Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-04-14
REFUNoINe THE DIRECT TAX.
An Important Matter for West Virginia
Other States in Debt.

An Important Matter for West Virginia
Other States in Debt.
WASHINGTON CITY, April 14-Governor
Fleming aud Ex-Governor Wilson, Of
West Virginia. were at the department of
justice yesterday and made an appoint
ment with Solicitor General Taft for an
argument as to whether West Virginia
can legally be paid her share of the direct
tax. The hearing will take place in
about three weeks and the collateral
questions involved are of vastly more i'm
portance than the direct question at issue.
First Comptroller Mathews has held up
the payment 10 the state OF West Eir-
ginia of her share OF the direct tax, on the
ground that the state of Virginia, at the
time that West Virginia became a sta 3,
owed the United States and still owes the
United States more than 81, $50, co on In
dian trust bonds.
The History of the Matter.
When West Virginia became a state.
she agreed 10 pay her share of the indebt-
edness of Virginia both state and ma
tional When the direct tax was levied,
West Virginia paid her share ont of the
state treasury. The state of Virginia
paid her share by government agents col
lecting il from individuals, and by the
terms OF the direct tax law, which pro-
yides that the tax paid by individuals
cannot be withheld by the genera! govern
ment for the debt due from sat, is
therefore entitled TO a refund of the amount
collected. But ia the case OF We-t VIr-
ginia, whose direct tax was paid by the
state, her share has been held up for her
part Of the original Virginia State debt
to the general government.
Has "A Bearing on the State Debt.
The question in all its phases is likely
70 again be brought to public no.
tice when Governors Fleming aud Will
son make their arguments to show that
the government has no power to withhold
West Nirginias share of the direct tax
for debt owed by old Virginia. The de-
cision On the matter will have by infer
ence an important bearing as 10 West Vir-
ginia's share OF Indebtedness to Virginia
on the state debt, which has been a sub
ject Of dispute, and has figured in the
politics OF the Old Dominion for many
years, giving rise TO their Re -adjuster par
ty, the Riddleberger act and other laws.
Withheld from Western States.
First Comptroller A c. Matthews, of
the treasury department, has recommend
ed to Secretary Foster that the following
amounts be withheld from the amounts
due western states named below on ac-
count of the direct tax: Illinois, 81, SOC;
Michigan, S5.633 Minnesota, s.. 321, and
Wisconsin, s5,2Ol. The amounts are
charged on the books OF the department
as against the states named for arms, etc,
overdrawn by them under section ! 661,
revised statutes prior to Feb. II. 1881
Looking for More of the Same.
Other Indebtedness of states to the gen.
eral government may be found on the
books of the treasury, and other depart
ments are being examined very carefully
in order TO discover any balance the
states may owe the general government.
In the cases specified it may be found that
the amounts cannot be legally held as an
offset to the government refund of the
direct tax to the states, but the amounts
named will be held until the question can
be legally determined