The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1890-01-16


A COMMUNICATES FROM THE BOND
OBSERVATION-DISCLOSURES FROM THE GOV
ERNOR.
On Saturday last, Governor Mckinney
sent to the Legislature the following
message:
COMMONWEALTH OF VIRGINIA,
GovERNoR'S OFFICE,
RICHMOND VA, January III, lo.W.
To the General assembly,
have the honor to transmit to you letter
from MI John Lubbock, chairman OF the Houl7
Gil and the Committee of the Foreign Bondhcld-
ers in London bearing date Decemoer -, I H
and addressed to the Governor OF Virginia me
letter expresses the hope that the Governor VIII
take an early opportunity to bring to the notice
of the Legislature the earnest desire OF the
bondholders to put an end to the protracted
contest between them and the STARE anu ~
eses that the points il dyergence upon , witlsn
to preclude hope that the question al issue
may be adjusted, etc, etc.
The communication expresses the deSire Iiiat
in order to preclude tine possibility of II similar
miscarriage to that of 1887 before formal neSo-
tiationS re opened preliminary uhuei
standing shall be arrived at as to the genera
principles that shall govern such deliberations
A COMMISSION PROPOSED.
Tt suggests that accredited representatives OF
the State to carry out and conclude matters at
issue be sent to London. but II 1t should not De
deemed practicable to meet this suggestion theii
huldprs would be prepared to send a commits
sion to Richmond. a., with full power To con-
clnde equitable compromise 80
Mir. i.uhhoch assures us M the meantime ol u
sincere desire on the par OF TIE couiicn anu
committee to 60 operate in bringing about an
early and equitable adjustment when may al,
ford permanent settlement acceptaple 10 all
parties. He say that we may with pefiecC con
iidence rely that any agreement made by the
state with the council and committee would be
a permanent settlement so far as the bondlold-
ers are concerned
WHAT THE GOVERNOR THINKS.
| deem it proper to say to the General Assem-
bly, that would be greatly gratiied If the ques
ton of the public debt of Virginia could be set
fled i'm such a manner as to satisfy all parties
and retire il from the courts. from the leSslil-
tive halls, and from the politics or the State
From my Knowledge of the financial conaltion
of the people OF Virginia and the actlon Cney
have heretofore taken upon this subject it is
clear to that we are not able to oifer our
bondhoiders more liberal settlement tiian Iiiitt
embodied in the settlement known as the Rld-
| dleherger bill. and that any considerable ne
! be contrary to the expressed will of the people
! and to tue pledges made to them by the party
! in power
/ see good reason why we should send
| commissioner to the city of London to CONFER
| with the bondholders. We have offered them
| under tile tiddieberger bill terms as liDefll as
| the financial condition of the State Will alloW
| That bill has been approved repeatedly by each
| political party in the state in the conventions
and ratified by the people at the polls.
EXPENSES AND REVENUE.
! The annual expenses of the State government
are larger than at the time of the passage OF
| that bill. having been made SO by increased an
nual appropriations to the lunatic asylulns, rem.
dered necessary by the distressing increase OF
/ lunacy: by the increased criminal expenses
caused by the unfortunate increase of crime; by
/ the adoption of Il pension law to aford some
little relief to the disabled soldiers and to the
widows of those who lost their lives in the late
war; by the appropriations TO the Female Nor
mai School at Farmville, the Colored Normal
School at Petersburg. the Free school III cOnnec-
ton with William aud Mary College, and the
soldiers Home since then; and whilst our an
| nual expenses have Increased our resources
have diminished materially. The decision of
the supreme Court in regard to licenses required
of sample merch"nts cut on some Si3,UU an
nualiy, and the sum derived from merchants
licenses has largely diminished. the FARMING III
| Jeresb having been depressed for several years.
| and consequently diminishing the volume OF
business done by the merchants by which their
licenses regulated. We are not therefore IN
as favorable a condition now as then to offer
more liberal terms to our creditors, and if all
the boniholders were to accept the provisions
it would neceSsitate an increase i'll the rate OF
taxation unless assessments this year snow a
considerable increase in the value of taxable
property, or unless we can find new subjects OF
taxation.
STAND BY THE RIDDLEBERGER BILL.
