The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-02-20
The Amended Proposition Of the Bond
holders.

At a meeting of the Joint Committee on FL
lowing amended proposition was presented by
MessrS. Isaac Fl. and c. 8. Darlington, on behalf
of the Funding Association
The changes are given below in italics:
1. Be It enacted 1y the General assembly Of Yir,
ginid, That to provide for funding the debt OF
create bonds of the State. registered and cou-
pom, dated the first day of January 1879. the prin-
teres at he rate Of per cent per for
years. and at the rate OF 4 per cent: per annum
for taoenty years. and at the rate of 5 per cent
per annum for ten years, payable in the cities Of
Richmond, New York or London. as hereinafter
provided on the first days of July and January OF
each year until the principal is redeemed. sc.
s. IT. on before the LIST day of April, 1879, the
Council Of Foreign Bondholders and the Funding
Association OF the United States OF America
aforesaid shall file with the Governor their as
sent to and acceptance of the terms of this act,
the same shall be taken to be contract between
ernor shall forthwith provide for the preparation
of the bonds provided by this act.
and in the PROPORTIONS hereinbefore provided. at
least eight millions of dollars OF the outstanding
obligations OF the State on or before the LIST day
OF January, 1880. Ana during each period of six
months from and after the 1st day OF January,
$780, they may present an additional amount
whole debt is funded; but an excess over said
amounts which may be presented during any of
said periods may be estimatedn the requirement
for the succeeding six months.
So long as the said corporations shall present
for funding the obligations aforesaid in the
have the exclusive privilege of funding the ont
standing debt under the provisions Of this act:
the outstanding bonds at the city of Richmond aohes
the bondhoIderS thereof shall so desire.
But if the said corporations shall fail to file with
the Governor their assent and disagreement as
aforesaid by the lst day OF April 1879, or shall fail
to present for funding the outstanding bonds in
the proportions and amounts and during the pc
RODS hereinbefore specified, then the Governor
may, in his discretion make a like contract with
responsible parties for the funding the debt of
hn Sfnt
MIA. Fulkerson offered the following amend
ment:
at and after maturity for all taxes debts, dues,
and demands due the State. excep such portions
OF the annual revenne as may De set apart and
the support o. the Government and public free
schools of the State, and this shall be expressed
on their face
Messrs. Isaac H. and S. C. Darlington both said
that they were not authorized to accept the
amendment, and that from recent and close com
muncation with their principals, did not think
they would agree to it, as it would not be accent
able to the bondholders.
Mr.. FulkerSon said that he proposed to reserve
by his amendment % cents on the $l00 assessed
for government and 10 cents for school purposes.
Senator Paul wished the amendment OF Mr..
Fukerson and the answer Of the Messrs. Car
rington thereto to be communicated to the Gen
eral Assembly with the proposition.
Mr.. Fowler desired that MessTs. Darlington be
requested to communicate with their principals
again to get their consent to the Fulkerson
amendment
After discussion the committee agreed to report
the proposition o. the Funding Association with
out recommendation.
On motion of Senator C. T. Smith, the two prop
ositions were divided.
The following resolution, adopted by Senator
Smith, was adopted:
Whereas, it has become the policy of the Uni
ted States and Of other great Governments and
States to procure the refunding of their debts by
the employment of agents under contract; and
whereas, all efforts heretofore made by the Gen.
ginia and to readiust and refund the public debt
by consent OF the creditors or their representa-
tives have failed; and whereas, in view OF the i'm
portance of the situation and the responsible
of the contract contemplated in,the pending prop
osition made by the corporation OF Foreign Bond
holders and the Funding Association of the Uni
ted States OF America (limited) to refund the
State debt on such basis for reimbursement as
may be made acceptable by this General Assem-
bly, to the bondholderS and to the people, it is
proper that this joint Finance Committee now in
conference with our creditors be put in posses
sion OF the fullest possible information concern
ing said corporation and association therefore be
RESOLVED, That their representatives are hereby
requested to furnish at their earliest conven-
fence a comprehensive statement showing the
nature, purposes. scope and financial standing of
SAID corporation and association, and commercial
influence, power and ability of the same to per-
form the obligations they propose to assume I'M
der the said proposition before the said confer
ence committee.-Sate, Feb. 1871.
In response to the above the chairman of the
committee, on Monday, received lengthy com
munlcation signed by Messrs I. Fl. and Charles
Darlington and j.. r. Leland the representatives
here OF the Foreign Council of Bondholders and
the Funding Association of America (Limited),
giving history OF the two associations, and the
names OF persons forming them in England and
this country.
According to thj communication, the Council of
Foreign Bondholders incorporated in 1873,
and later the Funding Association of America
In the charter OF the last named association its
objects are specified to collect, adjust, compro-
mise or settle unpaid. doubtful or disputed claims
and defaulted Obligations OF corporations, State
or Governments, to use all lawful means to secure
the payment or settlement thereof, either on be-
half OF the creditors or Debtors"
The communication states further, that the OBJ
lect OF these two corporations are:
First, for the purpose to afford medium of COM
municaton and information.
Second, representation to those whom their
interest can be confided.
Third, intelligence and economy III obtaining
the best attainable statements
me Messrs Darlington and Leland say that
tnese corporations are in the true sense repre-
sentatiyes OF the bondhclders and as an instance
OF THIS they say it may be mentioned that at the
recent conference it was through them almost
exclusively that the bondhoders, both in The Uni
yea States and England elected to speak, and from
Ineln |the Associationsj came the only definite
The list Of incprporators of both associations
embrace tie names OF many prominent men both
IN thls country and in England, =
The reply OF the bondholders through their rep
resenta-iyes in Richmond, to Mr.. Fulkerson's
amendment, is that it is inadmissible. as itwould
needlessly injure the character OF the bonds, by
implying an inability to pay the interest proyi
ded in the proposition submitted.