The times. [volume] (Richmond, Va.) 1890-1903, 1892-02-19
TO THE DEBT ErrLE
MEST.

III. I'LL rresented by the Finance Commit
- o settIsment of the State DEBT uhder
-, -~ooo,t with the Olcott committee
,"' - oIready passed unanimously by
,ho senate. was yesterday passed. ny 'no
uo,se Of Delegates with but slight amehu-
nan, and with only three negative votes,
Thus do we approach the contamination Vi
. creet deliverance. In the discussion OF 'no
III Int two objections OF any consequence
were raised to the proposed Olcott plan VIZ
The exemption of the bonds from ta1at'on'
| and the charge Of 81 per cent. upon bonus
not funded through the Olcott committee
Tho first objection has, in our judgment
been overwhelmingly answered by advocates
Of the bill, who presented the view tna'ln 'ne
city Of Richmond the aggregate city ana
State taxes-amounting to $50 upon the
value Of the p-roperty-would in the case OF
the State bonds be equivalent almost 10 con-
fscation Of the interest upon them ana 50 III
a greater or less degree in oil portions OF the
State where the bonds might De helu'
Although the Riddleberger bonus ore not ~
law exempt from taxation, yet they nave never
been taxed. 1t being a wise policy to encourage
the ownership Of the State securities at nome
and not to put our " people al d greater
disadvantage than outsiders. 1t wouId seem
that the State had already taken enough IRON
these bondholders. and that II wouid be but
slight concession 10 permit them 70 receive
unchanged the meagre remnant OF that DEBT.
The second objection is the charge OF 81
II I..4. 80 frr1aI fhrlTuh
the Olcott committee. This on its face seems
to be a gross injustice. but the candid con-
sideration of all the facts of the case Will sat
isfy an impartial and disinterested person
that the provision IS just.
The settlement Of this debt. as tar as it has
gone. has been brought about not without
great expense Of labor and money. Tn az
creation OF such an amount If bonds as are
now pooled in London. and the consideration
Of the subject Of the debt 10y 30 many men OF
distinction and ability. has been necessarily
the occasion Of great cost. The incidental
expenses Of travelling, printing, advertising
and legal services vt home and abroad have
all increased the cost OF the steps winch we're
Indispensable 10 the accomplishment OF the
wonderful result we now have IN sight. In
whatatutudo then does the outside ~boudholder
appear? Whether intentionally or u~ninten-
~tionally he Is in the position oil one who VIII
take advantage Of the labors Of others with
out contributing an lota towards the costs of
the benefit he wishes to enjoy. lie may say
that he did not promote, request or even de-
sire the settlement. that no was not con-
suited about Il. Very well, be can stay out,
and he will not he obliged 10 pay the g. per
cent. or any other per cent. but # he desires
10 come in 1t is no more than reasonable and
lust that he should pay a. any one else, and
it is clear that the people who ought to be
paid are the OlcOtt committee. who represent
all the expenses incurred in the settlement.
If. however. any better or different terms are
made. which would relieve the bondholders
in the London pool Of any portion Of the 81.
per cent. then the outstanding bond
holders ought TO enjoy the same abatement.
Equality is equity.
We have upon unquestionable authority
the statement that the Olcott committee have
under contemplation, if they have not already
made. concessions to the English bond
holders, which will reduce their charges be
low 80 per cent. and that to the outstanding
bondholder who will fund through them thej
will make the same concession. What the
amount of this concession is we do not know
but we are assured and believe that when al
of the expenses are met. and ali concession
are made. but a moderate sum will remain
for the compensation Of the committee. ),
little. indeed. that no reasonable man woull
deny that they had fully and fairly earneC
every cent of It.
Another reason for funding through tht
Olcott committee is that the distribution O
Of the new bonds among the holders Of III.
respective classes of the old bonds is not an'
cannot be fixed by law, but. Ivy the expires
terms Of the pool agreement Of the bond
holders, will be submitted to the decision o
IA board Of arbitration. who. upon hearing til.
whole case. will distribute the bonds accord
ing to the equity of the holders of the ole
bonds. There is DO other way around thu
difficulty that we can see. 1t seems strang,
and is notifying that any outside agenc'
should be employed to settle between tn.
State and her own creditors, but such al
emergency has arisen and such a tangled con
dition of interests exists. that an extraordi
nary and unusual method has to be adopted
The one proposed is practical, effective ant
III all respects substantially lust.