New Britain herald., 1914-07-23

that the amount involved is very large, that in the judgment of the directors the condition would serious ly depreciate the value of the stock and that it practically prevents the sale of these shares except at great sacrifice and hampers very seriously all efforts to reorganlze the Boston and Maine railroad.
 Question of Obligation.
 "The committee called attention also to 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 incor- porating the Boston Holding company. since these gave Massa chusetts the power not to buy the Boston and Maine shares, but only the shares, '.bonds, notes and other evidences of indebtedness" issued by the Boston Holding company, and this upon con- dition that it took them all and at the same time relieved the New Ha- ven company from all it's obligations as guarantor of those securities.
 ""The New Haven company has guaranteed the principal and divi- dends on o72,939 shares of preferred SUCK lSSuoO Dy the uOluluS COIIlpdIly, of which 28,O0O worth at par $2,- s00,00O, are outstanding in the hands of the public. These shares are all secured by lien on the Boston and Maine shares and the proposed act gives the right to take this security without assuming the New Haven company's liabilities as guarantor.
 The committee assured the at
 
 sire to carry out the compromise agreement of March 21 in all respects, but that they could not consent to sacrifice so important and valuable an asset as the Boston and Maine stock, worth in their judgment far more than it's 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 a set clement without violating an obliga tion recognized by the attorney gen. eral himself in the original memo randum of settlement agreed to on January 1O, from which the following words are quoted:
 ''The department of justice
 recognizes the obligation in-
 cumbent on directors to conserve
 as far as circumstances permit
 the value of it's stockholders
 property and to protect those
 stockholders from the cOnse-
 quences of past acts, and so far
 as 1t properly may will endeavor
 to aid the directors in discharg-
 ing those obligations.
 "'The attorney general has decid ed that it is his duty to bring his suit for a dissolution of the system and there is 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 negotia- ton and action of the court to carry | out the compromise agreement and thus achieve a result which all parties l earnestly desire.''
 No Word About Suit.
 No official word from Washington was received by United States District ] Attorney H. Snowden Marshall yes- 1 terday concerning the suit in equity l which President Wilson has directed 1 Attorney General McReynolds to bring against the New Haven rail- .oad to compel dissolution. Nor was here any word of the criminal side If the case which will probably be laid before the federal grand jury 1ere. tr.s..a -t
 T. w. Gregory, the special counsel