New Britain herald., 1914-07-09


 participated freely and were con- suited at every stage in relation to Boston and Maine matters, an agree ment was reached in March which was approved by the representatives of Massachusetts just named. This agreement was submitted to the stockholders of the New Haven com pany and by them approved at a special meeting called to consider the subject. The various steps ip the progress of the negotiations were made public from time to time, so that everyone concerned might have ample opportunity to consider the problem in all its aspects.
 Required Liquidators. a..
 'The arrangement thus approved required the appointment of liquida
 tors charged with the duty of sell ing the Boston and Maine stock held for the benefit of the New Haven company by the Boston Railroad
 Holding company, and shortly after
 the approval of the stockholders had
 been given MT. Elliott addressed . letter to the governor of Massachu-
 setts, asking him to request of the
 legislature the passage of a law giving
 
 this sale of the Boston and Maine
 stock, such legislation being neces-
 sary as the Maine stock was held
 by the Boston Railroad Holding com
 pany without such consent.
 During the negotiations every
 thing suggested as necessary to pro-
 tect the public interest was accepted
 by the representa- tives of the New
 Haven company. It is now proposed
 that Massachusetts attach to it's con-
 sent the condition never before sug- gested that there be stamped on each
 certificate provision that the shares
 represented by it shall always remain
 subject to be taken by the state at 8 price to be fixed by agreement or by court. This provision makes the
 shares unstable in the opinion of
 the company's directors and of every
 competent authority on such ques-
 tions whom the management has
 been able to consult and so far as
 these shares are concerned, places tho company in a worse position than if
 1t were compelled to sell them by
 decree of the federal court after the.
 decision of all questions against the
 company, for the shares would then be sold free from any such contli- tion. Unless the stock can be sold at 8 fair price within the limited time allowed by the agreement with the United States, the shareholders of the New Haven will sustain 8 great loss and this provision prevents such sale and defeats the purpose of the United States unless it Is accom- plished at serious loss to the com- pany.
 Can't Accept Conditions. As trustees for the company, for it's owners and it's creditors the di- rectors cannot accept the proposed conditions. While the bill appears to authorize them to sell the Boston and Maine stock, it does not do so in fact. Much as they may regret the necessi- ty of recourse to the courts, they are left no option in this matter if the bill passes in it's present form.'' The directors. also unanimously de- cided- today to issue the following statement to the stockholders of the company: @
 "The directors of the New York, New Haven and Hartford Railroad
 company have learned with regret that the act of the legislature of Mas sachusetts giving the consent of the
 commonwealth to the sale of the Bos- ton and Maine railroad shares held by the Boston Holding company for the benefit of the New Haven com pany has been accompanied by the condition that there be stamped - on each certificate now or hereafter to be issued for any of these shares that they remain always in the hands of any holder subject to be taken by the commonwealth, at a price to be fixed by agreement, or failing that, by hro- ceedings in court.
 Tried to Avoid Contest. During all the negotiations which have been had since the attorney-gen- eral of the United States indicated his purpose to bring suit against the New Haven company for violation of
 the Sherman act, the directors. 1 though not accepting the attorney generals views of the law. have been
 earnestly endeavoring to avoid a con- | test with the United States, and, in ! pursuance of this purpose, have yielded to demands which they be- neved. unreasonable. Their repre- sentatives conferred constantly with the governor of Massachusetts and l with MT. Anderson, his adviser, and acceded to all that either suggested as | proper to safeguard the interests of
 Massachusetts. They have persevered l in their efforts to meet the require ments of the public authorities in the l face of severe criticism from those l whose interests they were trying to 1 protect, but at all times they have | recognized their duty as trustees for l the shareholders. and the whole ne- gotiation has proceeded upon the de-
 clared basis that the property of tile lHQW "Il" HELPS