Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1875-06-15

The we'll known character of Branch
& Coz, as able and skilled accountants,
is apt to place them in q position
which is calculated to arouse the pub
lie suspicion as to the cause of SO gross
a mistatement of the case.
| beg leave to state at this point,
without comment, that Branch Il CO.,
are Bankers, Brokers, Bondholders,
and dealers in coupons.
Messrs. b. & Co. divide that portion
of the debt funded in tax-receivable
coupon bonds into two parts, viz:
SlS.0O0,C00, in coupon aid 1000. 600
registered bonds convertible. and from
the income of this year, deduc; iui.
six per cent interest Isl $50, 600 on the
$4,000, 600 coupon bOds, bui makes no
allowance for any interest Oh the
s., POO. COZ registered bonds.
Now no one knows better than
MCssrs 3 q Co., that these registered
bonds are convertible at the pleasure
Of the holder, and are converted twice
year, just before January and July,
into coupon bonds, for the purpose of
getting the coupons to throw upon the
market to intercept the taxes before
they reach the Treasury, and that inn
mediately after the coupons are clip
ped. these bonds are recOuverted into
registered bonds and held till just be-
fore the next semi annual insta!ment
of interest is due. when the process of
recOnversiOn is repeated. This semi
annual conversion is done under the
provisions of tie +. B., at the expense
of the State, to the tune of thousands
per annum. The State is therefore
compelled to pay six per cent interest
on SD, DOC, 900. or 81 .2l2, 900, instead of
81 ,0SJ,O0O, as enormously stated by
Messrs. B. q Co. This amount deduc-
ted Fl ON 81, 100000, Messr5. b. & Co.
supposed incOms. leaves 81 ,48S, 900.
The expenses Of the State as estima-
ted by Messrs. b. & Co, is much too
low. The expenses of the Govern
ment, including the amount necessary
TO support the public schools, will GER
tainly net fall short of 81 100000.
Taking therefore Messrs. B. & Cos
supposed income for the year which
will doubtless fall short $500, 600, and
we have
Probable amount of taxes
for year 1873, 81, ZOO, 600
OF this amount there will
be paid in coupons l.212,000
I,4SS, 900
Expenses of State 1,500, 600
Deficit $4,000
Thus il is demonstrated, that under
the provision of the f. B., the funded
bondholder is invested with power to
stop the wheels of government, and
the startling fact, that if he exercises
his r,nNuar - - fRH ha do
so during this year of our Lord, 1915.
Messr>. 3. & Co seem to differ in no
wise from other funders. They are all
very jealous of the vested rights of
funded bondholders. but wnen they
came to consider the rights of the un-
funded bondhOlder and the hol-
ders of the one third certificates, to ali
of whom the State il held aud firmly
bound, as sacredlY as to the funder,
their high notions of Honor and
State Credit" seems to vanish into
thin air. They appropriate the reve-
nue of the year: lst. To the payment
in full of the fun:led bondiIolder End.
EXPENSES ofState. 3rd. The balance of
the purchase OF the States own paper,
which they term the Sinking
Fund" aud lastly, if anything is left,
II is to go to the helpless and uufortu-
nate and unfunded bOndholder. The
one-third, which the Court Of APP
peaks say the State is bound for, is far
from being provided for By Messrs.
Il. d Co, is not mentioned in their
statement.
In order that the people may not be
deceived by the statement circulated
by Messrs. Branch & Co. Bankers,
&c propose to give herewith a