The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-07-22
DIRECTORS MUST
ANSWER IN COURT
Continued From First Page.)

much data bearing thereon was COL
lected months ago. and care has been
might interfere with proper prosccu-
have not held out the slightest hope
lions OF tho law would escape.
In April and May last. there being
Nigh; iinmunizc certai figures In the
carefully 20 consider the effect of
perhaps others. nagrantly culpablc.
were put upon tho stand. and any
criminal prosecution hereafter insti-
tuted probably will be embarrassed by
claim of immunity interposed in their
behalf.
With tho utmost patience and an
intense desire TO enforce the law in
such way as to bring no unnecessary
hardship upon New England or the
unfortunate holders OF the railroad SC
curitics, We have sought TO compel a
restoration of lawful conditions: but.
as believe, without proper justifica-
zion. the board OF directors rcsolutely
decline to proceed under an approved
arrangement adequate to that end and
altogether fair.
Il am of the opinion. therefore. that
tho time is at hand when we should
file a proceed Ing In equity. seeking the
dissolution of the unlawful monopoly
Of tra1sportation facilities in New
poets should be laid before grand
jury.
IF these suggestions NEE, with your
approval. will Immediately give the
necessary directions"
REVIEWS At LENGTH
FUTILE NEGOTIATIONS
The letter OF July . to President
Husus reviews at length the futile ne
gotiAtions which have resulted In the
governments decision 10 bring both
civil and criminal suits. In fun, 1t is
as follows:
TO your letter OF July Sth. inclosinE
directors OF the New Haven Railroad
Company on June 25th and July sth.
respectivcly. also have a letter of
July 9Th from your counsel Mr.. Moore
field storey. Of Boston.
nounce. because the statute recently
passed by the Massachusetts LcRisla-
ture, granting power to the New Haven
majority OF the stock OF the Boston
and Maine Railroad Company. reserves
TO that Comiaonwealth the right at any
at IA / valuation to be ascerta ined
by legal processes. your directors feel
at liberty to abandon any further eff
fort to comply. with the solemn pro-
posals which they heretofore made to
me. and which were approved as ade-
quate 10 bring the affairs of that com
II cmphatically object to the course
proposed. and submit that II is without
Their action raises a question OF
very large public Importance demand
Ing serious consideration; and. If per
sisted in. Your company. its officers and
directors must accept the sole respon-
sibilHy for the inevitable consequences.
shortly after the present admins
ployed special counsel and set OH foot
an investigation of the affairs Of the
New Haven Railroad for the purpose
In due time. II developed that the anti
trust laws were being violated. and T
aceordinEly directed the preparation OF
infractions. Before this could be writ =
, ,e,nH And tied; and about the LIST Of Sep
management of your road.
WE'RE POINTED our
shortly thereafter. its accredited
intcTvie~ with me, expressed a sincere
desire TO comply with the law and
they thought would fall upon all New
England II suit were Instituted. They
we're especially anxious to obtain time.
acting in the utmost good faith |
withheld the suit. and much time and
labor we're expended in negotiating the
details Of an adjustment.
In working these out, informat ton
ana suggestions were received from
many sources. and tho utmost liberal
problem, so that the law might be
fairly complied with and substantial
competition in transportation in New
smallest possible immediate damage
TO the industrial and financial situs-
ton
The plan finally evolved was &C
cePted with practical unanimity both
by the directors and stockholders OF
%our road. The disposition by the New
stock OF the Boston and Maine was
an essential.
In the. year 1909. in order to enable
Boston and Maine, tho massachusetts
Legislature created the BOSTON Rail
road Holding Company. giving II au-
road. and. az the same time. author
lied the former road 10 own the stock
OF the holding company. The act also
expressly provided that the holding
company should not sell its Boston
and Maine stock. nor should tho New
Haven road sell the stock OF the mold
the Legislature. and. further. that the
state should have the right TO pur-
chase the stock Of the holding COM
scribed way.
The agreement which YOUR COM
pan? has With INC prrovIdes that It viii
propose to the Legislature to amend
the charter OF the Boston Railroad
Holding Company. removing tho pro-
hibitinu against the sale OF the Boston
holding company.
LEGISLAT't'H AUTHORIZES
STOCK DISTHIRI TION
In due time tho Governor did make
this request, and, responding thereto
the Legislature passed an act rcmov-
ing the prohibition and authorizing the
distribution OF the stock.
"a further prohibition declares this
stock may ~ any time he taken or
purchased 1T a fair value by tho Com
monwealth OF Massachusetts in ac-
cordancc with Law. and requires this
to be stamped upon the certificates
themselves.
1T must he remembered that. over
since 1909, the Commonwealth has had
the right TO purchase the New Haven
Holding Company stock a; a valua-
ton TO be determined III substantially
tho same way as liz now provided in re-
spcct OF the Boston and Maine stock.
and. therefore. the New Iavens in
;crest IN the Roston and Maine Rail
road is not subjected by the recent
statute TO any restrictions moro bur
densome than those imposed upon it
when the New Haven was authorized
10 acquire IT,
OBVIOUSLY. it is now within tho
power OF the New haven Railroad 10