Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-16
pEsrBABLE 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
eral classes of bonds not controlled by the
Olcott committee should have been fund
ed-that is, how many cents in the dollar
of new bonds should the holder of 81 900
of peeers or of consOls or OF i0-f0s re-
celve. But as this distribution as above
indicated is to be made by tribunal
whose work has not yet been performed. u
tribunal not III any way interested and
composed of men of the highest reputa-
ton. an assurance that they will fairly ad..
lust the rights of those several classes OF
creditors, it was found impossible to in
corporate it in this bill. Thus 1t will be seen
that the PROVISIONS of this bill are such as
to secure to all of the creditors. both those
outstanding and those in the hands OF the
Olcott committee, the same settlement.
Mr.. Munford then passed rapidly over
the various details of the bill; how that
the bonds were to run for 100 years and TO
bear interest at q per cent. for ten years
and for ninety years how the basis for
the exchanging of both the outstanding
and the pooled bonds was to be nineteen
for twenty EIGHT. which. il all were funded
would make the new principal SIS, 0O0, 900.
lie pointed out that oil of the bonds must
be surrendered to the Beard of Sinking
Fund Commissioners on or before the 3lst
of June, 1892, though the Sinking Fund
Commissioners have the power, II they
may 80 decide, to make one extension Of
six months from that date.
BONDS NOT LIABLE FOR TAXATION.
Continuing, he said: Ithas been.thought
we'll to incorporate In this bill that tue
bonds issued under its provisions shall
have stamped upon their face that they
are not liable for taxation. This provision
has been inserted, as it is hoped, for the
benefit of the Commonwealth. The bonds
ara now held abroad, and are OF course not
subject to taxation The low rate of inte-
rest would inhibit our people from buying
them, as bond which bore 2 per cent. in
terest and was liable for taxation, the State,
county. or municipal averaging over per
cent, would leave only net revenue OF less
than per cont. Thus it was thought that
If the bond was by express proviaion ex-
empted from taxation it would become
q source Of Investments the hands OF our
people and the annual payment OF interest.
| which would otherwise carry beyond the
ocean this large sum of money. would in
process of time be dtytributed among our
own people. Again, It was thought ad-
yisable because the McCulloch o. 10-40
| bonds, which constitute . portion OF the
| debt 50 surrendered, were likewise ex-
empted, and, most Of al. because the Rid.
| dieberger bonds, after which act this bill
is modelled, were not themselves subject
| of taxation. Il is believed that il these
| bonds are not taxed they will be bought
| by our people and brought to Virginia. II
| they are taxed they will remain where they
are, and the State Will not derive any reye-
nue., because they gro beyond the iurisdic-
| ton Of our taxing authorities.
| Mr.. Munford explained that the bill
| made I'll OF the usual provisions for the
form Of bond. the form Of coupon, the en-
| craving Of the honda, the rsgistsy of their
issue, the registry Of their redemption,
and authority to 6dueiarlss to invest theis
| trust funds IN them. He explained the
provisions Of the Gkaking fpnd provided
| Tor; how thst tn 1919 one half Of PEI
cent upon he boads - issued a1d the
| RiddIobergees outStonding vAs to b a.
nually ct aside to- thels puychsss until
TIE year lS,o. When pes sept upon tas
s. az as ssss|& < 8 sssisssd 8 = : :
(: Z ]: :, g. ! :