The Birmingham age-herald., 1915-10-19
Prosecuting Attorney Re- views History of Corpora tion Exposing Methods of Strangling Competition
COMBINE ALLEGED
 RULED SITUATION
 WITH IRON HAND
New England Held at the Mercy of Interruptions Vaccinations of Powerful Railroad Kings

New York, October 1S.-The alleged un- lawful methods by which the New York. New Haven and Hartford Railroad com pany is charged with having secured a monopolistic grip on New England trans rortation traffic were set forth today by Robert l.. Batts, government consul, in opening the governments case at the trial of William Rockefeller. Lewis Cass Ledyard and Edward D. Robbins and eight ether past and present directors or the road for alleged conspiracy to violate the Sherman law.
 Suits to force the foreclosure of com peting railroads. secret acquisitions of stock, the incorporation of dummy com panies for the sole purpose of securing ownership of rail and steamship lines taken over fictitious sales of securities to deceive the authorities of Massa- chusetts as to their actual ownership, the use of money to obtain control of a Boston newspaper and to secure favor able legislation, sacrifice of millions of dollars of stockholders money in acquir- ing competing properties, the burning of hooks and the transfer of records to Canada, beyond the jurisdiction of the federal authorities, these were some of the acts alleged by the federal attorney as having been committed by the New Haven directors with criminal intent and with full knowledge that they were unlawful
 Big Combine
 MT. Batts emphasized that had the New Haven combination been attained in the natural and legitimate growth of business it might not necessarily have come within the scope of monopolistic corporations which the Sherman law was intended to reach. But the law was de- fgned not only to protect the public from tho s0si 4a1 or elif Il competi- tio7. aut tt project ,hs 7a elders and 1ne lai 7sds themselves from becoming tlla Fisdnls of nnfal netdoas It was ane method used by Ihe New Haven H 3l Ing it'd competitors ou1 If business. sReilfiene me noney oe stoc. oders and hring abont a situation Vhere every 4 arson doirg business in New England .e,e cry enterprise was at the mercy of q powerful combination. that the Sher- man law was intended to punish.
 All these alleged offenses the attorney outlined in general way and then, using map showing the 10 principal New Eng land railroads that operated independent ly in 1890, traced the history of their acquisition.
 MT. Batts accused William Rockefeller CT having with other directors now dead secretly instituted a suit which forced one of the roads, the New York and New England, into a foreclosure.
 Hid Behind J. F. Morgan & Co.
 J. P. Morgan X Co.,, he said, was used as means of conceallng the ownership of stock of the Old Colony Steamboat company at a time when the New Haven.s attempt to acquire it was being inquired into by the Massachusetts authorities. The Morgan firm gave a note for the stock that bore no interest, he said and kept it in their possession long enough for the president of the Old Colony rail- road, the new subsidiary of the New Haven, to say that the railroad did not own it.
 At the door of Edward D. Robbins the former general counsel for the New Haven, the federal attorney laid the alleged unlawful devising of schemes whereby the control of steamship com panies could be secretly acquired Rob- bins, he said, made use in a single day of three banks and various dummy cor porations and individuals as the vehicle for switching back and forth of $l5OO,- 900, used eventually in acquiring the Metropolitan Steamship company
 One of the individuals, he said was Grover C. Richards of Portland, Me, a 21-year-old plumber, brought to New York to act as treasurer of another Metropolitan Steamship company used in the transactions. for which he re ceived $5 a day and expenses In 1905 Charles F. Brooker, one of the defend ants called attention to the fact, said MT. Batts, of the danger" of resump- tion of Connecticut river traffic in com petition with the New Haven beyond Hartford and the New Haven officials expressed their belief that they could prevent the passage of the congression- al resolution that would open the river.
 William Rockefeller Looks On
 William Rockefeller followed the trial today with apparently more watchful interest than any of the other defend ants. While the government attorney was using the map the aged millionaire occasionally rose to his feet to get a better view. Leaning on his cane he would stand for several minutes watch ing every move of the attorneys point CT. MT. Rockefeller also took occasion today to introduce himself to the federal attorney and engaged with him in seem- ingly amiable conversation.
 MT. Batts will continue his address tomorrow.
 An alleged transaction not hitherto made public in any of the New Haven proceedings, whereby the government charges J. P. Morgan & Co. held stock of the Old Colony Steamboat company long enough for Charles F. Choate. the elder, president of the Old Colony Rail- road company to tell the Massachusetts authorities that the railroad company did not own it, was described by the government attorney in telling of the eventual acquisition of the steamboat company by the New Haven in 1893.
 The stock, being minority shares out standing, was bought up by the Old Colony railroad. MT. Batts said, at the