Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1883-03-14

IL Proposed LOT the benent Oh tne
Holders Of the share Allotted to West
Virginia.
Ne'g Iork Times. March ..
At the close of the war of the rebel
lion the State of Virginia found itself
with debt, incurred before the war,
which, with accumulated interest,
amounted to about Si5,0OO,0OO. West
Virginia had been made State from
its territory, the new State taking from
the parent State about one-third of its
wealth, territory and population. AS
West Virginia had enjoyed portion of
the benefits of the money raised by the
Virginia bonds 1t was held that the new
State should assume her proportion OF
the debt of the mother State. This
the political fathers of both States
agreed to. Virginia set aside one-third
of the debt as West Nirginia's share.
West Virginia denied that this was her
proportion because one-third OF the
amount had not been expended within
her borders. Nevertheless, when Nir-
rinia funded her debt in 1871. under
the refunding bill, she funded only two
thirds, and for the other third-which
was assumed to be West Virginla's
share-eertificates were issued which
soon came to be known as "VirginIa de-
ferred certificates" The payment OF
these certificates was TO be made upon
the basis of "such settlement as shall
hereafter be made between the States
of Virginia and West Virginia in re-
gard to the debt Of Virginia existing ut
the time of its Acknowledgement" These
were accepted upon an understanding
that Virginia would take steps to bring
about a settlement, and that the
amount assumed by West Virginia
should be divided pro rata among the
holders Of the certificates. Tue Wheel
ing convention Of 1851, which created
the State of West Virginia, agreed to
accept such proportion of the debt as
should be shown to be hers upon an
accounting between the two States.
Such an accounting has never been
had. The holders of the Virginia de-
ferred certificates have never seen any
prospect of 4 settlement OF their
claims.
In order to force West Virginia topay
her share of the debt the holders of the
certificates have united in a pool and
propose to force settlement 10y some
what novel method. Steps are to be
taken to induce Virginia to bring a suit
oga,nu, West Virginia in the United
states Supreme court for an account
in-. to compel West Virginia to assume
under sueh accounting her share OF the
debt, and settle with Virginia by CIV
ing her bonds for the amount. Tnese
bonds are TO be accepted by the cIHdl'
tors i'm lieu of their deferred certificates.
In order that these proceedings may be
properly carried out, the First National
Bank, of this city, is made the agent OF
the holders of the certificates, and the
Farmers Loan and Trust Company the
shareholders. The certificates are to be
deposited with the Farmers Loan and
Trust Company, and the owner OF the
certificate receives in exchange nego-
table receipt therefor. These certificates
are to be eXchangeable for the West
Virginia bonds, il that State accepts
the accounting of the Supreme Court
and issues such bonds. The holders of
certificates who agree to this plan
are to receive, in case OF set
Element, l3 cents on the dollar
of the face value of their certifi-
Gates and so per cent of any sum above
that amount that may be secured on
the dollar from that State. For exam
pie, il the State agrees to pay 20 cents
on the dollar, holders Of certificates will
receive l6I cents, the remaining 81
cents going to the projectors Of the plan.
The contamination of this plan Messrs.
Soutter x Co., of No. 7S Broadway,
have attempted to undertake at their
own risk, depending for reimburse
ment upon what would accrue to them
from the 50 per cent over and above the
Is cents on the arinsured II holders,
or upon q payment of q 10 per cent
commission to be paid from the gross
amount received by certificate holders.
The plan which Is proposed has been
accepted by holders Of nearly ,OOO
of these certificates, and many thou
sands of dollars Of the certificates are
sAaily received from English holders for
exchange for the Farmers Loan
and Trust Company's negotia-
BILE receipts, whose holders are an1-
ious to participate in the novel pooling
sehemet get something out Of what Is
virtually, as 1t stands, q repudiated debt.
| The steps which Messrs. Soutter Go.
have agreed to undertake to bring the
| scheme to successful conclusion are
| the collection of the certificates In the
hands Of stakehOlder-which is COW
being dOne-to inducs Virginia TO bring
suit against West Virginia; to manage
the Ease before the United States Su-
preme Court; to induce West Virginia
10 issue bonds to pay the judgment
which may be rendered, and to distrl6-
ute the West Virginia bonds, which will
be received by the Farmers Loan and
Trust Company, in exchange for the
deferred certificates, among those en-
titled to receive them. 1t IS expected
that all this can be accomplished by
April, 1887. The most singular part of
the whole scheme is that which Is 3
necessary part-the education of the
people Of the Virginias up to q point
which will make them willing to pay
their just debts, and elect legislators
who will take such steps as will result
In this much-to-be-desired result.