New-York tribune., 1922-05-13
New Hayel1.Cets
Voice Again in
Boston & Maine
Daugherty Appears Here in
Court and Gives Govern
meni Consent to ModiGca-
ton OF Dissolution Decree
Blocks n. Y. Central Plan
Necessity of New England
Roads Standing Together
Emphasized at Hearing

Attorney General Harry IT. Daugher-
ty anpesred before Judge Julius NJ.
Mayer in Federal Court Yesterday to
give the governments consent 10 the
modification Of the dissolution decree
entered with the consent OF tnc New
fork. New Haven & Hartford Railroad
1918 10 break ur tho conpanys a.
eyed monopoly G. New England
trans portation. At that tire the BoS~
ton & Maine shares held by the Nev
Haven were placed in the hands Of
trustees, 10 Re held for limited
period. since extended. until they could
be profitably sold. Until the sale could
DE arranged the trustees were ordered
20 disregard the wishes Of the New
Haven in voting for Boston & Maine
directors. Judge Mayer yesterday In
structed them to vote for FIVE nom
ireas Of the former corporation here
afte-
E,ochs New York Central Plan
T.. g. Buekland. vice president OF the
New Haven, declared on the witness
stand that his company had applied
for the modification only when it was
learned in February that a committee
representing the holders Of the first
preferred Boston & Maine stocl, had
approached A. Il. Smith, president of
:he New York Central, with a proposal
that ne become chairman Of the board
of the Boston G; Maine This My
~
.approchement between these two sys-
tens. and at the close of the hearing
ne declared that the cniei Importance
of Judge Mayors decision in is rhals-
ing impossible such a Development.
an understanding between the Central
and the Bo.ton / Maine. Mr.. Buckland
pointed out to the court that the New
Haven and the Boston & Albany. q
New York Central subsidia were in
competition for most os the Boston &,
Maine freight, and that much Of this
trafic might be diverted TO the latter
inc if Mr. Smith became head of the
Roston &, Maine. He laid more empha-
sis, however. on the assertion that the
threatened raprrochement would break
up the concert OF New England roads
and make il Impossible fer them 10
their comm on interests. He mentioned
the legal steps these lines have united
70 take to obtain larger share of the
return on through freight and declared
that New England, with its position
on the coast. had interests largely con-
f1icting with those of the railroads
west Of New York.
No Longer Majority Stakeholder
Both Mr. Bucland and Mr.. Daugh-
crtv stressed the fact that whereas in
913 the New Haven held 80 per cent
Of the Boston g. Maine stock, this pro
portion had since been reduced to rs
per cent by q reorganization whereby
the Boston & Maine capitalization was
almost doubled by the issuing of new
shares in exchange for the stock in
subsidiary lines formerly operated by
the Boston & Maine AS holding COM
pany or on leases. Judge Mayer agreed
that inasmuch as the New Haven had
ceased to be the Majority stockholder
the need of it's exclusion from all con-
troll Of the Boston & Maine has been
largely dispelled.
The Attorney General not only dis
cussed the change in conditions since
1918, but added that he had pro
rounccd opinion on what he himself
would have done at that time If called