The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-06-22
TO ADJUST VIRGINIA'S DEBT.
a TRUCE IN THE LONG F1GHT OF
THE STATE AND ITS CREDITORS.

A strong Committee Intervenea on Behalf
of the Bondh olders aud IL Well ne.
oeived by tho State Auth orIties-Probn-
bIIities Favor n Settlement OF the Debt
and Restoration OF the States Credit
After a good many months Of hard work by
both interests. encouraging progress has boon
made toward adjusting the Indebtedness OF the
State OF Virginia. The present movement in
that direction promises more than any pre-.
vious effort, for the Season that 1t is in the
hands OF people in whom both the creditors
and tho debtors have absolute con fdence. The
first step Is to mnss khe bondholders, and to
that end the first authoritative announcement
relative to the matter was made In London
yesterday and Is made In this country to-dsy.
The holders Of latRe amounts OF the bonds
both In this county and England. where a
majority of the bonds are held, have requested
the following committee to represent them:
Mr.. Frederic p. 0lGott, President OF the Cen
trail Trust Company: Mr.. William l. Bull. OF
Edward Sweet 4 Co, and ex- President OF the
New York Stock Exchange: Mr. Charles D.
Dickey. Jr. OF Brown Brothers & Co. +; Hugh r.
Garden. ESQ.,. President of the New York
Southern Society; Mr.. Henry Bulge. OF Hall
garten 4 Co. and Mr.. John Gill. President Of
the Mercantile Trust and Deposit Company OF
Baltimore.
AS the State OF Virginia will not treat with
any one who is not authorized to act for the
bondholders. this Bondholders Committee re-
quires that the bonds shall DO deposited with
certain leading financial institutions in this
country and in Europe under an agreement
giving to the Bondholders' Committee the
powor to represent thom. but with the priv
iege to the bondholiers to ratily any PROPOSE
tion which shall have been found satisfactory
to an Advisory Board appointed for that pur-
pose or TO withdraw their bonds. There ia
thus interposed between the Bondholders'
Committee on the one hand and the Commits
sion appointed BY the State OF Virginia on the
other hand. body Of gentlemen as an Advls-
DRY Board, whose names apd regulations
are such that their RECOMMENDATIONS are like
ly to have great weight with the bondholders.
securities are: The Central Trust Company OF
Mercantile Trust and Douosit Company OF
Baltimore, and the planters National Bank Of
Esy S w Which the
community is thoroughly familiar.
qnS Se Hon. h ThomS SS q
dent Of the Chemical National Bank Of this
England. and Mr. George = Coe, President Of
the American Exchange National Bank of this
The first step taken by the Bondholders'
Commtttee. after rs organization as been to
classes Of bondholders and to bring about il
possible. harmonious relations between the
State and those bondholders and thelr, repre-
scntaiives who had been engaged in harass-
ing litigation for many years. Such success
has attended these efforts that foreign bond
and intention to cooperate with Tho committee
and deposit their bonds: and those engaged in
rected that all litigation on their behalf should
be forthwith suspended.
be- By sen
OF the Virginjas indebtedness by, a member OF
the + e., new committee I He said @ Yesterday:
principal and interest. amounting TO about
or BY the creation Of West Virginia, and one.
hall of the taxable values upon which the debt
the dobt in 1871 by cutting Oh one third OF the
s45o,na 600 as West tirginia's portion: giving
BILE upon a settlement with the now state.
For the residue, principal and interest. she
SHve rev per gent PSo!d with h; :receiya
equivalent to forcing the state into bank |
ruptcy. II such thing were possble for the
ceeded The revenues OF the State by .Iu0.G6o. !
AS a matter Of course this adjustment of the !
In ls79 and 1882 distinct efforts were made
to readjust his debt. the lrst OF which tailed |
because neither HS peGplG the creditors
failed because the creditors were not consulted /
either as to tho amount or the method OF distr-
button. An unccAsing war, OF course. has been |
the result. IT, creditors endeavorinK to force
the taX-receivable coupons into the Treasury |
of the state. and the latter resisting such eff |
forts with all tho machinery OF the Government
Practical results Of this contest have been great
waste OF money and energy on both sides. and
financial results have been enormous injury 10
both.
During this whole period. from 1860 to 1920.
the State has paid III principal and interest. |
upon this old debt. about $23 900 900: but there
remains outstanding In the hands Of creditors
proposed In 1882 about $27, 100000. OF which
about S200o0QOO ia principal and $1,000 OtO ia
interest This Is the amount we propose to deal
with. Our work has been well viewed In !
London and our intercourse with the repre-
sentatives Of the State has convinced us that
she j. as DESTROYS OF reestablisbing her credit
as the bondholderS are OF adjusting their
claims upon an equitable basis"