The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1891-04-20
Full Statement Of the Points In
yolyed IN the Question.
THE ISSUE is FINANCIAL
And No. Polltical..An Interesting
discussion of tho Position AS
sumed by the Comprehensive.
sitiOn of West Virginia.


by the Comptroller of the Treasury in
Telatjon to Withholding the money ap.
p,opriated by the last Congress for the
plylnent Of West vlrginia's share Of the
direct tax. In reply he said: II have
been very much interested in the ques.
tion. When IL was understood that the
Comptroller would withhold payment
for the reason that our Legislature had
not complied with the act Of Congress
In accepting the terms prescribed, !, in
common with all other West yirEinianS,
except neIpbsB of the Legislature who
voted 10 allow 10 per cent Of the money
10 attorneys, was very much delighted.
knew our people would be willing to
await the assembling Of another Legis.
Iature in order to have an opportunity
IN repeal that act. But this other qnes.
zion raised by the Comptroller is very
serious one, and one in which the people
Of West Virginia are deeply interested.
It ia q financial and not political ques
non. It must be determined finally by
law, aud 1t may be interesting to readers
OF the INTRLLI0EEcER to have q pretty
full statement OF the points involved,
the position taken by the Treasury De.
par.ment, and that which will probably
Be the position assumed by the State.
THE CoMPrRoILER's POSITION.
"The position taken by Comptroller
Matthews is about this, as understand
it: Section S4Sl of the Revised Statutes
Of the United States reads as follows:
whenever any State is in default in the
payment OF interest or principal on in
yestments in stocks or bonds issued or
guaranteed by such State and held by
the United States in trust, the Secretary
Of tho Treasury shall retain the whole,
or so much thereof as may be necessary,
of any moneys due On any account from
the United States to such State, and ap.
ply the came 10 such principal and In
terest, or either, or TO the reimburse
,neut. with interest thereon, OF moneys
advanced by the United States on &c.
count OF interest due on such stocks or
bonds
"The recent act OF Congress refunding
the direct tax provides that all money
shall be paid TO the Governor OF the
State or territory. 1t further provides
that where such sums Of money as have
been credited TO any State, territory or
the District OF Columbia have been col
leCted BY the United States from the cit
izsns or Inhabitants thereof, said sums
shall be held in trust for the benefit OF
the persons from whom they were col.
lected, or their legal representatives,
and tho ect contains this somewhat Big-
njGcant clause: 'ANd prOvided further,
That no part of the money collected from
individuals and to be held in trust as
aforesaid shall be retained by the United
States Gs a set.of against any indebted.
ness alleged toexist against the State,
territory or District Of Columbia in
which such tax was collected.
"This would seem by implication TO
mean that Indebtedness against State
might be set of in all cases where the
money Wonld go to tho state direct.
Some time prior to the war the United
States bought, and still holds, some
Virginia State bonds. These bonds still
remain whollyunpaid. The Comptroller
raises the question as to whether or not
West Virginia, having been an integral
part OF OF the State OF Virginia at the
time these bonds were issued and sold,
is not liable with the mother State for
the payment OF them and II 80. wheth-
er the provisions Of section 34Sl don't
apply, and require him to withhold the
payment OF the money appropriated for
West Virginia in liquidation, or part
liquidation, OF these bonds.
THR GoyRRNoR's POINT.
Ex-Governor Wilson, representing
the State, maintains that II West Vir-
giuia owes anything she owes it to the
State Of Virginia; that whether or not
there is any Indebtedness on the part Of
West Virginia depends wholly upon 9
settlement hetWesn tho two States; and
that Wes: Virginia has endeavored to
make settlement with the old State,
and has always been, and is, ready to
make fair and equitable adjustment
with the State OF Virginia. He claims
that the creditors ot Virginia cannot
proceed directly against West Virginia,
even though il be true that West Vir-
ginia, upon final settlement With Yir-
giniu, may be indebted to that State.
"This is probably the strongest posi-
ton that can be taken by our State. 1t
may be that our liability Is too remote
for the creditors Of Virginia to enforce
the payment Of the debt contracted
while West Virginia was part OF the old
State. There seems to be no question
that We are liable for an equitable pro-
portion OF the debt contracted before
the war. Upon this subject Chancettor
Kent Gays: III a State should be divided
in respect to territory its rights and obli'
cations arc not impaired; and II they
have not been app0Elioned by special
agreement, their rights are 70 be ENJOY:
ed and their obligations fulfilled BY Gil
the parts in common And Halleck, in
speaking Of State divided into two or
more distinct aud independent goyer'
eighties, elys: 1n that case the obnga'
tons which have accrued 70 the whole
before the division are, unless they have
been the subject OF a special agreement,
ratably binding upon the different parts,
This principle Is established by the con-
current opinions OF text.writers, the de-
cisions Of courts, aud the practice oil ma
tions."
THE REMAINING QUESTION.
"Tho Supreme Court of the United
States, in discnBsing the liability Of Vir.
ginia and West ylrgInis, says: 'Writers
on public law speak o. the principle al
well established, that where q State Ii
divided into two or more States, In the
adjustment Of liabilities between eact
other, the debts OF the parent stat'
should bs ratAbly apportioned amonS
them.' This principle has been recog
pizsd by both States. The ConAtitnttor
ot Virginia Of 1870 declared that thl
General Assembly should provide b!
law for adjusting With the State olives
Virginia the proportion Of the publi'
debt Of Virginia proper TO be borne b!
the States Of Virginia and West Viz
ginia.' And the constitution Of Wes
Virginia, adopted in 1883, declared tha
an equitable proportion Of the publ
debt Of the Commonwealth OF Viiginia
prior 10 tho first day OF January, 1881,
Rhould 'be assumed by the State.
"But the question still remain
whether West Virginia can be mad