The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-24

| lature has demanded that each Boston
and Maine certificate should be stamped
| with n notice that the State reserves
the right to take the stock over ut any
time at a price to be then determined.
Irrespective Of all the other aspects OF
this stipulation. its effect could only be
to diminish the incentives for private
purchase OF the stock and the New
Haven directors believe It their duty
10 oppose the Boston and Maine sale on
such terms.
The New Haven board sent n repre-
sentative mnittce to Washington last
week to obtain n modification Of the
compact which would enable the com
! pany TO postpone the sale of the Boston
and Maine interest while carrying out
every other part of the dissolution
agreement In Mr.. 1IUsTIss statement
| to the New Haven stockholders II Is
| pointed out that in the original memo
randum OF settlement agreed to on Jan
| uary 10 1t was set forth that the De
partment of Justice recognizes the obi
CATION incumbent on directors to con-
serve 50 far as circumstances permit
the value of the stockholders property
and TO protect those stockholders from
| the consequences of past acts. and, so
| far MS It properly may. will endeavor
! to aid the directors In discharging those
| obligations" Yet rs n result of last
weeks mission to Washington the New
Haven board Is publicly prescribed for
| repudiating its agreement with the Gov
eminent on what is spoken of 40 a
slight preteXt!
In all manner OF ways the New
Haven management of the past has
been simultaneously condemned for
worse than reckless waste of com
pany funds. Even If the present New
Haven board had moved to break the
agreement with the Government on ac-
count of the Boston and Maine situation
1t would hardly be slight pretext,
since TO sell the Boston and Maine shares
on the only terms now allowed by the
| State Of Massachusetts might involve
/ an unnecessary sacrifice Of millions of
dollars. The Attorney Generals own
remarks on this possibility Of loss as
something negligible in comparison
with the unmodiicd fuliilment of the
whole dissolution compact are n pecu-
/ liar commentary on the financial
offences for which the past New Haven
management is to be proceeded against
in criminal suits In the courts.
However that may be, the salient fact
Of the matter is that President HIS
TIss two statements are clear evidence
that the directors are more than
anxious to carry out their agreement
with the Government and have sought
only temporary modification of 1t re-
speeding the disposition Of control Of
the Boston and Maine. These statements
show that the company Is ready TO do
all else that 1t can in the way of dis
solution. seeking only assent which
might reasonably be expected to an
offer TO place the Boston and Maine
control in the hands Of trustees Sc
lected by the Governor and Attorney
General Of Massachusetts until either
the Ma SSachusetts Legislature passes n
fair act to enable the sale or the rights
at stake are tested in Federal court
proceedings
The IIustis statements are pervaded
through and through with anything but
a spirit of defiance of the Federal Gov
eminent and manifest anything but n
faith breaking disposition 10 welcome
a wholesale contest of the Govern
ment's requirements. The very point
on which the Department Of Justice
appears to display so much incom-
prchensible stubbOrnness in its insis-
tence ON IA peremptory sale of the Bos-
ton and Maine control is perhaps the
one on which the New Haven might
most confidently anticipate n judicial
decision affirming its control as not I'm
violation of the law. But il Is eyinced
in the offer Of the directors requesting
a modification of the Boston and Maine
feature of the dissolution compact that
the infringement is willing TO make a
substantial concession Of what are be-
lieved to be the companys rights rather
than TO antagonize the Federal Gov.
eminent.
The IIuStis statements are so reason
able that the official pronunciamentos
at Washington suffer by contrast. The
New Haven explanation constitutes, in
deed, so soft an answer that 1t might
turn away the Government wrath and
mitigate the severity OF the Attorney
Generals litiglous intentions on the
civil side. To all fair minded men, and
there may be many such even in these
days Of maleyolent politics, the New
Haven explanation seems to establish Z
rational basis for continuation of the
dissolution proceedings in accordance
with the spirit OF the original agree
ment. If they fail to do that the fail
ure must be taken as further evidence
of the excessive strain under which
Washington Is now laboring and ~
proof Of the Importance Of an early
recreative suspension Of official actlvi
ties from which the country itself Il
sadly in need of rest.