The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-21
A GRAVE SUBJECT.

we nope tndI the DIN Oh pOllClcS ana
the clash of conflicting argument on
the silver question will not prevent
general attention from being given to
the admirable address of the president
of the American Bar association at the
opening of its annual meeting While
setting forth some general principles
OF considerable Importance, to which
we need not here refer, in it's initia-
tory paragraphs, the address is de-
voted mainly to the subject of railway
reorganizations in this country and the
part which our courts are made to
play therein. 1t is encouraging to find
a great association like this, represent
ing the legal profession in the United
States, on an occasion to which a spe-
c1al significance attaches, by reason Of
the distinguished visitors who are en-
terta1ned, taking up seriously and
practically the question of reform In
the matter of one of the most impor-
tant functions that devolve upon the
federal judiciary.
1t is too true that, in the past, the
financial operations connected with
railway construction and MANAGEMENT
In this country, which have brought
scandal upon us and disrepute upon
our securities in other nations, have
been fifty supplemented by the direc-
ton OF matters when the finances of a
system had come to a crisis. After
millions, and perhaps hundreds Of
millions, have been invested by people
In this country and in others in some
great enterprise, it is found to be
bankrupt. 1t is not earning its fixed
charges, and its obligations are in de-
fault The road is then sold, under
foreclosure proceedings, and, after
a readjustment of the different securi
ties, it again attempts to demonstrate
It's solvency. The chasm between the
old regime and the new is bridged over
by a receivership. This receivership
is conducted under the authority Of
the courts, and by officers who are
named by them
1t has been the custom too fire.
quently in the past, without collision
or intent to injure, we are sure, but
none the less unwisely, to permit the
management of road under which
it went into a receivers hands to name
the persons who were to conduct jts
business ad interim. This means. usual
ly, that the old management is pernetr-
ated and continued in control until
such time as the reorganization is COM
plete. Now, it is not usual in other
business affairs in mercantile enter
prlses, Tor instance, after there has
been tremendously heavy failure
as the result of either bad mana pc
ment or dishonest financing, 10 commit
the work of rebuilding the fallen for
tunes of the house to the hands that
were responsible for it's disaster At
least, the high repute of the Judiciary
OF TINS country will not bear patiently
any such suspicion. Let the case be
as it may with reference to the inter
ests Of property, the honor of the
bench demands that all possibility of
the charge of a personal, selfish or
pecuniary interest in the matter h.
avoided by the utmost independence
OF action and a rigorous refusal to do
anything that could possibly be con-
strued as condoning wrong or assist
ms to perpetuate it. No court ought
to do less. when applied to to select
receivers for an insolvent corporation.
than to select men in its judgment
competent to fill the important office
OF receiver, but men who were abso-
lutely ASSOCIATED from the former
management of the road, and who
would not be amenable to any inf1u-
ence that it might see fit to exert.
Considering that about one-fourth OF
the railroads in the United States have
been, or are now, under the control of
receivers, the subject is one of i'm
mense present Importance Are the
persons managing these roads which
have failed, and concerning which
it is important to inquire whether
their misfortunes are due to unayoid-
able circumstances, OF whether they
have been deliberately wrought bv
mercenary spectators. selected with
cut reference to their personal inter-