Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-07-21
All Efforts to Settle Controver-
Sy Out of Court Fail and
Attorney General viii Act
Within Few Days,
MUST SEPARATE FROM
SUBSIDIARY LINES
Case to Be Laid Before Presi-
dent and Cabinet and Full
Explanation of Situation viii
Be Made.

washington July 2O.--Civil suit to
separate the New York, New Haven a
Hartford Railroad Co. from its sub
sidiary rail, trolley and steamship
lines, will be brought by Attorney
General McReynods in the United
states district court at New York
within the next few days
final effort today to settle the
problem without litigation, ended in
failure. although the attorney gem
eral, T. w. Gregory, special assistant
In charge Of the case and commit
tee of New Haven directors We're i'm
conference many hours. The com
mittee came to discuss the sale of the
Boston q Maine stock owned by the
New Haven. II desired this sale to
be made free of conditions imposed
by the state Of Massachusetts and is
said TO have declared that an uncon-
ditional sale of the Boston a Maine
stock would insure a price 0.000. 900
above what the New Haven might
otherwise hope to get
The New Haven case viii be laid
before President Wilson and the cab
met tomorrow and detailed expla-
nation of the course pursued by the
department in its long negotiations
with the railroad to untangle il out
Of court probably will follow. II is not
doubted that the departments course
viii be approved There is little
doubt here that on the heels of the
suit will come an effort TO have n
federal grand jury In New York re-
turn indictments against many direc-
/ tors of the New Haven who served in
the days when II was building up a
system which the attorney general
holds is a combination in restraint
of trade. Both the civil and crimna
actions will be taken under the Sher-
man law and the whole case is re-
earded by the department as the most
important undertaken in this admin
istration. Never before has any ad-
ministration planned to prosecute
, criminally men of such prominence In
the financial and business world and
the outcome of these proceedings may
determine the value of the Sherman
law as a criminal statute.
Little Resistance 10 Civil Suit.
To the civil suit the New Haven is
not expected to make any strong re-
sistance, except possibly to attempt 10
prevent the state of Massachusetts,
from Intervening to preserve certain
rights 1t holds with respect to the
Boston Maine.
In the governments bill the New
Haven will be charged with being a
monopoly in control Of New England S
transportation and with being a com
bination in restraint of trade and in
violation of the sherman law. The
department is expected to ask for
more than it hoped TO get through its
agreement for the peaceful solution
Df do a .,
Elliott and New Haven attorneys last
March.
1t was said tonight there Will be at
least two features in the bin not in
cluded in the agreement. One will
be a request that the court separate
the New Haven from the old New
England railway acquired many
years ago. which runs from Boston
through Williamantic Hartford and
Danbury, Conn, to point on the New
York Central about fifty miles from
New York. The court also will be
asked to divorce the New Haven from
its so-called Sound Steamship lines
which ply Long Island Sound and run
from New York to most of the ports
along the lower New England coast
In the agreement the question of the
retention of these lines was left to the
Interstate Commerce commission
Features of the agreement which the
bill is expected to follow are:
Eggs Must tnscramble.
That the New Haven be required
to divest itself of the control of the
Boston & 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 i'm the Eastern Steam