The Birmingham age-herald., 1914-08-12
NEW HAVEN HEADS AGREE ID DISSOLVE.
 SYSTEM PEACEFULLY.
Agreement Will Put an End to Legal Proceedings Be gun Against Road by
 the Government

Washington. August 11.-Attorney General McReynolds received word to- night from New York that the direct OTIS of the New Haven railroad have agreed to his terms for n peaceful dis solution of the system which will put an end to the court proceedings begun there several weeks ago.
 Department of justice officials, asked sometime ago if there were any possible way to avoid fighting the suit through the courts, replied the only way was to carry out the terms of the agreement for dissolution made some months ago. Attorney General McReynolds, however, made his demands regarding the separa- ton of the Boston and Maine stronger than formerly.
 In the old agreement the trustees were to hold the New Havens Boston and Maine stock for two vars and half. Un- der the present understanding they will hold it for only one year. The Attorney General is expected to see they are in no way interfered by the New Haven They are expected to dispose of the stock in 12 months, but failure to do so on reasonable grounds probably would lead to an extension of the time
 The interstate commerce commission, under the present arrangement. is to de- eide whether the New Haven shall re- tain its interest in it's so-called Sound Steamship lines.
 The whole agreement will be embodied in a decree, which will be accepted by both the government and the proper rail- road officials and submitted to the United States district court of New York for approval and record.
 The criminal prosecution of New Haven directors will not be affected, department officials said tonight The federal grand jury in New York probably will get the cases early in September
 New York, August 11.-An agree ment has been reached between the government and the New York, New Haven and Hartford Railroad com pany for the peaceful dissolution of the New Haven system, according to an announcement after a meeting here late today of the roads directors.
 President Hustis resigned as a di- rector of the New Haven. as on satur- day he is to become president of the Boston and Maine. Chairman Howard Elliott was elected president of the New Uaven The resignation of John L. Billiard was accepted
 Meeting Held
 The announcement said "A meeting of the board of directors of the New ' ork, New Haven and Hartford rail- road was held this afternoon. After the meeting President Hustis said that in pursuance of the hope expressed in his statement of July 21. that a way still might be found to accomplish the peaceful dissolution of the properties, an agreement had been reached, which substantially is a renewal of the orig inal agreement between the Attorney General and the company except as to the Boston and Maine stock and is in accordance with the vote of the stock holders at New Haven, April 21, 1914 authorizing a settlement with the gov ernment.
 President Hustis said in conclusion that this arrangement having been ac- cepted by the Attorney General, had been ratified by the board of directors at the meeting today and that the mem- bers of the board highly appreciated the courtesy of the Attorney General and his cooperation in their endeavor to solve the problem without inflict- ing unnecessary loss upon the share holders and to effect a rehabilitation of the property in the interests of the public.