The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-07-21
NEW HAVEN RY.
in CIVIL SUIT
EFFORT TO SETTLE CASE
ENDED IN FAILURE
YESTERDAY
BOSTON AND MAINE
The Disposition of the Stocks of
Which Road Has Caused the
Difficulty
(By Associated Press. ]

(By Associated Press.)
Washington, July 2O.-Uirii SUIT to
| separate the New York, New Haven
and Hartford railroad company from
Its subsidiary rail. trolley and steam
ship lines will he brought by Attorney
| General McReynold: III the United
4 States district court at New York
within the next few days.
! A final effort today to settle the
problem without litigation ended I'm a
| failure, although the attorney general.
T. W. Gregory. special assistant in
charge Of the case. and a committee
of New Haven directors were in con-
ference many hours. The committee
came to discuss tho sale of tho Boston
and Maine stock owned by tie New
Haven. 1t desired this sale to be made
free OF conditions imposed by The state
OF Massachusetts and is said 10 have
declared that an unconditional sule of
the Boston and Maine stock. would in
sure price Of S1O.0G0.0G0 above what
the New Haven might otherwise hope
to get
Wilson md Cabinet Investigate.
| The New Haven case will he laid
before PreEident Wilson and the cab
met tomorrow. It is not doubted that
The department.: course will be ar.
p-t;ed. There little doui. I.re
that OH the he'll, of the suit will come
All tffort to have federal gran.i Jury
In New, York return indictments
against many directors of the New
4 Haven who served In the days when II
Twas building |up "a :aystem which Tho
attorney general holds is con,b!hr-
ttcn in restraint of trade. Both the
civil and criminal actions Will be taxi
en- under the Sherman law: Thl ont
come of these proceedings may de-
termine the value of the Sherman law
as criminal statute.
T. To tie tivil suit the Now Haven IL
not expected to make any strong re-
sistaroe
I'm the government bill the New
Haven will be charged witt, beng q
monopoly In control OF New .InSland's
TRANSPORTATION, with being couhina-
ton in restraint OF trade and In viola
| tion OF tho Sherman law. The depart
ment Is expected to ark that the court
separate the New Haven from tho old
New England re- .!way. acquired many
years ago. The court also will be
asked to divorce ,ha New Haven from
its so-called Sound Steamship Lines
which ply Long Island Sound aid run
from New York to most OF the po. ts
along the lower New England coast.
Features OF the agreement made last
March with Chairman Elliott and Now
Haven attorneys which the bill is eX-
Dected to follow are:
THAT the New Haven be required
| to divcst itself of control OF the Bos-
ton and Maine railroad; that 1t give
up it's holdings in the Connecticut,
Rhode Island trolley lines and the
Berkshire trolley lines and It's minor
ity interest in the Eastern Steamship
Corporation. There will be the Gus
tomary plea for an order requiring the
New Haven to dissolve. and for a
mandate to prevent future combina-
tion OF similar character.
President HustiE. A. T. Hadley, T.
Dewitt Cuyler and Moorileld Storey,
counsel for the road. were tho COM
mittee that made the final effort to
settle the case without litigation, but
their suggestions were not accepted.
| In a statement issued at the close OF
the day President HustiR plainly indi-
Gated that filing OF Tie government
suit was expected.
Boston and mime Stock Issue. .
The difficulty in the negotiations
have been over the disposition Of the
Boston and Maine stock controlled by
| the New Haven. 1t was agreed by
both parties months ago that It should
be sold. Massa chusetts. which always
possessed the right to buy It.. recently
enacted legislation permitting its sale
but on the condition that on each
share sold this right be plainly set
forth. The New Haven directors said
they were unable to accept this con-
dItion. They suggested that the de-
partment OF Justice take the matter in
court and ask for n decree, to which
they would assent. disposing of every
Issue but, that OF the Boston and
Maine.
In the meantime they proposed that
this stock be turned over to trustees
who should sell It without the condi-
tion imposed by Massachusetts,. They
indicated ttat its unrestricted sale
would mean $4,000. 900 to tho New
!, Haven. Attorney General McReynolds
did not like the plan. Moreover. It
was said at the department that. the
March agreement provided Tor the sale
OF the Boston and Maine stock. hut
made no mention Of conditions Inn
posed by Massachusetts. Department
officials take the position that the New
Haven has not liTed UP to sthis agree