The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-08-20
Lord Chief Justice Russell OF
England Among the Distin.
guished Guests.
PRESIDENT sToREY's ADDRESS
Stress Laid Upon Unjust Protection
of Defunct Corporations by
the Courts.


ton Hall was more than comfortably
packed with representative members of
the bar from all portions of the United
States at 1890 o'clock this morning, when
Hon. Moorfeld Storey of Massachusetts
called to order the nineteenth annual con-
vention of the American Bar Association.
Just before the commencement of
proceedings Lord Chief Justice Russell
of England, accompanied by Sir Frank
Lockwood, @. c., NJ. P, and Mon
tague Crackenthorpe, Q. c., were
escorted to the platform, the conven-
ton rising en- masse to give the dis
tinguished visitors an enthusiastic greet
ing. Prominent among the legal lights
present were Francis Rawle of Phila-
delphia; James G. Carter, New York;
NJ. Sharp, Baltimore; Emlin McLain,
Iowa City, Iowa; J. Randolph Tucker,
Lexington, Va; Hon. Thomas NJ. Cooley,
Ann Arbor, Mich; William Allen Butler,
New York; J. NJ. Woolworth. Nebraska;
Thomas ]. Semmes, New Orleans; John
w. Stevenson. Kentucky; CourtIandt
Parker, New Jersey; Joseph B. Warner,
Massachusetts.
The subject of the address OF the presi-
dent was, The most noteworthy changes
in statute law on points of general inter
est made in the several States and by
Congress during the preceding year."
The speaker pointed out that the legis-
lation in different States, though widely
separated, strongly showed the essential
unity of this country in dealing with the
same problems that confront all the States.
Another noticeable point is the rapid
growth of disposition to assert the gen.
eral interests of the community at the ex-
pense of individual freedom. The statutes
of every State, he said, contain laws that
would have seemed unwarrantable inva-
sions of private rights not many years ago.
The most important point of the address
is devoted to railway reorganization, and
is based upon a statute of Kentucky,
which for the first time attempts to deal
with this subject.
The speaker considered this statute a
step in the right direction, as it enables
the courts to protect the interests of the
investors by making every reorganization
of railway the subject of judicial inves-
tigation and securing for every interest
hearing. It often happened, he said, that
capital stock was issued without payment,
being offered as a bonus to go with the
bonds. In this way the money of credi-
tors has been invested and the control of
the property retained by the debtor-the
railway com pany.
The managers of railway companies are
generally prepared for an emergency when
it is found necessary to reorganize their
property, but the creditors are scattered,
frightened and wholly unprepared to act.
The managers of the insolvent company
ask the court for receiver and generally
get one favorable to their own interests.
proceedings, which action results in a
practical denial of justice.
Many man sees the savings of a life
time swept away by the announcement
of corporation and sees the managers in
charge in spite of all opposition that
creditors can make. 1t is to the courts
that we must look for protection, the
president continued. Their authority
rests on the respect of the people for their
absolute impartiality, and in the long run
they cannot preserve that respect unless
they observe the weli-settied rules of
judicial procedure and unless they respect
and enforce every legal claim. Parties
must be left to determine for themselves
whether their interests will or will not be
served by the assertion of their rights. Ii
the courts had always refused to entertain
these applications for receivers when
made by debtor corporation, or even if
they had selected impartial receivers and
facilitated the enforcement of every agree
ment, railroads would have been reorgan-
lied more promptly and on more endur-
ing basis than is now possible.
In concluding his address President
Storey said: Judicial action which i'm
pairs the obligation of contracts is more
dangerous than any statute which aims at
the same result. When the court, through
it's officers, undertakes to manage rail-
road for years, and that chiefly without
hearing the questions which arise in its
operation; when it appoints these officers
and in so dong grants the final relief
sought without notice it violates the
fundamental rule of our constitution"
The address of President Storey, which
required an hour and half in delivering,
was frequently applauded.
The regular business was then taken up.
Upon the report of the executive COM
mittee lightweight new mem bers from
various States were elected. A recess of
ten minutes was then taken, during which
time Lord Russell, Sir Frank Lockwood
and Montague Crackenthorpe held an in
formal reception on the platform, where
they greeted many members of the asso-
citation.
The convention then proceeded to the
election of the members of the General
Council, among those selected being the
following: California, ]. A. Gibson; Colo
RADIO, c. +. Harrington; Illinois, e. B.
Sherman; Iowa, A. ]. McCreary; Kansas,
]. d. Mulligan; Missouri. James Hager-
man; Montana, w. f. Sanders; Nebraska,
J. L. Woolworth; North Dakota, Burke
Corbett; Oregon, C. H. Corey; South
Dakota, J. w. Wright; Washington, c. A.
Shepard; Wyoming, e. Carter; Arizona,
e. E. Fleetwood; Utah, S. B. Shepard.
The report of Secretary Hinkiey of Bal
timore for the year showed that there were
1907 members at the close of the last meet
ing. Thirty-tiye members have been
IL ID 49, ln< -. II