Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-01-15

bill. IL restased the public debt, eliini-
mating such items "a had oeen improperly
admitted. thereDv largely Decreasing the
pr. uciral claimed 70 he due. and new bonds
we're ordered 10 be issued. payable in tfty
years nj 8 per cent. interest, for the amount
OF our indebtedness. thus equ:.ably ascer-
tanned, with nOn.tax- paying coapons At
iached. THIS act Was approved by the
people. but not by the bondho'ders, alter
"a merits had teen elaborate discussed.
Those VINO held tie tar-paylDg coupons OF
the issues Of 1874 snd 1919. finding that
there would not be sufiicient revenue 10
support the Government aut pay the io-
ierest on the debt made strenuous e3o-ts
20 force coupons into the Treasury o. the
sta.e IN payment o. taxes.
rHE SITUATION.
Though the Hiddleberger bill was passed
ton years ago. the dept IS ssiii unsettled.
aud a dissgreesble litigation, distressing
81 the State and improbable TO the credit
oTs. mas been going on, increasing IN bit
teTness and extent each year. IL has sore
" yexed our people and consumed our
revenues. and the state. like a culprif, has
been dragged before the courts OF the Com
mODwealth ana the inferior and Supreme
Courts OF The United States. She has been
subjected % more harsh criticism in the
Last ten years than in all the past OF
her history. her laws have been
made the theme OF harsh animadver-
sion, her motives imprgned, her integrity
qGests oued. her public officers seized aud
imprisoned for obeying her statutes. Her
credit. which had been equal to that OF
eny State IN the Union, has been destroy
oil Dv q combination OF unfortunate cir
cumstances, against which she has con-
tended with heroic fortitude winch has
commanded the .admiration Of the world
aud seif-sacrifclng devotion 20 winch
history has no parallel. Finally over
whelmed by mum bers and resources,
her territory dismemhere her towns ana
c.i Is burned. her. homes IN runs. her
fields devastated. her sons slain, her pro
pefty cOuhscsted. her currency worthless,
her Young men fed from this picture OF
poverty and desoa;ion and sought en-
ployment and homes elsewhere, leaving
the State less able b. pay the smallest sum
ever mentioned as a settlement OF her IN
j-bteiness than she was to pay the whole
ds.t AZ tue time II was contracted.
In consequence OF the harsh action OF
the creditors. her progress in wealth ana
population has been impeded; enterprise
has been driven away, capital has been
sfiald 10 iuvcst-timid always, ana easily
in luced 70 believe That A State that does
not pay lis own obligations cannot be re-
against her people. and that # she makes
Jaws 10 protect herself against her credi-
tors. she will maze them also To protect
Ter people from their creditors. TINS be-
inr the situation, every business has tel;
It's banefu, influence. and all the people
have suffered for il, and her credit which
shou.I today be az stainless AS her houof
has been destroyed by a cruel fate, which
every loyal son has struggled. but stru2-
gled N vain. 70 avert.
COMMISSION APPOINTED.
This being her unfortunate situation
on the 9TH day OF March, 1890, the Gen
eral Assembly. by JOINT resolution, Sc
iected commission, IN part from the
Senate and II part from the House otIDele
gates. together with the LieItenant-Gov-
eraor and tbs Governor OF the state, &c
receive proposals. for funding the debt.
The commission was authorized TO agree
upon the terms Of contract with parties
proposing 10 fund upon the principles set
forth in the act Of February II, 1892
which is the Riddleberger b,ll, subject to
ratification by The General Assembly.
ON the "a OF May last received letter
dated New York. April Is. 1891, addressed
10 me ia my official capacity, by which
was informed that the Bondholders' Com
mittee was prepared TO submit proposi-
ton for the settlement of the State debt
Of Virginia. and asking me TO name
very early day" when some Of their men,
bers might meet Us and confer on the sub
iect. etc. After some correspondence
6xed on Tuesday. the I'd OF June, for the
proposed meeting and invited the Com
mittee Of Bondholders-cOmposed OF L.
+. Olcott chairman. Hugh X. Garden,
William L. Bull. Charles ID. Dickey, Jr.,
Henry Budge, and John Gill-to meet the
moud. for the purpose referred 10 IN then
letter.
The propositions Of the Bondholders
COMMITTEES were carefully considered and
declined by your commission on the 80 OF
June. all of which will appear from the re-
port accompanying this message.
THE SECOND CONFERENCE.
In September | received another com
munication. dated the lith of August
from the Bondholders' Committee. making
another proposition for the settlement OF
the debt. 1 declined at that time 10 call
the committee together because II was du-
ing the political canvass, and / did not
deem II prudent 20 have aoonferencs until
the election was over.
Bya letter dated the 2sth day Of October
1891 the Bondholders' Committee again
requested that the Virginia commission be
convened. lat az early day a. practlca
ble," 10 later than the 18th day OF Noyem
Der. la compliance with this request
convened the commission on the nth OF
November. the 18TH being Sunday. After
many conferences and much discussion on
the 18th OF November, your COMMISSION
and Committee of the Bondholders agreed
upon the terms OF settlement, which wer'
unanimously approved by the commission
and the committee. as Just and honorable
20 the creditors and the debtor.
The agreement is as follows:
OUR AGRREMEiT.
ave viii recommend q proposition to Issue q
maximum amount Of 3lp,O0O,000 OF bonds Z
De exchanged for the outstanding Obligations o
the State, mentioned 10 the kdileDefg9r &C
tother than those hold by schools aud colleges
now In The hands Of the public, but not Including
bonds already funded under this act, such no'
bonds 90 run for one hundred years and 20 bea
per cant. interest for ten years, ana . pc
inieres Tor ninety years. The bonds ana In
terest obligations shall he OF the same genera
character az thOse provided 10y tho hiddle
berger bill, and 10 Is distinctly understood tina
the coupons or other Interest obliga
,ons ars not O. be receivable 10
taxes. The proposed new bonds shall b
s1cnAogeahle for toe outstanding obligation
aforesaid, IN the proportion Of nineteen OF IN
former for twenty-eghi Of tbs latter. This re
commentator Is, Of course, 10 be made condi
tlonal on tho understanding that your cofumitte
hold and has the authority 10 exchange the obi
cations mentioned in your previous communlca
ton 10 Us, amounting TO at least 23,OOO,oc
ZIP. w. MCKINNEY,
81. iIOGE TYLKR,
ar. II. CARpwEL,
al. 4. WICEHAM,
"TAyLOR RRaRY,
"W. ID. DABSgY,
aROBgRT II. TYLER,
"Virginia Commission.
up c. Wartcick. Clerk ana Secretary"
On November 10. 1891. we received a re
plv from the Committee Of Bondholdera
in which they say; That the proposition
submitted by US. AS amended by you, Wi
90 20 our constituents with our cheerful
Recommendation" etc.
THE SETTLEMENT EARNESTLY ENDORSED.
II would transcend the limits OF thu
message Tor me TO give IN detail the worl
OF your commission. or elaborstely discus
the various phases of the public debt. 10
which | refer Won TO the report or IN
commission, but l cannot submit CUES
ton of so much importance to YOU WITH
ort declaring that have gwen II my pes
consideration and earnestly comIaend
to YOU as the most favorable proposition
for the settlement which has bean pre-
sented to the Legislature for its approve
aud ratification. | give below br.e
statement Of each Of the propositions 10
the settlement which have been approves
by the Legislature, and you can read,l
decide upon the comparative merits o. IN