Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-01-20

An Interesting Paper BY Judge John

- IYsslon Dlmncrn


we have noticed In the Wheeling
hEGISrER OF the 5th inst. an elaborate
article from the New York sun In refer
euce 70 an adjustment Of the matter Of
deferred certificates made by the State
OF Virginia ln the adjustment OF It's debts
with its bOnd-hOlders. These certif-
Gates in effect provide that they which
represent One-third Of the whole debt
OF Virginia before the division OF the
State and to be paid by Virginia and
not West Virginia, after settlement
between Virginia and West Virginia.
These certificates are called deferred
certificates"
IL is claimed by the article referred
70 that az the time OF the funding Of the
debt by Virginia that. IL issued new
bonds or obligations for twO-thirdS OF
the whole debt and then issued TO the
holders OF the old bonds the deferred
certificates referred 20, covering one
third Of the whole debt. Then the old
bonds were delivered TO the authorities
OF Virginia. These bonds were so de-
livered 10 the State OF Virginia, and
One-third thereof being then unpaid to
the holders. IL may have been then
stipulated that the State OF Virginia
h5id One-third OF the bonds ilI trust.
This did not impose a duty as alleged
by this article, possibly inspired by
these certificate holders, 10 sue as
claimed by 10.
We lind in our files Of March 18th,
$50, a letter from Judge John Bran
non 10 William +. Stevenson, then Gov
ernOr Of West Virginia, on the subject
Of the debt Of Virginia, claiming that
IN equitable adjustment between the
two States did not impose or leave
liability on this State and we here re-
produce the same. We have seen the
Judge and he states that more minute
investigation OF the expenditures of
Virginia before the war, which Occa-
stoned the issuing of the bonded debt Of
Virginia will show but q comparative pal
try amount Of them within the terri
tory now embraced within the limits Of
West Virginia, aud whatever may have
been the obligation Of the whole people
10 the bOndhOlders there is no "CPtit-
OblC' obligation upon this State, as pre-
scented by him In his letter TO Governor
Stevenson. That the bond holders took
the obligations OF Virginia on a basis
arbitrarily fixed by it, and so the bond
holders seem TO disclaim all right to
look 10 this State for any equitable"
adjustment to them.
This matter may as well be dropped
from public consideration. IL would
seem that the public judgment attaches
no importance to this arrangement Of
Virginia as 10 these deferred certificates
for they have not had any marketable
value since OF more than from six 70 ten
cents on the dollar.
In regard TO the claims and points
largely assumed and adroitly presented
in the inspired article referred to, II
may be stated that the bOndholders in
1871 undertook, without consulting or
inviting cooperation with West
Virginia, a settlement with Virginia.
They adjusted in their own way as
TO all their bonds, Stipulating for
payment by Virginia Of two-thirdS,
leaving one-third unpaid and unfunded
and this was done by them after the
constitutional provision made in West
Virginia IN 1868. They elected TO do
this business In their own way without
any consideration or cooperation by
this State. This remaining One-third OF
the bonds being chiefly coupon bonds,
had to be held by Virginia by this ad-
1ustment being unpaid and unfunded,
and so the State of Virginia not having
paid this one-third held it in trust. 1t
is enormously assumed by the Suns
article that this relation OF quasi trust
imposes duty upon Virginia In
respect TO this One-third. The deferred
certificates represent this one-third and
they are pooled or chiefly so. 10 IS not
likely that the State OF Virginia having
no obligation to sue, If right she hath,
will engage In an enterprise without
profit or benefit TO her and without any
obligation to do so and which would re-
suit in q large additional debt upon her.
The Farmers Loan and Trust Company
may continue to hold these certificates,
probably gathered up at five cents on
the dollar. Virginia and West Virginia
abhOr trusts.
Virginia in 1871, by agreement with
bond holders, assumed 10 pay about
So, OOO, 900 of these old bonds and issued
new bonds 10 the holders. Since, being
unable to pay the amount so assumed,
she has made another adjustment, &C
cording 70 newspaper reports, upon
probable average Of per cent. and, II
so. this will leave for the original $685.
900, 600, a six per cent. debt OF. some
twelve and half millions. The next
adjustment may reduce this by q diyi-
sion Of >, and then III PAID Oy 10 an
equitable adjustment, il equity did eX-
ist as claimed, would look 70 the con-
tract Of bond holders in any settlement
with this State and the basis OF their
settlement when paid would occasion
its application here; and not upon any
arbitrary assumption that we ever owed
equitably one-third Of the old debt.
Associate contractors adjusting with
creditors as between themselves can
only claim in proportion 70 payment
actually made by either. This IS equity
This is the position Of Virginia which
the certificate syndicate is endeayoring
to force into a suit
SEQ vanish into air; away
Following is Judge Brannon's letter;
WESTON, w. VA,
March z, 1870,
To His ErCellCnCh WtlltdmE. Stevenson, !
C1o,,o-,,o,- of TVcSf EirgiQfn.