New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-22

In effect these communications
announce that. because the statute
recently passed by the Massachu-
sets Legi stature granting power -
the New Haven Railroad Company
TO dispose of its interest IN the
majority stock OF the Boston X
Maine, reserves 10 that common
wealth the right at any time here
after TO purchase such stock at
fair valuation. TO be ascertained by
legal processes. your directors feel
At liberty TO abandon any further
effort to comply with the solemn
proposals which they heretofore
made to me. and which were ap-
proved as adequate TO bring the
affairs Of that company into com
pliance with the Law.
emphatically object 10 the
course proposed. and submit that 1t
is without justification. Their ac-
ton raises q question of very large
public Importance demanding sen-
Gus consideration, and. if persisted
in, your company, its officers ana
. directors must accept the sole re-
sponsibility FOR the inevitable con-
sequences.
Shortly after the present admin
istration entered upon its duties. /
employed special counsel and set
on foot an investigation OF the af-
fairs Of the New Haven Railroad
for the purpose Of ascertaining the
exac. conditions. In due time u
developed that the antitrust laws
were being violated, and J. accord.
ingly. directed the preparation OF
q bill 10 restrain and prevent
further infractions.
Before this could be written and
filed. and about the first OF Sep
tember last. there was a change ~
the management OF your road.
shortly thereafter its accredited
representatives came here. sought
an interview with me, expressed
slrcere desire 10 comply with 'he
law and pointed cut the evil con
sequences which they though
would fall upon Ill New England
If suit were instituted. They were
especially anxious 20 obtain time.
and led me 10 believe that they
were acting IN the utmOs' good
faith.
lime and labor were expended III
negotiating the details of an ad-
iustment. In working these out,
information and suggestions were
received from many sources. and
the almost liberslity was exercised,
in a sincere effort TO solve a great
problem. 50 that the law might be
fairly complied with and substan-
tial competition in transportation
I'm New England be r-establlShed,
all with the smallest possible I'm,
mediate damage TO the industrial
and financial situation.
B. & VI. Stock the Crux.
The plan finally evolved was &C
cepted with practical unanlmlty
both BY the directors and stock
holders Of your road. The dlSpo-
sition by the New Haven road OF
its interest in the stock Of the
Boston X Maine was an essential.
In the year 1909, in order to
enable the New Haven Railroad 20
control the Boston & Maine. the
Massachusetts Legislature created
the Boston Railroad Holding Com
pany. giving il authority 10 hold
stock in the latter road, and at the
same time authorized the former
road to own the stock of the hold
ing company. The act also express
" provided that the holding COM
pany should not sell its Boston &
Maine stock. nor should the New
Haven road sell the stock OF the
holding company. without the con-
sent Of the Legislature; and. fur
Their. that the state should have
the right 70 purchase the stock Of
the holding company at a price TO
be fixed in a prescribed way.
The agreement which your com
pany has with me provides that It
will ask the Governor OF Massa-
chusetts TO propose TO the Legis-
laturc "to amend the charter of the
Boston Railroad Holding Company,
removing the prohibition against
the sale of the Boston & Maine
stock now owned by the holding
company
I'm due time the Governor did
make this request. and. responding
thereto. the Legislature passed an
act removing the prohibition and
authorizing the disposition Of the
stock A further provision declares
this stock may at any time be
taken or purchased by the com
monwealth OF Massachusetts, a the
fair value thereof in accordance
with law" and requires this 10 be
stamped upon the certificates
them selves.
i must be remembered that ever
since 1909 the commonwealth has
had the right 20 purchase the New
Haven Holding Company stock at
valuation 20 be determined in
substantially the same way as Is
now provided in respect OF the
Boston & Maine stock; and there
fore the New Havens interest IN
the Boston & Maine Railroad is
not subjected by the recent statute
20 any restrictions moro burden
some than those imposed upon 1t
when the Ncw Haven was author
izcd 20 acquire 1t.
Obviously il is now within the
power Of the New Haven Railroad
20 carry out the agreement and
understanding which It's repre-
sentatiyes made with me. ana
thereby 70 remove all question o.
good faith and prevent ali Of the
calamitous results 10 the public
interest which they so earnestly
represented would follow the insti-
tuition o. suit by the government.
Sees No Loss OF y. 4 VI.
lou, counsel. referring 20 the
Boston y Maine stock, now IN ci-
feet owned d. The New IA. zen. say
tJ8 hc r.ccal enactment "retan5
10 conaol oy Mas. chu cts over
'.e stock 20 such an eXtcI, as %
mae J., uimarkefablc.' anG upon
tris ground It .s Ought 10 justify
tho action vh.ci youf directors
oropO ed 10 take.
Nan'fcstiy ,hc only possible
GeicteriOus acc, OF tro corlrcl re
tained 10y tn commonwealth over
VI ,tt. .fagk VsIl1'I