South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-14
Many See No Other Way to Re-
habiIitate Railroads Affairs
Whitman Waits Copy of
Commissions Report.
CRIMINAL ACTION IS
ALSO A POSSIBILITY
Prosecution Must Be for Con-
SpiraCy to Violate Antitrust
LaW-NO Federal Suit to Re-
cover Lost Millions.

NEW YORK. July 14.-While the
official copy of the interstate COM
merce commissions report recon-
mending prosecution of New York.
New Haven < Hartford railroad di-
rectOrs was awaited at Dist.
Atty. Whitman's Office today. talk
of a receivership for the system was
persistent in Wall ST In many quar-
ters il was declared that a receiver
ship would be the only method 10y
which the railroad might be rehabili-
tated
The present board Of directors viii
meet here Thursday. To is expected
that th>re will be long deliheration as
TO instituting civil suits against for
mer directors 10 secure the return Of
millions lost through Joy riding
financial methods and announcement
of the action 10 be taken may not be
made until next week.
Await Decision With Interest.
Decision TO be made by Dist. Atty.
Whitman as 10 what course he will
follow is awaited with interest AS
many of the, acts charged 10 the rail
road management were committed in
New York, ii Is understood that
prosecution for them VIII come under
jurisdiction OF the local supreme
court.
In this connection. however. the
point is emphasized by the statute of
limitations may be invoked TO pre-
vent punishment of those responsible
for many OF the acts pointed out by
the commission.
WASHINGTON, July 14.-Criminal
/ prosecution by the department OF
justice OF New Haven directors and
officers. If begun at al will be
j Lr, ~N.s
directors and officials have conspired
to violate the antitrust law. No
criminal action can be brought in the
federal courts for conspiracy 90 Vio-
late any law against the robbery OF
stockholders, because no such federal
| law exists.
This was declared at the depart
ment today 10 be its position in an
swer 10 the suggestion i'm the inter
! state commerce commissions New
/ Haven report that the men responsible
for the loss of millions of the stock
/ holders money should be made
criminaly liable
Intensi6cS Feeling
The publication of the report. with
/ the intimation that the department Of
/ justice should Jail the New Haven
directors. has only intensified the feel
| ing which has existed between the de-
partment and the commission since
/ Atty. Gen. McReynolds failed TO head
I off the New Haven inquiry. The
commission is in the position of hav-
ing dared the attorney general 20 re-
fuse 10 prosecute the men who are
alleged 10 have been made way with
the stockholders money.
The department Of justice refused
10 make any statement as 10 whether
il proposes TO seek indictments. Flat
denial was made at the department,
however. of all reports that the fed
eral government would bring suit 20
recover any Of the stockholders
money.
The department of justice refused
TO make any statement as 10 whether
/ il proposes 70 seek Indictments Flat
denial was made AT the department.
| however OF all reports that the fed
I eral government would bring suit 10
recover any of the stockholders
money. Attention was called 20
statement issued hy Atty. Gen. AIc-
Reynolds on Jan. in which he de-
clared:
There Is no law under which the
I department Of justice can prosecute
I a railroad for lmprovident or poor
| mana cement OF affairs of the CONF
pany.'
This statement he repeated some
I weeks later % Gen. Norris. after "a
great number Of stockholders ~ the
i
/ asked for the beginning of such suits
by the government III was This decla-
ration. dealing with The recovery ~
money which sen. Norris lu a state-
meut 20 the senate. interpreted as
/ meaning that McEevuolds would not
seek criminal indictments
Commission l. Pleased
Atty. Gen. McReyn0lds Was 0ut ot
I town. but the general statement re-
I lating % recovery 90 efockholdcrs
! money was declared az the depart
ment 10 cover the rumor that slit
would bc brought AGAINST the j. u.
{ Morgan estate 20 recover 100000
said 90 have been paid out by check
/ 10 bearer in New Haven deals
/ While nobody in authority at the
\ interstate commerce commission to-
day would discuss the legal situation.
/ it was clear that the commission is
pleased cith the dilemma which has
I been put up 20 the attorney general.
| IL Is understood that the same statute
| under which the dynamiters were
| convicted az Indianapolis-the statute
! fOrbiddinE conspiracy 20 violate law
/ OF the United States-wOuld be used
were the committe empowered Co
/ seek indictments and that the work
would be undertaken with confidence
/ that large number of New Haven