The times. [volume] (Richmond, Va.) 1890-1903, 1891-11-20

| during the interval between the FIRST visit
| OF the Oondhoders committee 20 Richmond
ana the renewal OF the negotiations the com
nlittee and the commission did what lay in
+ Their power 20 reconcile differences and q
letter from Mr.. Garden 20 Mr. Olcott and n
communication OF Governor Mckinney ex-
! PINNED the situation and gave promise Of
success.
THE COMMISSION CONVENED.
Pursuant 90 the postponement Governor
| Mckinney, on the 10th of November advised
the committee that he bad As chairman of the
! virginia Commission. convened them 10 meet
IN Richmond on the 18th instant and cordially
invited the committee TO be present md
confer with them looking TO settle
ment In consequence OF this invi-
taton this recent conference was held.
which lasted three days and resulted so for
tunatey. All matters connected with a pos
sible settlement had been carefully and
laboriOusly investigated and discussed bv
both the members OF the committee and the
commission and an earnest purpose has been
shown 10 bring about such a settlement of the
differences rs uld be within the present re-
sources OF the State. and which, it Is hoped.
VIII be satisfactory 20 the creditors.
In the disappointing the commission 10 rep
resent the states interest and TO consider
any proposition looking 10 a settlement. there
was inserted provision that no proposition
should be entertained until there had been
deposited IN the Treasury OF the State : 00O,-
w IN moneyas guarantee of good faith and
~ tho power 10 control the securities. This
deposit however has been considered a
mere formahty in the present instance owing
20 the fact that the bondholders committee
have practically possession of the securities
and aro ready to deliver them up 10 the
state should the proposed settlement DO
finally adopted and accepted.
The report OF the Second Auditor for the
year ending September 30. 1891. gives the out
standing Indebtedness Of the State rs -32.-
O64.59l OF this amount -S.Gl2.7l9 ~ consists
OF Rddleberger bonds. leaving OF old bonds
consols, peeiers and ten-iOrt es the sum OF
23,451, ,74.1O OF this indebtedness S244O-
255.s5 is held by schools aud colleges. and
cosl.SOO by the United States
Government, against which the State
claims an offset. This would leave the total
amount OF the defaulted debt in the hands Of
the public s2O.429.sl9.05, IN addition TO which
there IL outstanding about 5000 900 IF past
due interest. so that by this settlement the
State will practically retire the whole OF its
deiaulted debt for an annual interest charge
of 80 5000. and nuy lost bonds or coupons
will reduce this charge.
This proposed settlement does not inter
fere with tho bonds held by schools and col
leges. nor with the outstanding Riddeberger
bonds. except that the : 30, 1850 Of Riddle
berger bon,s held 10y the sinking fund are
cancelled by the terms Of this settlement
he total interest charge of the State under
iaulted Indebtedness AS surrendered will
be $4,000. 900. at per cent. $4,000 Riddle
berGers IN the hands OF the public. as shown bv
the Second Auditors report. II. 760.C coo. al 3
per cent. 1882. 500: total interest To the public
creditors. S5l2, 800. Riddlebergers held by
literary fund. a ,320. S2LzS al per cent,
$4,000; total interest charges, 1852. 424.
Under the klddleberger bill. funded TO
January, 1850. the interest charges would
have been 5000 900 per annum. The commits
sion on the part OF the State has seen its way
clear % provide from current revenues and
without increase Of taxation the amount ne
cessary 10 meet these charges.
OFFICIAL coREEsPoSDENcE.
The precise terms Of the agreement arrived
at are shown in the following official cor
respondence, which was the last of long
SERIES
'RIcHMoND. Va, Nov. IS. 1891.
To Frederick P Olcott Chairman. William
i. Iull. Charles b. Dckey. Jr.. Henry
Bulge. John Gill, Hugh X. Garden, Com
mittee:
Gentlemen ON yesterday you submitted
to the Virginia Commission proposition to
settle the obligation of Virginia mentioned III
the Riddleberger bill mot heretofore funded
under that bill. and now outstanding IN the
hands of the public. but not including bonds
held by schools and colleges on one
of tho two following bases-namely.
An issue OF s1-.0O).b0J OF nds n
Onealternative and OF 81 900 600 as the other,
in lieu of the outstanding obligations afDre-
said. Your proposition was that the $4,000
600 bonds if issued should run for one hun
dred years bearing 3 per cent. the entire
period, and that the Sl9OOOOOO bonds II Is
sued should run for one hundred years bear
ing . per cent. for FIVE years ~ per cent. for
five years and per cent. for the remaining
ninety years. You further suggested that the
proposed new bonds and the interest Obhga- |
tiOns on them should IN either case conform
IN their general character 20 those issued un- /
der the hiddleberger bill
I'VE have carefully considered your pro-
positions and are constrained 20 say that apart /
from other objections thereto. which occur 10 /
some or oil of us we fear that the State /
would be financially unable to meet settle /
ment in accordance with either Of theIG. II /
IS of course. conceded on all hands that a T,
settlement which caunOt be met would DO /
worse than no settlement at all.
Upon reflection however,. heNirGnia Com /
mission has come 20 the conclusion that there |
are certain sources Of revenues winch tie /
State may avail herself Of without increasing /
taxes. The additional income to bc derived |
from these sources Will perhaps not amOuLt |
10 very much. but tie Virginia Commission
hopes they may lie utilized for the purpose
OF accomplishing final settlement OF |
this much-yexed question. II is well
recognized fact. too that the large business
mentioned the railroad companies IN their
anxiety for final settlement and looking 10
tue general increase Of credit and prosperity
10 result therefron. have evIuced willing.
ness 10 respond 10 such public demands hs
may fairly be made for them for the attain
ment of the object ia view.
This commission will. therefore. make TO
the Legislature a favorable report upon your
SO OUO. 600 proposition. II the Same be mOdl-
fed as follows That Is 10 say. We Will re-
commend proposition 70 issue a maximum
amount Of $4,000. 900 OF bonds D. he
exchanged for the outstanding obliga-
tons o. the State mentioned IN
the Riddlebergsr act (other than those
held by schools or colleges now IN
the hands Of the public. but not in
Guiding bonds alrei dy fuL ded under that act.
Such new bonds 20 run for one hundred years
and 10 bear per cent interest Tor ten years
and per cont. interest for ninety years. The
bonds and interest obligations shall be OF the
same general character as those provided blythe
bill and 1t Is distinctly under
stood that the coupons or other interest
are not TO be receivable for taxes.
The proposed new bonds shall be eH-
for the outstanding obligations
aforesaid IN the proportion OF nineteen OF
the former for twenty eight OF the latter.
This recommendation Is OF course 10 be
made conditional on the understanding that
your committee holds and has the authority
10 exchange the obligations mentioned IN
ts..Yx