The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-06-12
To Settle the Debt.


settled. The answer was No"
The debt has not been settled, but
there is scheme which is being pushed
that gives promise, many well posted
financiers think, of bringing about this
greatly-to-be-desired condition of af-
fairs.
In brief the idea is to pool the bones
through committee of New York bust
ness-men that has already been appoint
ed, and then to effect the settlement
through an advisory board with Mr.
Cleveland at its head.
Those interested in the undertaking
think the bonds will be pooled readily
if there is a proper sentiment manifesto d
this movement, which is to be promul-
gated in New York in few days, was
received here day or two ago, but not
until last night was it given any publici-
ty whatever.
Already the London Times has had an
announcement by Brown, Shipley & Co.
that they will receive Virginia bonds on
deposit under agreement authorizing
committee to settle the debt
The committee consists of Fred p
Olcott, president of the Central Trust
Company of New York; c. D. Dickey, of
Brown Brothers & Co., New York; Hen
ry Badge, of Hallgarten q Co.: VIM. l.
Bull, expresident of the New York Stock
Exchange; John Gill, presi lent of the
Mercantile Trust and Deposit Compa-
ny of Baltimore, and H. K. Garden of the
New York Southern society.
The plan is for the creditors to deposit
their bonds and agree among themselves
on a basis of settlement within the reye-
nues of Virginia, which is to be submit
ted to and approved by an advisory board,
consisting OF ex-president Cleveland,
Hon T. +. Bayard, of Delaware. Hon
E. G. Phelps, (recently United States
Minister to England), Mr. George S. Coe,
president of the American Exchange
National Bank, and Mr. George G. Viii
.liams, president of the Chemical Nation
Bank.
After the board has approved a plan
of settlement it will be submitted to the
creditors for acceptance, and when ae-
copied by them will be presented to the
general assembly of Virginia. Inasmuch
as the committee will offer to surrender
the bonds the moment the State accepts
the proposition, it is claimed that a mis-
carriage of the settlement is impossible.
The repositories are the Central Trust
Company of New York; Brown. shipIey
& Co. of London; Mercantile Trust and
Deposit Company, of Baltimore, and the
Planters National Bank of Richmond
Col. w. w. Gordon, of this city, has
received from Mr.. Garden, IL member of
the New York committee, tprivate let
ter relating to the matter and pamph-
let outlining the wholesplan and enter
ing into the details of the proposed
agreement. From it the above facts are
CLEANED. This publication contains the
following letter from eX- President Cleve-
land and others accepting. the trust
they are asked to assume
NEW YORK, May Is, 1890.
To Mtsas. Fred, rick p. OlcoI, IVm L.
BWH,C. u. Dickeg, jr., U. r. Gurden
Hea7y Bulge and John Gill:
Gentlemen,-We have received and
duly considered your letter of the 18th
instant and the agreement, a copy OF
which was enclosed therein. La common
with all other friends of the state of Vir-
ginia. we sincerely desire to see her pub
lie credit restored and her people relieved
from their present distressing SITUATE ion
n ~
act as the board proposed in your letter.
with the mutual understanding that
our duties and functions are to examine
such plans or propositions of adjustment
as may be formulated and proposed by
the holders of the obligations of Virgin
ia represented by your committed and
submitted to us in accordance with the
terms of the agreement, and to state our
approval and recommendations or the
contrary, of any such propositions. "
We are very respectfully, your ODE
dent servents, GROVER CLEVELAND,
THOMAS f. BAYARD,
GEORGE s. Coz
GEO. s. WILLIAMS,
e. J. PHELPS.
Mr.. Phelps was chosen as a member OF
the Advisory Board because of his popu-
larity abroad and the entire confidence
reposed in him by the people of this
country and Europe. At first it was in
tended to have an Englishman and a
Virginian on the board, but upon mature
deliberation it was thought best to have
a totally unbiased commission, and one
composed of men of the highest business
standing and executive ability so that
both the State and her creditors may
feel certain of absolute fairness and JUS
tice in every transaction.
When the bonds shall have been pooled
a majority vote will decide as to the set
Element and its terms
- The recent decisions of the United
States Supreme Court are great step in
the direction of settlement. as they for
ever remove from the field of coupon
litigation, the liquor license and the
school-tax, and therefore, make the
State that much stronger than ever be-
fore.
The Debt Commission appointed by
the General Assembly has never met,
but will no doubt do so in the course of
a few months. 1t has but meager au-
thcrity to effect a settlement-~little or
none. indeed, beyond what the Riddle
berger bill offers to all the world of cred
itors.
From the last circular of Messrs John
A. Hambleton " Co, of Baltimore we
take the following about the Virginia
State debt. We are further informed
that Mr.. H. G. Fahnestock, of the First
National Bank of New York, sailed on
the 9Th for Lon lon. in connection with
these negotiations: The plan. under
which it is hoped compromise and final
settlement of the debt will be made pro-
vides as a prime essential that All
amount of the indebtness of the State,
sufficient to guarantee the success of the
refunding plan, shall be deposited under
q power of attorney authorizing a com
mittee to negotiate with the State. For
this purpose repositories are provided at
London. New York, Baltimore and Rich
mond.
The committee having the matter in
charge will issue an explanatory pamph:
let addressed to the holders of Virginia
bonds, from which we take the follow
ing extract:
sThis undertaking to settle the Vir
GINA debt does no require creditors to
90 l.; rrcly