Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-16

annusl interest charge eosssspend'nsU -
M II. hnniord then addrssssd himsslil e (:
a expIsnation Of the. details OF sne OH
reported By the JOINT committee. ~ e1to
be readily appreciated that though snS
nainstakinR efforts OF himself and MS
sseociates on tho subcommittee. yos ~
IVES doubtless in its details subject 20
legitimate criticism and correction ne
desired to impress upon the House. now
ever. the difficulties which bseet the
committee IN the preparation OF the oni.
The contract between the State commis-
sion and the representatives OF the bono.
holders. only provided for sestiemsnt
tua,iv controlled by that commit
tee, which amounted to some
Ga. goo, 900, leaving unsettled the
rights and status OF the $4,000, 900 OF out.
standing obligations not controlled by tnat
committee. In the present bill 1t Was pro-
ylded that the Olcott committee shouid,
in accordance with its contract with the
State, turn over for verifcation the $I3,-
OOO. 900 of bonds and interest 80 held Dy
them. When the sinking Fund Commas
of the eenuIneness of the bonds and cou-
pons so delivered they were to issue IN ex-
change therefor TO the representa-
tiyes of the Olcott committee bonds
issued under the provisions OF this
act in the proportion Of $lg OF new
bonds for every 500 OF old bonds or
any multiple thereof so surrendered:
The $23, 000, 900 so controlled by the OIcott
Indebtedness of the state as
above indicated. For the distribution
among the several classes of creditors SO
holding these securities the State has not
attempted TO MAKE any provision, Us IL
was the express contract between her COM
mission and the Bondholders' COMMITTEES,
that the bonds to which they were entitled
should be delivered in bulk and the DIS
tributiou made among the bondboiders
themselves according to scale to be mere
after fixed by tribunal which. IN
of the several classes. should de-
term,ne that they were lespectively en-
titled to receive. Thus provision for TINS
portion of the debt has Leen very simpiy
and satisfactorily adjusted. 1t was as to
the remaining S5.000.000 outstanding In
the hands of the public that the commit
tee found the most difficulty in arriving at
q satisfactory CONCLUSION. VI course IL Is
all important that this portion OF our In,
debtedness should be brought III and
funded under the provisions OF this bill.
1t consists in round numbers of 81 .25O, 0Oo
of consols. S750.0OO of 10-40's. $l.750,0OO OF
past due tax.receIvable coupons, and
81, $50. 600 of old unfunded and pee!ers.
It was urged on one hand that these
creditors should be compelled to bring
in their bonds through the Oicott COM
mittee who had accomplished this settle
ment if they desired to secure its Dement'S;
1t was urged on the other that they should
be allowed to fund through the Commits
- 49, Of ba Stnk,uo Fund without the
Intervention Of the Oicott committee or
the imposition of any charge. The latter
seemed the simplest and most advisable
method and would doubtless have been
adopted by the committee hut for the COM
p.lcations growing out OF the relations be-
tween the Olcott committee and their
clients the bohdnoidefs whose securities
they represented.
SOME CREDITORS NOT SATISFIED.
need only state here in explanation of
this matter that il Is insisted by some of
the holders OF the S23. 900 600 of bonds IN
the Olcott pool that that committee ex-
ceeded ITS authority in agreeing to the set
Element provided for in this bill that 1t
really less advantageous to certain classes
of the States creditors than the Riddle
berger bill, and because of this contention
suits have been instituted in London
by several of the creditors to enjoin the
Olcott committee from delivering their Sc
curtles over to the State In accordance
with the terms of this settlement. 1t was
thought. and very properly so, that If in adj
ditioI to the ground of complaint urged by
these dissatisfied creditors they could
snow to the English Chancellor that the
State of Virginia had actually enacted
law which enabled any of her creditors
who might so elect to fund their obliga-
lions on even more favorable terms than
that secured by the Olcott committee, In
that the bondholders whose bonds were
pooled with that committee had to pay the
charge of 81 per cent. commissions TO de-
FRAY the costs and expenses of the adjust
ment, then the complainant. 1t was feared,
would meet with more consideration at
the hands OF the court, and the example
of tho present suitors would be followed by
others similarly situated. aud thus the
Olcott pool broken their ability to
carry out their contract with the State to
deliver S23. 600 900 of bonds destroyed, and
this whole settlement become failure.
In view of these circumstances, which
strongly commend themselves to the
Judgment of the committee, 1t has been
thought proper to provide in this bill that
the outstanding creditors who shall not
have deposited their bonds with the Olcott
committee before the date of funding
shall pay to the Commissioners OF the
Sinking Fund commission of 80 per cent.
every farthing of which, however, is to
go into the State Treasury, and thus
the bonds not in the hands OF tho Olcott
committee and the bonds controlled by
that committee will both in effect DO
treated exactly alike. The outstanding
bondholders can make no complaint:
They have done nothing to bring about
this settlement so fraught with good for
tho Commonwealth. They have done all
in their power to defeat IT. They have
waget q ceaseless warfare in the courts
against the Commonwealth, and II they
come IN under the provisions of this bill,
il will be simply because they cannot hope
with the present condition Of our laws and
public sentiment. even by continued mar
rassment. to secure more advantageous
settlement.
DESIRABLE BUT NOT PRACTICABLE.
In the same way 1t would have been
much more satisfactory to have provided
in this bill an exact scale in which the sew