Daily Kennebec journal., 1914-03-13
NEW HAVEN AFFAIR
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Boston & Maine. Alarming reports OF
what might be expected If the New Ha-
ven failed to agree to the terms of the
department have been in circulation In
Washington ever since the meeting OF the
directors of the road In New York one
week ago. One development OF today was
the call at the White House Of Represent
ative Andrew j. Peters of Massachusetts.
who talked with President Wilson about
the New Haven case. Mr.. Peters were
understood tonight to have told the Pres
ident how deeply New England Is inter-
ested in the New Haven and his subsid-
iary properties, and to have pointed out
what might be expected II the govern
ment and the road were unable to arrange
a peaceful settlement
In McReynold's Hands.
There was little question here tonight,
however, that the President, while great
ly interested in settlement of the prob
lem out of the court, will keep hands off
and let Mr.. McReynolds handle the sit
uation. 1t is well known in Washington
that he adopted exactly this course re-
Gently when the attorney general decided
to file a bill under the Sherman act to
separate the Southern Pacific and Central
Pacific Railroads. In some quarters to-
night 1t was pointed out that the New
Haven officials are well aware that fall
ure TO get together with the department
of justice might lead to unpleasant t1nan-
cial consequences involving not only the
Boston & Maine but the New Haven it
self. The fact that the railroad officials
publicly announced months ago that they
had agreed with the department to try, to
find some basis for settlement by which
the system was to give up its subsidiary
properties was recalled as something that
might now stand in the way of any de-
sire on it's part to make a fight in court
At that time it was denied that this
agreement covered the ground which is
covered in the suit the attorney general
had prepared to file against the New Ha-
ven if peaceable settlement could not
be reached.
There have been many factors in the
attempt to solve the New Haven dis
solution without prosecution, which
have brought the matter to its pres
ent stage. The announcement was
made months ago that the attorney
general contemplated suit and the ne
gotiations by the New Haven were un-
dertaken several weeks later. Those
negotiations began last fall and result
ed in agreement upon a basis upon
which the conferees hoped later to
announce a detailed settlement.
Several weeks later the conferences
he Of fnr
both sides got down to the actual task
of working out details of the dissolu-
ton. Although it is said that the con-
ferences have been conducted largely in
a spirit of get together, it was not de-
MED tonight that there have been
some unpleasant features and that at
times representatives of the road and
attorneys for the department have
found their ideas of fair terms far
apart. The appearance of the state Of
Massachusetts ri in the conference field.
it was said, did not tend to smooth
the paths Of the negotiations.
The attorney general has held the
view that sacn long term Is not neces-
Sary, tut tnat the work to be done by
the trustees could tie accomplished in
iWo years. although at the end of
that time lt might DC possible that two
years more be granted with The sane
.ien cf q United States court. Other
points OF dispute have appeared. The
disposition OF some of the trolley lines
owned by the New Haven is under
stood to have been particularly
troublesome problem.
According TO the information here
tonight, the New Haven representa-
tiyes deny there had been any un~
necessary delay in the negotiations at
tributabie TO them. They have claimed
that the entire problem is SO complex
that the utmost care must be exercis-
ed and much caution must be used to
safeguard the interests of all concern
ed and to insure satisfactory and le-
gal adjustment of plans. So far as the
length OF service of the trustees is con-
cerned the New Haven representatives
have held out for a longer term on the
ground that two years is not long
enough in which to dispose OF a prop
erty like the Boston & Maine. They
have argued that most of the Boston &
Maine stock to be disposed of must
he assimilated in New England itself,
and the fact that territory for its sale
is limited. that the market for secur-
ities is not the best, and that the Bos-
ton e. Maine stock at present is far
under par have been pointed out as
reasons for a longer trusteeship.