The Bridgeport evening farmer., 1914-07-22

washington. July Preparations for the actual flling of the govern ment's long delayed suit to dissolve the New Haven railroad system in accordance with President Wilson's 8 in- structions, were being made today by the department of. justice. In a let. ter to Attorney General McReynolds, the President not only directed that civil action be instituted against the New, Haven but ordered that the crinl- inal aspect of the case be laid before a federal grand jury.
 Decision to proceed against the New Haven ended the long continued efforts to solve the case without litigation. The President and his cabinet had dis ccssed the case and the course or the department of justice was approved
 The civil suit was to be dled against the New Haven in the United states court at New York Immediately The attorney general also immediately was to direct the United States district attorney at New York to summon grand jury and work of laying evil dence before 1t on which to ask for criminal indictments against officers and directors of the New Haven under the management of former President Charles s. Mellen, was to be begun at the earliest moment.
 T. W. Gregory, special assistant in C0aTR0 case, charge Of the civil suit and, before the grand jury, was to have the aid of F. M Swecker, an Interstate Com merce Commission expert who assist ed him in preparing the evidence How many indictments were to be sought had not been divulgeds early today but correspon made public plainly in- dicated that MT. A6cReynolds expected to ask for bill against MT. MeIlen.
 The most significant fact in connec- ton with the proceedings was said to be a statement made public by MT. McReynolds months ago when the in terstate commerce commission began its New Haven investigation in which he warned the commission to consider whether Immunity might be given to certain men if made to testify as to their actions as directors of the road.
 The names he mentioned were Chas. S. Mellen, William Rockefeller, George Miller, Charles F. Brooker, Edward Milner, Lewis Cass Ledyard, George F. Baker and Edward D. Robbins.
 In his letter to MT. McReynoIds de- claring suitss, the President declared that, the. decision siof the New Haven directors not to keep their agreement to dissolve peacefully had caused him ''the deepest surprise and regret and that their failure upon so slight a pretext'' was tinexplicabIe and entire ly without justfdcation.'' The depart ment's course. he asserted, was just, reasonable and efficient and should have resulted in avoiding suit
 Mr. McReynoIds stated that criminal prosecution had been in mind that there had never been "the slightest hope that parties guilty of criminal violations of the law would escape | It is known that the department has what it believes is evidence that MT. Ade1len gave testimony to the commis- sion contradfcting evidence in the pos session of the attorney general and 1t is possible that if any claim of irn- munity is raised, it would be fought on this issue.
 MT. McReynolds' letter to AGr Hustle plainly showed that the department took the position that the New Haven directors had not lived up to thelr tagreement Of last March for a peace full dissolution and their refusal to sell their Boston & Maine stock under con- ditions imposed by Massachusetts and placed the blame for what might fdI- low upon the heads of these direc- tors.
 Here is the presidents letter to Mir Mo Reynolds directing the beginning of l civil and criminal action;
 l s7Tne White House l 'sJuly 21. 1914 My dear MT Attorney GeneraI:I I have your letter of today enclosing a copy Of your letter of July g. to MT J. H. Hlnstis, president of the New.
 
 road Go, which, together disclose the failure Of the directors of the New 1 York. New Haven 6 Hartford Rail- road Co. to comply with the terrns of settlement proposed by them and ac- | cepted by us in the matter of their l railroad holdings.
 Their, final decision in this matter 1 causes me the deepest surprise and regret Their failure upon so slight a pretext to carry out an agreement deliberately and solemnly entered in to- and which was manifestIy in com l mon interest is to me inexcusabIe and entirely without justification.
 You have been kind enough to keep me informed of every step the depart
 ment took in, this matter, and the ac- 1 ton of the department has through | out met with my entire approval It was just. reasonable and efficient It should have resulted in avoiding what must now be done.
 1 Tn the circumstances the course you propose is the only one the govern ment can pursue. I therefore request I and direct that a proceeding in equi- 1 ty be filed seeking the dissolution : of unlawful monopolization in New En- gland territory, now sought to be maintained by the" New York, New Haven and Hartford Raidroad Go and that, the criminal aspects of the