Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1890-06-13
The Virginia state Debt.

Wepublsh as matter of current news
the following concerning movement in
New York for settling the Virginia State
debt:
Especial Dispatch to the Baltimore SUM-
RICHMOND, VA, June 5.-The announce
ment made in The Suns dispatches to-day
from New York of new and important
scheme looking to the settlement of the State
debt attracts considerable attention in finan-
cial and official circles here. The correspon-
dent of The Sun this afternoon called at the
executive mansion to get Governor Mckinney
views on this subject but he was sick and
could not be seen. The scheme is regarded by
many as having many things to commend 1t
to the State authorities. A holder OF more
than three and a-half million dollars-some-
thing like one-seventh of the outstanding
bonds of the State-to-day said: II have read
the scheme outlined by The Sun. have no
information about the matter, but l have
known for some time past that negotiations Of
some character were going on The debt
commission appointed at the last session Of
the Legislature to receive propositions from
the bondholders has never yet had a meeting.
They will probably do so in month or so.
Under the provisions of the act creating this
commission little OF no latitude is given them
to act. They are bound by the terms of the
Riddleberger bill, and before any proposition
can be received by the commission the law
prescribes that those rendering it shall give
security for million dollars. Some finan-
ciers here think that if the scheme outlined
in The Sun is carried out it will not be sub
mitted to the commission but directly to the
Legislature. In that event, or as soon as it is
ready, those acting in the matter would pre-
sent it to the Governor and ask him to con-
yene the Legislature.
The pamphlet giving the whole details of
the plan for placing the holdings of the State
bonds has been received by prominent law
horn Trao oft mo ,,xyin Nv
Hugh r. Garden, one of the committee. says:
1.-THE plan is for the creditors to deposit their
bonds or agree among themselves OIL basis
of settlement, within the revenues of Vir-
proved by the advisory board mentioned In
to-day's Sun. This statement adds: mas
much as tho committee will offer to surrender
the bonds the moment the State accepts the
proposition, miscarriage of the settlement is
impossible. By the terms OF agreement under
which it is proposed to pool the debt, those
representing one-half Of the whole debt can
control the conditions or scheme. In other
words, 1t is agreed that majority shall direct,
ha fhs Mh the ponds and
their hands, and therefore under their con-
! troll
The following is the letter Of ex-president
Cleveland, ex-senator Bayard and others
agreeing to act as the board of arbitration in
| this matter.
Neao York, May 18th, 1s9o-To Messrs, Freder-
| ck P. Olcott, VIM. L. Bull, Charles d. Dickey,
| Jr.. H. II. Garden, Henry Bulge and John Gill,
Gentlemen: We have received and duly con-
| sidered your letter of the 18th inst, and the
agreement q copy of which was inclosed therein.
| Virginia, we sincerely desire to see her public
credit restored and her people relieved from their
| present distressing situation. To promote this
object we are willing to act as the board propos
| ed in your letter, with the mutual understanding
| that our duties and functions are to "examine
| such plans or propositsons of adjustment as may
| be formulated and proposed by the holders OF the
obligatons Of Yirgnia represented At by your
with the terms of the agreement, and to state our
approval and recommendation, or the contrary,
OF such propositions" We are, gentlemen,
Very respectfully, your obedient servants,
GROVER CLEVELAND,
THOMAS +. BAYARD,
GEORGE S. Cox,
GEORGES WILLIAMS and
E. j. PHELPS
1t was the purpose of those conducting these
negotiations to put on the committee an En-
gliShman and resident Of this State, but af-
ter considering that the people of these two
governments were the contestants in the mat
ter, it was deemed best to put those who had no
interest in the subject Mr.. Phelps was added,
it was said, because he was former minister
to England and enjoyed the fullest confidence
OF the people there.
ANOTHER SCHEME OF JOHN NJ. MASON OF
WEST VIRGINIA.
Especial Dispatch to the Norfolk Ledger.]
RICHMOND, VA, June 1, 1890.-The an
nouncement made in the Baltimore Sun to-day
that the unsettled obligations of the State are
to be deposited under power of attorney au-
thorizing committee to represent all inter-
ests, was read with interest here to-day. This
plan has been discussed here for the past six
or eight months. Its author is believed to be
Mr.. Mason of West Virginia. Some promi-
nent State officials seem to think the plan
feasible.
Mr.. Mason has been corresponding with
persons here on this OF a similar scheme for
the settlement of the debt for some time past.