New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-20
BAR ASSOCIATION MEETS.
,rs NINETEENTH ANNUAL CONVENTION
OPENS IN SARATOGA.

p,-ssrrJ, AND HIS PARTY PRESENT
,s,nrxr MooRrrELD STOREY REVIEWS
THE EVILS or RAILWAY
REORGANIZATION.
80 y Y Aug l9-The opening session OF
,o,eenth annual convention or the American
the 'socation in Convention Hall met at 1850
ia, hi his morning. 1t brought out an attend
~ If nearly 200 persons. large NUMBER Oh
Sn'e we're women Among the first to arrive
VIZ" ord Russell Sir Frank Lockwood Montague
opanthorpe and the women or their party
y. =, entrance was "A signal for generous applause
lns" nc, the president Moorfield Storey. OF Boston,
M the Bar Association TO order at lo'fo ciocn'
c can were present on the platform Lord Russell
inc corsrossman J. Randolph Tucker. ex-Minister
80 Phelps Montague Crackanthorpe. Will
- Allen Butler. Henry Hitchcock Austen w.
ra~ Charles Clafn. Allen Francis Rawle James
= carter and Sir Frank Lockwood The president
=, once proceeded TO deliver his annual ADDRESS
PRESIDENT sToREY'S ADDRESS,
r,s address of the president was upon lhe
Nos, Noteworthy Changes in Statute Law OH
n,,s Of General Interest Made In the several
c,a,es and by Congress During the Precedhs
-, lie pointed out that the legislation In dif-
torort states. though widely separated and rep
osen,ing both the oldest and the newest c'Viii|a-
a., strongly showed the essential unity Oh lhi'
o,,n,rv in dealing with the same problems 'rla'
a
,ho last wear has been marked by much discon-
49,. o,,one the people the laws shov only pro-
,onrd peace and general prosperity. Discomfort
does not affect legislation
Another noticeable point is the rapid grown VI
,snostion TO assert the general interests OF 'no
,or,,nunitv at the expense Of individual lreeooni'
TN, underlying principle of Socialism, that every
-, .ha, q man owns he holds for the State, is
sor,od more and more frequently. The statutes
-. every State contain laws that would nave
soaroed unwarrantable nvasions OF private rlshts
-, many years ago. Such legislation Is the COL
literal inheritance tax. the graduated income TAX
,ho GRADUATED tax on the estates Of deceased per-
sons when adopted. and the character ana numoer
Of the uses for which money is now raised oy 'aAa-
"o' RAILWAY REORGANIZATION.
The most important and longest part OF the ad-
dress is devoted TO railway reoreanlzatioh' II Is
based upon statute of Kentucky which Tor the
first time attempts to deal with this supJec' anu
which the address considers step in the rlght
d,rection as II enables the courts TO protect the
interests OF investors by making every reorgahlza-
ton of a railway the subject OF judicial lhVes'sa
ton and securing for every interest nearing Inc
address points out that the great railway systems
OF this country have been built up ana equPpe"
with borrowed capital Many Of the securities rep
~ose,t Investments of more than their face value
Capital stock has been frequently issued without
ravrent: often bonus TO go with the oo"uN
In this way the money OF creditors mas peeH II"
vested and the control OF the property retained
w.. the debtor-the railway company. Great svs-
TENS Of railroads have been built up by contracts
hc,Ueen companies sometimes in the form OF
leases and sometimes Of traffic agreements. care
fully drawn by astute counsel and proVldlhs LOT
the protection Of the properties thus consohda'eo
IN case Of failure to make the payments supu-
,oted I'm the agreement but the last three years
have shown that these contracts cannot be en-
forced I'm the courts that the rights they are
intended to secure are not recognized and that Tor
all practical purposes the creditor Is at the mercy
NJ the debtor and obliged to accept substantially
sucb terms as the debtor chooses to ofer. AS mat
tors now stand counsel must advise their chehts
that they can draw instrument Of this charac-
ter with the least assurance tha' us p'0
will be respected.
The failure Of railway company finds the man
ayers united and fully prepared for the eheiseh.S
which they inevitably have foreseen whiie II mus
,he creditors scattered ignorant. frlgh'eheu anu '
,ire,,, unreadv to act What has happened III Pi'o-
tceo We have the managers "Hilo s''
denying up 10 the last moment that any suon sVp
,ras contemplated or that the property was III any
way embarrassed. secretly prepare Dill III equity
and without notice any one interested ME IL III
court Of the United States asking for the appoiht-
ment of receivers.
COLLUsIVE PROCEEDINGS.
As matter Of fact. In every case the proceedings
have been cousive. The managers OF the IN
solvent company have controlled both sides Of the
litigation The bills have alleged that the company
cannot meet its obligations and that thus the sys-
TEN will be dsintegratcd and the insolVent company
suffer Upon this allegation the company ask the
Court in the interest of the debtor, to deprive the
creditors of their rights or at least 10 restrain the
creditors from exercising them. The representa-
ves Of the debtor ask that to preserve for il prop
erty to which confessedly it is not entitled. the
creditors be deprived Of that 10 which they are en-
titled To disguise the naked erontery of this posi-
ton the bills have generally alleged that the public
system but IL may be doubted If there is any ground
for this claim. 1t certainly has never been estab-
lished after argument, for no opportunity 10 tigate
il has been given If ii is for the interest of every
concerned that the railroad should be run. there
is little danger that the pubic VIII sufter from an
Again. the selection of receivers is matter of the
deepest concern TO great many persons They are
be the trustees, for the time being Of many
different and conflicting interests. and are bound to
hold the scales with absolute justice between them
There should be undue haste in the choice Of such
officers restraining order will hold everything
meanwhile TO be managed by its officers as before.
Every bankrupt or nsolvent law that we nave
known has left the choice of assgnees to the cred
itors and exists for not applying this rule
10 railway receiverships.
else Is to be selected the former managers Of the
property shall not be made receivers In the case
Of railroad company there Is special reason Tor
this The former officers interested in main
tanning the system which they have brought to-
not wish 10 lose they are deeply interested parties.
Such Of all others should be disqualified to hold
the scales between conflicting interests, nor is there
any practical reason for their selection. Inc re-
ceiver can employ them, as the corporation EN-,
ployed them and thus get the benefit OF their skill
and experience Yet with scarcely an exception,
whenever great railway has passed into the con
troll OF the court the creditors have first learned the
fact through the newspapers.
DENIAL OF JUSTICE.
The results Of this first step inevitable. The
debtor railway company through its selected repre-
seniatives becomes the agent and adviser of the
court The receivers are left in irresponsible con-
troll Of the property What is left for the creditors?
The receivers in possession Of all the books and
control all the witnesses Instead Of approaching a
trustee anxious TO give him all possible information
respecting all his rights he deals with party to the
controversy. Instead Of finding receivers whose