The chronicle=news., 1914-07-23
To Separate New
Hauen Road From
Its Other Holdings

New York, July 23.-Civh suit to
force the separation of the New
York. New Haven and Hartford Rail
road company from its subsidiary
rail, trolley and steamship lines un-
der the Sherman antitrust act was
filed in the federal court here today
by Attorney General McKeynolds.
Filing Of the suit against the New
Haven was followed by another SELL
ing movement In the stock market.
While New Haven shares were not
affected, other Issues as Erie and
Southern Railway fell on moderate
offerings.
The suit begun today has no act
ual connection with the criminal in
dictments, which the attorney gen.
eral will ask a federal grand jury to
return against New Haven officers
and directors concerned in the up
building of the alleged unlawful
combination in restraint OF trade.
The criminal proceedings will be con-
Quoted independently of the civil suit
and the failure or success Of one Is
not expected to affect the others.
T. w. Gregory. special assistant to
the attorney general. who wrote and
filed the brief. and c. M. Swacker.
an expert from the interstate COM
merce committee who has worked
many months on the case. are expect
ed to lay the evidence before the
grand Jury here on which indict-
ments will be asked. 1t was under
Il ot1 xNIn 1tof hn
have sufficient evidence to make out
la prima facie case against many New
Haven officers and directors. and If
i this ciew is correct, indictments may
be returned within few weeks.
The brief written by Mr.. Gregory.
lcharges the New Haven with being
an unlawful monopoly which controls
more than 30 per cent of the rail-
roads and trolley traffic of all New
lof the steamship transportation Of
THAT region.
The brief suggests that II the court
deems best 1t appoint receiver to
take over the property and bring It
In harmony with the law. The brief
carries with 1t an exhibit purport'ng
to be a copy of an agreement between
representatives of the New Haven
and the Boston and Maine railroad
made on March 6. 1898. by which
those two roads divided New En-
gland v,etween theni,elves. This
agreement purports to have been
made at the home of the late J. P.
Morgan in New York. At that time
1.-THE two roads coaeerned were en-
tirely separate.
Under the agreement the New Ha-
ven was to aid the Boston and Maine
to acquire transportation lines north
of certain line, the Boston and
Maine to aid the New Haven to the
same end south OF that line. The
bill does not show any termination of
this agreement but years afterwards
the New Hayen-after 1t 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
lalmost unlisputed master of the field
from the coast line of Connecticut to
the st. Lawrence river and the Can
adian border.
The New Haven, the bill declares,
resorted to many elusive and round
about methods to cover its tracks in
pertecting it's combination. 1t ac-
lqufred properties, got stock control,
Impoverished competitors and then
bought them in and resorted to many
illegal practices to attain its end.
New England makes, the bill says,
about $3.OOO.OOO,OOO worth of pro-
ducts annually and there is conse-
luuently heavy movement to and
from that section. so that transpor
tation monopoly there is of cast in
terest to every section of the United
States.
The government alleges that eX-
listing conditions have led to unreas-
enable delay in delivering freight.
use of inferior and unsafe rolling
stocks; the lack of proper signal
systems and safety devices; the de-
struction of the autonomy OF the
units now combined in making rates:
the suppression 70 competition among
these units; the diversion of freight
traffic to the New Haven company,
an effort to increase freight rates,
and dilatory and arbitrary methods
in dealing with patrons.
The brief is one of the most COM
prehensive filed by the government
in any similar suit. Today's bill
asked that the New Haven be
stripped of its ownership in the New
Fin epand railroad. which parallels
its famous short line from Boston to
New York and that 1t be made to
give up it's so-called sound steamship,
lines, the retention of which was
under the agreement to be left to
the interstate commerce commission.
IL the court takes the view OF the