Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-02-19
QUESTIONABLE FINANCIAL LEGS
LAIION.

The bill introduced by speaker e''
kins on Thursday, in relation 10 TIE
obligations OF certain insolvent incoF-
porations, has not been printed, anu
hence n careful scrutiny Of its provis-
ions 10 impracticabls at thle time. But
from such knowledge as we have OF lie
tenor and intended effect, we do mol
hesitate to put 1t In the category OF
questionable financial legislation.
1t provides that when any final
judgment or decree lie recovered
against any corporation, association or
Joint stock company operating any
railroad, street railroad, canal. or water
works. or against any receiver thereof,
such judgment or decree sholl be q
lien on the real and personal property
ofsuch corporation prior and superior TO
the lien OF any mortgage OF trust dseu
Heretofore given; and II such Judgment
or decree cannot DO Satisfied out oil
the earnings Of the defendant concern,
then ite property, real ana personal,
may be sold anu the proceeds go
applied, without regard to any suoslst'
ing mortgage or trust deed.
That is to cay, fret mortgage given
ON the property Of the corporation as
security for a loan Ia not nrst lien al
all, and may be made utterly
valueless because OF Indebtedness In
CURED by the mortgagor subsequent to
the recording OF the mortgage. A
creditor who has lent money to the
insolvent concern, or otherwise ex'
tended credit to II, after the recording
OF lis first mortgage, may, simply by
getting in his work first, In the courts,
become first lienhoider.
What good object can be obtained
by thus turning upside down the order
OF things that has prevailed for CEN
turtles, in regard TO securing creditor'3
Why single out railroad, street car and
water companies as the subjects Of such
IN innovatiou2 With such u law on the
statute book OF this State, what possi-
billty would there be OF any Company
in the State, subject to its provisions,
borrowing money on frat mortgage?
1t has bee quite fashionable
among come OF the western states for
legislatures to tamper with the settled
principles OF financial law and ecien(t;
and the Introduction OF antirailrcau
and anti.capitnlist bills has grown to
be, at least To some extent,
a fad. But go far as Utah is con-
csrned, the NEWS lie opposed TO such q
policy ON the part of the law making
power.
This ia borrowing State. Our re.
Sources are infinit,; all we lack to
make cur people in toe highest degree
prosperous is capital to develop them.
We want more TairoRds, more canals,
waterwerks ami reservoirs. 70 make
1t easy for euch enterprises to borrow
money, ia to encourage their inaugur-
alton; to make il hard for them TO float
their paper is to make their birth aud
growth difficult in oil caare, and i'm.
possible in many.
On the grounu That II is CLASS legla'
iation, applying to only q few kinda Of
and on the further ground
that it makes 1t impossible for them to
enter into contract with their credit.
ors which tho latter can depend upon,
thus rendering 1t difficult IL not ian.
possible for them 10 borrow money,
the NEWS is opposed to this bill. We
can conceive OF no argument that can
overcome these objections TO IT,, are
oouhdent there is no public demand for
such statute in this State, ana flrmly
believe II would work vastly more
harm than gooI.