The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-11
Preliminary Agreement
to Effect Reorganiza-
ton Announced.
PREVENTS SUIT
FOR DISSOLUTION
Department of Justice Virtually
Gains Every Point Demanded.
Holdings in Other Railroads,
Trolley Lines and in Some
Steamship Lines to Be
Disposed Of.


York. New Haven and Hartford Rail-
road and the Department Of Justice to-
| night announced n preliminary agree
ment designed to effect a rcorganiza-
| tion OF the New Haven and to prevent
| a suit for it's dissolution under the
| Sherman law.
In compliance with department. de-
mands. the New Haven will dispose of
| it's holdings in the Boston and Maine
Railroad. cancel its joint agreement
controlling the Boston and Albany, give
up its trolley lines and several of Its
stea ship lines.
! The question Of it's retention OF tho
so-called Sound Lines of steamships
will be left to the Interstate Commerce
Commission.
Under the Panama Canal act, the road
| is required to give up all steamship
holdings by July 1, unless tho commits
sion finds their continued operation by
the railroad is to the commercial ad-
vantage Of the public and not in re-
straint of competition.
Gnins Nenrly Every Point
/ 1t was tonight conceded that the
! Department of Justice virtually gained
every point demanded. Announcement
/ of tho agreement was made In the fol-
| lowing statement from Chairman How
u o
a member OF the New Haven board:
AN agreement has been reached be-
tween the Department Of Justice and
the New Haven Railroad. The New
| Haven. ia addition TO the cancellation
of the Boston and Albany agreement.
which becomes effective February L,
Will DISPOSE OF Its holdings In the Bos-
ton and Maine Railroad, tho trolley
systems. the Merchants and Miners
Transportation Company. the Eastern
Steamship Corporation. and the Ms.nG
Steamship Company, undoc plan, the
| details of which will be worked out
as promptly as possible with repre-
sentatives Of the Department OF Jus
| ticc.
Concerning other steamer lines. APP
plication has been made under the
Panama Canal act. to the Interstate
Commerce Commission. and their dis
position Will be determined by that
body. Until plans are put into effect,
the management and operation of the
properties will be continued as at
present.
The conference was between the
Attorney General and Special Assista mt
TO the Acknowledgement 7. w. Gregory
Assistan Attorney General Jesse c.
| torney- General Frank NJ Swacker,
| representing tho Department OF JUS
tice, and Howard Elliott. Arthur T.
Hadley and l.. S. Storrs. representing
the New Haven Company"
No Bearing on Criminal Suits.
The announcement of the agreement
does not have any bearing on the much
talked or criminal suits against form
or directors and officials of the New
Haven Road. There has been no de-
cision upon this point.
Department OF Justice officials to-
night were Of the opinion that the New
Raven agreement was as big a victory
Tor the principle. OF peaceful settle
ment or antitrust cases as that regis
tered in the cases of the American
Telephone and Telegraph Company
Ihey pointed out that the complexities
OF the New Haven situation were great
er than In the telephone case, and that
suit to separate the New Haven from
Its great holdings might have result
ed In disaster to the road itself, and in
reflex action upon business that would
have been widely felt.
As long as Chairman Elliott and his
associates show their intention to car
ry out the terms OF the agreement as
surnnces are given that the Depart
ment of Justice Will not press them
for haste.
Although no one In authority would
predict how long a time such a reor-
ganization will require, Ii generally
was believed that final readjustment
cannot be reached for many months
and. on some points probably not for
years.
No official statement was forthcom-
ing from the Attorney General to-
night.
Mr.. Elliott had nothing to add to-
night to his formal statement He ex-
pected to return to New York to-mor-
row. The working out OF details OF The
reorganization Immediately Will be be-
gun.