The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-14
New Demand Still Further
Threatens an Agreement
With Road.
1T Is HOTLY RESENTED
Regarded as Step to Prevent
Operation Of Company's
Water Lines.

government upon the New Haven road as
part OF the reorganization plan. through
which 1t has been hoped to prevent a
suit underfhe Sherman act has still fur
Their threatened the possibility OF an
agreement.
| This demand In that the New Haven
sell outright Its large holdings In dock
ana wharf properties at New Haven
Providence. Fall River and other sound
and river ports in New England
The demand Is regarded by the New
Haven officials as an attempt by the De-
pa'tment OF justice T. remove from the
Jurisdiction OF the Interstate Commerce
commission the right to pass upon the
propriety OF the road r. ia ming It's hold.
'ngs In New England water lines.
II Is said that even should the commits
son grant the permit under the Panama
Canal ac.. which has been petitioned for
by the New Haven. the road would find
IL impossible to continue the operat ION
OF its water lines because assent to the
Governments demand will have deprived
II OF the necessary terminal facilities
New Issue Eclips~s.
This new obstacle IN the way OF an
agreement for reorganization eciipsed
I In Importance the difficulties with regard
to the disposal Of the Boston and Maine
road when the conferences between the
road officials and representatives OF the
Department Of Justice were resumed here
| to-day.
In addition the New Haven representa-
tives insisted upon the reopening OF that
Dhns q pf tho ~ al
posal of the trolley lines The road off,
Gals declared they would be willing to
sell the Rhode Island and Massa chusetts
trolley lines. but demanded that they be
permitted to retain the Connecticut lines
The Connecticut lines. they declare, are
In no sense competing with the New
Haven road itself, but merely furnish a
continuance OF the roads transportation
facilities.
II was declared that the operation Of
these lines by the road in no way con-
stitutes violation of the Sherman law
or a restraint OF competition.
The conferees to-day completely ig-
nored the provision Of the agreement for
the disposal OF the Boston and Maine to
give consideration to the more important
difficulties that have arisen.
II was upon the Boston and Maine pro-
visions that the conferees disagreed 80
seriously two weeks ago that a deadlock
resulted. The chief point OF contention
at that time was the number OF years to
be allowed the proposed trustees In which
to complete the sale OF the Boston and
Maine.
The Government desired to fix two
years as the limit OF the transfer. Chair
man Elliott delivered an ultimatum that
the road would enter into a reorganization
agreement only upon the condition that
the Government agree to reopen the time
Limitation provision at the expiration OF
two and a half years, II within that time
the trustees had found II impossible to
dispose OF the Boston and Maine advan-
tageously.
The Demand IL Resented.
1t was disclosed for the first time to-
day that the Government has demanded
that the New Haven sell Its dock and
wharf properties. The New Haven rep
resentatives hotly resented the demand
and declared that the Government had no
Justification whatever In making II. They
.
acquired in fee simple through bona fde
purchases and that they should be re-
garded as the legitimate holdings Of the
New Haven stockholders.
The New Haven officials said II would
be the height OF Injustice to force the
road to dispose of these properties be-
cause Of their peculiar value to the road
and OF the probability that only IA small
fraction OF the sum expended in acquir-
ing them could be got from their sale.
vice-President auckland Of the New
Haven road spent three hours with As
sistant Attorney General Adkins and the
special counsel for the Department OF
Justice. Mr. Gregory. In presenting his
arguments In opposition to the Govern
ment's new demand.
Vice-President L. F. Storrs, who has
charge OF the New Ravens trolley lines
presented arguments to support the state
ment that the New Haven should be per-
mitted to retain the Connecticut trolleys
He presented mass OF statistics and
maps descriptive OF the operations of the
Connecticut lines, designed to show that
these in no sense compete with the road
itself.
He declared that in many sections Of
Connecticut the trolieys furnish the only
means OF transportation which the New
Haven can give to these communities. He
took the position that to force the New
Haven to sell these lines would be equal
to a declaration by the Department that
the road was not entitled to enter into
competition for the transportation business
Of that section Of the country.
Eject Of Disclosure.
The result Of the disclosures with re-
gard to the Governments demands upon
the New Haven served to c.ntre atten-
ton upon the men who have been en-
trusted with the formulation o. the Gov
ernment's policy. Thete are Assistant At
torney General Adkins and Mr.. Gregory.
The Attorney General has participated
very little In the discussions. and Il Ii
believed that he IL not personally the
initiator OF some Of the most radical de-
mands that have been made upon the
road.
The suggestion was made tonight that
az result OF the almost helpless situa-
tiun In which tbs negotiations between
the Attorney Generals ass stants and the
counsel representing Mr.. Elliott and the
New Haven directors have developed the
Attorney General win md II necessary
to take matters In his own hands and
give personal direction to the Govern
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