The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-27
Negotiations With Government
on Reorganization Plan
Como to Stsndstill.
NAY BE ANTITRUST SUIT
Chairman Elliott Wants Five
Years for Transfer Of Bos-
ton and Maine.

between Chairman Elliott Of the New
Haven road and Attorney General Nc
Reynolds on plan for the reorganisa ton
OF the road came to a practical standstiil
to-day as a result Of important differences
that developed during conferences At the
Department Of Justice.
II seemed likely tonight that the nego-
tiations would be broken of and that the
Government would be forced to fiie suit
under the Sherman antitrust law to bring
about the reorganization Of the road along
the lines II has demanded.
Chairman Elliott. II 10 understood, in
formed the Attorney General that i've
years would be the shortest period which
the New Haven road could accept. In
which to complete the transfer OF the con-
troll Of the Boston and Maine road.
The Attorney General insisted. as he
has throughout the negotiations, that a
much shorter period would be adequate
for the transfer. He said that from two
to three years would be as much time as
the Government would be willing to
allow.
Two other important obstacles were en-
countered In addition to the announce
ment Of Chairman Elliotts uitimatum
with regard to the time for the reorsani-
zation.
Chairman Elliott refused to accept
three of the trustees to take over the
control Of the Boston and Maine who had
been suggested by Gov. Walsh Of Mas
sachusetts with the approval Of the At
torney General.
In q.
reopenlrg OF the phase Of the reorganixa-
ton asreenent which concerns the no.
called conservation OF the rights OF Massa-
chusetts with regard to the Boston and
Maine control.
Chairman Elliott left for New York to-
night He was discouraged over the re-
suit Of the conference at the Department
Of Justice.
Walker d. Hines and Nsrs1sIa Story
| OF the Nsw Haven counsel remained here
for further conferences this evening with
Assistant Attorney General Adkins and
Special Counsel r. W. Gregory. who has
charge Of the New Haven case for the
Department Of Justice. but Il 10 under.
stood that little progress was made At
these conferences.
Chief Point Of Contention.
| The time Limitation for the sale Of the
New Haven's holdings In the Boston and
Maine under ,rusteeship. a. provided
for In the rough draft Of the asreemen,
reached early In January, has been the
chief point Of contention between the
road and the Governments representa-.
tives for six weeks
The Attorney Generals original c,ti.
tude was that the transfer should be com.
pleted within two years. Chairman
Elliott on recent visit to Washington
made known the belief that ten years
should be allowed for the sale of the
property.
Chairman Elliott has insisted that "a
force the sale Of the road In a compare.
lively short time inevitably would cause
great depreciation In the value Of the
property. He declared that IL would be
only just to the stockholders Of the road
to allow the trustees a long period In
which to dispose Of the road to the best
interests Of the stockholders.
Chairman Elliott II Ia understood, afte.
recent consultations with the directors OF
the New Haven has concluded that II would
be better for the road to defend . suit In
equity under the Sherman act than e
enter into voluntary agreement for dis.
solution under a time Limitation which
would work hardships on the road and
open the way for considerable lossesL
Mr.. Elliott believes that It 10 probable
that several years would elapse from the
Ming Of a suit by the Government before
Supreme Court and that even II this de-
cree were unfavorsbis to the road the
court would allow q fair time for the
sale Of the Boston and Maine.
He 10 Of the opinion that the time which
would be gained by defendinc . suit In
equity instead Of yielding to the Govern.
ment's demands win be Of suficient value
cred to the Attorney General to-day.
The Weak spst.
The weak spot which the 0overnmsn,
believes exists In the New Ravens posi-.
ton In regard to the Boston and Maine
dissolution 10 the fact that S9S. 200, oot
Of short time notes Of the Boston and
Maine wiz mature on June ! and that
the rennSncing OF these securities vii
be difficuit II the New Haven's negotia'
lions with tn, Government have no
been adjusted.
The differences between Chairman
Elliott and the Attorney General with
regard to the personnel OF the board Of
trustees to take hold Of the Boston and
Maine control grew out Of Mr.. Elliott'l
objections to three Of the men who's,
names were placed on the tentative liz
at the recent conference In which Gov
Walsh participated.
, Chairman Elliott was willing to 20
cept ~ trustees Marcus Knowlton. ex
Chief Justice Of the Supreme Court o
Massachusetts. and James L. Dougherty
city solicitor Of Springfield. Mass, but n
rejected the three others named In tn
tentative list Of hve.
It 10 believed that serious delay will b
encountered In reaching an aSrssmsn
upon the three trustees who must b.
named before the reorganization plan 4
completed.
Gov. walsh let II b known after hi
recent visit 70 Washington that Q fuI
agreednent has been REACHED BY himself
the Attorney General and ChalrUa,
Elliott for the Conservation Of the yiabt
Of the STATE Of NAssachusstts' In the dis
poeal Of the Boston and Maine
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