Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-10-19
DIRECTORS OF NEW
HAVEN In COURT
Jury Secured and Trial Wherein
Conspiracy is Charged is Com
menced in New York.
OPENING STATEMENT IS MADE

bins and eight other directors or
former directors of the New York.
New Haven & Hartford railroad.
charged with conspiracy to monopo-
lie Interstate commerce under the
Sherman law, took their seats in the
federal court today to hear the open
Ing address Of r. L. Bats, attorney
for the government.
Mr.. Bats planned 20 outline the case
In chronological order. beginning in 1880.
the date Of the enactment Of the sher-
man law. and tracing the various trans
actions under which formerly independ-
ent railroads. trolley lines and steamship
companies In New England were brought
into the New Haven fold.
In his opening statement Mr.. Bats
asserted that the Jury would be asked
to consider the mthods by which the al
legged unlawful acts Of the New Haven
were DONE as well as the acts thorn
selves He said be wanted to make Il
clear that there was no suggestion in
tended by the government that the COM
ponent parts Of the New Haven should
be returned 70 their original status, as
the combination OF these parts was not
necessarily unlawful.
The government and the law did not
deprecote and undertake 70 punish those
natural erowths aud expansions which
might be beneficial he added. but tho
New Haven was a combination which
could have been brought together and
given rood service without bringing
about a situation where the people Of
this New ENGLAND district are at the
mercy Of powerful combination"
THE New Haven railroad" he con-
tinued, which once owned only 62S miles
Of track. succeeded in acquiring all lts
competitors until It controlled 1890 miles
Of line and gained position where every
person engaged In business In New Eng
land. every enterprise was under It's
power and control"
Steamship and trolley lines were SINH
larry OCCURRED. Mr.. Bates asserted. and
complete monopoly OF all transportation
traffic attained, a monopoly that was UNI
lawful ana designed to place an un-
limited power I'm the hands OF these con-
spirators."
Broke Up Through Rates.
The chief cometItor Of the New Haven.
IN the early days was the New York q
New England railroad. In 1922 Mr.. Bats
charged the New Haven broke up n
through route maintained by the New
York q New Engiand road by gaining
control OF one OF lts connections 10 New
York. the Housatonic.
How Charles S. MuelIen. who II OK
pected to be the governments star wit
ness in the case. first came 20 80 with the
New Haven was described by the govern
naent attorney In recitlng the history Of
the New Haven subsequent to tts ac-
uuisltion Of New York q New Bneisnd.
Mr. Mellon was the general manager of
Of the Nsw York a New England
and had threatened freight rate cuts
against the New Haven. =
There was az the time Mr. Melien
Joined the New Haven q suit pending
against the New England which, the gov
aFnment attorney said. had bean started
BY Boston saloon keeper named Cold
smith. at the instance OF Austin Corbln,
former president OF the New England
TO restrain = proposed issuo Of securities
BY which the New England wanted to
raise funds. The New Haven directors.
Mr. Bats charged. acquired this suit ana
caused Its prosecution ny attorneys
whose relationship 20 the New Haven
was conceaiod"
The government would show, Mr.. Bats
said. that J. p Morgan. william Rookie
Teller. G. p. Clark and LucIen Tuttle
agreed TO indemnify Austin Corbin for
the consequences OF their maintenance Of
he suit The suit resulted, he asserted.
b the New York and New England going
INTO the hands OF q roosiver, when the
New Haven purchased q controlling in
terest IN the stock.
Tho heirs OF Goldsmith subsequently,
brought suit for t26.o0O against Corbin
for damages IN the way OF opprobrlum
and injury 70 name and business, which,
the attorney chargod. the New Haven
settled.
Il do not believe that at the present
time business men would DO thing Of
that kind" said Bates. for times have
changed. principally due TO the sherman
act. think. But az that time William
Rockefeller did not hesitate 10 sign the
bond OF decentralization"
No nfoney, nat Bays stock.
Mr.. Bats went into the acquisition OF
the Boston a Maine. He told OF the Mas
sachusetts court decision which restrained
the New Haven from holding Boston n
Maine stock. ''and the appearance on the
scene OF John l. Billiard. who took over
the Boston 4 Maine shares temporarily.
That Billiard went to Charles s. Mellen's
office and purchased the loee iB shares OF
the Boston a Maine stock held by the
New Haven. without putting up cent
Of money Of his own. was charged by the
government attorney. Billiard was d.
nanced IN the Zeal BY the New Haven.
he said. and kept the fact secret while
the New Haven was trying 20 get the
authority OF the Massachusetts, legislature
10 authorize the creation Of the Boston
railroad holding company. authorizing
the New Haven 10 own the Boston a
Maine
When thh was done. the speaker said.
bhlard who was down on the books AZ
buying the stock AZ rs. sold back 10 the
New Haven At 80 The New Ravens
own book value At the time was ato "a
that the road lost tl5 = sharo IN TIE sale
anf 80 Ia the purchaso.
This meant" said the attorney. cha,
me New Haven for the use Of the name
Of John l. Billiard for one year pald
him s2.7co.000"
Mr. Bate traced transactions, BIZ which
certain steamship properties we're ae-
quired through devious paths. He d.
scribed the organization OF the Pacifle
company and the Paciffe Navig.tt,,, -