The times. (Owosso, Mich.) 1882-1897, 1891-04-17
REFUNDlNG THE DIRECT TAX.
An Important Matter for West Virginia.
Other States i'm Debt.

An Important Matter for West Virginia
Other States in Debt.
WASHINGTON CITY, April H-Governor
Fleming and Ex-Governor Wilson, of
West Virginia, were at the department of
justice yesterday and made an appoint
ment with Solicitor General Taft for an
argument as to whether West Virginia
can legally be paid her share of the direct
tax. The hearing will take place in
about three weeks and the collateral
questions involved are of vastly more inn
portance than the direct question at issue.
First Comptroller Mathews has held up
the payment to the state of West Vir-
ginia of her share of the direct tax, on the
ground that the state of Virginia at the
time that West Virginia became a state,
owed the United States and still owes the
United States more than 81, $50, coo on In
dian trust bonds.
The History of the Matter.
When West Virginia became a state,
she agreed to pay her share Of the indebt-
edness of Virginia, both state and ma
tional. When the direct tax was levied,
West Virginia paid her share out of the
state treasury. The state of Virginia
paid her share by government agents col
Letting il from individuals, and by the
terms of the direct tax law, which pro-
vides that the tax paid by individuals
cannot be withheld by the general govern
ment for the debt due from a state, is
therefore entitled to a refund of the amount
collected. But in the case of West Vir-
ginia, whose direct tax was paid by the
state, her share has been held up for her
part of the original Virginia State debt
to the general government
Has "a Bearing on the State Debt
The question in all its phases is likely
to again be brought to public no.
tice when Governors Fleming and Will
son make their arguments to show that
the government has no power to withhold
West Virginia's share of the direct tax
for debt owed by old Virginia. The de-
cision on the matter will have by infer
ence an important bearing as to West Vir-
ginia's share of Indebtedness to Virginia
on the state debt, which has been sub
ject of dispute, and has figured in the
politics OF the Old Dominion for many
years, giving rise to their Re adjuster par
ty, the Riddleberger act and other laws.
Withheld from Western States.
First Comptroller A. G.. Matthews, of
the treasury department, has recommend
ed to Secretary Foster that the following
amounts be withheld from the amounts
due western states named below on &C.
count of the direct tax: Illinois, s17,SOf;
Michigan, 1898; Minnesota, s., 32l, and
Wisconsin, $5,20l. The amounts are
charged on the books of the department
as against the states named for arms, ETC.,
overdrawn by them under section 1,66l,
revised statutes. prior to Feb. H. 1887.
Looking for More of the Same.
Other Indebtedness of states to the gen.
eral government may be found on the
books Of the treasury, and other depart
ments are being examined very carefully
in order to discover any balance the
states may owe the general government.
In the cases specified it may be found that
the amounts cannot be legally held as an
Offset to the government refund of the
direct tax to the states, but the amounts
named will be held until the question can
be legally determined.
Secretary Proctor on the senatorship.
WASHINGTON CITY, April l4-Secretary
Proctor yesterday, at the request of num-
Der Of newspaper men, declared himself
as to the Vermont senatorship. He said:
SHOULD the position in due time be Of
fered to me with the hearty approval aud
good will of the people Of the state. /
should scarcely feel at liberty to decline
the honor and the opportunity to serve
those who have so many times shown their
confidence in me-" He further said that
he had no immediate intention of resign
ing the secretaryship.
The President or on His Journey.
WASHINGTON CITY, April 14.-President
Harrison left this city on his southern
and western trip last night at 1910. Other
members of the party who will live for
the next thirty days in the sumptuously
fitted Pullman cars that comprise the