The Washington herald., 1914-07-22
New Haven to the BAR.

Directors Of the New York, New Haven and
Hartford Railroad are reaping the whirlwnd. What
ever may be said of the wisdom of the government in
instituting civil and criminal SUITS against them at
this tide in the countrys affairs the administration
course is likely to be approved by majority of the
public outside of the New Havehs stockholders, for
the principal reason that these directors result
of their fragrant acts in the past have far less claim
on public sympathy than those in control of other
roads, who, though their management may not have
been wholly above reproach, have long since made
amends. ....
Even as the case of the New Haven directors
now stands they are not without argument on their
side, but it will have little weight in forming the
public verdict. Suits are be brought the President
and his Attorney General have decided, because the
New Haven directors have finally refused to carry
out their agreement with the administration reached
last autumn which involved the disposition by the
New Haven of its interest in the stock of the Boston
and Maine The letter of the Attorney General to
President Hustis of the New Haven, indicates that
the New Haven's refusal to carry out the terms of
the agreement is due to its failure to obtain all the
relief it sought through an amendment by the Massa-
chusets legislature to the charter of the Boston Rail-
road holding company. The application for such
amendment was made part of the agreement, and it
to have been the expectation of the New Haven
directors that the amendment would remove all re-
strctons upon the sale of the Boston and Maine stock
The amendment, however while authorizing the dis
position of the stock, provided further that this
stock may at any time be taken or purchased by the
Commonwealth of Massachusetts at the fair value
thereof in accordance with law"
With reference to this aspect of the the At
torney General in his letter President Hustis, says
1t must be remembered that ever since 1909 the
Commonwealth has had the right to purchase the
New Haven holding companys stock at valuation
to be determined in substantially the same way as IS
provided in respect of the Boston and Name
stock; and therefore, the New Havens interest IN
the recent statute any restrictions more burden
some than those imposed upon it when the New
Haven was authorized to acquire 1t.
Here it seems is practically the whole contention
that has brought about the present crisis The New
Haven expected that the amendment would render
the restrictions less burdensome while the Attorney
Generals view is that they should consider them
selves lucky that they were not made more So
The situation is not altogether one-sded The gov
ernment on the one hand, is determined to compel
immediate compliance with the Federal statutes while
the New Haven is taking advantage of every possible
opportunity to obtain better market for its S22,
100000 in Boston and Maine stock. New Haven's
past history however, will array public sympathy on
the side of the administration, however much pro-
onged legal battle railroad finances may be de-
plored at a time when the securities markets are
abnormally sensitive to new rritants.
In his letter to President Wilson, Attorney Gen
eral McReynolds says:
In April and May last there being indication that
the Interstate Commerce Commission by examining
them might immunize certain central figures in the
unlawful arrangement it asked carefully to
slider the effect of such action Nevertheless Meen
and perhaps Others fagranty culpable put upon
the stand and any criminal prosecution hereafter in
stituted probably will be embarrassed by claim of
immunity interposed in their behalf.
Rather broad criticism of the Interstate Commerce
Commission from the Attorney General and carrying
something OF comfort if assurance, to Mr. Mellen
and others.