Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-08-20
ITS ANNUAL.
Convention Of American Bar Associa-
ton at Saratoga, N. Y.
An Able Address by President Story-Manc
Man Hon0red.

nearly AJUO persons, Il large number OF
whom We're ladies.
Among the first to arrive were Lord
Russell, Sir Frank Lockwood, Mon
tague Quackanthorp and the ladies' Of
the English party. Their entrance was
a signal for a general ovation. When
the president NJ. Moorefield Storey Of
Boston. called the bar to order at 1910.
there were present on the platform.
Lord Russell. j. Randolph Tucker.
Edward j. Phelps, Montague Quack-
anthorp, William Allen Butler, Henry
Hitchcock, Austin 6. Fox. Charles
Clanin, Allen Francis RaWlc. James c.
Carter and Sir Frank Lockwood.
The president at once spoke of the
first business before the convention.
that of his annual address which he
proceeded to deliver
The address of Moorfield Storey. of Bos-
;on. president of the American Bar associ-
aticn. WAS upon The Most Noteworthy
Changes in Statute Law on Points OF
General Interest made in the several
States ard by Congress during the pre-
cedlng Year as required by the Consti-
tuition.
He pointed out that the legislation in
different states though widely separated
and representing both the oldest and the
newest clvilizatiop strongly showed the
with the same problems that confront all
the states. He pointed out that while the
past year has been marked by much dis
content among the people that the laws
show only profound peace and general
prosperity. Discomfort does not affect
legislation.
Another noticeable point is the rapid
growth OF disposition To assert the gen
efal interests of the community al the ex-
pense Of Individual freedom The under
lying principle of socialism. that every
h a i.s hold Let l
Is asserted more and more frequently.
The statutes of every state contain laws
that would have seemed unwarrantable
inNasions OF private rights not many
eral Inheritance tax. the graduated in
come TAX, the graduated tax on
when adopted. and the character and
number of the uses for which money is
now raised by taxation.
The most important and longest part OF
The address is devoted to Railway Re
organization: il is based upon a statute of
Kentucky which for the first time at
tempts TO deal with this subject and
which the address considers as a step in
the right direction, as it enables the
courts to protect the interests of investors
by making every reorganization of
railway the subject Of judicial investiga-
lion and securing for every interest
hearing. The address points out that the
great railway systems of this country
have been built up and equipped with Dor
represent investments of more than their
faCe value Capital stock has been fire.
Guently issued without payment; often as
bonus to go with the bonds In this
way the money Of creditors has been in
vested and the control of the property
retained by the debtor-the Railway
Company. Great systems of rail-
roads have been built w
by contracts between companies. some
times in the form of leases and sometimes
of traffic agreements. carefully drawn by
aStute counsel and providing for the pro
lection OF the properties thus consolidated
in case of 4 failure to make the payments
stipulated in the agreement but the last
three years have shown that these con
tracts cannot be enforced in the courts
that the rights that they are intended to
secure are not recognized and that for al
practical purposes the creditor is at The
mercy of the debtor ana Obliged to accent
substantially such terms as the debtor
chooses to offer. As matters now stand
counsel must advise their clients thai
they can draw no instrument of this
character with the least assurance that
its provisions will be respected.
The failure of railway company finds |
the managers united and fully prepared
for the emergency which they inevitably |
have foreSecn while it finds the creditors |
scattered ignorant. frightened and entire |
~ unready to act. What has happened in |
practice? We have seen the managers |
while stoutly denying up to the last mo- |
ment that any such step was contem- |
plated or that the property was in any |
way embarrassed secretly prepare a bill |
IN equity and without notice to anyone |
Interested. file it in 9 court of the United |
States. asking for the appointment of re-
ceiVers.
AS IA matter of fact. in every case the
proceedings have been colusive The |
of the insolvent company have
controlled both sides of the LITIGATION
The bills have alleged that the company
cannot meet its obligations and that thus |
the system will be disintegrated ana the
insolvent company suffer. Upon this allie
CATION the company ask the court. in the
interest of the debtor, to deprive the
creditors OF their rights or at least to re
strain the creditors from exercising them
The representatives of the debtor ask
that, TO preserve for 1t property to which
eonfessedly it is not entitled. the creditors
be deprived of that to which they are en-
tltied. TO disguise the naked effrontcry |
OF, this position. the bills have generally
alleged that the public interest will suffer
from the disinte2raton of the system bllt
i may he doubted if there is any ground
for this claim. 1t certainly has never
been established after argument for no
opportunity 20 litigate 1t has been given
II II Is foT the interest CT everyone con-
rerned that the railroad should be run
there Is little danger that the public will
surfer from an interruption of service.
Again, the selection of receivers is a
matter of the deepest concern 10 a great
many persons. They are to be the
trustees. for the time being, of many diff
ferent and conflicting interests and are
Justice between them There should be
no undue haste in the choice of such Off
,ers. a restraining order will hold every
hing until after notice and hearing leav-
ng the property meanwhile to be managed
" its officers IS before. Every bankrupt
~ nSolVent law that we have known has
eft the choice CT assignees to the creditors
md no reason exists for not applying this
'ule TO railway receiYerships.
The sanitary rule of equity has been
hat. whoever else is to he selected the
ornler managers of the property shall not
10 made receivers. In the case of rail-
Dad company there Is n special reason
or this The former officers are in
crested in maintaining the system which
hey nave brought together, they hold
positions which they do not wish
o lose. they are deeply interested parties.
Such men Of I'll others should be dis
qualified to hold the scales between con-
letting interests. nor Is there any Drac-
ical reason for their selection The re-
,eiver can employ them. as the corpora
ion employed them and thus get the
benefit of their skill ana experience Yet
Nth scarcely an exception. whenever a
treat railway has passed into the control
# the court the creditors have first
earned the fact through the newspa pers.
The results of this first step are in
vitable. The debtor railway company.
through It's selected representatives. be-
omes the agent and adviser OF the court
he receivers are left In irresponsible con-
rol of the property. What is left for the
reditors? The receivers are in possession
II all the books and control all the wit
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