The Washington herald., 1914-08-12
new HAVEN ROAD
SUITS SETTLED
Directors Capitulate and B.
& M. Stock viii Be Sold
by Trustees.
GAIN TWO CONCESSIONS
May Keep New England and Rutland
Roads and Possibly Its Sound
Steamships.

An agreement has been reached BE-
tween the government and the New
Haven railroad for an immediate adjudi-
cation OF the antitrust suit which wat
filed at New York in July.
The New Haven will accept all OF the
provisions of the reorganization agree
rnent perfected last January. the repudi-
alton Of which resulted in the govern
ment's suit. The only important change
in the January agreement concerns the
sale Of the Boston and Maine stock now
owned by the New Haven. Instead of the
two years and a half allowed for the
sale Of this stock by trusteeship. the
New Haven has agreed to cut this period
to one year .. 30 l
II was the provision for the sale OF the
Boston and Maine. which had been COM
plicated by the assertion of the State OF
Massachusetts, OF its right to stamp
every share Of the stock with an agree
nent By the purchaser to sell II 10 that
State upon demand, which finally dis
rupted the negotiations between the gov
eminent and the New Haven and brought
on the suit IN equity.
VIII Order Sale.
Under the agreement which was an
nounced today. the sale OF the Boston
and Maine is to be made within one year
by the same trustees who were appointed
under the old agreement.
II. at the end OF that period, the trus-
tees have made no sale the matter is to
be taken before the court which will or
der Its sale under conditions to be fixed
by it. The court will then face the pro-
blem Of recognizing or ignoring the
rights OF the State of Massachusetts.
In the meantime. the, New Haven will
have annnFfmnitv IN 30 hafnRa he
chusetts legislature In January TO seek
to have the charter OF the Boston Hold
ing Company. which governs the sale Of
the Boston and Maire amended to re-
move the condition that the stock be
stamped as described.
BY accepting the January agreement
the New Haven gains two concessions
from the demands made by the govern
ment in the Sherman antitrust law
suit 1t will be permitted TO retain the
New York and New England Railroad
and the Rutland RAILROAD, and the ques-
ton OF the sale Of its Sound steamship
properties will be left to the Interstate
Commerce Commissions Interpretation Of
the Panama Canal act
The January agreement provided for
The sale OF the Merchants and Miners
Company. the cancella-
ton OF the Boston and Albany agree
nent with the New York Central, the sale
" the water terminal properties OF the
New Haven. and the sale OF the Rhode
Island and Connecticut troIleys, each un-
Ter trusteeships limited to FIVE years.
The plan for adjudicating the suit was
worked out Rt conference between At
orney General McReynolds and of1cIals
II the New Haven In New York last
and Monday. II was approved
~ the New Haven directors today.
Affects No Other suit.
The agreement will be embodied in the
orm OF an agreed decree, which will
,e fled in the District Court OF New
fork Immediately.
The agreement does not in any way
lffect the decision OF the Department OF !
Justice, acting under instructions from |
President Wilson, to .proceed criminally |
against the directors of the New Haven !
responsible for the formation of the |
alleged transportation monopoly. The |
criminal proceedings, II is learned on |
high authority. will oe initiated before |
he Federal grand jury at New York |
within two weeks.
There have been reports that the |
Pacific would enter the market |
or the Boston and Maine with the pur- |
'ose of diverting its traffic mover, the !
Pacific, into Canada. A pos |
lble purchaser also was said TO be the |
Delaware and Lackawanna, which Nigh. /
Ilso have diverted the traffic OF the |
Boston and Maine TO other ports than |
Boston
In accepting the agreed decree the
View Haven will confess to all the
.harges of the governments suit, it is
tated tonight. Provision will be made