Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-11-10
Government Attorneys
at Trial of Directors
Introduce Evidence
Within Sta tute of
Limitations Since
1912
An Alleged Attempt to
Acquire Minority
Shares to Secure Alb
solute Ownership of
the Central n. E.

New York, Nov. S.-FOr the HrSt
time since the trial Of the II former
directors Of the New York, New HaV-
en- & Hartford Railroad began nearly
four weeks ago, attorneys for the gov
eminent placed before the jury today
evidence Of acts committed by the de-
PENDANTS within the three-year period
Of the statute of limitations, which
began in 1912. This had to do with al
legged efforts of the New Haven to
make absolute, through the acquisition
Of minority shares. its ownership OF
the Central New England Railway,
control of which it purchased in 1904.
All the testimony that has been pre-
viouslv introduced dating back to
1890, the year Of enactment Of the Sher-
man law, which the defendants are
accused Of violating, has been design
ed TO prove that conspiracy to mo-
nopolize the transportation traffic OF
New England existed prior to the
three-year period. II is only upon IL
legal acts committed as a part Of the
alleged continuance Of the conspira-
cy within this period that the defend
ants can be convicted, according to
the courts ruling.
The testimony emerged into this Pc
Rod today after the government had
put into the record letters and direc-
tors minutes intended to prove that
the Central New England was acquir-
ed in the face Of legal advice from its
own counsel that the acquisition might
be a violation Of the Sherman law and
was then consolidated with certain
other acquired properties with a char
ter from the state of New York where
part Of its lines were located.
Through minutes Of directors
meeting held March p. 1912. the gov
eminent tried to show that the New
Haven sought to validate the doubt
full legality of its ownership of certain
other lines in New York state by plac-
ing them under the control Of the Cen
trail. through a lease These lines We're
a part Of the old New York & New
England road. now merged with the
New Haven Under a Connecticut char
ter. Instantly a half dozen Of the law
yers for the defense We're on their feet
excitedly protesting against the admis-
sion Of the minutes in evidence They
declared that it was merely an inter
company arrangement and had no
significance other than it was design
ed solely TO facilitate economical OPP
Grafton Of the New Haven lines
This is introduced" insisted r. L.
Bats for the prosecution. ito show an
intent to shift control Of the lines of
] one company, whose standing was Of
doubtful legality to that of another
company whose standing was less
doubtful
The minutes having been ruled in as
proper evidence by Judge Hunt, the
government then questioned Charles S
Mellen, who was on the stand. as to
the reason for the authorization of the
lease 1t then developed that the lease
had been abandoned and a traffic agree
ment had been substituted whereby the
Central New England used the lines in
question. Mr.. Mellen explained that
he did not think that either the lease
would have been suggested or the
agreement made if the New Haven had
not thought It advisable Ito go through
the formalities to prevent the Centrars
minority stockholders from making
trouble
They were watching to see what
was done affecting their interests he
ShllU. II IL ldO mol D6SD LOT lTdI IN
terest, ! don't think the agreement
would have been made. But the stu
alton was economically the same, as
far as the New Haven was concerned"
WAS there ever a question of the
validity of the title?" asked Mr.. Bates.
We'll. there was in my mind" replied
the witness.
To show that the New Haven then
took steps to acquire this minority in
terest in order to obviate all possible
trouble, the government prosecutor put
into the record more minutes of New
Haven directors meetings but again
over the heated protest Of the defence.
What light does it throw" protest
ed John G. Milburn, ito show that, after
the control of the road had been &C
quired We got a little more stock"
From minutes recorded on July II,
Continued on Page @CoI. q