The Penn's Grove record., 1914-07-24
WILSON ORDERS
new HAVEN SUIT
President Directs Dissolution
Under Sherman Law
CRIMINAL AND CIVIL ACTION
Dissolution Pact With U. s. Broken
Charging Bad Faith by New Man.
agement, McReynoIds Will Act
Rejected Their Own Terms.

Washington.-President Wilson d.
rected James G. McReynolds, Attorney
General, to begin the biggest criminal
prosecution V e contemplated by the
United States government under the
Sherman Antitrust law.
He instructed Mr.. McReynolds to
lay before a Grand Jury criminal
charges against the directors of the
New York, New Haven and Hartford
Railroad Company. Among these di-
rectors are some of the most import
ant ~inanciers of the country.
In the letter of Mr.. McReynolds the
President did not mince words. He
assailed the present directors Of the
New Haven for refusing to carry out
their agreement with the government.
He said their action caused him the
deepest surprise and regret. He term
ed their failure to carry out their
agreement as inexplicable upon SO
light a pretext.'
~ therefore request and direct
that a proceeding in equity be
filed, seeking the dissolution of
the unlawful monopoly of trans
portation facilities in New Eng
land now sought to be maintained
by the New York, New Haven and
Hartford Railroad Company, and
that the criminal prosecution Of
the case be laid before a grand
jury" MIR. Wilson said in the let
ter.
The unexpected severe tone Of the
Presidents letter revived reports
which have emanated from persons
close to the Department of Justice
that the Administration suspected the
New Haven management of having
accepted the reorganization plan
originally in the hope of staving on
criminal proceedings.
The correspondence given out at
the Department of Justice discloses
that the Administration was fully
alive to the 'calamitous results to
the public interests" that are likely
to follow the filing Of a suit, but
the department lays the entire re-
s~ponsibility upon the shoulders Of the
directors Of the New Haven and calls
the country to witness that they
must bear the burden Of the conse-
quence that may flow from the itiga-
ton.
The correspondence discloses the
fact that the AttorneyGenera will re-
fuse to recognize the claims of i'm
munity advanced by Charles s.
Mellen, former president, on account
Of his appearance before the Inter
state Commerce Commission in the
recent New Haven inquiry. 1t is
made clear that the department in
tends to proceed criminally against
MI. Mellen and certain of the direc-
tors who are regarded as responsible
for the monopoly.
Imprisonment and fines are the
penalties if convictions are obtained.
The directors are accused of form
ing a gigantic traffic monopoly in
New England and crushing competi-
ton in interstate commerce.
Mr.. Wilson also directed Mr.. Nc
Reynolds to bring a civil suit for the
dissolution of the New York, New
Haven and Hartford Railroad Com
pany, designed to cut loose its 1856
subsidiary ship lines, trolley lines and
steam lines, accumulated under one
management in what the Interstate
Commerce Commission recently
styled "one of the most glazing in
stances of NEUTRALITY-SUSPICIOUS. reveal
ed in all the history of American
railroading."