The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-07
Complete Reorganiza-
tion Insisted On by De-
partment of Justice.
OUTCOME KNOWN
WITHIN 48 HOURS
If Company Prefers to Fight
Attorney-General McReynolds
Will Institute Proceedings
Under Antitrust Act to
Divorce Railroad From
It's Other Holdings.

Washington, January 6.-The New
York. New Haven and Hartford Rail-
road and the Department of Justice had
reached o point in their negotiations
tonight where it Is almost certain that
leh final policy of the government to-
ward that road will be announced with
in the next forty-eight hours. If the
New Haven agrees to d complete reor-
ganization which Will insure the re-
storation Of what the department con-
siders fair measure of competition, in
the held of New England transportation,
IL Will be allowed to pursue it's plans for
such reorganization virtually unmo-
Tested by the government. If the rail
road prefers to fight, Attorney-GeneraI
NcReynolds Will institute proceedings
under the antitrust act to divorce the
New Haven from its steamship, troll
ley and railroad holdings.
Unofficial predictions tonight ia
vored the peaceful plan.
The confident feeling that the New
Haven and the department will arrive
at solution which will avoid long
struggle in the courts followed an all
day conference between Howard Ell
Nott' chairman Of the board of the rail
road; Acknowledgement McRcynolds
and I. w. Gregory and Jesse G.. Ad-
kins. special assistants to the Attorney
General
Mr.. Elliott tonight announced he ex-
pected TO remain in Washington until
consultation with department officials
tomorrow, he will keep in close touch
with the situation.
Agreements Sought.
To satisfy the department, the New
Haven must agree:
To relinquish control over the Bos-
ton and Maine.
To cancel its joint agreement with
the New York Central for the opera
ton of the Boston and Albany.
To dispose of its trolley lines OF New
England and it's steamship operation
between New York and points on Long
Island Sound and New York and Bos-
ton and southern ports and Boston.
BY semioiIiciai announcement. direc-
tors of the roads have disposed OF the
first two propositions.
To comply with the provisions of tho
Panama Canal act, tho New Haven
must dispose of its steamship lines by
June l. The question of the trolley
lines has been one point which troubled
both the department and Chairman FL
lott. There was suggestion that the
New Haven might put its trolley lines
in the hands of trustees, who would
operate them and then dispose of the
stock to other parties.
There has been no disposition on the
part OF the Attorney General or his
assistants to bring up in the discus
sions With Mr. Elliott the question OF
criminal proceedings against former
New Haven officials or directors. This
matter will be settled after the pres
ent problem has been solved.
Following the conference, Attorney
General McReynolds declined TO make
any formal statement. He said he was
strongly hopeful. and believed n set
tlement would be reached out of court
in line with the policy OF the admins
tration that would be fair and just
to the road and to the public.
Mr. Elliott, he said. was dealing with
the subject matter in fair and frank
manner and seemed to be solicitous of
! meeting the requirements Of tho gov
ernment.
Statement by Elliott.
Chairman Elliott made no statement
beyond few words, general in char
acter.
81 dislike the term making pro-
gress.'" said Mr. Elliott, but 1 sup
pose that best expresses IT. l am here
alone for the New Haven, and expect
to be in touch with the department for
several days. I should like very much
to give the public definite details. but
the Attorney General feels that ali in
terests will be best served by silence
on our part until some positive agree
! ment has been reached. Beyond that
l do not care TO say word"
When asked If the subject of the
probable criminal prosecution of the
former officers of the road had been
discussed. Mr.. Elliott was mute. He
refused absolutely to discuss it. It is
known. however. that if an agreement
satisfactory TO the government is
reached any plan that may have been
tentatively formulated looking to
criminal prosecution will be aban-
doned.
| 1t can be stated with absolute posi-
| tivcness that the Attorney-Gene be-
lieves he is acting in line with the
Presidents wishes IL he disposcs OF
this New Haven problem without 60
ing into the courts. just as he did in
the case against the telegraph and