Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-11
NEW HAVEN YIELDS
TOEVERY DEMAND
Department of Justice Gains
Practically All Points 1t
Contended For.
preliminary PLANS FOR
REORGANIZATION FRAMED
Agreement Regarded as Big Victory
for Peaceful Settlement of
Antitrust Cases.

ford railroad and the Department OF
Justice last night announced a prelimi-
nary agreement designed to effect a re-
organization of the New Haven and te
prevent a suit for its dissolution under
the Sherman law.
In compliance with department de-
mands the New Haven will dispose of its
holdings in the Boston and Maine rail-
road. cancel its joint agreement con-
trolling the Boston and Albany. give up
its trolley lines and several of its steam
ship lines. The question of its reten-
| ton of the so-called sound lines of
| steamships will be left, for the present
at least, to the interstate commerce COM
mission. Under the Panama canal act
the road is required to give up all
steamship holdings by July l. unless the
commission finds that their continued
operation by the railroad is to the COM
mercial advantage of the people and not
| in restrainst of competition.
| Government Gains All Points.
| It was conceded last night that the
Department of Justice gained practi-
cally every point it demanded. An
| nouncement of the agreement was made
in the following statement from Chair
man Howard Elliott and President A.
T. Hadley, a member of the New Haven
board:
IAN agreement has been reached be-
tween the Department of Justice and the
New Haven railroad. The New Haven, in
addition to the cancellation of the Boston
effective February l, will dispose of its
holdings In the Boston and Maine rail-
road, the various trolley systems, the
Merchants and Miners Transportation
Company, the Eastern Steamship Cor
poration and the Maine Steamship Com
pany, under a plan the details of which
will be worked out as promptly as pos
Sible with representatives of the Depart
ment of Justice by Chairman Howard Ell
loitt and Messrs. Moorefield Storey Of
Boston and Walker D. Hines OF New
York, special counsel of the board of di-
rectOrS.
Present Management to Continue.
Concerning other steamer lines. ap-
plication has been made, under the Pan
anna canal act, to the interstate commerce.
Commission, and their disposition viii be
determined by that body. Until the plans
are worked out and put into effect the
management and operation of the prop
critics will be continued as at present. The
conference was between the Attorney
General and Special Assistant to the At
torney General T. w. Gregory, Assistant
Attorney General Jesse e. Adkins and
Special Assistant to the Attorney General
Frank NJ. Swacker. representing the De-
partment' of Justice, and Howard Elliot,
Arthur T. Hadley and L. S. Storrs, rep
resenting the New Haven company.
Late last night a supplemental state
ment was made public from Chairman
Elliott's headquarters, as follows:
Mr.. Elliott said that the result Of
| the negotiations for the last six weeks
( with the Department of Justice meant
numerous changes in the general
| ,ation system. He believed, however,
that these could be brought about
without serious dislocation if all par
ties interested would work together
and have patience.
Commendation for McReynolds.
THE Attorney General. while very
| property insistent upon an arrangement
which conformed to the law as inter-
preted by him, was broad minded in con-
sidering the business and commercial
welfare of New England and of the rail-
roads in New England. He stated frank
cumbent upon the directors to conserve,
just as far as circumstances will per-
| init, the full value of all of the prop
critics, and SO far as the department
property may it will help the directors to
discharge their obligations in protecting
| the stockholders in working out the de-
| tails of the plans for the various prop
critics.
The New Haven management, while
| it could not agree fully with all of the
nf he rfr of
nevertheless felt that in the interest of a
peaceful solution of the New England
railroad situation it was wise to yield
| and to work in full harmony with the
department in bringing about an adjust
ment. While that Is going on, the New
Haven management hopes that all inter-
ested, whether owners, employees or pa
irons of the road, will cooperate in every
reasonable manner to maintain the in
tegrity and welfare of all of the prop
critics.
Properties Inherently Sound.
.The general business and transpor-
tation situation in New England is
difficult, but the properties are in
herently sound. and with courage and
patience will. without doubt, be made
not only good properties to serve the
public, but, in due time. better proper
ties for returning an income to the
owners of the securities.
There is, of course. a very large
amount of detail to be considered in
reaching a final conclusion as to
methods of segregating the properties
This work will be undertaken in a fair
spirit by the Department of Justice
and the New Haven company. AS the
interstate commerce commission well
said in its opinion about the New Eng
land situation:
What is needed, first of all, to i'm
prove the railroad situation In New Eng
land is rest and an opportunity for con-
4 structive work.
j Public Support Necessary.
Now that the railroad and fedora
, government have come to a conclusion
about the general principles, 1t is to bt
hoped that the public and all interested
: will adopt the suggestions made by tn,
Interstate commerce commission. and tha
| another statement made by the inter
state commerce commission report will
prove true.
, mo railroad management can succee,
without the support Of the public whicl
1t serves. It must never be forgottel
: that the railroad is public servant II
? Iact as well as in name, and that til
: service which 1t renders depends largel