Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1871-10-17
Stock in Marietta and Cincinnati

on old funded debt 80. ............. ,3S4 Ut
And interest on new funded debit. 1,6ll, 1886
We have grand total off,. ..~.... $40, 107. 467
| cannot affirm that these items are precisely
accurate, but believe they approximate the
truth.
From this statement it appears that forty
millions of the forty-five millions of the out
standing State debt, was incurred for works Of
internal Improvement | have no means of as
ceriainlng how, or for what purpose, the re-
naming five millions were borrowed
This debt binds both Eastern and Western
Virginia. for it was contracted by their joint
votes. Now that the old State has been dis
rupted, it will be matter hereafter to be set
tied, what proportion each shall bear IF we
assume the taxable capacity of each State, as
it existed before the division, it will be found
that about two-thirds was in the old State ano
one-thrd 10 what is now West Virginia Thi.
basis may operate harshly on Virginia, becau {
it embraces among the subjects of taxation the
slaves of the East, a subject which no longer
exists. But assume this as an equitable basi,
for division of the debt, because if the wal
had not occurred and the division had not ia
ken place, that would have been about the
ratio 10 which the people of the two sections
would have been taxed to pay the interest ano
principal of the debt.
The division of the State has rendered di
vision of the debt necessary, and in the alb
sence OF any other more equitable basis Of ad
justment, | will assume that while, as to the
creditors, both States are bound for the whole
debt, as between the two States, Virginia il
bound for two-thirds, and West Virginia fol
one-,hird.
But this division contemplates that all the
available assets of the old State, in the form
of stocks and bonds and public property should
be applied as far as they may go, to the pay
ment of the common debt, and that the bal
ance remaining shall be divided in the proper
ton above suggested
Some of the stocks held by the old State
have become valueless, and must therefore BIZ
thrown out of the account,
Among these are the Stock in the Ma
p haSsa Pd H. nd 5S9 e9s
Navigation Companies other than j.
q h..:..,... ~, al
COVington 81 Ohio.~.. 8, 206 46
Aggregate of stocks which are ire
The Manassas Road was totally destroyed
and the State not being able to rebuild it, wise
ly abandoned it.
The Plank Roads and Turnpikes have gone
to decay and been turned over with few ex
ceptions) to the counties in which they are sit
uated
The navigation companies have either ceased
to exist or to be of any value.
The expenditure by the State West of Gov
ington was In detached sections, and of M
value whatever unless other parties could bt
induced to complete the line. With the con
currence of the Legislatures of Virginia anc
West Virginia, the benefit OF this expenditure
was transferred to the Chesapeake & Ohio
Railroad Company, as bonus to induce then
20 complete the Road to the Ohio River.
The remaining $50 900 900 of Stocks, in ny
judgment, possess substantial debt-payinG
value.
am aware that it has been proposed in some
quarters to give away the States interest in the
James River & Kanawha Canal Company tt
the u. s., or any new Company which may
undertake to plete the water ine think
this would be unwise If the line is ever te
be completed it will be done by the Govern
ment Of the u. 5 upon great national prlncl
Piles, and for the advancement of great nationa
interests I incline to think that the day is no
far distant when it will be thus undertaken
aud when it is, the Government of great anc
powerful nation like the u. s. can well afforo
to pay a reasonable price, in the bonds OF tht
State, for the valuable property which the State
will transfer to it. | should, therefore, be dis
River Company in the hope that in the future
1t may be made available to extinguish some
millions of the common Indebtedness of Vir
gina and Western Virginia.
fear, also, that by he action of the Legis
lature at It's last session, the interest OF The
State in the Norfolk and Petersburg, the South
side and the Virginia and Tennessee Roads
has been rendered unavailable for the extin
punishment of any part Of the State debt. I'ha
interest amounted to SIS, 66l ,06l. | have beer
Informed that a responsible party offered Il
give SIS 600 600 for that interest payable II
State bonds at par. Il this offer had teen &C
cepted, FIVE millions of the State debt would
have been extinguished aud an annual charge
on the people Of Virginia OF $500 900 to pay
interest would have been removed. But in
stead of accepting this proposition, the Legis
Iature transferred the benefit of this claim IL
the Atlantic, Mississippi and Ohio K H., ia
king in consideration thereof bond for fou
millions of dollars secured by a lien on tht
property Of the road, but subordinate to prio
lien of fifteen millions of dollars. l regard
this security as merely nominal, and that To-
all practical purposes, the claim mlght as vel
have been given away.
But throwing out of view these claims, there
are others which can be used 10 diminishing
the public debt to large extent
Of this class are the stock in Rich
mond 81 Petersburg Railroad, which
has been actually sold for............... 5I8, 4g
Stock in Marietta q Cincinnati R..... 1919 26
Stock in Chesapeake & Ohio Railroad 2,0l3 98
Stock and claims on Orange and Alex. |, $50 20
Stock in Richmond g Fredericksburg 275 20
Stock in Danville r. R.-sold tor..... 1,034 so
d ebt VS.. same-sold for.................. 427, 38
Stock Richmond and York h. Il Co. 400, 99
Received of Chesapeake and Ohio
Railroad for Blue Ridge section -. 966, "a
Railroad ............... .... -. 49, SO, S6:
Winchester & Potomac Ralroad....~ 49, SIS
$7,8o5. 98}
Deductng these Claims the whole
amount of the debt is reduced in
round numbers to..................... 8S,Oo0,Oo(
And counting the bonds Of the A.,
NJ 81 Ohio as being worth in the
payment OF the State debt one
half its nominal value or.......... 2,O0O0O(
The whole debt is reduced to......... Sc O0O 0O(
OF which the present State of Virginia viii
have to pay two thirds or 81 900 coo, the in
terest on which will be payable semi-annually
and the principal on LIST July, 1905
The annual interest on this amount l.
81 40 900.
Now let us see how this can be met
The lands of Virginia in 1856 were
assessed 289 42l S2l
The lands of Virginia IN 1870
assessed at..... .. .. -. ......... 279, JIG csc
Showing decrease in the assessed
value of....... $40 305 76O
/ he entire revenue OF the State ID 1870 was ::
From lands and lots. ...... ......... ,507 PIG
Capitation tax ....... ACKNOWLEDGEMENTS. 237 066
fefsonai property $50 40
Income $3.50. ................ Al 1877
Llcens 299 49,