Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1879-02-05
ROndhOIders' Conference.
REPORTERS EXCLTDED-THE PRoPO-
sITION OF THE FINANCIERs REPRE-
sENTING THE BoYDHoLDERs.

the gentlomen's parlOr at the Exchange
Hotel. AS soon as the financial visl-
tors made their appearance Senator
Grimsley, the chairman. stated that 1t
was the desire of the committee that
the meeting this morning be conducted
privately, and requested all parties not
members of the committee or bondhold-
.ers to retire. The reporters, who we're
present, upon hearing this, quietly re-
tired. The business was proceeded with.
Hon. Hugh Mccullough and Maj.
Isaac II. Darlington, on behalf OF the
American and Foreign BOndholders'
Association, presented letter and also
the following preamble and bill for the
final settlement Of the debt question
THE PROPOSITION.
Whereas. it is believed by the Gener-
al Assembly that the rate Of interest
heretofore agreed to be paid by the
State on the public debt is greater than
cab be borne without destroying The in
dustrial interests of the State and,
whereas the Council of Foreign Bond
holders of London. England, and the
Funding Association Of the United
States of America, limited, have, in
view of this belief, expressed their will
mgness Jointly to endeavor to obtain the
consent of the creditors to an abatement
IN the rate OF interest and. whereas 1t
is highly eXpcdicnt, in the best interest
of the State. tosccure an amlcaDle set
Element with the creditors, by which the
credit Of the State may be restored and
enhanced, and the aggregate amount Ct
interest payable by the State reduced
within limits winch will be not too oner-
Gus TO her population therefore,
|. BE 1t enacted by the General ASSem-
bin Of Tuginia, That to provide Tor
funding the deSt OF the State the Gov
error is hereby authorized TO create
bonds Of the State, registered and cou-
BON. dated the LIST day Of January, 1879,
the principal payable forty years there
after, bearing interest at the rate oil three
per centum per annum for five years,
aud at the rate of four per centum per
annum for twenty-five years, aud at
the rate OF FIVE per centum per annum
for ten years, payable III the cities OF
Richmond, New York, or London. as
hereinafter provided, on the lst days OF
July and January Of each year until the
nrincjpal is redeemed. The State shall
have the option Of rcdeeming any or all
of said bonds By the payment OF prlncl'
nal and accrued interest at any time al
ter the expiration Of ten years from the
LIST day ofJanuary. 1879, on public no
flee TO the holders Gifts purpose to make
such redemption. The coupons on said
bonds shall be receivable at and after
maturity for all taxes, debts, dues and
demands due the State. and this shall
he expressed on their face. The holder
of any registered bond shall b. entitled
TO receive from the Treasurer OF the
State a certificate for any interest there
on. due and unpaid, and such certificate
shall be receivable for all taxes. debts.
dues. and demands due the state, and
this shall be expressed on the face OF
the registered bonds and on the face OF
such certificate. All obligations Great
ed under this act shall be forever cX-
empt from all taxation, direct or ndi-
rect. by the State. or by any county or
corpolatiOn therein, and this Shall be
exnressed on the face Of the bonds. The
said bonds shall be ofthe denominations
of one hundred dollars. five hundred
dollars, and one thousand dollars. at the
ouljon of the cro dltors respectively. and
thp l,onJs as well as thor coupons shall
be nayable IN dollars AT Richmond and
New York, or, il desired, may be paya-
HE in sterling at London at the fixed
rate ofcXchansc OF one pound sterling
far five dollars. The bonds hereby au-
thorjzed shall be issued only in exchange
for the outstanding debt Of the State as
Ne !. 81 iIah pUscs Vi ucsIgnauon, the
outstanding. Indebtedness cfthc State is
divided into two classes as follows, TO.
wit :
Glass l, which shall be taken to n
clude all tax receivable coupon bonds
and all registered bonds and fractional
certificates which are convertible under
the act OF March Goth, 1871. into such
tax-receivable coupon bonds.
Glass ii, which shall be taken to III
clude all bonds funded under the act
approved March 3Oth, 1871, as amend
ei by the act approved March 7th,
1872; and also two-lhirds Of the face
value, with twO-thirds Of the unpaid
accrued interest up to the lst Of July,
1871. on all unfunded bonds, including
sterling bonds.
8. The outstanding Indebtedness Of
the State shall be funded in the new
bonds, to be issued under this act, as
follows: Bonds Of Class | shall be pre-
scented for exchange with all unmaiured
coupons attached; and bonds Of Class
ii shall be presented with all coupons
attached maturing after January /,
1879 and these obligations shall be
exchanged at the face value of said
bonds, dollar for dollar, for the new
bonds, provided that the proportion Of
Glass II refunded shall never exceed in
amount one third (l-3) Of the total
amount refunded until eighteen million
dollars OF Glass | have been retired.
The new bonds to be issued may be
coupon or registered, at the option Of
the holders, and at the like option cou-
pom bonds may at any time be convert
cd into registered bonds.
4. All due and unpaid in crest up to
and including January lst, 1879, may be
funded under the provisions of this act
at the rate Of fifty cents on the dollar,
and shall be fundable at that rate under
the third section Of this act, aud taken.
under the provisions of said section, in
lieu Of bonds Of Class II.
5. If on or before the lst day of April.
1879, the Council OF Foreign BOndhold-
ers and the Fundlng Association Of the
United States Of America aforesaid shall
file with the Governor their assent to
and acceptance Of the terms Of this act.
the same shall be taken to be contract
between the State and the said corpora
tons, and the Governor shall forthwith
provide for the preparation Of the bonds
provided for by this act.
The said corporations may present for
funding, and in the proportions herein
before provided, at least five millions of
dollars of the outstanding obligations Of
the State, on or before the LIST day of
1879. And during each period of