New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-08
Directors Alleged to Have
Obtained Implied
Immunity"
FURTHER ACTION is
FOR STOCKHOLDERS
Government Officials Expect
Good Results to Follow
Recent Exposures.
From The Tribune Bureau


Washington, June THE investisa-
ton Of the New Haven Railroad sys-
TEN is practically at an end and the
question that now arises is, What VIII
the next step be? So far as the gov
eminent is concerned, there is only one
thing in which it is interested and that
is the dissolution Of the system II is
asserted that once this is accomplished
its activities will end, even TO the
prosecution Of the directors for VIOLA
ton Of the Sherman law.
II was learned here to-day that DaVld
Lamar tried TO get into the New Haven
investigation, and might have sue
ceeded had not the Interstate Com
,nerce Commission learned Of his &C
tivitics and issued strict orders TO It's
employees TO have nothing 10 do with
him.
There will be echoes Of the investiga-
ton when the report of the Interstate
Commerce Commission reaches the
Senate. Indignant" Senators are
nervously waiting for It.
While Il is true that stories emanat-
Ing from the Department of Justice are
n the effect that criminal prosecution
Of the New Haven directors was in
contamination. il was learned tonight
that IL the dissolution proceedings were
successful the directors Of the New Ha-
ven would be immune from any prose-
cution under the sherman law, which
is the only act under which the At
torney General can bring proceedings
in their particular case.
Mr.. McReynolds has not made any
definite agreement not to prosecute the
New Haven directors. On the contrary
he has held out the possibility OF prose-
cution for suppressing competition over
their heads TO force his dissolution
plan. 1t is by so doing that he has al
lowed them immunity from prosecu-
tion according to experienced lawyers
II is what is called implied immunity
and if the dissolution proceedings are
successful it is believed the activities
of the government will end.
ANY further action will have TO come
from the New England States and
stockholders of the road. If they think
they can find ground for it. Governor
Walsh has sent a message to the Mas
sachusetts Legislature urging the en-
actment of legislation that will enable
the New Haven to divorce itself from
the Boston & Maine. Once this legls-
lation is passed the Attorney General
plan Of dissolution is complete, ana MS
activities in the case will practically
come to an end.
AS TO the investigation just ended
there is a conviction among those in
terested tlat its one good result will DC
that herr after directors of large cor
porations will keep a closer watch on
their executive officers and see 10 IL
that they do not run things in way
that may get them into trouble. Jo-
seph W. Folk said tonight that the IN
vestigation would make directors much
more careful in the future.
According TO the testimony at the
investigation. things are much changed
since Mellen's retirement and the Sc
lection Of Howard Elliott in his place
Mr.. Elliott. it was said, took his di-
rectors into his confidence and dis
cussed his plans with them, and it was
asserted a rejuvenation of the road was
taking place.
Mr.. Folk will 60 TO New York to-
morrow night to confer with the ex-
aminers at work on the books Of J. P
NTnrCan &.