The Washington herald., 1914-01-11
new HAVEN SUIT
AGREEMENT MADE
Department Of Justice VIII
Abandon Efforts Seeking
Dissolution.
SECOND PEACE VICTORY
Corporation Must Dispose Of Majority
Of Its Railroads and Certain
Steamship Lines.

An agreement between tne DepdftiHcnt
CT Justice and the New York New
Haven and Hartford Railroad that pro-
vides for a reorganization of the road
in conformity with the administration's
Interpretation of the Sherman antitrust
law was reached in a conference held
late yesterday afternoon.
As a result the Department Of Justice
will abandon the suit for a dissolution
of the New Haven system that was
prepared for fling in the courts In the
event that those authorized to speak for
the road found themselves unable to or
the government.
Second Peaceful Settlement.
For the second time, therefore, the
administration has succeeded in settling
a big antitrust case without resort to
the courts.
The administrators peaceful policy
of adjusting disputes with corporations
charged with violating or evading the
antitrust laws first found expression in
the agreement perfected by Attorney
General McReynolds with the American
Telegraph and Telephone Company
whereby that concern pledged itself to
dispose of its stockholding in the West
ern Union Telegraph Company.
posal of the New Haven's control OF
the Boston and Maine road. Of its troll
ley systems, of the Merchants and Min
ers' Transportation Company, the Eastern
Steamship Corporation, the Maine Steam
ship Company, and for the cancellation
of the Boston and Albany agreement
which was to have become effective Feb
ruary !.
The disposition of the other steamship
lines owned and controlled by the New
Haven, it was announced, Will be deter
mined by the Interstate Commerce Com
missions action on the application for
permit to retain these lines, which was
fled with that body by the New Haven
last week. ]
The agreement with the New Haven |
furnishes impressive evidence that the '
administration has no intention OF aban- |
doning its policy to cooperate with big |
business in the matter of readjustments |
under the Sherman antitrust law, as
recently reported.
Good Eject on business.
It is the expectation here that the
agreement reached yesterday by Attor-
ney General McReynolds, on behalf Of
the government, and Howard Elliott, act
ing for the New Haven, will have good
effect on business At least that is the
hope of the administration
1t may be stated upon authority that
yesterdays agreement. was not condi-
toned on a promise by the government
not to bring criminal suit against
those responsible for the creation OF
the existing alleged monopoly in New
England transportation facilities. The
government has under consideration q
plan that comtemplates the indictment
of men identified with the former man
agement of the New Haven, but final
decision as to this phase of the case
has not been reached.
The men who aided Attorney Gen.
eral McReynolds in preparing the evil
dence as a result of which the gov
ernment felt itself in position to de-
rnand that the New Haven road re-
iinquish so many of its important prop
critics were Assistant Attorney General
Jesse c. Adkins, Special Assistant
Thomas w. Gregory. of Texas, and Spe-
>ial Assistant Frank NJ. Swacker. Mr..
ElIiott's assistant besides President
Hadley, was L. S. Storrs, of the coun-
sci for the New Haven road.
AL of these men participated In the
final round of conferences at the De- 4
partment of Justice yesterday, which
in the issuance by Chair
man Elliott of the formal announce e.
Inent of the agreement.
Further Conferences Planned.
The agreement which was reached yes
terday embodied only the broad lines
which the reorganization will follow. Its
details are to be worked out in further
Both parties to the negotia-
tions have agreed that these conferences
shall be accelerated in every way pos
sible. In the negotiation of the detailed
Chairman Elliott will be as
sisted by Morefield Storey, of Boston, and
Walter p Kinds, of New York, special
counsel of the board of directors of the
New Haven. The Department of Justice
will be represented by the same men
who have assisted the Attorney General
in the past.
The lines which the New Haven has
applied for permission to retain are the
Fall River New Bedford. Providence,
New London, New Haven. the Bridge
port, the Block Island, and the Newport
and Wexford lines. The road in Its
petition contended-"An of said lines are
to the proper handling Of the
business in New England, and they are
operated in connection with your petit
toners rail lines more efficiently eco
nomieally, and to the greater advantage
Of the shipping and travelling community
than If they were operated separately.