Page:Harvard Law Review Volume 10.djvu/167

Rh ests of creditors, of those whose money has been lent or invested in the property, are the primary interests. These might have been called until recently invariable, and in all but the technical sense jurisdictional, conditions and requirements, especially the condition of a suit pending. And by suit pending was invariably meant a suit between a complainant having some real, direct, individual or official interest which he sought to protect, and the corporation or party which had failed of its legal obligation or duty; for example, a judgment creditor who had exhausted the ordinary means of enforcing his claim, or a holder or holders of bonds secured by a mortgage lien, which the defendant corporation had failed to honor according to the terms of the bond and mortgage, or a trustee or trustees representing the whole body of such bondholders. The suit must of course have been bona fide in all respects, and it has been expressly laid down by approved authorities that the conduct of the party applying for a receiver would be looked into by the court, and the court would refuse the relief if the party applying did not show himself free of neglect, collusion, unfair conmbination, or other legal impropriety; in other words, of legal phrase, did not show clean hands. Courts, and especially judges, differ in judicial manners and methods; but it may be said that the former judicial standard in these respects frowned upon and made highly impolitic any haste, over zeal, or obvious sinister ardor, in seeking the appointment of receivers. The remedy was then regarded as essentially high-handed and extreme, — the absolute wresting away from the hands of its owners of property of such peculiar character, and often of such enormous value; and taking it, to be managed as well as held, by a court through its receiver.

It can hardly be questioned that new ways have come in, and new rules of judicial conduct have obtained vogue, and apparently new principles or conditions of appointment of receivers have been adopted. We do not care to dwell here upon all the considerations which supported what we call the old and conservative view of this point, nor upon all the steps by which a great change has gradually come about. It is enough for our present purpose to direct attention, as we have now done, to what all who are informed know to be a fact.

What we purpose is to notice briefly one startling departure in this regard, — the appointment of receivers of railway companies