Omaha daily bee., 1914-07-23
WILL PROSECUTE new HAVEN
Evidence Against Officers to Be Laid
Before Grand Jury.
WILL ASK FOR INDICTMENTS
Criminal and civil Proceedings WtII
ne brought Against Directors
Of wrecked Railroad
system

System.
WASHINGTON, July 22-The louE.con-
tinued effort to untangle the New Haven
railroad without litigation came 20 an end
tonight when President wilson In a let
ter to Attorney General McReynolds di-
rected the institution OF a sherman law
suit to dissolve the system and ordered
that the criminal aspects OF the case be
laid before a federal grand jury.
The presidents approval ot the course
mapped out by the Department OF Justice
means that the civil suit will be filed
against the New Haven in the United
States court at New York at once, The
attorney general also Immediately will
direct United statos District Attorney
Marshal at New York 70 summon a grand
jury, and the task OF laying evidence be-
fore that body, on which to ask for
criminal indictments against Officers and
directors OF the New Haven under the
Mellen management will be begun ns
soon as possible.
To Ask BnI Against MeIIen.
T. w Gregory the special assistant In
charge OF the New Haven case. will have
full charge Of the civil suit and before
the grand fury will be aided by f. Nj.
SwRcker, an expert from the Interstate
Commerce commission, who has helped
him I'm the preparation OF the evidence.
How many indictments win be sought was
not divulged tonight, but Il is plainly in
dicated In correspondence made public
that tho attorney general expects to ask
for bill against Charles s. Mellen. for
mer president OF the New Haven.
The most significant fact In connection
with the proceedings was said TO be a
statement which Mr.. McRoynolds gave
out several months ago when the Inter
state Commerce commission began It's
New Haven inquiry In that statement
the attorney general warned the commits
sion to consider whether immunity might
be given certain men II made to testify
as 20 their actions as directors of tho
road. The names he mentioned were:
Charles S. Mellen. William Rockefeller.
George Maculloch Miller, Charles It.
Brooker. Edwin Miner, Lewis Cass Led
yard. George +. Baker and Edward ID.
Robbins.
without Justification.
In addition TO directing the suit the
president In his letters to Mr.. Mercy
nolds declared that the decision OF the
New Haven directors not to keep their
agreement to dissolve peacefully had
caused him the greatest surprise and
regret" that their failure upon so slight
a pretext" was ''inexplieable and entirely
without justification"
Tho departments course. he said, was
Just reasonable and efficient. and should
have resulted in avoiding suit.
Accompanying the presidents letter,
the department made public correspond
ence between the attorney general and
the president and the attorney general
and President Hustis of the New Haven.
One of the most interesting phases OF
the correspondence was contained In the
attorney generals letter to President VII
| son in which there 10 a decided rebukt
| for the Interstate Commerce commission
| for it's action In subpoenaing Mellen and
perhaps other flagrantly culpable." with
the possible result OF embarrassing the
department by claim OF immunity in
return for their testimony
In this connection the attorney general
makes the statement that criminal prose
cutIons have always been in mind. and
that there has never been the slightest
hope that the parties guilty OF criminal
violations of the law would escape"
The presidents letter to the attorney
general follows:
THE White House. Washington, d. c.,
July q. 1914
MY Dear Attorney General ! have
your letter OF today enclosing a copy OF
your letter of July to Mr.. j. II. Hustis,
president of tho New York. New Haven
and Hartford Railroad company which
together disclose the failure of the dl-
| rectors OF the New York New Haven a
Hartford company to comply with the
terms OF the settlement signed by them
and accepted by us in the matter OF their
railroad holdings
Their final decision in this matter
causes me the deepest surprise and regret.
Their failure. upon so slight pretext to
carry out an agreement deliberately and
solemnly entered into, and which was
manifestly in the common interest. is TO
me inexplicable and entirely without justi-
| f,cRtion.
You have been kind enough to keep me
/ fully informed OF every step the depart
ment took In this matter and the action
of the department has throughout met