The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-07-21
TO FILE CIVIL SUIT
AGAINST NEW HAVEN
Attorney-General Will Soon Be-
gin Action in U. S. District
Court at New York.
FAIL TO SETTLE PROBLEM
Committee of Roads Directors in
Long but Futile Conference
With Government Officials.

Washington. July 2o-CivlI suit to
separate the New York. New Haven
ana Hartford Railroad Company from
'ts subsidiary rail. trolley and steam
shi: lines Will be brought by Attorney
General McReynolds in the United Dis
trct Court at New York within the
next few adys
final effort to-day to settle the
problem without litigation ended in
failure. although the Attorney Gen
IN charge OF the case, and n committee
OF New Haven directors were in con-
ference many hours. The committee
came to discuss the sale OF the Boston
and Maine stock owned by the New
Haven. II desired this sale TO be made
Tree OF conditions Imposed by the State
or Massachusetts, and is said to have
declared that an unconditional sale of
the Boston and Maine stock would in
sure a price 100000 above what the
Hew Haven might otherwise hope to
get,
before President Wilson ami the Cabi-
net Tomorrow. IT is not doubted that
the department. course will be np-
proved There is little doubt here, that
on the heels OF the suit will como an
effort to have Federal grand Jury
return indictments against many di-
rectors of the New Haven. who served
In the days when it was building up a
system which the Attorney General
holds is Il combination in restraint of
trade. Both the civil and criminal ac-
lions wili be taken under the Sherman
law Tho outcome OF these proceedings
may determine the value of the Sher-
man law as a criminal statute
NO STRONG RESISTANCE
TO CIVIL SUIT EXPECTED
To the civil suit, the New Haven is
not expected TO make any strong re :.
sistance.
\ In the governments bill. the New
Haven viii be charged with being Il
monopoly in control of New l,ngland's
transportation. with being combina-
;ion in restraint of trade. and in vio-
lation Of the sherman law.
The department is expected 10 ask
that the court separate the New Haven
from the old New England Railway.
acquired many years ago. The court
also will be asked to divorce the New
Haeen from its so-called sound steam
ship lines, which ply Long Islnnd
Sound and run from New York to mos,
OF the ports along the lower New Eng
land coast.
Features of the agreement made last
March with chairman Elliott and New
Haven attorneys, which the hiif is eA-
pected 10 follow. are:
That the New Haven be required to
divcst itself OF control OF the Boston
anu Inat IL give up its
holdings in the Connecticut, Rhode Is
land trolley lines and the Berkshire
trolley lines, and its minority interest
in the Eastern Steam ship Corporation
There Will be the customary plea for
ali order requiring the New Haven 10
dissolve. and for 4 mandate to prevent
a future combination OF similar char
acicr.
SEEK TO SETTLE CASE
WITHOUT LITIGATION
President iiustis, y. I. Hadley, T
Dewitt Cuyler, and Moor!ield Storey
counsel for the road, were the commit
tee that made the final effort to settle
the case without litigation, but their
suggestions We're not accepted
In statement issued at the close of
the day, President Hustis plainly indi-
Gated that iiling or the government
suit was expected The difficulty in
the negotiations has been over the dis
controlled by the New Haven. 1t was
agreed by both parties months ago that
1t should be sold. massachusetts.
which always possessed the right TO
buy 1t, recently enacted legislation per
ilitting its sale. but on the condition
that on each share sold this right be
plainly set forth
The New Haven directors said they
were unable to accept this condition.
They suggested that the Department
Of Justice take the matter in court and
ask Tor decree, 10 which they would
assent. disposing OF every issue but
that Of the Boston and Maine
McRE1NOLDs FAILS
TO APPROVE: PLAN
In the meantime they proposed that
TINS stock be turned over to trustees
who should sell il without the condi-
ton imposed by Massachusetts. They
indicated that it's Unrestricted sale
would mean S10,0O0.000 TO the New Ha-
ven. Attorney General McReyonlds did
not like the plan. Moreover. il was
said at the department that the March
agreement provided for the sale of the
Boston and Maine stock. but made no
mention OF conditions imposed by Mas
sachusetts. Department officials take
the position that the New Haven has
not lived UP to this agreement
AT the conclusion OF the conference,
President Husiis gave out this state
mcnt, approved by his directors:
The directors find themselves un-
able to recede from the position which
they have taken, and presume that the
Attorney General will. therefore de-
eide to file his bill in order to deter
mine the questions between the con-
pany and the government. But it Is
hoped that after the bill is fled, il will
be possible to make such arrangements
as VIII reduce the points OF difference
to minimum and secure a prompt set
tlement of whatever remains al issue
The conference was marked by straight
forwardness and friendiness on both
sides"