Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-07-23
TO FORCE SEPARATION OF NEW
HAVEN AND SUBSIDIARY TRoL-
LEY AND STEAMSHIP LINES.
ACTION APART FROM
CRIMINAL PROSECUTION
Filing Of Action Marks Beginning Of
Most Notable Legal Action Under
Sherman Antitrust Law-Appoint-
mont Of Receiver For Road 10 Sus.
sssted.

New York, July 23.-Civil suit to
New Haven & Hartford Railroad Com
pany from its subsidiary trolley and
steamship line under the Sherman
antitrust act was filed in the federal
court here today by Attorney General
McReynolds.
The suit begun today has no actual
connection with the criminal indict-
ment which the attorney general will
ask fedaral grand jury to return
against New Haven officers concerned
in the upbuilding of the alleged un-
lawful combination in restraint Of
trade.
The criminal proceedings will be
conducted independently Of the civil
suit, and the failure or success Of one
is not expected to affect the other.
T. w. Gregory, special assistant to
the attorney. who wrote and filed the
brief, and F. NJ. Swacker. an expert
from the interstate commerce commits
sion. who has worked many months on
the case. are expected to lay the EVIL
dence before the grand Jury here on
which indictments will be asked. 1t
was understood here that the officials
feel they have sufficient evidence to
make out a prima facie case against
many New Haven officers and direc-
tors and if this view is correct indict-
ments may be returned within a few
weeks.
Great Legal Battle Begun.
Such action Will mark the beginning
Of what may prove to be the most i'm
portant criminal proceedings ever
undertaken under the Sherman anti
trust act in the twenty -four years 1t
has been on the statute books. To the
civil suit the new Haven may not offer
and great defense, but government offi
cials would be greatly surprised 1.-the
attempt to convict directors and offi-
GERS does not lead to great legal bat
fle which probably will not end this
side of the United States supreme
court
The brief written by Mr.. Gregory
charges the eNw Haven with being an
unlawful monopoly which controls more
than 80 per cent Of the railroad and
trolley traffic Of all New England. and
more than s5 per cent of the steam
ship transportation Of that region.
The court IS asked to restore competi-
tion by ordering the separation Of the
New Haven from the Boston & Maine
railroad, from its sound and outside
steamship lines and from its trolley
system in Rhode Island and Connec-
ticut.
sussests Appointment Of Receiver.
The brief suggests that II the court
deems best it appoint a receiver to
take over the property and bring 1t in
harmony with the law, and asks for
the customary general relief" If the
court finds 1t necessary. The brief car
ries with 1t an exhibit purporting to
be a copy of an agreement between
representatives Of the New Haven and
Boston & Maine railroads, made on
March 6, 1898, by which those two
roads divided New England between
themselves. This agreement purports
to have been made at the home Of the
late ]. Pierpont Morgan. IN New York.
At that time the two roads concerned
were entirely separate.
Under the agreement the New
Haven was to aid the Boston & Maine
to acquire transportation lines north
of a certain line. the Boston & Maine
to aid the New Haven to the same end
south Of that line. The bill does not
show any termination Of this agree
ment, but years afterwards the New
Haven, after 1t had secured the line
south, and after the Boston & Maine
had taken up most Of those north, In
turn took over the Boston & Maine
and became the almost -undisputed
master of the field from the coast line
of Connecticut to the ST. Lawrence
river and the Canadian border
Scope Of Alleged Monopoly.
The New Haven, the bill declares.
resorted in many elusive and round-
about methods to cover its tracks In
perfecting its combinations: 1t acquired
properties, got stock control impov-
ertshed competitors, and brought them
in and resorted to many Illegal prac-
tices to attain its end.
New England makes, the bill says,
about ,3,o00.0oo,000 worth Of products
annually, and there Is consequently a
heavy movement to and from that tec-
section, so that a transportation
monopoly there 10 OF vast interest to
eyery section Of the United States.