Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1896-08-20

Remarkable Request of the Debtor N
Stated by the Speaker.

Remarkable Request of the Debtor rs
Stated by the Speaker.
When has happened in practice? We
have seen the managers, while stoutly
denying up to the last moment that any
such step was contemplated or that tho
property was in any way embarrassed, Sc
cretly prepare a bill in equity and without
notice to any one interested file it in q
court of the United States, asking for the
appointment of receivers. As u matter of
fact, in every case the proceedings havo
been collusive The managers of the in.
solvent company have controlled both
sides of the litigation. The bills have al
legged that the company can not meet its
obligations, and that thus the system will
be dlsintegrated and the insolvent COM
pany suffer. Upon this allegation the
company asks the court in the interest of
the debtor, to deprive the creditors of their
rights or at least to restrain the creditors
from exercising them
The representatives of the debtor ask
that, to preserve for it property to which
confessedly it is not entitled, the creditors
be deprived OF that to which they are en-
titled To disguise the naked effrontery
OF this position the bills have generally
alleged that the public interest will suffer
from the disintegration of the system but
1t may be doubted if there is any ground
FOR this claim. 1t certainly has never been
established after argument, Cor no oppor.
tunity to litigate it has been given. If it
is for the interest of every one concerned
that the railroad should be run there is
little danger shat the public will suffer
from an interruption of service
After showing other evils of the present
system the speaker said: 1T is to the
courts that we must look for protection.
Their authority rests peculiarly on the re-
spect Of the people for their absolute i'm.
partiality, and in the long run they can.
not preserve that unless they observe the
well-settled rules of judicial procedure
and unless they respect and enforce every
legal claim. Parties must be left to de
termine for themselves whether their in
terests will or will not be served by the as
sertion of their rights The moment that
the courts undertake to vary their con
tracts or deny their rights, that moment
the confidence OF the community receives
a shock, anu no man knows on what hi
can rely.
IL the courts had ALWAYS refused tn On.
terrain these applications for receiver.
when made by the debtor corpor,tion. O,
even if they had selected impartial recejv
ers ana facilitated the enforcement of ev
cry agreement, railroads would have beer
reorganized more promptly and on more
enduring basis than is now possible while
the confidence Of the community in the ef
ficacy OF law and the sanctity Of contract.
would have been far greater. Judicial nc
ton which inpairs the oblig ,tions of CON
tracts Is more dangerous than any statute
which aims at the same result
AT the afternoon session f.. McClain
chancellor Of Iowa university. read a pa
per on the law curriculum in colleges. a
NUMBER OF papers were read of interest Z,
lawyers After the reading was completes
the papers Were discussed More papery
were read at tn. evening session and ate,
its close reception was g ven In honor Of
Lord Russell.