New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-15
MAY NOT INDICT
N. H. DIRECTORS
Department of Justice Will Not
Decide Pending Dissolu-
ton Negotiations.

Washington, July 14.-Final determ-
nation of tie question whether Grim
inal indictments shall be sought by the
Department of Justice against direc-
tors of the New Haven Railroad prob
ably will not be reached until the con-
clusion of the negotiations for peace
full dissolution of that system. The
fate of these negotiations is said to
depend largely on the action of the
New Haven board at meeting in New
York on Thursday.
The department cannot reach the
NV Haven directors for any of the
financial transactions which brought
on their heads the condemnation of
the Interstate Commerce Commission.
IL can act only through the antitrust
law, which has =. section making it a
criminal offence TO enter into a con-
spiracy in restraint of trade. Past ex-
perience with this section has not en-
couraged federal law officials to ask in
dictments for directors or other Of
ficials of alleged combinations which
it sought to dissolve. Juries have been
loath TO render verdicts of guilty and
judges have not been disposed to i'm
pose prison sentences. The widespread
publicity given to the New Haven case,
however, and the unqualified assertion
Of the Interstate Commerce Commits
sion that the directors of the New
Haven knew that they were acquiring
and combining competing properties
may put a different aspect on this
case.
Ii has been known for months that
the Department of Justice has had a
great amount of information concern
ing the New Haven, much of which is
in accord with the information secured
by the commission, but some of which
is said to contradict testimony given
by prominent witnesses at the COM
missions investigation. This contro-
dictory evidence was not accepted by
the commission, but IL indictments are
sought it may be laid before grand
jury to settle the question of whether
immunity has been given to witnesses
who helped the commission. If a con-
tradiction is shown clearly, some of
ficials believe, immunity may not be
granted.
1t has been we'll understood in ad-
ministration circles that the depart
ment is anxious to get the civil disso-
luton of the New Haven out of the
way before it takes up any other phase
of the case. According to the depart
ment theory of the matter, the New
Haven grip on the transportation of
New England is absolute, and il is
more imperative that it be broken than
that a few indictments be asked for
which could not in any way restore
competition to that section.
Springfield, ILL.,, July 14.-Followinp
the sensational developments in the
government investigation into affairs of
the New Haven Railroad comes the re-
port Of Insurance Superintendent Rufus
NJ. Potts, showing the extent to which
insurance companies doing business in
Illinois are affected. 1t shows that
forty-three outside fire insurance COM
panies operating in Illinois hold stocks
and bonds in the New Haven Railroad
amounting to s6,907 900, not including
investments in the many subsidiary or
CARNATIONS.
"The companies have reported this
worthless stock TO the department at
the above figure" Superintendent Potts
says.
The headquarters of most of the com.
panies are in New York and the New
England States, and Superintendent
Potts says that for these companies 10
carry approximately 100000 OF
worthless paper is a circumstance that
cannot be overlooked, and he is pre-
senting his conclusions to the United
States government Investigators, asking
that they extend their inquiry 10 in
clude the transactions Of these COM
psnies with this railroad as shown by
"their enormous so-ealled invest
mcnts'n