Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-12-23


plan, is given below, only such por-
tons being omitted "a explain GER
tain Virginia laws with which the
people Of virginiA are entirely familiar
A copy Of the letter has been in the posses
sion If the Board Of Sinking sund Com
missioners for some time-several weeks,
perhaps-but there have been good reasons
why they have thought it best not 10 give
the information that 1t contained TO the
public.
TIP LETTER.
Here is the letter:
NEW YORK, November o.. iSe1.
Hon. Grorer Cleveland, Hon. Ed'rdrd j. Phelps
Hon. Tforncs z. B1ySTi. Ar Geores 5. Coe, br.
George o. Williams, Adri'orV Board for the
CrfiftOrs of V;rgfata:
Ge1tlemen,-The undersigned. Bondholders
Committee, beg 70 inform you that thsy nave
brought ABOUT = depOsi; Of the obligations oi
Virginia as required by Article II. OF the agree
meut dated May 70, 1870. between the commit
too and such creditors Of Virginia as should de-
post their Obligations hereunder.
history Of the bonds has been published by
me committee and was with copy OF the
agreement. placed in your hands At the uns
you accepted the function Of an advisory board
n ie, therefore, unnecessary 20 restate tho va
rious attempts during tho past twenty-five years
b rc0rgeniLe this debt and which nave resulted
in tho issue of the several classes OF bonds.
We call your attention TO Article ]. o. sold
agreement. which Is substantially tho language
used IN your lettor Of acceptance-yiz
"The duty and function OF said Advisory
Board IL 10 examine snch plans or propositions
Of adjustment ~ may be formulated and pro-
posed by tho B0ndholders' Comuittee, repre-
sentiag tne holders Of the obligations of VIZ
giuia which shall DO submitted 10 IL In accord
anco with tho terms OF this agreement, and %
state iis approval and recommendation or the
contrary"
We also call your attention 10 Article w.,
wherein II is provided that no settlement can
be concluded until Is he's been previously unRn-
imously approved and recommended by the
Advisory Board. and hes also been submitted
70 the creditors and accepted"
TIE COMMITTEES DUTIES.
The duties OF this committee under the agree
mont are 70 bring ebout deposit OF tho obii-
cations OF Virginia 80 far no possible; formulate
a pisa Of settlement: submit such plan 20 the
Advisory Board tcr lrs approval and recommend
alton; submit such pian 10 rocommendel 10
the depositing creditors for thoiriaoceptance
submit such plan, when accepted BY the redi-
tnrs 10 Virginia for acceptance; surrender 70
Virginia the deposited obligations IN exchange
for tae amount to be received for hem distri-
bute the proceeds amoag tho dcpositng credi-
tors
The committee has performed tho first and So
cond duties.
The third duty is the subject Of this commu-
nicaton.
This committee represents the creditors %
Virginia and Ia 10 pose 7sson Of substantially oil
Of its bonds owne1 by the public.
The letter then review. the appointment of
the legislative commission. quotes the joint re-
solution creating it, and conhnucS;
POWERS or LE0IsL,Trys COMMISSION.
Tho powers ~ the commission are restricted
10 a settlement upon the principles OF the at Of
1892
Tho essential principle Of tnat act r., continues
the lottor that the amount OF the doW shall be
ascertained by stating IN oquasblo account be-
tween the state aud It's cTSlftoge-
such AN account correctly stated. as OF this
date, would nnd an amount dge 70 the creditors
much larger than no amount on which Virginia
can az present pay Q per cent Interest," (see re-
port Of the First Auditor for cho year isSa)
1t would Increase the lossos OF the creditors,
already too heavy. n any eetueLnent DO made
which being beyond the abtlitY OF the StaIel
would presently result In default OF Inc IT,
tsrest. The solution. thrrefore, Of tho problem
before the committee depends. nOt ou Ascertain
Inc the anOont actually due, but on ascsrtain-
ing the maximum amount ~ annual revenue
which may be saioly rolled on for tho payment
OF interost
The subject for negotiation. therefore, botweeu
tho Bondholders' Committee and the stale Com
mission is narrowed to two questions: What can
tho state afford 20 payi and, WHAT can tho
creditors afford to acoeptf
The BondhoIders' Committee Is called upon to
submit 20 tho commission proposal. This pro-
IQrAl lLFcfkoN flS authority 10 sATTtuutf tuc
bonds n the proposal il accepted. In this case a
proposal caonot be submitted without negota-
ZION with tho commission upon tho following
points:
THE PROPORTION OF DEBT.
