People's Pilot, Volume 3, Number 47, Rensselaer, Jasper County, 11 May 1894 — A REMEDY. [ARTICLE]

A REMEDY.

How Mr. Terry Proposes to Reform Federal Court Abuses. Washington, May 9.—Representative Terry (Ark.), who, with Representatives Boatner and YV. A. Stone, have been investigating Judge Jenkins’ antistrike injunction, has prepared a bill designed to reform the practice by which federal courts are practically engaging in the railroad business through the appointment of receivers. Most of the subsidy roads of the west in the hands of receivers appointed by federal courts. The courts thus secure absolute authority over railroads, and as th« receiverships run from year to year the courts succeed the railroad officials in conducting the business of the road. Mr. Terry’s bill will attempt to put a limit fc to these railroad receiverships in order to avoid the charge that the courts are going into the railroad business. It is said that not only is the time of the federal courts consumed and their functions diverted by this practice, but many incidental abuses have sprung up. One of these is the practice of cutting off all current debts for supplies, repairs, labor, etc., in order that the receivers may pay all the income of the road to the first-mortgage bondholders. The latter usually apply for the api pointment of receivers and when they are appointed they cut off all debts I save those of the bondholders. Judge Caldwell, of the United States , circuit bench, has recognized this abnse, and in appointing a receiver for a railroad attached the condition that the receiver should pay debts due from the railroad for work, labor, materials, machinery, fixtures and supplies of ! every kind, including damages to per- ; sons or property, which accrued after the execution of the mortgage under ; which the receiver was appointed. Mr. - Terry’s bill will seek to incorporate l Judge Caldwell's ruling into permanent statute law.