Evening star., 1914-07-22


Senator Reed of Missouri obtained con-
sent of the Senate today to have pub
lished in the Congressional Record and
as a public document the correspondence
between the President and the Attorney
General regarding the activities of the
the New Haven road
Glad That Case Goes to Court.
Addressing himself to the order of the
President that suit be begun for the dis
solution of the New Haven system and
criminal proceedings be instituted against
officials of the road. Senator Reed said:
Il congratulate the President and the
Attorney General upon the manner in
which they have handled this matter
They have shown great patience. 1 am
glad that at last the case is TO be tried
in the courts
Il am glad notice has been served on
these great corporations which exist in
violation of the law that the patience
Of the government has been exhausted.
I am glad that the government is at last
prepared to show its teeth. / hope the
policy so happily inaugurated will be
carried on. and We will be able to say
that no guilty man has escaped
President Wilson's Letter.
The Presidents letter to the Attorney
General follows:
81 have your letter of today, inclosing
a copy of your letter of July to Mr.
J. H. Hustis, president of the New York
New Haven and Hartford Railroad Com
pany. which. together, disclose the failure
of the directors of the New York. New
Haven and Hartford Railroad Company
to comply with the terms of the settle
ment proposed by them and accepted by
us in the matter of their railroad hold
ings. Their final decision in this matter
causes me the deepest surprise and re-
gret Their failure upon so slight pre-
text. to carry out an agreement deliber-
ately and solemnly entered into. and
which was manifestly in the common in
terest is to me inexplicable and entirely
without Justification
You have been kind enough to keep
me fully informed of every step the de-
partment took in this matter. and the
action of the department has throughout
met with my entire approval 1t was
lust reasonable and efficient. 1t should
have resulted in avoiding what must now
be done.
In the circumstances. the course You
propose is the only one the government
can pursue. | therefore request and
direct that a proceeding in equity be
filed seeking the dissolution of the un-
lawful monopoly of transportation facih-
ties in New ENGLAND. and now sought to
be maintained by the New York. New
Haven and Hartford Railroad Company,
and that the criminal aspects of the case
be laid before a grand jury
with much regard. sincerely yours,
6Signed WOODRON WiLSoN-
Letter From Attorney General.
Mr McReynolds' letter to the President:
Dear Mr.. President:
Some days since. I reported to YOU
that the board of directors of the New
they
would not carry into effect the approved
PROPOSALS made by them last winter for
bringing the affairs of that company into
harmony with the federal statutes.
Following your direction, 1 wrote to
the president of the company July
expressing your views and my own IN
opposition to the position assumed by
the board. A copy of that letter is at
tached hereto.
Saturday last 1 received request to
confer with a committee composed of
members of the board on Yesterday
Monday. They came here and we dis
cussed the situation. ! emphasized the
position of the government, as outlined in
called attention to the results which
would necessarily follow adherence to the
position taken by them They refused,
however. to admit any obligation to con-
form to the Massachusetts enactment.
and firmly declined to carry into enect
their own proposals for an adjustment.
During the past year you have been
constantly in touch with my actions in
respect of the New Haven road, and you
have been good enough to express satis-
faction Herewith. 1t seems however.
not inappropriate again to remind you
Of some aspects of the general situation.
Government Suit Dismissed.
Prior to 1906 the attention of the
Department of Justice was called to the
unlawful combinations and monopolies
In which the New Haven railroad was
the principal party, and in May Of that
year a proceeding under the Sherman
law was instituted. wherein the govern
tnent sought to correct certain of the
existing evils. This suit was dismissed
June o6. 1909 Thereafter. the monopoly
proceeded to strengthen its hold upon the
carriers of New England.
BY the time your administration be-
gan the New Haven and the Boston and
Maine railroad had been reduced to the
unfortunate condition now unhappily
too well known: their securities widely
distributed among small investors had
Shrunken enormously in value, and the
commerce and industries of all New
England were under severe strain.
Directly after assuming this office,
being convinced that the situation de-
manded a thorough investigation by
capable counsel, i retained Mr.. T. w.
Gregory. well known to you, and whose