Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-22
The WEST VIRGINIA CERTIFICATES.
A Statement from Ex-senator Marshall
Mccormick.

To NE Editor of he Dispatch:
The New York Sun recently printed a
communication purporting to be history
OF the West Virginia certificates, and
stating that our debt cannot be regarded
as settled until these certificates are paid.
This writer in the sun also states that Viz
gina is committed either TO return one
third Of the original bonds or to collect
from West Virginia and make good any de-
felt. lie further says application is abont
10 be made to the General Assembly In
this behalf. and / understand the deficit
would exceed s'25, 100000. The coinmuni-
cation in question we'll illustrates the
amusing literature current In certain
10 temporarily misiead persons
unacquainted with the facts. About
eight years ago | supported In the
Senate some legislation touching the GER
tifcafes. and il seems expedient TO answer
our Wall treet friends. When supported
the measure referred to the London COun-
Gil had not sued the State TO force coupons
into the Treasury, and, expecting the
creditors TO accept the RIddleberger bill,
il WAS argued that placing the CERTIFICATES
on a better footing would encourage hold
ers 10 fund large amount Of original
bonds then outstanding. II is needless 70
say the conditions have entirely changed.
and legislation eXpedient eight years ago
would be ridiculous under the conditions
Of to-day.
This Wall-street writer. who seeks to
place Virginia in false position, says:
g rhe terms OF settlement in 1871 were that
the Sat- shouli keep one thru OF the Oh
bonds surrendered % IL alive and uncanceled,
and should act as the trustee OF the certiilcaie-
holders In eiiecting settlement with west VIZ
GINA
But reading the act explodes bis state,
ment. Every creditor who surrendered
his bonds under the act Of 1871 accepted
It's proy1siOns-tO-wit: Virginia would pay
two thirds and each creditor who surren-
dered his bond should look 10 West VIZ
GINA for the balance. Hence, one tnlrd
of each bond was put in such shape that
West Virginia could either settle with the
certificate-bolder or pay the amount 10
Virginia, TO be distributed by her as
trustee. The function of the certificate
was to recite the facts for the information
of West Virginia. The trusteeshlp wa not
to enforce payment, but to distribute what
West Virginia offered. The act reads:
Whereas, Virginia is anxious for the prompt
liqudation OF her part Of the debt which is esti-
mated at two thirds; and whereas, West VIZ
ginia may prefer 10 pay that states portion 10
the holders and not to this state: now, there-
tore, 10 enable West Virginia 10 settle her pro-
portion Of same with the holders thereof, ana 20
prevent any complications or diilicuiues Wncn
might be nterpOsod % any other manner OF set
Element, be 10 enacted, &c.
Section 2 The owners Of bonds may fund Two
thirds Of the amount OF tho same In new DOnds.
Section 3. Upon the surrender Of the old and
Acceptance OF the new bond Tor two tllrds OF the
amount due there shall be Issued 70 the owner Tor
the other enc third certificate setting forth the
amount OF the bonds which IL not funded as pro
vided In the last section, and that payment OF sad
amount will he provided for IN accordance with
4 a. a. h.atfN gan
the States In regard g the debt Of virginia exist
Ing ut the time OF her ACKNOWLEDGMENT, and that
Virginia holds said bonds, 50 far as uniunded,
in trust for the holder or his assignee"
This Is all that relates to the certificates.
Where does our Wall-street friend find
warrant for his statement, the terms
were Virginia should keep one third OF the
old bonds alive and uncancelled 7" Where
IL his warrant for the statement that VIZ
ginia agreed TO "act as trustee for certlh-
cate-holders in effecting a settlement with
West Virginia? The whole bond was
surrendered, two thirds was funded paid.
How can the State return one third OF a
bond and retain the balanceY Can Smith
claim a piece of the bond surrendered by
Jones! In point offact the bonds may have
been cancelled long ago.
But take another statement. Our Wall
street friend ASSERTS
that whenever they should succeed in settling
their own debt they would then be In o position
20 proceed against West Virginia and would do
s).n
| venture to say no official has ever
made any such promise.
The managers of the pooled certificates
will increase the value of the certificates
by fastening TO ask the General Assembly
TO move against West Virginia: because
then the holders could not fail to appreci-
ate how incompetent they are to conduct
this business successfully. ~he reply OF
Virginia would be such crushing defeat
that men with money at stake would rebel
against management whose every action is
blunder and whose every step carries them
farther from settlement. The West Vir-
ginia debt can only be settled by the good
Offices of statesmen like Cleveland, Bay
ard, and Phelps. and such men will not
risk their valued names with that element
on Wall street responsible for so unwise
a publication as that in the Sun. The Vir-
ginia debt could not be settled until the
creditors withdrew from the London
Council. and predict the West Virginia
debt will not approach adjustment until
the certificate-holders withdraw from the
present syndicate and appoint an agency
outside of Wall street and its methods.
MARSHALL Mccormick.