The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-23
Continued from First Page.

at great sacrifice ana hampers very
seriously all efforts to reorganize the
Boston and Maine Railroad
me committee called attention also
10 the fact that the right which the
Legislature seeks to acquire by the recent
act is very different from the power
reserved In the acts incorporating the
Boston Holding Company. since these
gave Massachusetts the power not to buy
the Boston and Maine shares but only
the shares. bonds notes and other evil
dences OF Indebtedness" issued by the
Boston Holding Company, and this upon
condltion that 1t took them all and at
tne same time relieved the New Haven
company from all Its obligations as guar
antor OF those securities.
me New Haven company has guar
anteeu the principal and dividends on
s's.9Ss shares OF preferred stock issued
ny the holding company, of which $4,000
worth at par s2,soO.oOo. are outstanding
IN the hands OF the public. These shares
are all secured by a lien on the Ros,on
ana Maine shares and the proposed act
gives the right to take this security with
OUT assuming the New Haven companv's
liabilities as guarantor.
me committee assured the Attorney
General or the company's desire to carry
OUT the compromise agreement OF March
II IN all respects. but that they could
valuable an asset as the Boston and
Maine stock. worth in their Judgment far
more than Its present market value would
indicate and sorely needed to help TO pay
the present debts OF the company.
They suggested methods of reaching
the result which both parties desire, and
In so doing did all that was In their
power to secure settlement without
violating an obligation recognized by the
Attorney-General himself In the original
memorandum OF settlement agreed to on
January 10, from which the following
words are quoted:
The Department of Justice recog-
nizes the obligation incumbent on
directors to conserve as far as cir
cumstances permit the value OF its
stockholders property and to protect
those stockholders from the conse-
quences - past acts and so far as
II properly may will endeavor to aid
the directors in discharging those
obligations.
The Attorney General has decided that
1t is his duty to bring his suit for dis
solution OF the system and there IL now
no existing agreement between him and
the representatives OF the company. but
the directors hope that "A way will be
found after the suit Is brought through
negotiation and action Of the court to
carry out the compromise agreement and
thus achieve a result which all parties
earnestly desire"
No official word from Washington was
received by Unitei States District At
torney II. Snowden Marshall Yesterday
concerning the suit in equity which Pres
ident Wilson has directed Attornev-Gen-
eral McRevnolds to bring against the New
Haven Railroad to compel dissolution Nor
was there any word OF the criminal side
OF the case which will probably be laid
before the Federal Grand Jury here.
The only part District Attorney Mar
shall will have with the action here will
be to sign the necessary legal papers and
to call the session Of the Federal Grand
Jury
ION taking office" said Mr. Marshall.
II Informed Mr. McReynolds that was
counsel for Alfred W Smithers Of the
Grand Trunk when he, f. J. Chamberlain
of the same road and c. s. Menen OF
the New Haven were indicted for al
legged violations Of the Sherman law. Hav-
ing served as counsel for Mr.. Smithers
cannot take part In the contemplated
proceediugs"