The times. [volume] (Richmond, Va.) 1890-1903, 1892-01-23

1 fFnr
forth. This letter was ELECTED by request
Of TIE TINES that Colonel Rutfin would give
the details of the Olcott settlement. and It's
results 10 the State as compared with the KID
! dleberger settlement. in order that the whole
matter might be thoroughly understood by
the people in all OF its bearings, 80 that here
after there might be no claim that the act
was gotten through under conceaiment OF
fact. the hope being that this settlement
would be made final and conclusive. and no
loophole left for reasonable attack upon H.
The security OF these new bonds. when
will be without the tax-recevaols coupon
feature will be based solely upon the iailn
aud honor Of Virginia. and whatever Is 70 Dc
said against them must now be saiu or 'he
directors should hereafter forever hoid thel'
peace.
Il ia customary for the Read ulster element
to assume that the Riddleberser setteinen'
was practical one. and that 1t was oniy
question Of what the State itself was Wiling
TO do. They ignore. or pretend to ignore mo
commons in the hands of the bondhoiueIs'
which were perpetual menace and distress
10 the State. but which. however. have late.y
been not 80 pressed. because there were many
| debt-payers who refrained from using tnein'
| believing that. upon proper hearing OF tno
whole case by competent parties reasonable
and effective settlement could be made.
Such hearing. and thorough inYestiga-
] ton. has been had. in which the interests ol
the State were confided to men most zeal
ouslv determined to protect her to the utter
most. and who were in full touch and sym
pathy with the prevailing sentiments OF our
people.
But. on the other hand. the representatives
o; the bondholders presented to them their
side of the question and the result IS the pro-
posed Olcott settlement 1t cannot Do
reasonably doubted that if the same sources
] Of information and discussion could be As
fully had by the legislature as by this Debt
| Commission the decision of the Legislature
would be the same.
| without denying the accuracy OF the figures
used by Colonel Ruffn touching the debt, we
will. for an argument. take the amount as set
forth in the act Of February II, ls5a-the
! Riddeberger bill-in which the debt was
placed at s21 .O35, 37715 This bill provided
further for the funding # all tax-receiyaole
coupons at par at least that was tho decision
Of the court. and such coupons maturing
after the passage of the act were actually
funded until the passage OF re-
peaing act in August 1884. Section ii
of the Riddleberger act further provided as
follows In the y9ar 1890. and annually
thereafter until all the bonds issued by au-
thority of this act are paid, there shall be set
apart. of the revenue collected from the
property Of the State each year. "a per cent.
upon the bonds at the time outstanding
which shall be paid into the treasury to the
credit of the sinking fund" &c. We have
then upon the face of this act (and the
sinking fund is as much an obligation Of the
State as the payment Of interest per cent.
interest on S2l 900. 900, which Is $3.50 OOO-to
which add pa per cent sinking fund, amount
ting to :i72. 500. making total annual charge
70 the State Of 81. l02, 500.
This would be the amount annually to be
provided now for the debt under the Riddle
berger settlement and it is the present. not
the future taxation which concerns and
troubles our people. We are not distressed by
the gradual payment of debt through long
period of time, when the prosperity OF the
State will have increased. According to Col
opel Rufin's statement the annual charge
nowunder the Olcott settlement is $500. 437.72
Add to this after ten years $3.50, 900 and we have
s752437. 70, and if to this be added the sinking
fund of % per cent upon Sc 100000 Riddle
berger bonds, we have S135.0OO more. Of
1857. 1912. This constitutes the extreme
limit that could be required under the
Olcott settlement, when all tho bond;
are bearing three per cent. as against Sl,lO2,
800 under the Riddleberger settlement. If
however it should be determined that a sink
ngfund. say of one-fourth per cent. per annum
should be added some twenty years hence
bv which time the s6,O0O00O Of Riddleberge
bonds would have been entirely paid. vi
would have charge of three per cent. OF
s19 OOO, 900, or $3.50. 900, to which add sinking
fund OF one-fourth per cent, or SAT 500, max
ing a total of S6l7. 500.
We have taken what we believe to be tn
extreme views in both cases, and have as
sumed that the full and fair intendment o
the Riddleberger act would be carried out
but conceding to the State ell question o
funding coupons at par. it will be readil.
seen that in the matter of annual charge tn
Olcott settlement is better for the State thar
the Riddlebeger settlement.
We do not think that we are concerned
with the aggregation of the interest to b.
paid for an indefinite number of years Il
come. 1t may be assumed that rs long as tn
debt remains unpaid. the sinking fun,
money, which would otherwise be applied T.
its payment. will be used wisely and bene
fcially for the interests of the State. and, i
deferring the payment of the debt. We ar
practically borrowing from the bondholder
! money at and per cent. for our present ne
cessities. and this cannot but be considere
wise fnanciering.
Let the matter be fully discussed, judici
ously considered, and we have no doubt tina
D the Olcott settlement will be approved wit
practical unanimity.
! 1t will be noted that Colonel Ruffin utters
q note of triumph at the achievements Of til
Readjuster party. Let us hope that they wi
be satisfied with what they have done in tn