Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-11-26
VIRGINIA DEBT SETTLEMENT,
The Opinion Of the Advisory Board Given
20 New York Yesterday.

20 New York Yesterday.
New YORK, November 2j.-The Virginia
Bondholders' Committee (F. Z. Olcott,
chairman) submitted their report yester-
day through Hugh Il. Garden 10 the Adj
visory Board (Hon. Grover Cleveland,
chairman). The Advisory Board. all of the
members being present namely, Messrs.
Grover Cleveland, Thomas r. Bayard, Ed
ward ]. Phelps, George g. Williams, and
George S. Coe-have been in session two
DAYS and after due consideration OF all
the facts rendered to-day the following
opinion:
In the matter of the settlement of the
debt Of the State of Virginia
Whereas the undersigned, under and in
pursuance of certain agreement, dated
MAY u, 1880. between Frederic P. Olcott
and others, therein styled the Bondholders'
Committee, and certain creditors OF the
state of Virginia, were constituted an Adj
yisory Board for said creditors to examine
such plans or propositions for the adjust
ment of the debt Of the State of Virginia
az might be formulated, and to state their
| approval and recommendation or the con-
trary and whereas we have been fully
advised of the progress and conclusion OF
the negotiations between the State Com
mission and the said Bondholders' Com
mittee, aud have carefully considered the
! history of the case, and the condition 70
which it has been subjected. aud the result
attained as presented by the report of the
| said Boudholders' Committee: now, there
fore. we, as such Advisory Board, do here
by approve and recommend the plan of
settlement Of said debt as the same Is en-
bodied in the report Of said Bondholders'
Committee, as follows
The State of Virginia in settlement and
| cancellation of twontY-eight millions OF
such ind ebtedness shall execute and deliver
| its bonds for the sum Of nineteen millions
! of dollars. or in that proportion for the
amount of Indebtedness which shall be
| surrendered. Said bonds shall be payable
/ in one hundred years after their date, and
| draw interest from the lst day OF July,
1891, at the rate of per cent. for the first
ten years, and after that date 3per cent for
| the remaining ninety years and until the
maturity of said bonds.
In thus approving the plan presented to
US We deem it proper p say that we should
consider it unfortunate for the creditors
and all concerned If the subject Of this
indebtedness and ITS settlement should be
allowed 20 again fall into the vortex Of
popular political discussion and dispute.
In view of the differences which have
! been compromised, the divergence of
opinion which has been overcome, and
the sentiment favorable to adjustment
which has been aroused among the peo-
pie Of the State b. patient negotiation and
concillatory Argument, we ara decided in
our Judgment that if the terms OF sattle-
ment now proposed are rejected the pros
poet of an advantageous agreement in the
| future is far from encouraging. The end
sought IL the settlement of an indebted
ness the character of which has not IN all
respects been universally conceded and
the just amount of which has been earnest
" disputed. In this condition Of AFFAIRS
it seems TO Us that if settlement IS
promised, which on the whole appears to
be expedient, no slight variance in
terms should be allowed TO defeat
the plan. We do not think the
adjustment now proposed should be at all
regarded in the same light as scheme to
float the new securities OF the State OF
Virginia for the purpose Of raising money
to meet immediate exigeneies, but rather
as the compromise Of debt by the crea-
ton and delivery Of valid and intrinsic
cally valuable public Obligations, which,
though not perhaps Of the character mo st
favorable for speculative purposes must
DO regarded in the hands Of permanent
owners as securities deriving absolute
safety and value from tho pledge n
the faith Of sovereign State combined
with the Willingness and ability OF
the State 10 make prompt payment. The
extended period which the proposed bonds
are to run should not be disreRarded in
considering their desirability. These sug-
gestions are made not without the hope
| that they may in some degres aid the
hearty acceptance OF an adjustment which
impresses as as ccnsammation which
should be a cause Of satisfaction to the
bondholders and congraiulation to the
people Of the State Of yirgipia.
| lSignsdl GRoyzB CLEvrLAsD,
THoMAs +. BAxARp.
e. ]. PHELPs.
6EoRGE s. Cor.
g. q. WnLsAMs-
| November % lsqL