Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-12-19
SETTLING vIRGINIA's DEBT.

Terms OF the Compromise Accepted by the
English Bondholdsrs
The English holders of the Virginia debt, as
stated in yesterdays STAR have decided to
agree to the settlement agreed upon by the
Olcott committee. The Olcott committee, II
will be RENE mbered, offered the state to accept
slS,O0OO 900 of new per cent bonds. or
$4,000 900 of per cent. rising to ~ after five
years and per cent after ten years. This was
accepted. The bonds and interest coupons are
to be of the same character as the RiddIeberger
bonds and not receivable for taxes.
1t is stated in the agreement that there are
only S2s, 600, 900 of the old bonds outstanding,
but this, it has been added, is probably arrived
at by ignoring the coupons maturing in bonds
since they were deposited
Sir John Lubbock presided at the meeting.
In an address he repudiated the idea that the
council of bondholders was too exacting.
AT airy rate" he said. I'VE thought it desir-
able to come to an amicable settlement and
agreed to leave the matter, tor the time. in the
hands of the New York committee and the ad-
visory board in order to stop legal proceedings.
whatever the majority of the meeting may
decide upon he continued. the New York
proposals are undoubtedly more favorable to
the bondholders than is the Riddleberger bill,
and this Is due to the long and persistent litl-
SatlOn maintained Dy the COUNCIL III INC leOeEaI
courts, but for which the bonds would have
long ago sunk to point at which it would have
paio to fund them under the Riddieberger bill. "
Sir John Lubbock then read the New York
proposals. He said that neither the council
nor the Virginia committee would have recon-
mended these terms. because they believed that
the state of Virginia was able to pay more. He
said he had beer requested 70 read a letter adj
dressed to the bondholders and signed by
Messrs. Lauderdale and Daniel The letter
admitted that the terms were unsatisfactory
and said that there was no reason to suppose
that the state was unable to pay per cent after
two or three years. because the settlement of
the debt could hardly fail to stimulate the de-
velopment of Virginia resources. The absence
of sinking fund was also serious objection.
The appropriation, even OF a small amount.
yearly for this purpose would evidence desire
to deal fairly with the bondholders and en-
nance the credit of Virginia.
yet" the letter continues, ''as it seems i'm
possible to obtain the better terms without
difficulty and delay, we decided, after much
hesitation, to advise the acceptance Of the pro-
posals."
Sir John Lubbock concluded by saying he
did not desire TO influence the bondlolders in
one way or the other.
Mr.. Leon, NJ. P. moving the acceptance OF
the proposed terms, said 1t was useless to &c
into the question of the honesty Of Virginia OF
Of censuring the committee. The question OF
mittee might be gone into later II the motion
were rejected endless litigation would ensue,
and the result would probably be the submis-
sion Of worse terms than ever.
motion to reduce the commission was no,
seconded.
Mr.. Franklin then proposed an amendment
to refuse the terms offered unless 3 per cent
interest was maintained.
Replying to question, the chairman adj
mitted tina. it would still be open to Virginia to
repudiate, but he thought this impossible
MIR. Franklins amendment was rejected by q
vote of A to Is. An amendment to allow de-
positors sixty days in which to withdraw theil
securities was also rejected-39 to II.
The motion to accept the agreement between
the Virginia state debt commission and the
Olcott committee, which was offered by Mr.
Leon. was then adopted-39 III.
The London Times, in its financial article
this morning. says: I'VE doubt whether the
proposed Virginia debt settlement will increase
the credit Of Virginia and indirectly enhance
railway securities. Those bondholders who
think it worth while to stand out against thi,
iniquitous settlement have perfect right tt
do So and will deserve the thanks of the com
mercial community should they succeed il
making better terms for themselves
The bonds rose ~ on the result of the meet
ing.