Evening star., 1914-07-23
MONOPOLY is CHARGED
BY ATTORNEY GENERAL
Criminal Indictments Against or
ficials to Be Next
Sought.
ACTION SURE TO BE FOUGHT
q. S. Investigators Confident Indict-
ments Will Be Returned-Biu
Reviews Causes for Fed
era1 Action.

NEW YORK, July 2s.-Civil
suit to force the separation OF the
New York, New Haven and Hart
ford Railroad Company from its
subsidiary rail. trolley and steam
ship lines under the Shermar
antitrust act was filed in the
federal court here today by AT
torney General McReynolds.
The suit begun today has no actual con.
nection with the criminal indictments
which the Attorney General win ask a
federal grand jury to return against tn.
New Haven officers and directors con-
cerned in the upbuilding of the alleged
unlawful combination in restraint OF
trade. The criminal proceedings will b.
conducted independently of the civil suit.
and the failure of success of one is mol
expected to affect the other.
Will Present Evidence.
L. W. Gregory. special assistant to the
Attorney General who wrote and filed
the brief, and +. NJ. Swacker an expert
sion, who has worked many months on
the case, are expected to lay the evil
dence before a grand jury here. On which
indictments will be asked. It was under
stood here today that these officials feel
that they have sufficient evidence to
| make out a prima facie case against
many New Haven officers and directors,
and il this view is correct indictments
may be returned within a few weeks.
Such action will mark the beginning
of what may prove to be the most i'm
portant criminal proceeding ever un-
dertaken under the Sherman antitrust
act in the twenty-fCur years il has
been on the statute books To the civil
suit the New Haven may not offer an!
great defense. but government officials
would be greatly surprised if the at
tempt to convict directors and officers
does not lead to a great legal battle.
which probably Will not end this side
of the United States Supreme Court
Deemed Unlawful Monopoly.
The brief written by Mr. Gregory
charges the New Haven with being an
unlawful monopoly, which controls
more than 30 per cent Of the railroads
and trolley traffic of all New England
and more than s5 per cent of the steam
ship transportation of that region.
The court is asked to restore compe-
tition by ordering the separation OF the
New Haven from the Boston and Maine
railroad. from it's sound and outside
steamship lines and from its trolley
system In Rhode Island and Connect
cut. The brief suggests that If the
court deems best it appoint receiver
to take over the property and bring ii
in harmony with the law, and asks fot
the customary general relief IL the
court finds it necessary.
The government alleges that the New
Haven began its march toward a mo
ion af
portation in 1893 and that its domina-
tion over five states is now almost un
contested. The brief carried with il
an exhibit purporting to be a copy
tives of the New Haven and the Bos-
ton and Maine railroad made Marcn q.
1893, by which those two roads divided
New England between themselves.
This agreemnt purports to have been
made at the home of the late J. Pier
pont Morgan in New York. At that
time the two roads concerned We're en-
tirely separate.
Takes Over Property.
Under the agreement the New Haven
was to aid the Boston and Maine to ac-
quire transportation lines north %
certain line, the Boston and Maine ~
aid the New Haven to the same END
south of that line. The bill does not
show any termination of this agree
ment, but years afterwards the New
Haven, after it had secured the lines
south and after the Boston and Maine
had taken up most of those north. in
turn took over the Boston and Maine
and became the almost undisputed
master of tie field from the coast line
of Connecticut to the ST. Lawrence riv-
er and the Canadian border.
The New Haven. the bill declares, re-
sorted to many elusive and roundabo
methods to cover its tracks in perfecting
its combination; it acquired properties.
got stock control, impoy erishcd compet-
itors and bought them in. and resorted
to many Illegal practices to attain its end
New England makes, the bin SAYS,
about 5000, ,O00 600 worth of products an