The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-22
Calls Opposition to "Option"
Sale of Il. & NJ. Stock
a Pretext.
BOARD rs SEVERELY .
CRITICISED FOR ACTS
McReynolds Refuses to Rec
Ognize Immunity Claims
for Mellen.
HARSIIER FEATURES TO
BE ADDED TO OLD SUIT
Directors to Blame IL Public
Suffers by Court Action, At
torney-Genersl Says.

WASHINGTON, July 2l-rresident WILL
son instructed Attorney-Genera, Nc
Reynolds tonight to proceed ciyilly
and criminaliy against the New Haven
railroad ana certain OF its directors for
alleged violations OF the Sherman anti.
trust law
The President. In letter ~ irstruc-
ton to the Attorney General. charges
the New Haven management with
breaking faith with the Government by
rcpudiatng the reorganization agree
ment entered into last January.
Mr.. Wilson referred to the reasons
given by tho New Haven directors for
refusing To soil tho Boston and Maine
stock under restrictions proposed by the
Massa chusetts legislature as a Slight
preteXt" and characterized their action
as "incXpllcable" and entirely without
JUSTIFICATION"
View Haven which the Government will
ME within a few days viii contain sew
eraI features harsher than those mbodIed
In the voluntary agreement. One Of
these Will be demand for the divorcins
OF the steamship lines, the disposition Of
which we're left under the agreement 10
a decision by the Interstate Commerce
Commission.
The criminal proceedings probably will
he before the Federal Grand Jury In New
York city.
The unexpectedly severe tone of tho
Presidents letter revived reports which
have emanated from persons close to the
Department of Justice that the Admin
istration suspected the New Haven man.
aSement Of having accepted the reor-
sanization plan originally In the hope
Of staving off criminal PROCEEDINGS. In
were plain that since Attornev-
General McReynods had indicated the
likelihood of criminal proceedings the
attitude of the management had
changed.
,"'' UNFAIR.
Persons in Washington familiar with
the New Haven sid OF the controversy
characterized these suggestions as un-
fair. The Attorney General in corre-
spondcnce made public to-day denied
specifically that he ever had held on,
any hope that persons responsible for
the New Ravens monopoly" would es-
cape prosecution by asserting to .
peaceful settlement"
The correspondence made public TO.
day dlscloses the fact that the Attorney
General will refuse to recognize the
claims of immunity advanced by
Charles $. Mellen because Of his ap-
pearance before the Interstate Com
merce Commission in the recent New
Haven inquiry. II is made clear that
the Department intends to proceed Grim
inally against Mr. Mellen and certain Of
the directors who are regarded as re-
sponsible for tho alleged monopoly. The
names of the men against whom Grim
inal prosecutions will be directed were
nv PubiiNs
The correspondence given ont at the
Department of Justice discloses that tho
Administration was fully alive TO tho
"calamtous results to the public interests"
that are likely to follow the filing of A
suit, but the Department lays the entire
responsibility upon the directors of tho
New Haven and calls the country to wit
ness that they must bear the burden of
the consequences that may fiow from the
litigation.
Explained All TO Wilson.
The Attorney Generals letter to The
President which brought forth the order
10 proceed against the New Haven was az
follows:
WASHINGTON, ID. c., July 81
"The President. white House.
DEAR Mr.. PRESIDENT Some days since
| proposed To you that the board of dreo-
tors OF the New Haven railroad had adj
vlsed me that they would not carry into
effect the approved proposals made by
them last winter for bringing the affairs
OF that company in harmony with the
Federal statutes.
Following your direction, wrote TO
the president OF the company on July ..
eA pres sing your views and my own IN op
position to the position assumed by tho
board 4 copy OF that letter Is attached
hereto
Saturday last | received a request 10
confer with a committee composed or
members Of the board on yesterday Mon
day.. They came here and We discussed
the situation. emphasized the position
Of the Government, az outlined In my let