lowing statement from Chairman How
ard Elliott and President A. r. Hadley.
q member of the New Haven board.
Chairman Elliott issued the following
statement:
AN agreement has been reached be-
tween the department of justice and the
New Haven railroad The New Haven.
In addition to the cancellation OF tho
Boston and Albany agreement, which
becomes effective February /. will dis
pose of Its holdings in the Boston aud
Maine railroad, the various trolley sys-
TENS. the Merchants and Miners Trans
portation, the Eastern Steamship coz
poration and the Maine Steamship coml
pany, under a plan, the details of which,
VIII be worked out as promptly as pos
sible with representatives OF the de.
partment of Justice.
Concerning other steamer lines. ap-
plication has been made under the Pan
anna canal act 30 the Interstate COM
merce commission, and their disposi-
ton viii be determined by that body
Until plans are put into effect the man
VIII be continued as at present
The conference was between the At
torney General and Special Assistant TO
the Attorney General 4. w Gregory.
Assistant Attorney General Jessie L.
Adkins. Special Assistant to the Attor-
ney General Frank Nj. Swacker, repre-
senting the department of Justice and
Howard Elliott, Arthur r. Hadley and
l.. ). stores representing the New
Haven company.
No Hearing on Criminal Suits
The announcement of the agreement
does not have any bearing on the much
talked of criminal suits against former
directors and officials of the New
Haven road. There has been no decis-
ION upon this point. Some of these are
known to feel such suits would avail
but little since the men generally un~
derstood TO be responsible for financial
operations involving the New Haven
probably could not be reached by the
federal government
Department of justice officials were or
the opinion tonight that the New Haven
agreement was as big a victory for the
principle of peaceful settlement of anti
trust cases as that registered in the ca go
of the American Telephone and Telegraph
company They pointed out the complex
lilies of the New Haven were greater than
in the telephone case. and that a suit to
holdings might have resulted in disaster
to the road Itself, and in reflex action
upon business that would have been wide
ly felt They recognized that the New
Eaven could not be expected to dispose
OF its holdings in few months, and rec
oPnized that to force the road to get rid
OF its interests within specified time
would permit prospective buyers to walt
until that time limit expired and then
pa - their own price.
As long as Chairman Elliott and his as
sociates show their intention TO carry out
the terms of the agreement. assurances
are given that the department of justice
will not press them for haste.
although no one in authority would pre-
dict how long a time such reorganiza-
ton will require 1t generally was believed
that final reimbursement cannot be reached
for many months, and, on some points.
not for years.
No Official Statement
No official statement waa forthcoming
from the Attorney General tonight.
Negotiations with the New Haven be-
gan more than two months ago. shortly
after Mr.. Elliott came east TO take active
charge of the operation Of the road.
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