The times. [volume] (Richmond, Va.) 1890-1903, 1892-01-15


not be borne without n considerahle roduc-
ton ol ex enditures, or "A Considerable in
crease in the rate of ta.ntion
We are uuly confident that the ohliga-
tons TO be assune by the State. sl,ould the
proposed scheme be adopted. may be borne
without resoruhs 10 either OF the above e.
pedieuts
This assertion Of course implios that the
proposed scheme Of settlement Is more favor
able to the state tlan the Riddleberger bill
was.
A brief statement showing this fact m 70
clearly VIII not. h viewer. lie out of place.
The amount assumed by the kidd eberger
bill Is aouostiOn as % which different views
may. with & od reasons for each. be enter
tanned
The b ndholders' committee. asabove men
toned. very earnestly maintained that the in
terest charge a. u ed ly the state had the
whole debt been funded under the principles
OF that act az of July. 1-Sl. woud have eN-
ceedei 1875 600 Yer anuum This would imply
a principal exceeding 81 .000W An expert
accountant. employed 10y tho state q Jew
years ago. put the amount due under the Rid
dleberger bill as Of July ], ls,2. 40 about
s2'.nC000).
The amount popularity supposed % be- due
under that act as az that date was certainly
less than this. Again. as o. the funding Of
interest accrued q. ter July J. l-.2. u IS hardly
-upposable that 10 was at al within the con
temptation of the legi latuTe which passed.
the at and yet the only Judicial determine
u II hat uesti u was % the effect tat
interest accrued after that tins Should be
iundaDle al par.
WITHIN TIE EIDDLgBEcGER.
Your commission. In agreeing 70 report
iaVoIanlv Ito alternative proposition OF the
bonuhnlders' committee, lo.t that ihcy we've
wei within the amount as nmcd by he HID
dlebeTgtr bid. for the following reasons.
Assuming a.. outstanding obligations Of the
state other than those held by colleges ana
the United States Government outstanding
July !. l-S2. 20 have been funded into Riddle
terEcrs rs of that date. thc entire am unt. os
shown iy the statements az the Second Audi
tor. would have been about --2 900 tUj Tho
annual interest charge ON tlis amount would
havo been about $6t0NOJ. but in addition to
tbs the t. uirements OF tho sinking iund un-
der the klddleber-er I'D. call f1r irtler
charge of IS FER cent. annually on Inc
amount OF bonds outstanding aitor l-.I 10
that the a. cunt the state would now be pay
IN annually on account % the del under me
terms %. the KiGleherger biI. uld be ieaY-
ins ont colleges and nite3 states Govern
In-ur OyeTa million dollars. his amount.
though J, would grow smaller as the deot
would bo reduced by the sinking fund pay
ments would still u IS apparent De utterly
ietOud the capacity o. t.e state Tor louE
Is required by the CONSTITUTE but under lIe
proposed settlement the annual appror ration
therefore need q bus very small. ana dislr4n-
uted over go long - period that tho present
generation Will never feel ..
Iho failure o. the creditors 10 iund unuel
tho kiddlcberger act has enabled the 0,ale
ont OF her revenues (Which. II they hha
funded. mist necessarily lave been applied
topav interest o. make large appropriations
for public educational ana e.eeinosylaiy
PURPOSES. md ul cd o. buy up large amount
OF Ler RiddeberA or bonds. ile-c. ~ Us PIE
suned VIII Do cancelled. Inc i,id ieDel-e'7
iu the had. of tho public and the literary
fund amount 90 about ~ 600 0lJ. and on ths
amount tie annual interest charge is ABOUT
al 0OiO Add 90 this the amount oil Two per
cent. on $500 40. PAYABLE under the pc
posed scheme of settlement ana ihe lay emu
10 be- made Oh the debt for the next ten 5 cars
is found t0 be $50 90 perannum.
This amount We are persua led tne H1A'e
can carry th0ut either cufthln2 her usuu
expend lures oil increasing herrate of TAXATION.
There is good re son O. relieve. TOO, tlat
considerable amount Oi the oli seclTltie- "l
the State have been lost or DESTROYED, tAa1
tire maximum of sl9Wj,0JD WALL poDaO4t
never be reached.
THE ACCEPTANCE URGED
We earnestly advise the acceptance OF the
proposition of the bOndholders committee
ratified az 10 has now been byther principals.
settlement on that basis certainly see O.
re generally desired by tire people OF the
State We cannot but believe that failure
either IN the art OF the State OF such
bondholder- As have not yet come into ac
uuiesceuce ~ the settlement Will meet WIN
popular cOndeu natl throug OUT inc CON
ruOnyyealfl Should - failure o. TIE settle
ruent IrOposed result from its re ectlOu ty
the representatives OF the state II IS -enousy
10 be feared that the general sup 'ort OF the
people which has all along sustained our pro.
tertiye legislation Will DO withdraw. ana
that tide oil coupons which cannot ue Tee
sisted Wi flow into tho treasury.
Should any bOudholors refuse 10 concur
in tic action IF the gr ~ majority the tie
NAV at least fee That she las done her best
% arrive az O settlement upon ter Wh'h
10 the cred rs contrast most iav0rapiy Win
the terms accorded hy other ufh,rn STATES
IN their ad uftmeut of their debts alter the
war and the further harassmeuts az the
coupon-h lders will undoubtedly he met uy
sue, legislation sustained los such an over
wrelmiug pull ic scntlm IT. a. VIII maze u
comp etely ectye against the payment ol
either principal or interest
IuHsmuct az these whole negotiations
b We been based upon the idea that the bond
hol lers' mmittee is cont nuins It's e' or's
To- secure Che contro of tie oull atoms OF the
State. and Will continue those efforts ior a
reasonable tme " IN the hoie that the
cre.frr portion those which have nos been
heretofore deposited w ]. be ~ short tine
ur commission recommends tLht an atl 90
ia ,cl wtuout delnv authorizing the iuudlng
I'm accordance with the terms alrea 'y agreed
I'D ~ by the commission of al the OBJ "a
t,is of tile State of irg MA which may be
presented by the said houdholceIs commit
tee al the Office OF tie Second Auditor Of
Virginia. ,or that purpose, on or before the
first day oi June l-9.
Respectfully submitted
J.. w NJ KINNEY.
j. H.cf IfLfE.