I would advise that we stand by the Riddle
| berger bill and amendments. But if the bond
| holders propose different terms not materially
increasing the principal OF interest as ascef-
| tanned by that bill, it would be well to re-
qure an Indispensable condition OF consider
! ing any such proposition that it should embrace
a bona fde tender of so large a proportion OF the
conSol and ii-40 bonds as to guarantee settle
/ .
l beg leave 10 submit the letter herewith to
the General Assembly for such iiciton as its wis
dom and discretion may dictate.
p. W. MCKINNEY, Governor
THE BoNDHoLDERs' LETTER.
The following is the full text of the letter re
ferred to, Which was also read:
COUNCIL OF FOREIGN BoNpHoLpERs,
II MoNGATE STREET,
LONDON, f. C december -, 1889
Sir.-On behalf of the Council of Foreign Bond
holders and OF tie English Committee OF 'lf-
.inia lionlhoiderS acting with them beg to
offer the congra tulations of the council and
committee to your EXcellency on your accession
to the highest office III the state OF NlfSlnla ana
in doing SO would venture to bring to your Tx
teliency's attention the long pending question
of the Virginia state debt which, no doubt. has
already been a i!dtter of your careful and anX-
iols Consideration, and which, trust, under
yod' iiXce;lency = auspices may he brought to
a conclusion $ .tisfactory alike TO the State and
/ bondhol,.tfs
venture TO think that the question is one OF
the most important matters which affect
the prosperity oi tile State OF iIginia, and that
permanent and iisfactory settlement OF il
would render Noilr EXrellencNS term OF offict
notable ia the annals OF the Commonwealth.
ANXIOUS To SETTLE.
The council ana committee trust that youl
EXcellencI viii take an early opportunity o
bringing under the notice of the State Legisi
ture their earnest desire to nut an end to the
protractsd contest which has proved SO detri
mental to the interests of the people OF Nlf
ginia well to those of the hondhoders.
The points in div ersseice on " inch tile neSo
tiat!os in 1881 failed are not so great as to pre-
cue ;ts the. council to hope the AL just
meilt of the questions at issue. especially bear
ing in view the increase i'll taxable values and
tile consequent increase Of available revenue.
tearing i'll mind, however. that failure. youi
/ EXce!len'y VIII agree with me it is highly de
Sirahl.. in order to preclude the possibility of a
similar miscarriage that before Il formal nego-
tiaton is re opened, either here or i'll virginia
IL prev Ions under standin2 should be arrived at
as to the general principles which should gov
ern the negotiation
Such an accord would simplify and facilitate
the task and tend to IL successful issue.
The Council and committee are most DESTROYS
OF giving to any SUGGESTIONS OF Your EXcellency
tae best possible consideration. with every wish
To meet your views on ali points i'll which it is
possible to do due re Gard being had to the
necessities of tie case. ana the knowledge which
they possess to the Kind of arrangements
Which tine pondholders would alone accept. =
SEND ACCREDITED AGENTS.
If we could arrive in some way at a prelimi-
nary accord on the general basis OF an arrange
| ment would then suggest that your EXcellency
| should accrediG Representatives of the State to
carry OUT and conclude the negotiations i'll Lon
| don
This. venture to think, would be the prefera
BILE course and one most likely to lead to def
mite settlement, but ii you could not your
| way to meet this suggestion the council and
committee would be prepared To send a com
missioner TO Richmond with power to conclude
an equitable compromise.
In the mean time can assure your Excellency
of the sincere desire of the council and com
mttee to cooperate in bringing about an early
and equitable arrangement which may afford a
| ties.
For the past seventeen years the council have
numerous States in various parts of the world,
and in no single instance have they failed to
carry out with complete success any arrange
ment which they have negotiated, and have
placed before the bondholders with the weight
of their recommendation for its adoption.
THE COUNCIL AND COMMITTEE.
The council are in direct communication with
the bOndholders ana their representatives, and
TREY are in position to speak with authority as
to the Kind of arrangement which the bond
holders would accept ana what they would re-
fuse.
Your Excellency may therefore with perfect
| confidence rely that any arrangement made by
| the State with the council and committee would
| be permanent settlement as far as the bond
holders are concerned, and that there would be
no chance OF its failure for want of ratification
| by the bondholders of the action taken by the
committee on their behalf.
have the honor to be, sir, your EXcellency s
most Obedient servant,
JOHN LUBBOCK, Chairman.
| His ErcellencD the Hon. r. ". Mckinney, GOrer-
ean0r Of the Commonwealth Of Virginia.
In Favor of Metal Ties.
| The Bulletin.
| The evidence laid before the recent Railroad