The herald., 1896-08-20
Very Marked Tendency Toward
Socialism
AND MORE OF 1T is NEEDED
Community Rights More Important Than
Those OF individuals
Annual Session of the American Bar
Association at Saratoga
Associated Press Special Wire.

SARATOGA, N. Y. Aug. 19.-At the
meeting of the American Bar associa-
tion today. the address of President
Storew was upon The Most Noteworthy
Changes in Statute Laws on Points of
General Interest Made in the Several
States and by Congress During the Pre-
ceding Year
He pointed out the legislation in diff
ferent states, though widely separated,
an representing both the old and the
newest civilization, strongly showed the
essential nuity of this country in deal
ing with the same problems that con-
front all the states. He pointed out that
while the past year had been marked
by much discomfort among the people.
the laws show only profound peace and
general prosperity. Discomfort does not
affect legislation. Another noticeable
point is the rapid growth of a DISPOSE
ton to assert the general interests of
the community at the expense of the indi-
vidual freedom.
The underlying principle of socialism.
that everything that man owns he
holds for the state, is asserted more and
more frequently.
The statutes of every state contain
laws which would seem unwarrantable
inVasions of private rights not many
years ago Such legislation is the in
heritance tax, the graduated income
tax the graduated tax on the estates OF
deceased persons, and the character and
number of the uses to which money is
now raised by taxation.
The most important and longest part
of the address is devoted to railroad re-
organization. 1t is based upon a statute
Of Kentucky which for the first time at
tempts to deal with this subject, and
which the address considers a step in
the right direction as it enables the
courts to protect he interests of invest
ors by making every reorganization of
a railway the subject of judicial inVes-
tigation and securing of every interest
a hearing. The address points out that
the great railway systems of this coun-
try have been built up and equipped
with borrowed capital. Many of the Sc
curities represent investments of more
than their face value. Capital stock has
been frequently issued without pay
ment, often as bonus to go with the
bonds. In this way the money has been
invested and the control of these proper
ties retained by the debtor-the railway
company.
The failre of a railway company finds
the managers united and fully prepared
for the emergency, which they newt
ably have foreseen, While it finds the
creditors scattered, ignorant, fright
ened and entirely unready to act
Regarding receivershps, he said:
Every bankrupt or insolvent law that
|'we have known has left the choice of as
signees to the creditors and no reason
exists for not applying this rule to rail-
way receiverships.
The former officers are interested in
maintaining the system which they have
brought together; they hold lucrative
positions which they do not wish to lose
They are deeply interested parties. Such
men, of all others, should be disqual-
fed to hold the scales between conflict
ing interests, nor is there any practi-
cal reason for their selection
He severely censures the usual method
of appointing officers of companies as
receivers and allowing reorganiza ton
to take advantage of the
creditors. He said
ITO the reckless use of power by hte
managers of great corporations and by
those who profit in their downfall we
must attribute much of the discomfort.
the hatred of capital and capitalists, of
corporations and their officers, which
underlie the movement which now ex-
cites our alarm
Before President Story had concluded
his address the executive committee re-
ported the nominations for member
ship, and eighty-eight members were
elected. The aggregate membership
of the association is 1143. The treas
urer's report showed a balance of $4123.