Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-08-20

minutes was then taken, during which
time Lord Russell. Sir Frank Lockwood,
and Mr. Montague Crackenthorpe held an
informal reception on the platform, where
they greeted many members OF tho asso-
citation.
CHANGES IN STATUTE LAW.
The address Of the president was upon
"The most noteworthy changes In statute
law on points OF general interest made
i'm the several States and by Congress
during the preceding year." as required
by the constitution.
He pointed out that the legis-
lauon in different States, though
widely separated. and representing
both the Oldest and the newest c.vlliza-
tior. strongly showed the essential unity
of this country IN dealing with the same
problems that confront all the States. He
pointed out that while the past year has
been marked by much discomfort among
the people. the laws show only profound
peace and general prosperity. The dis
content does not affect legislation.
Another noticeable point is the rapid
growth Of a disposition 20 assert the gem
eral interests of the community at the eX-
pense of individual freedom
The underlying principle OF socialism.
that everything that man owns he holds
fol the state. is asserted more and more
frequently. The statutes OF every state
contain laws that would have seemed un-
warrantable invaslons OF private rights
not many years ago. Such legislation is
the collateral Inheritance tax. the gradu-
ated income-taX. the graduated tax on
the estates Of deceased persons, and the
character and number OF the uses Tor
which money is now raised By taxation.
RAILWAY REORGANIZATION.
The most important and longest part Of
the address is devoted TO railway reor-
eauizati0n. II is based on a statute or
Kentucky. which. FOR the first time, un-
dertakes TO deal with this subject ana
which is considered "a step ia the right
way. as 10 enables the courts 20 protect
the interests OF investors by making every
REORGANIZATION OF railway the subject
of judicial investigation. and securing Tor
every interest hearing The address
poiuts out that the great railway systems
of this country have been blut up ana
equipped with borrowed capital. Many
OF the securities represent investments or
more than their face value. capital STOCK
has been further issued without payment,
often as "a bonus 20 go with the bOads.
In This way the money Of creditors has
been invested. and the control of the
rroperty retained 10y the debtor. the rail-
way company. Great systems or
railroads have been built mp bY
contracts between companies, sometimes
iu the form of leases. ana sometimes OF
traffic agreements. carefully drawn hy as
tute counsel. and providing FOR the protec-
ton of the properties mus cohaol-"te4'
in case OF q failure 20 make the payments
srioulated in the agreement. But the
co
contracts cannot be enforced in the
courts. and nat for an practical purposes
the creditor is at the mercy ot the debtor
and Obliged TO accept substantially such
terms MS the debtor chooses 90 oner As
matters now stand. counsel must adFise
their clients that they can draw no in-
strDmcnt OF this cha 1cter win the least
assurance that its provisions Wil De ie-
spectei.
The failure Of the company finds the
managers united and fully prepared TOT
the emergency which they lntNilt'ly nave
fora.aer while &c finds the creditors scat
,.r,1 IGNORANT frightened. and entirely
,n~eagy 20 act. We have seen managers,
while etoutIy denying up 20 the last mo-
rreut that any such step was contem-
mated or that The property was IN any
Nv enbarra esed. secretly prepare a
bpu I'm equity. and. without notice 10 any
,oe interested, Gle II IN court or the
T-nited States. asking for the appoint
ment OF receivers.
COILUSIVE PROCEEDINGS.
As matter Of fact in every case. the
,rocoedings have been colusive. The
,,,,,oeers OF the insolvent company have
'.-,trsilsd both sides of the litigation.
,rne hills have alleged that the company
.srrot meet its obligations. and that
.,rs the system VIII be disintegrated
nj the insolvcnt company suner. Upon
,tfs allegation. the company asks the
.onrt I'm the interest OF The debtor. %
1c~rlve the creditors OF their rights. or.
a., least. 10 restrain the creditors from
o,cfsinr them The representatives
- me debtor ask that 20 preserve fer
4, nronerty so which confessedly it Is
-. ertltled. the creditors be deprived of
~, IN which they are entitled To
',tsor,ise the naked efironetry of this po-
si,ior the bills have generally alleged
,pet ,he public interest viii suffer from
re disiutegration OF the system, but 10
-, he doubted II there is any ground
ea- mis- claim II certainly has never
heen established after argument for no
,,,,rdrtunity 10 litigate II has been given.
~ 4, is for the interest OF every one con-
',.,,,ed that the railroad should be run.
la alilhiLa