The Indianapolis journal., 1896-08-20
Lord Russell of F<iiiOwen. Chief JUS
tinguished Men fin Attendance.
THE PRESIDENTS ADDRESS
RAILWAY MANAGERS SEVERELY
CRITICISED BY MIR. STOREY.
Their Methods of ReOrganizinG Roads
and Taking Snap Judgment on
Creditors Condemned.

| a large attendance at the convention hall
at the opening of the nineteenth annual
meeting of the American Bar Association
| to-day When Lord Russell. Sir Francis
Lockwood and Montague Crackenthorpe,
together with their ladies, entered the hall
| they were greeted with hearty applause.
Judge George S. Batchellor escorted them
to seats at the front and the plat
form. The president of the association,
Moorefield Storey. conducted Lord Russell,
Sir Francis Lockwood and Montague
Crackenthorpe TO seats on the platform.
Among others honored with seats on the
platform We're J. Randolph Tucker, Ed
ward ]. Phelps, William Allen Butler,
| Henry Hitchcock. Austin c. Fox. Charles
Clahin Allen, Francis Rawle and James c.
! Carter.
| President Storey called the association to
! order and delivered his address. He
viewed the most noteworthy changes in
/ statute law on points of general interest
made in the several States and by Congress
| during the preceding year. While the year
had been marked by discomfort among the
| people the laws show only peace. Discon-
| tent did not affect legislation. There was
! a noticeable growth of disposition TO assert
the general interest of the community at
| the expense of individual freedom. He
| cited such legislation the collateral in
| heritance tax. the graduated income tax,
the graduated tax on the estates of de-
| ceased persons. and the character and
number of the uses for which money Is
raised by taxation.
| Most of the address was devoted to rail-
| way reorganiza ton. Reviewing a statute
| of Kentucky which enables courts to pro-
| tect investors by making every railway re-
organization the subject Of judicial investi-
cation, Mr.. Storey said: THE failure of a
| railway company finds the managers pre-
pared for the emergency which they have
foreseen. while it finds the creditors scat
tered, ignorant, frightened and unready to
act. We have seen managers while stout
ly denying up to the last moment that any
| such step was contemplated secretly pre-
pare a bill and, without notice to those in
terested. file II in court. These proceedings
have been collusive. The managers of the
insolvent companies have controlled both
sides of the litigation. The bills have al
legged that the company cannot meet it's
obligations and that thus the
system will be disintegrated and the insol-
vent company suffer. Upon this allegation
the company asks the court In the interest
of the debtor TO deprive the creditors of
| their rights. After an expensive contest
the self-constituted reorganization commit
tee appears and bondholders are offered
their choice between a contest conducted at
great disadvantage and expense and the
| acceptance of such terms as may be Of
fered. While in theory they need not ac-
cept in fact they do not dare to refuse.
| The expense of the reorganization has been
| in many cases enormous and in fixing it
there Is no one to audit the accounts. no
one 10 represent the creditors, who suffer
| while their trustees profit Whenever
| an agreement is reached the obstruction
| ceases. The foreclosure moves swiftly and
| the officers of the court longer resist
| the claims of suitors at the bar. The re-
ceivership has accomplished this purpose.
Many see the savings of a lifetime swept
away by mismanage cement and the same
managers continue IN charge. To the reck-
less use of power by the managers of cor
pora tions and by those who profit in their
III. tO he
discomfort. the hatred of capital and capt.
talsts, of corporations and their officers
excites our alarm
1T is to the court that we must look for
protection. Their authority rests peculiar
ly on the respect of the people for their
absolute impartialty. and in the long run
they cannot preserve that respect unless
they observe the well-settled rules of Judi
cial procedure and unless they respect and
enforce every legal claim. Parties must be
left to determine for themselves whether
their interests viii or will not be served
by the assertion of their rights The mo-
ment that the courts undertake to vary
moment the confidence of i" the communfy comm. idf5
receives shock and no man knows on
what he. can rely. IL the courts had al
ways refused to entertain these applica-
tions for receivers when made by the
debtor corporation. or even If they had Sc
lected impartial receivers and facilitated
the enforcement of every agreement. rail
roads would have been reorganized more
promptly and on more enduring. basis
OF the community in the efficacy of law
and the sanctity of contracts would have
been far greater. Judicial action which
impairs the obligation of contracts is more
dangerous than any statute which aims
at the same result: When the court through
its officers undertakes to manage rail-
road for years and that chiefly without
| hearing the questions which arise i'm its
operation: when 1t appoints these officers.
and in so doing grants the final relief
sought without notice, ii violates the
fundamental rule of our constitutional sys-
tenn
After President Storey had concluded his
address the executive committee reported
the nominations for membership and
The aggregate membership of the associa-
tioh Is 1sd2 The I, ,Is treasurers report showed
was then elected. with S. o. Pickens as the
Indiana member.
The association met this afternoon as the
section of legal education The chair ap
pointed DIR. w. ii. Rogers. of Evanston
III. judges L. III. Bennett. of Boston
Mass, and W. w. Howe. of New Orleans
a committee TO nominate officers for thi:
section for the ensuing year. Chairman O
section. Chancellor Il. Mclean. of the Stat,
University of Iowa, delivered q lengthy ad
| dress the Law Curriculum Subjects I,
be Included and Order Of Presentation
With every prepossession in favor of col
his eyes to the fact that i'm many schools
the studies tended to foster quickness rath
| er than thoroUghnesS. and that the final re
suit depended still to great extent on tn,
individual capacity of the student He con
tended that the law instruction given as
part of a college course was OF little ad
vantage. If Ii is not n positive detrimen
| to the proper study and comprehension o
law as law. He thought some of the old
fashioned lawyers books remained the hes
textbooks for the student on their partic
ular subjects For il must he borne in
mind. he said. that what the student need
ed was not easy book. which will Civ,
| him few definitions and superficial rule
| such as would enable him TO pass examina
| tions. but thoroughly planned discussion
| of the fundamentals OF the subject an,
| their applications. The rock upon whicr
the whole fabric of the law as 4 harmoni
| Gus structure was in danger OF going I,
| pieces was the lack of real knowledge OF
| the part of the practitioners In regard [,
the practical subjects OF pleading evidenc,
| ard practice. The real difficulty was in tn
been well-grounded in the principles o
law. TO practice it by some mere rule o
art
Charles NJ. Campbell. OF the University O
| Colorado. unable 20 be present. bu
| his voiuminOus paper was read by PROF.
| Isaac y. Russell. dean OF the law facult
| OF the university OF the city of New York
| the title being 1.-The Necessity and Impor
| tancc OF the STUDY OF Common Law Pro
cedure I'm Legal Education"
| Prof. Blewett Lee Of Northwestern Uni
| versity Evanston. ILL.,. read a lengthy
paper on the Teaching Practice in Law
| Schools"
Following the reading ~ the papers. a
discussion ensuef On the subjects pre- eDte
George =. Wanty. Of Grand Rapids. IA thei
10 the Michigan Law School, and citet
| I'm. hob hot xrfh..r