Tho proportion which The dobt deposited with
the committee bears 10 the entire unsettled
debt IN tue hands Of the public net revenue
app lics bic thereto under tho present syetsp Of
collections ami Disbursements: Increase In such
amount which may Do nacertained by climS
- tNat
rently necessary; iLcrease In such amount
which may be ascGftsined through new subjects
OF taxation; increase IN such amount which
may be ascertained by apptOprsting certain
assets held by the State, la the opinion OF
the commi,tee, apphosble thoreto: the settle
ment, by COMPROMISE or otherwise, N found
necessary, OF tho judgments tsDout 1900 In num-
ber against tax-payors who have tendered
coupons; character OF the new bonds-especially
with respect TO exemption from local taxation
and on advance Ia the rate Of interest based on
the increasing prosperity OF the state; sur
render 90 virginia. as an entlrety OF we 0Dh8s.
tions deposited In exchange for such gross
amount OF new bonds, or their equivalent, as
may b0 agreed upon
To state an amount and FIX tho terms arbitrs-
rily in advance Of such negotiations would be
fatal 10 a sottlsmsnt
To meet the commission without authority to
submit proposals at the clOse of tho conference
and negotiations will Be equally fatal
Ihis committee, alter fun consideration Of the
OF Virginia, and OF the circumstances under
which tho several classes Of obligations were
Issued. Atar fun confederation Of tho principles
upon which the State In the exercise OF sOye-
reign rights declares shall govern th0 statement
of tho amount Of It's inde bbodness and the
arnoaut eppicable 70 tho payment Of interest
has form laisd and now presents fer your ap-
proral and Recommendation the following
PLAN Fos THE ADJUSTMENT:
l. The Bondnoliers Committee shall. In car
rying cut tho purposes OF the agreement dated
May IL 1880, surrender " Virginia all the Obliga-
tious deposited under the aforesaid aRreemeuk
ana roeoiye "a fuil satisfaction therefor such al
amount Of new bonds as may Do agreed upon
between tho said committee aud the reprosenta-
tyes OF the state as the maximum amount upon
which the State Ia able 10 appropriate an
amount annually for tho payment OF interest,
which amount shsll not be less than the sum
agreed upon as q minimum by the Bondholders'
Committee and approved by the Advisory
Board.
Provided, tina, a settlement shaii not be con-
cluded uul0ss tho committee Do unanimous in
its agreement as 70 such maximum amount
:. The new Dou1s 20 bear such rate OF interest
and TO have such exemptions and 10 be OF such
character as the representatives OF virginia aud
tho committee consider best calculated 70 give
them tho standing they viii deserve In the
money markets Of the word.
& The distribution Of tho new securities
among the depositing creditors shall be adjust
ell oF a commission 70 consist OF Mr.. -, Ap-
pointed by the Virginia Committee In London (;
Mr.. -, appointed by the Advisors 10 Lon
don, and Bdwsrd ). Phelps, appointed by the
Bondholders Committee. Any vacancy In said
commission shall BE- 1lled By the parry appoint
In q respectively.
I. This plan and proposition shall include tho
right Of the Bon1h0iders Committee. 6s agent
for the depositing creditors NJ settle pending
suits and judgments against taxpayers who
have tendered coupons for axes and 10 receive
ami deliver 10 the state 81 part OF tho Cuistand-
ing debt the coupons Involved.
We have the honor 10 be your obedient ser
wants, FREDERICK p. OLCOTr,
CHARLES ID. DICkzY, JR,
WILLIAM ID. BULL,
HUGB X GARDEs,
HESaY BULGE,
J0Hs GILL,
Bondholters' Com mittee,
WHAT Is TO BE DONE
The Advisory Board at meeting held
some time ago unanimously approved the
proposed plan and ndrecommended the credi-
tors TO accept It.
The London holders named Sir - Lid
derdaie. high functionary in the Bank Of
Eu,lapl o-I \ Tuhknok tn act "a