The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-11-20
VIRGINIA'SLOADOFDEBT
THE oLCOTT COMMITTEE FAvoRs
THE STATES OFFER.

1t is an Issue Of $1e,ooo,ooo Bonds to
Run 100 Years, With Per Cent.
Interest for the First Ten Years and
3 Per Cent for Ninety-The Original
Propositions.
RICHMOND. Va, Nov. 19-Following Is
the correspondence between the Virginia
commission and the Olcott committee, to
gether with the result reached on the plan
for settlement of the state debt:
RICHMOND, VA, Nov. 10, 1891
To Frederick p. Olcott and Others:
GENTLEMEN-On yesterday you submitted to
tne virginia commission a proposition to sell
the obligations OF Virginia, mentioned in the
Rlddleberger BILL not 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
the two following bases, viz, an issue of
S1SOOO,O00 of bonds as one alternative.
and Of Si9 600 900 as the other in lieu OF the out
standing obligations aforesaid. Your PROPOSE
ton was that SlS,000.0O0 Of bonds il issued,
should run 100 years bearing 5 per cent the en-
tire period, and that $l9.000.000 of bonds if
issued should run 100 years bearing per cent.
Tor five years, 2l1 for five years. and per cent.
Tor the remaining ninety years. You further
suggested that the proposed new bonds and
the interest obligation on them should
In either case conform in their general charac-
ter to those issued under the Riddleberger bill
tion and are constrained to say that, apart from
other objections thereto, which occur to some
OF all Of us, we fear that the state
would be financially unable to meet a
settlement In accordance with either of them.
IL is OF course conceded on all hauds that set
tement which cannot be met would be worse
than no settlement at all. Upon reflection
however, the Virginia commission has come to
the conclusion that there are certain sources Of
revenue which the state may avail herself of
without increasing taxes. The additional in
come TO be derived from these sources will
perhaps not amount to very much but the
Virginia commission hope they may be- utilized
for the purpose Of accomplishing final settle
Inent of this much vexed question. It is q we'll
recognized fact too, that the large business in
terests or the state, among which may be men
toned the railroad companies, in their anxiety
for a final settlement and looking to the gem
eral increase OF the credit and prosperity to re-
to respond TO such public demands
as may fairly be made upon them
for the attainment of the object In
view. This commission will therefore make to
the legislature a favorable report upon the 3d.
0OO, proposition If the same be modified, that
is to say: I'VE will recommend a proposition
to issue the maximum amount Of Sf9 900, 600 of
bonds. to be exchanged for the outstanding OBJ
legation Of the state mentioned in the Riddle
berger act (other than those held by schools and
collegesJ now in the hands Of the public but
not including bonds already funded under this
act, such new bonds to run for 100 years.
and to bear per cent interest for ten years
and per cent. for ninety years. The bonds
and interest obligations shall be of the same
general character as those provided for by the
RiddleberRer bill, and it is distinctly under
stood that coupons or other interest ooliga-
tions are not to be receivable for taxes
The proposed new bonds shall be exchangeable
for the outstanding obligations Aforesaid in the
proportion of nineteen of the former for
twenty-eight of the latter This recommended
tion Is, of course, to be made conditional on the
understanding that your committee hold and
I'M fka
toned ip your previous communication to us
amounting to at least S23. 3.OOO,O 900.
P. w, MCKINNEY.
j. HoGE TAYLOR
r. H. CARDWEII.
TAYLOR BERRY,
H.T. WIcKHAM,
w. d. DABNEY,
ROBERT H. TAYLOR,
Virginia Commission.
H. O. WARWICK, Secretary.
In letter, dated to-day, the Olcott com-
mittee accepted the propositions contained
in the states letter, and said they would
recommend their acceptance by the people
its members represent, who hold more than
1923, 100000 Of the bonds
THE oLCoTr LETTER
This letter is as follows:
RICHMOND, VA, Nov. 10.
10 the Governor of the State of Vtr0tnfo and
the Members of the Debt CoBtnlisston:
GENTLEMEN-We acknowledge the receipt to-
day of your communication dated Nov. IS.
Our understanding of your communication is
that If we will amend your proposition on the
following basis it will be unanimously adopted
by your commiss on. viz: That there be an issue
of $19O0O,0O0 bonds having 100 years to run,
bearing interest at per cent per year for ten
years, and per cent. for the remaining ninety
years, and that the new bonds issued are to
conform in general character to those issued
under the Riddleberger bill. We represent over
S23 900 900 out of $2S 600 900 of the debt stated
by you as outstanding Excluding bonds held by
the United States and the schools and colleges of
the state). We, therefore, understand that under
such amended proposition we should receive
$4,000 Of new bonds for every S2S, 900 of old
Indebtedness surrendered. It may go without
saying that we are to receive for the West Vir-
ginia portion of the old bonds and interest
theron similar certificates to those issued by
the state under the Riddleberger bill We beg
to say that the proposition submitted by us. as
amended by you, will go to our constituents
with our cheerful recommendation, the
new bonds to bear interest from July 1,
1891. We desire now to acknowledge the unin-
terrupted courtesy of your commission during
these protracted and delicate negotiations and
if In discussing these questions any abruptness
has been shown, we trust that your honorable
body will not attribute il to want Of apprecia-
ton of the courtesy which has at ali times
been extended to US. We are gentlemen, your
obedient servants for the Virginia bondholders'
committee. F. p. OLCoTT.
HUGH K. GARDEN