New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-08
NEW-JERSEY AT THE CAPITOL
CONGRESSMAN MEWAN'S BILL TO PRO
TECT RAILROAD CREDITORS.
1T AIMS TO DEFEAT FRAUDULENT REoR-
GANIzATION sCHEMEs-A SIMILAR STATE
BILL RECOMMENDED-THE FILLED
CHEESE BILL TO BE REPORTED
FAVORABLY.

Washington Feb (SpeciaD. -Congressman
Thomas McEwan. jr. OF Jersey City. has introduced
a bill in the House of Representatives intended TO
help citizens to collect damages awarded them by
the courts In suits against railroad companies FOR
loss of life personal injuries for goods lost or
damaged in transit.
Under the existing condition of affairs said
Mr. McEwan. when asked for an explanation of his
measure. "a judgment creditor Of railroad has
nothing out of which he can collect his Judgment
where. as is almost always the case with the rail-
roads in this country, there are outstanding bonds
secured by mortgage which equal 10 the value
OF the railroad property; and that all a railroad
company has to do now is to allow judgment against
1T TO accumulate to a substantial amount and then
allow the road be sold under foreclosure by the
bondholders and bought in by them, and then to
organize company, and leave the judgment
creditors with lot of worthless judgments against
a company which has no property out of which 10
pay them
This system of reorga nizaticn. as it is called is
being very largely resorted to by railroad COM
panies at the present time, as appears by the daily
notices of reorganization appearing in the public
newspapers. one of the most prominent of which
has been the reorganization of the Erie Rail
road, and by which judgment creditors of that com
pany to a very large amount have been left unpaid
While az the property OF the company was sold TO
INTO new company, which starts on free from the
debts OF the old company. All this Is radically
wrong, ana some relief should be extended 10 these
creditors and some protection given them
Mr.. McEwan suggests that the New-Jersey Legis-
ature would do well to enact similar law apply
ing TO all railroad corporations operating there
under charters granted by that State.
Representative Gardner. OF the lid New.Jersey
District. says that the Views he expressed some
time since the bond question have now been
abundantly vindicated by the course of recent
events. Tho bond question was discussed consd-
erably to-day among the New-Jcrsey men on the
floor in conversations.
In the House Committee Of Agriculture action has
been taken relating to subject about which there
have been some petitions in the last few days from
New-Jersey. The committee decided to report favor
ably the bill subjecting filled cheese and other
authorizations of dairy products to the operation OF
State and Territorial law ION arrival" The only
amendment In committee by Mr.. Stokes OF
South Carolina. and for the insertion of the
words within the limits of such State after the
word arrival" AS a part OF his reason for the
amendment he said that a United States Circuit
judge had decided in South Carolina that the word
arrival" meant after the goods had been delivered
to the consgnee. The committee expressed some
curiosity to see such decision. but the amendment
was promptly incorporated into the bin as II will
be presented TO the House