The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-07-22
NEW HAVEN
IN CIVIL SUIT
EFFORT TO SETTLE CASE
ENDED IN FAILURE
YESTERDAY
BOSTON AND MAINE
The Disposition of the, Stocks of
Which Road Has Caused the
a Difficulty
BOSTON AND MAINE
(By Associated Press.)

(By Associated HreSS.)
Washington, July 20.-Civil suit to
separate the New York, New Haven
and Hartford railroad company from
its subsidiary rail, trolley and steam
ship lines will be brought by Attorney
General McReynolds in the United
States district court at New York
within the next few days.
A final effort today to settle the
problem without litigation ended in a
failure, although the attorney general
T. w. Gregory, special assistant in
charge of the case, and committee
of New. Haven directors were in con.
ference many hours. The committee
came to discuss the sale of the Boston
and Maine stock owned by the New
Haven. 1t desired this sale to be made
free of conditions imposed by the state
of Massachusetts and is said to have
declared that an unconditional sale OF
the Boston and Maine stock would in
sure a price Of s10,0e0,0Q0 above what
the New Haven might otherwise hope
to get. r..
Wilson and Cabinet Investigate.
The New Haven case will be laid
before President Wilson and the cab
met tomorrow. It is not doubted that
the departments course will be ar
prGIed. There is little doub.. hore
that on the heels of the suit will come
an effort to have 4 federal grand jury
in New York return indictments
against many directors of the New
Haven who served in the days when il
was building up a system which the
attorney general holds Is a combina-
ton in restraint of trade. Both the
civil and criminal actions will be TAX
en- under the Sherman law. The out
come of these proceedings may de-
termine the value of the Sherman law
as criminal statute.
To the civil suit the New Haven is
not expected to make any strong re-
sistance.
In the government lbill the New
Haven will be charged with being q
monopoly in control Of New Mnsland's
transportation, with being a colubina-
ton in restraint of trade and in viola
ton of the Sherman law. The depart
ment is expected to ask that the court
separate the New Haven from the old
New England railway, acquired many
years ago. The court also Will be
asked to divorce the New Haven from
it's so-called Sound Steamship Lines
which ply Long Island Sound aid run
from New York to most of the ports
along the lower New England coast.
Features of the agreement made last
March with Chairman Elliott and Nav
Haven attorneys which the bill Is eX-
pected to follow are: 49,.
THAT the New Haven be required
to divest itself of control Of the Bos-
ton and Maine railroad; that it give
up it's holdings in the Connecticut,
Rhode Island trolley lines and the
Berkshire trolley lines and its minor
ity interest in the Eastern Steamship
CORPORATION. There will be the Gus
tomary plea for an order requiring the
New Haven to dissolve, and for a
mandate to prevent future combina-
ton of similar character.
President Hustis, A. T. Hadley, L.
Dewitt Cuyler and Moorfield Storey,
counsel for the road, were the COM
mittee that made the final effort to
settle the case without litigation, but
their suggestions were not accepted.
In a. statement issued at the close OF
the day President Hustis plainly iHdi-
Gated that fling of the government
suit was expected.
Boston and Maine Stock Issue. -.
The difficulty in the negotiations
have been over the disposition OF the
Boston and Maine stock controlled by
the New Haven. 1t was agreed by
both parties months ago that it should
be sold. Massachusetts, which always
possessed the right to buy it, recently
enacted legislation permitting its sale
but on the condition that on each
Rawl of the bureau Of animal hus-
share sold this right be plainly set
forth. The New Haven directors said
they were unable to accept this con-
dition. They suggested that. the de-
partment Of justice take the matter IN
court and ask for a decree, to which
they would assent, disposing OF every
issue but that Of the Boston and
Maine.
In the meantime they proposed that
this stock be turned over to trustees
who should sell it without the condi-
ton imposed by Massachusetts,. They
indicated that it's unrestricted sale
would mean $1O,000,000 to the New
Haven Attorney General McReynolds
did not like the plan. Moreover II
was said at the department that the
March agreement provided for the sale
of the Boston and Maine stock, but
made no mention of conditions I'M
posed by Massachusetts. Department
officials take tho position that the Ne"
Haven has not lived up to this agree
ment.
At the conclusion of the conference
President Hustis gave out this state
ment, approved by his directors:
Up Against 1t.
"The directors find themselves un-
able to recede from the position Wnlcn
they have taken and presume that tne
attorney general will therefore declde
To file his bill in order to determine
the question between the company anu
the government. Put it is hoped tnat
after the bill is filed it will be possible
tn make such arrangements as Will
reduce the points Of difference to a
minimum and secure a prompt settle