The Washington herald., 1914-07-23
n
new HAVEN Will
fight TOFINISH
To Resist U. S. Suit to Force
Surrender of B. & M.
Control.
PACT VIOLATION DENIED
Hustis Issues Statement Defending
Refusal to Meet Massachusetts,
Legislatures Demand.
PACT VIOLATION DENIED

New York, July 2-New Haven Rail-
road directors will fight to a finish the
EFFORT Of the United States government
to force them to part with control of the
Boston and Maine stock on the basis de-
manded by the Massachusetts legisIa-
bear stamp setting forth that the State
has the right at any time to buy the
stock s'at the fair value thereof in ac-
cordanee with law"
There will be no effort on the part of
the New Haven directors. II is said, to
prevent the government from going
ahead with the dissolution suit ordered
by President Wilson. and there Is no in
tention Of negotiations for a consent
decree" which would prevent long Iiti-
CATION.
President James H. Hustis, after an
all day conference with attorneys Of the
road, late tonight issued a statement de-
Tending the action of the directors and
denying that they had refused to carry
out their agreement with the govern
ment II follows:
The directors OF the New York, New
Haven and Hartford Railroad Company
desire to make their position entirely
clear. They have never refused, but on
the contrary have always been willing
and anxious to carry out the agreement
with the Attorney General made on
March q. 1914 approved by the stock
holders on April q, and sanctioned by
the governor OF Massachusetts. That
agreement was framed to accomplish
two objects; first, the sale Of certain
Properties owned by the company. which
the Attorney General demanded. and,
second. the sale to take place at such
time and on such terms as would insure
q return at a fair price.
VIII Defeat object.
This last object in the judgment Of the
directors will be defeated IL the sale Of
the Boston and Maine stock Is made sub
ject to the condition imposed by the Iegis-
lature OF Massachusetts,. and, therefore,
they have declined to accent II and have
stated the reasons for that decision.
They have not refused to carry out
any agreement which they have made,
but they have refused to change that
agreement as the change would entail
on the company a very large pecuniary
loss and at the same time increase enor-
mously the difficulty OF recognising the
Boston and Maine Railroad.
"As evidence OF the good faith Of the
directors a representative committee,
consisting OF President Hustis, Mr.. Guy
Ter and DIR. Hadley, accompanied by
Moorfield Storey, counsel in the proceed
ings. waited on the attorney general on
July % and offered to carry through the
settlement In all respects according to
the agreement and. further, in order to
meet the difficulty which had been Great |
ed by the Massachusetts, legislature. the |
committee offered to place control Of the |
Boston Holding Company in the hands Of
the trustees. who had been selected by |
the Attorney General and the Governor Of
with fun power to control |
the Boston and Maine railroad |
until either the Massachusetts, legislature |
passed the necessary legislation or the |
rights Of the parties interested were de-
cided By the Federal court in proceedings |
which the company offered to expedite |
matters In every possible way.
MelIen Grows Sarcastic.
Boston, July IT presume the direc- |
tors will have to stand suit for robbing
the New Haven Of a few hundred mil |
Hon." said Charles S. Mellen in an inter- !
view tonight so long as political dema- |
gogues can continue to make these alb |
surd charges and the press continues to |
print its claptrap. just so long will a
superficial public believe that the former |
New Haven directors are really guilty, |
even before they are tried.
Il want to be left alone" he continued. |
busy for sometime answering to indIct- |
ments for all sorts of imaginary crimes |
Well, anyhow. It will serve to give me |
mental exercise and I never was much OF |
a hand at being idle