The Sentinel=record., 1914-07-21
WILL BE BROUGHT TO DISSOLVE THE COMBINATION OF RAIL
 AND WATER LINES.
Last Effort Is 10 Be Made For a Peace able Dissolution and Suit Will Fol. low at Once.

States District Court at New York within the next few days.
 Final effort today to settle the problem without Irrigation ended in failure although the attorney general, T. w. Gregory, special assistant :n charge of the case, and a committee came to discuss the sale of the Boston and Maine stock owned by the New Haven. It desired this sale to be free of conditions imposed by the state of Mass, and is said to have declared that an unconditional sale of the Boston and Maine stock would insure price $i0,000,000 above what the New Haven might otherwise hope to get.
 The New Haven case will be laid be- fore President Wilson and the cabi net tomorrow. It is not doubted that the departments course will be ap- proved There is little doubt here that on the heels of the suit will come an effort to have a federal grand jury in New York return indictments against many directorss of the New it was building up a system which the attorney general holds in a com bination in restraint of trade. Both the civil and criminal actions will be taken under the Sherman law. The outcome of these proceedings may determine the value of the sherman law as a criminal statut.
 To the civil suit the New Haven sistance.
 In the governments bill the New Haven will be charged with being monopoly in control of New England's transportation, and with being com bnation in restraint of trade and n violation of the sherman law. The de partment is expected to ask that the court separate the New Haven from it's so-called Sound Steamship lines which ply Long Island Sound and run l from New York to most of the ports along the lower New England coast
 Features of the argument made last March with Chairman Elliott and New Haven attorneys which the bill is expected are fonUw.
 That the New Haven be required to divert itself of control of the Boston it's holdings in the Connecticut and and Maine Railroad; that it give up Rhode Island trolley lines and the 1 Berkshire trolley ines and it's minority interests in the Eastern Steamship corporation. There will be the GUS tomary plea for an order requiring the New Haven to dissolve, and for d mandate to prevent a future combin ation of similar charactc
 President Hustice, A. T. Hadley, T. Dewitt Cuyler and Moorfield Storey, counsel for the road, were the com mittee that made the finaleffort to settle the case without litigation but their suggestions were not accepted In a statement issued at the close rt ! the day. President Hustis plainly in dicated that filing of the government suitwas expected.
 The stumbling block in the negotia- tions has been over the disposition of | the Boston and Maine stock controlled by the New Haven. It was agreed l by both parties months ago that 1t should be sold. The state always pos sessed of the right to buy it, recently enacted legislation permitting it's saie but on the condition that on each share sold this right be plainly set forth. The New Haven directors said 1 they were unable to accept this con dition. They suggested that the de- partment thake the matter into court and ask for decree, to which they world assent, disposng of eyry issue [ but that of the Boston and Maine. In the meantime they proposed that this stock be turned over to trustees who should sell it without the condition imposed by Mass.
 They indicated that it's unrestricted sale would mean $10,000,0O0 to the NEW fidNEH. AlNblHtN ASAtlaA .A~ Reynolds did not ike the plan. More over it was said at the department that the March agreement provided for the sale of the Boston and Maine stock. but made no mention of condi- | tions imposed by Mass. Department officials take the position that the New Haven has not lived up to this agreement.
 At the conclusion of the conference President Hutis gave out this state ment approved by his directors;
 The directors find themselves una. ble to recede fromthe position which they have taken and presume that the attcrny general will therefore decide to file his bill in order to determine the questions between the company and the government But it is hoped that after the bill is filed 1t will be possible to make such arrangements as will reduce the points of difference to q minimum and secure "a prompt