The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1877-07-06
Editorial Correspondence.
GAxRETT'S SPECULATION.
There's Millions In It"-At West
Ni,ginia's Expense-COnspirae
What Does IL tMean-HOw Corpora
lions Rule States.
WHITE SULPHUR SPRINGS,
IL y 1G--

Something OI sehshIloH was SISoSVN
short time since by communication II
the Huntington AdUsrttSeT stating thai
Mr. j. W;GARRgTT was buying up the
deferred Virginia certificates, with view
OF compelling payment on the part oi
West Virginia.
| have taken the pains TO inquire into
the matter and find the facts TO be
rs follows: The books of the second
auditors office ut Richmond show
recent transfer OF little more
than million dollars of these certificates
to Robert Garrett il Son, making, with
previous transfers, al aggreg gate OF nearly
million and halt. 1t will be remem-
bercd that Robert Garrett WAS the father
OF the President of the Baltimore and
Ohio railroad, and although ne has been
dead for several years the firm name OF
Robert Garrett & Son continues, the son
being the Surviving partner.
Why Mr.. Garrett should be buying
these certificates at this time is matter
of conjecture; but before presenting
the various surmises arising from the
purchase it might be well
enough to say something in explana'
tion of the character of the claim
in which Mr.. Garrett is investing his
money. The "West Virginia certificates y
or the Virginia deferred certificates as
they are more recently known in the
stock market, are obligations IN the
double nature of bonds aud transfer of
equitable rights, issued by the common
wealth OF Virginia under the operation
OF law passed by the Legislature of NIr.
gina, March 3Oth, 1871, and known rs
the Funding Bill. Virginia proposed TO
settle with her creditors by funding two.
thirds of her pubic debt principal ana
interest, and for the remaining one
third issue \ certificate Of indebtedness ;
to be paid upon settlement with West
Virginia. Under this law the public
debt amounting to sixty millions, WAS
adjusted BY funding forty-tve millions,
leaving fifteen millions in the condition
above stated, which Virginia claims is
due from West Virginia. This claim
is based upon the theory that the State
having been dismembered and onethird
of her territory having been erected into
the Slste ot West Virginia, thst rs u con-
sequouce the new State is legally and
eo.u,ably bound Tor one-third of the
public debt existing at the time OF dis
mem berment, which was the date OF the
admission of West Virginia rs sepsr
ate State INTO the Union, June 20, 1863.
This basis of settlement, however, is re-
iected by West Virginia upon the
ground that the Legislature OF Vir-
GINA in session ut A AIeXaudrIa, in giving
consent to the formation of the new
State only provided that the new State
should assume an sguita5Le proportion OF
the debt existing on the first day OF jan
uary 1861, and provision to this effect
was inserted in the Constitution OF 1868,
which provision WAS omitted from the
Constitution of 1872 1t is further
claimed by West Virginia that the ex-
pend.ures of public moneys in the ter
rltory now embraced in Virginia was SO
lar IN excess of that expended in West
Virginia that in equity there Is very Int.
tie, If snything due from Us.
When Virginia effected - compromise
with her creditors under the provisions
of the funding bill, it wss regarded a. the
very best thing the State could do.
Under no circumstances could she re.
cover from West Virginia more than
one-third. with every probability OF the
amount being greatly reduced, if adiudl-
Gated in the courts. Hence as long as no
settlement was made with West Virginia
1t was virtually repudiation OF one
third of the debt This view would have
been correct and would have proved
satisfactory to bo;h States, provided the
creditors had no rights But if the credl.
tors in receiving their deferred certificate
took with it transfer OF Nirginss
equitable claim against West Virginia,
then the creditor, as the assignee of Nir-
ginla could 90 into the Supreme Court OF
the United States and assert his claim
and involve our State in litigation.
As many people have not seen one of
these certificates, which are likely to be
source of trouble to cur State, will give
copy OF one now before me. 1t Is
printed on parchment, and IN style and
work in c'ose imitstIou OF government
bond with the coupons detached. 1t
reads as follows:
COMMONWEALTH or VIRGINIA,