The Washington herald., 1914-02-28
DISCOVERY Of s'JOKER''
HATS RAILWAY Farley
Negotiations on New Haven Dissolu-
ton Plan Come to Abrupt
Standstill.
AGREEMENTS 4UP IN THE AIR"

The negotiations on the New Haven
dissolution plan at the Department OF
Justice were brought to a complete and
unexpected halt yesterday by the dis
covery OF Joker In the charter of the
Boston Holding Company. through which
the New Haven controls the Boston and
Maine.
It was found that the charter VIII have
to be amended by the Massachusetts,
legislature before any satisfactory plan
for the disposal Of the Boston and Maine
by the New Haven can be fixed upon.
Yesterdays conference ended without
any appreciable progress having been
made toward an agreement on the time
to be allowed for the sale OF the Boston
and Maine by a board Of five trustees.
II In practically certain as Q result OF
yesterdays Developments that no agree
ment will be reached for month or
more, even II one side shows willingness
to compromise the time Limitation feature.
The negotiations were resumed yester-
day with the Attorney General and mis-
assistants by More Field Story and
Walker ID. Hines, of the New Haven
counsel, and George W. Anderson. OF the
Massachusetts, Public Service Commis-
sion despite the deadlock which was
reached before Chairman Eliiots depar-
ture yesterday. Mr.. Elliot. before he left
fore Mr.. McReynoids that the New
Haven would not agree upon a less period
than five years for the disposal Of the
Boston and Maine stock. nor upon the
terms of the tentative provisions fxed
upon two weeks ago for the recognition
in the agreement Of the right OF the State
OF Massachusetts, to acquire control OF
the Boston and Maine at any time during
the trusteeship period.
A., n hA 0Cfn lnld NJ
Company's charter disclosed the proviso
that any sale of stock OF the Boston and
Maine by the holding company must be
approved by the State.
The Boston aad Maine originally was
owned by the State OF Massachusetts,
The Boston Holding Company was cre-
ated by the State In order that the New
Haven's control of the road might have
a legal status The State at the time
OF the chartering of the holding company
reserved the right to reacquire owner
ship OF the road and the right to approve
sales Of stock as we'll
The Attorney General and all parties
to yesterdays conference recognized i'm
mediately after the proviso' was discov-
cred that II would be inadvisable for the
trustees to attempt to dispose of the
Boston and Maine under these condi-
tions. 1t would be necessary. according
W thC pAtoehh piONASAOh tAaN SfcAy Sdtc
OF stock. howeve. small, be submitted to
the legislature for ratification.
1t was decided to suspend the confer
ences until an attempt had been made to
eradicate the proviso. Public Utilities
Commissioner Anderson left for Boston
last night for conferences with Gov.
Walsh upon ways and means for pro-
curing the repeal OF this provision.
Messrs. Hines and Story informed the
Attorney General that they would lay the
situation with regard to the Boston
Holding Company's charter before the
New Haven directors at the meeting In
New York next Tuesday TO evolve
suitable plan for dealing with that sit
uation.
Yesterday the government submitted
compromise proposal for the time limita-
ton upon the Boston and Maine trustee
ship. The government proposed that the
trustees be instructed to dispose of the
Boston and Maine stock by April I. 1916,
with the understanding that more time
would be granted II the two-year period
proved inadequate.
The New Haven's representatives in
sisted upon the full five-year period.
This demand was again denied.
No agreement was reached upon the
three trustees to be named besides for
mer Chief Justice OF the Supreme Court
of Massachusetts Knowlton and City
Solicitor of Springfield ,Doherty. This
matter will be discussed at the directors
meeting.