Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-01-12
NEW HAVEN TO
DIVORCE ALL LINES.
Continued from Page One.)

its holdings in the Boston & Maine rail-
road, the various trolley systems, the
Merchants & Miners Transportation, the
Eastern Steamship Corporation, and the
Maine Steamship Co., under plan, the
details of which will be worked out as
promptly as possible with representa-
tives of the department of justice by
Chairman Howard Elliott and Moorfield
Storey of Boston, and Walker d. Hines
of New York, special counsel of the
board of directors.
Concerning other steamer lines, APP
plication has been made, under the Pam
anna canal act. TO the Interstate Com
merce Commission, and their disposition
will be determined by that body.
Until the plans are worked out and
put into effect the management and op-
Grafton of the properties will be contin-
ued as at present.
THE conference was between the attor-
ney general and Special Assistant to the
Attorney General T. W. Gregory. Assist
ant Attorney General Jesse c. Adkins,
and Special Assistant to the Attorney
General Frank NJ Swacker, representing
the department of justice, and Howard
Elliott, Arthur T. Hadley and L. S.
Storrs. representing the New Haven Co.
The announcement of the agreement
has no bearing upon the much-discussed
criminal suits against former directors
and officials of the New Haven road.
There has been no decision by depart
ment officials upon this point and prob
ably there will be none for several weeks.
| Some officials are known to feel that
such suits would avail but little, since
the men generally understood to be re-
sponsible for financial operations involv-
ing the New Haven probably could not
be reached by the federal government.
/ Officials of the department of justice
believed Saturday that the New Haven
agreement was as big a victory for the
peaceful settlement of antitrust cases as
that registered in the case of the Ameri-
can Telephone 6, Telegraph Co.
They pointed out that the complexi-
! ties in the New Haven were greater
! than in the telephone case and that
the effect of a suit to separate the New
Haven from its great holdings in 9TH
er corporations might have resulted
in disaster to the road itself. and in
reflex action upon business that would
] nave been widely felt.
| They recognized the fact that the
/ New Haven could not be expected TO
dispose of its holdings in a few
months. They recognized the weight
of the argument that forcing the road
| to get rid of it's interests within a
! specified time merely would permit
prospective buyers to wait until that
time limit expired and then pay their
| own price.
AS long as Chairman Elliott and his
assistants in the re- organization show
their intention to carry out the terms
| of the agreement, assurances are CIV
en- that the department of justice will
not press them too hard to make
haste.
Although no one in authority would
| predict how long a time such a re-
organization as is contemplated will
require, it was generally believed that
final reimbursement cannot be reached
| for many months, and on some points
probably not for several years.
Attorney General McReynolds has
| said from the beginning of the nego-
tiations, however, that both Chairman
Elliott and Mr.. Hadley had shown an
earnest desire to meet the depart
ments demands and that their plans
| would be regarded in the friendIiest
| light.
No official statement was forthcoming
from the attorney general Saturday, but
he has explained frequently to callers
that he was most anxious to see an
agreement reached whereby suit could
be avoided and measures adopted which
would restore what he considers a fair
portion of competition in the New Eng
land field.
The negotiations with the New Haven
began more than two months ago. short
| ly after Mr.. Elliott came East to take
active charge of the operation of that
road There have been several confer
ences between the railroad men and the
attorney general and his two assistants
in this case.
/ Mr.. Gregory and Mr. Adkins spent
months In their investigation of the New
Haven and possessed a thorough knowl-
edge or the case Mr. Gregory was re-
Gently given access to the New Haven
books in New York and both depart
ment and railroad officials had constantly
before them the recent report of the In
terstate Commerce Commission on oper-
atoms of the New Haven.
This is not the first time the New
Haven has escaped the hand of the Sher-
man act. Several years ago the road
was investigated by the department of
justice and was sued by the then Attor-
ney General Bonaparte. Former At.or-
ney General Wickersham, however, fl
nally decided not to press proceedings