Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-11
New Haven Railroad Company
Agrees to Reorganize on
Terms Demanded by F ederaI
Government,
DISSOLUTION SUIT
NOW NOT NECESSARY
Department Of Justice Regards
Achievement as More Signi-
fcant Than That Of Ameri-
can telephone Case,

10y MORNING louRaAl srGetAl lSlsra w,Hsl
Washington Jan no. The Now
York, New Haven a Hartford rails
road and the department of justice
tonight announced preliminary
agreement designed To effect re
organization of the New Haven and
to prevent a. suit for It's dissolution
under The Sherman law
In compliance with depar ment de-
mands, The Now Haven VIII dispose
of it's holdings in the Boston a. Maine
railroad, cancel its JOINT agreement
controlling the Boston & Albany and
give up It's trolley lines and several et
It's steamship lines The question 1f
ms retention of the so-called SOUND
lines Of steamships win be left, for
the present at least, 90 the Interstate
commerce commission Under the
Panama canal act the road Is re-
auired to give up all steamship hold
ings 10y July !, unless the commission
finds that their continued operation
by the railroad is 70 the commercial
advantage Of The people and not 10
restraint of competition
II was conceded tonight that the
department Of justice gained prac-
tically every point it demanded. An-
uOuncement Of the agreement WAS
made ia the following statement from
Hartman tlm9ra 2iiett and Presi
dent Arthur H. Iladlcy. of Yale,
member of the New Haven hoard.
AN agreement has been reached
between The department of Justice
and the New Haven railroad. Tine
New Haven, in addition To the eancel-
lation Of The Boston & Albany agree
ment, which becomes effective Feh-
ruary /, will dispose OF it's holdings
i'm the Boston a. Maine railroad the
various trolley systems the Merchants
q Miners Transportation company
the Eastern steamship corporation
and the Maine Steamship company.
under a plan, the details OF which Will
be worked out as promptly as possi-
BILE with representatives, Of the de
partment Of Justice, by Chairman
Howard Elliott aud Messrs. Moor
field Storey, Of Boston, and Walker
d. Hines. Of New York special conn I
sci OF the board of directors.
Concerning other steamship lines
application has been made under thn
Panama canal act "a the interstate I
commerce commission and thelr dis
position viii be determined by that
body. Unul the plans are worked on,
and put into effect, the management
and operation Of the properties will
be continued ls nj present. The con
ference was between the attorney
general ana Special Assistant to tho
Attorney General r. W Gregory.
Assistant Attorney Genera Jesse Ca,
Adkins, and Special. Assistant 10 the
Attorney General Frank M. Swacker.
the department of JUS
ice. ana Mr Howard Elliott Mr. Ar.
hur r. Hadleg and Mr.. l.. S. storrer
the New Haven com
1any
The announcement Of the agree
nent docs not have any bearing ON
he much talked Of criminal suits
against former directors and officials
If the New Haven road There has
leen no decision by department Off
lals upon this point, and probably .
here viii be none for several weeks.
iome officials are known to feel that
uch suits would avail little. since the
nen generally understood to be ro-
ponsblo for financial operations in !
Giving the New Haven probably could
.ot be reached by the federal gov.
rnment
Officials Of The department OF jus :
Toe were Of the opinion tonight that
he New H1von agreement was as
ig q victory for the principle of
eacefm settlement OF antitrust cases
S that registered in the case Of ahe p
merican Telephone d Telegraph
ompany They pointed ont that the %
of the New Haven were v
reatcr than IN the telephone ease .
nd that the effect Of a suit to sep g
rate the New Haven from It's great =
oldings in other corporations might o
ave resulted in disaster to The road q
self aud In reflex action upon busl- u
ess that would have been widely felt o.
Thev recognized the fact that the Y
cw Haven could not bc expected "a I"
ispose of its holdings IN few
lonths Thoy recognized the weight ]
{ the argument that to force the f
1ad 10 get rid of its holdings within ri
specified time merely would permit
respective buyers 20 wait until tho
me limit expired and then pay their
VIZ prices e'
As long as Chairman Elliott and p
Is associates IN the reorganization Id
low their intention 70 carry out the et
rms Of the agreement assurances ot
ere given that The department OF W
Istice would not press them too harl II
t haste. sa
Although no one in authority would III
-edict how long q time such % re. th
as Is contemplated viii lpt