Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-12-14
JIM MASON,
ON the Alleged Debt OF West Vir-
EiDia,

ON the Alleged Debt OF West Vir-
EiDia,
Richmond Dispatch.
Mr.. J. NJ. Mason, the well-known
West Virginia lawyer and fnancier, ar
rived in the city yesterday, and is stop
ping at the Exchange Hotel. Mr..
Mason took prominent part in bring
ing about the negotiations that led to
the settlement Of Virginia's debt, and
was here frequently in connection with
the consideration Of that subject by the
last Legislature, and subsequently at
the meetings Of the commission. His
presence in the lobby of the Exchange
naturally suggested that his presence
had something to do with the efforts
being made TO settle the debt OF West
Virginia.
81 did not come here on that bust
ness" Mr.. Mason assured Dispatch re-
porter.
"The West Virginia debt is not In
shape for any action by either State.
The Adjustment Company tried, but
failed, to bring the creditors together
I'm time to make some application TO
this Legislature. We failed because
there is no fortune for anybody in the
Baltimore plan. As soon as we ad-
vertised certain Wall street parties
made so much noise that the less intel
ligent holders became dazed and did
not come forward. 1t seems incredible,
but il is not the less true, that the chief
cost Of adjusting long-defaulted securi-
ties is to protect holders against out
side Vaccinations. The situation Of
these creditors illustrates this fact.
AN EFFORT THAT FAILED.
"Some certificates were deposited
under a contract, dated in 1889, which
gave a large commission conditional
upon a settlement being concluded be-
fore April, 1887. This undertaking
unfortunately drifted into the hands OF
unwse men, and ten Wall street par
ties organized syndicate by written
agreement which divided up on paper
between them all the contingent com
mission so they would receive
S75O. 600 IN priority aud hail or the
balsuco. This syndicate risked small
amount Of cash Tor the chance OF max
log q large amount OF money. The
undertaking collapsed and nothing Of
benefit to any one was accomplished; the
syn dicate had lost their money and mad
no claim on any one. They had no
claim because the contract expressly
provided that the certificates should be
returned without cost unless settle
ment was concluded before April, 1887
"NoW comes part of the story
which shows how easily scaStered
holders are wrecked. In 1890 (three
years after the contract had expired)
some of the members Of this defunct
syndicate attempted TO re-pool the GER
tficates and thereby renew the eX-
pired contract on which the division Of
$3.50, 600 had been based. The scheme
was to tie up a block OF the securities
so that no settlement could be made for
FIVE years without their permission.
Holders were requested to re-Pool by
having their trust receipts stamped,
and the stamped trust receipts were
Quoted on the Stock Exchange slightly
higher than un-poOled certificates. Or
course no one re- pooled who understood
the situation, but my information is
that the syndicate succeeded in re-
pooling about 80 per cent. Here then
is a block of syndicates tied up under a
contract impossible Of performance. Il
is impossible of performance because no
proposition can be made which Virginia
will entertain. Virginia will not be-
come party to any guarantee, and
this contract forbidS any proposition
which does not guarantee that holders
will receive at least a specified per-
centage.
WHAT Is PROVIDED
ats provisions are: O. The trust
company having the custody of the Sc
curities may exchange them for such an
amount Of new bonds as may be offered,
provided the amount is not less than q
minimum to be fixed by Walker, etc.
(2.) When a settlement is affected the
trust company shall deliver TO holders
=. o,,,o,,nt Of now securities equal to at