Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1852-04-29
VIRGINIA LEGISLATURES.
SATURDAY. April II. 1859.
HOUSE.

mond; the following Preamble and reso
lntions were taken up:
The Committee Of Finance having re
ported to the House of Delegates that o,
the lth ofApril, 1881. the Board of Pub
nc Works contracted with SeIJcn, With
ers d Co. private Bankers of the CITY q
Washington, that they might dispose o
the bonds of the Commonwealth % N,
amosnt of one million Of dollars at par; anc
also the further sum of three millions o
collars at two per cent. above par. and
might have as compensation for negoria
ing the sale. such premium as The bond,
would command above these terms: and
the committee further stating thar they dc
no' perceive that any security WAS cxacted
OF Selden. Wi,hers s. Co for the faithful
execution oftleir part of the contract in
accounting for the money which may be
received hy them as agents Of the State
/. Resolved, lnasmuch as chapter g.
ot the Code provides that when money is
received from the lenders elsewhere t,,an
at the public treasury. it shall be so receiv.
ed onty through one Of the banks incorpo-
rated hy this State, ard ,nasruch as This
provision is NOT repealed by the act of
March 20. 1851, Authorizing the issue of
coupon bonds, but on the contrary is pre-
ser' ed in full force as to the certificate
issued under said act, by ha part of il
" h'ch makes SAID certificates, payable
elsewhere Than at the Treasury OF The
State. sui lject to sucl, orthe provisions Of
the said 67tI chapter as relates tr. the hor-
rowing OF money in Europe. ii wonld MOI,
have been LAW inl for the Board Of PubIlc
Works 10 allow Sclden. Withcrs & Co.
to act as agents af the State in receiving
money from the lenders. even if they had
gwen security TO account for the sald mo
nc,; and the course of the Board is sill
less 10 lie justified if iI,ere he no security.
The Committee of Finance having re
commended that all sales hereafter 10 he
effected, not embraced in tins contract.
shall be effected after reasonable notice.
and u1dcr circumstances Of fair and free
competition among bidders and pi,al
lists:
2 Resolved, That this House approve.
the said Recommendation.
3. Resolved, That the Committee of
Finance enquire he'll e. il was iustifabi.
or proper III tie Board of Public Work.
To deprive the State of what the bonds EN-
braced in said contract would have pro
duced. if sold With such notice and after
such competition; that they report, a,
near as they can. how many thousand dol
hrs the compensation allowed to Selden,
Wnhers & Co. vill amount to. and v.ib.
er the same j, NOT much more than should
have been allowed them as ,a,onable
c improvisation for the services ihey were
10 re firm.
The Committee Of Finance having sur.
gcsted the Propr'eiy of enqu!ring INTO the
rracticai,iliry of eiieciing some rnodlfica
ton of the contract in certain particulars,
To make it more safe and consistent v ith
theincrests of the Commonwealth:
a. Resolved. That the said committee
empire and report TO this House " hat
modification of The said contract is ad,isa.
bic 10 make. and what course, under all
the circum>tan' es, the General Assembly
should take in regard to it,
Mr.. Robinson said. the Committee of
Finance had. by their report. brought 10
the consideration of the assembly, facts in
relation to a contract with Selden, With.
crs & Co. which facts are confirmed by
communication from the Board of Pub.
lie Works. containlnga copy of the con
tract and Of the proceedings of the Board
Upon the facts which thus appear are
based the resolutions before the House.
He would give an outline of the case So
far as it is now developed.
The act of 1888, required the Board Of
Public Works in efecriug leans not 10
exceed. in any case. fire per ccn'um per
annum. His impression was. that dining
the administration of Gov. Tazewell, and
perhaps some other Governors before 1889.
premiums were sometimes oltslned for
the State on certificates hearing but S per
cent. interest. From 1899 to 1851, the
rate of interest paid by The State had been
higher than in previous years. but never
more than 6 or cent.
Gov Floyd. in his annual message Of
December, 1850, expressed the opinion
that State loans to the amount Of $4,000
600 would have shortly TO he raised and
he advised that this amount should he
raised upon Coupon bonds. He wen,
further. and adsised conversion of Cou-
pom bonds OF the State bonds previously
issued. He said he haI mo doubt thai
considerable premium would he gladly
paid TO obtain the exchange" and recon
mended such exchange. if it could be cf.
fected at a premiun Of 5 per cent on the
par value.
The Legislature, by the act of March
~, 1891. did not 90 So far as 10 author
ize the issue Of Coupon bonds for the old
State debt. They limited the issue to
such sums as might be needed TO redeem
the engagements Of the State: and thu.
limiting it. hada right to c> peel that when
they authorized bonds in this form-sub
lrcting tie State 10 increased -xpens.
both in paving the interest and the prin.
cipal-there would be obtained for the
State d premium of 5 per cent. or more
or, at IeasF, that reasonable efforts would
be used to obtain such premium.
Have snch efforts been used II vii
be very ditficulr for any candid man to all.
swer til. question in the affirmative. spor
such facts as now appear.
What are those facts The act au
thorizng the issue Of Coupon bonds wa.
passed The 29Ih of March. 1851 on tn,
9th of April, 1871. the Board of Public
Works took up the subject for conSidcra
ton, and at once passed resolution di
reciIny negoiiaiion of lone of four mil
lions OF ,lolla,s; the compensation of tho
agent 10 he nothing. except such sum a.
he may bc able TO sell tile stocks for abov.
par for the first million Of dollars. and fo
what he may sell the balance OF the loar
hereby authorized, after paying 10 ih'
State the par value thereof, and two PEI