Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1894-07-18
The State Debt.

the debt is an issue.
Last fall some of US proposed and pub
lished the only practicable plan TO make an
honest settlement It was called the Balt
more plan aud is now without public inter-
est because the creditors refused to accept
it. They refused to accept it because GER
tain Wall street brokers said that they would
induce the Virginia Legislature to compel
this State to pay more largely than our plan
offered. At the request of these brokers
some members of the Virginia legislature
were appointed commissioners to bring West
Virginia to a settlement. 1t was publicly
stated and generally believed in Richmond
that these commissioners were to receive
large pay from Wall street syndicate which
expects to make deal with our legislature
An extract from an editorial in the Green
brier Independent of May S1st tells the
whole story. 1t says
"The Hon. G. p. Jones is considered one
of the ablest and best informed members of
the Virginia legislature. The Pocahontas
Times reports conversation with him and
quotes him as stating that the appointment
of commissioners had q corrupt birth, and it
is tie endeavor of Wall street parties to
make the Virginia legislature subservient
to their scheme"
1t will be seen that the Baltimore plan
cannot be helped or hindered by any action
our legislature may take on this resolution.
1t will be also seen that our legislature, un-
less deceived or bribed, will decline to meet
these commissioners who represent Wall
street syndicate.
This resolution tries to commit West Vir-
GINA to the false theory that Virginia is
bound only for two.thirds of the debt of the
old State. If we agree with Virginia that
she is bound only for two-thirds it would be
disgusting bubble to deny our response
bility for the other third.
The Virginia legislature knew very we'll
that the proportion for West Virginia is
much less than one-third. The ordinance
of the convention of 1861, which divided
the old State, prescribed how the amount to
be assumed by West Virginia should be as
certained. Virginia owed all of the COM
mon debt except what this ordinance re-
quired West Virginia to pay. Virginia
ought to have ascertained how much was
fixed on West Virginia and then assumed
all the balance But she disregarded the
ordinance and led the creditors to believe
that West Virginia was bound for one-third.
She has issued certificate for one-third of
every old bond and interest. If thirty years
interest was due on 81 900 bond it amount
ed to 81. 500, and she issued q certificate for
one.third, or 1898. The certificates she has
issued call for $40, OOO, OO0-$2O, 600 900 prin-
cipal and S2O,000,000 interest. West Vir-
ginia was not consulted and is not response
bic for the mistake Virginia committed in
issuing too many certificates The creditors
must be taught that they have no claim on
West Virginia except under the ordinance.
If the ordinance requires us to assume only
one million, then Virginia owes the balance
r of S39. 100000, 1t will be easier to satisfy
t persons claiming one million than persons
who imagine that we owe them $40, 100000
I Our legislature should decline any discus
} sion unless on the basis that Virginia owes
9 all except the amount which the ordinance
requires us to assume. If we consent to ne
gotiate on the basis that Virginia is bound
for only two-thirds we can never persuade
} creditors that we are not responsible for the
other third. If we consent to meet commits
sioners who are instructed not TO negotiate
except on the basis that Virginia is bound
+ for only two-thirds then we accept that basis.
t The matter stands as if Virginia has inqur-
ed whether we would negotiate on the basis
that she was bound for only two-thrds. To
r meet these commissioners is to accept the
proposed basis TO decline to meet them is
t to decline that basis.
' The Wall street broker calculated that the
Virginia commissioners would be more dill
igent if they were to share his profits, and
that members of the legislature, who were
, TO be commissioners, would be active for a
t resolution out of which they expected to
] make money OF course all honest members
r OF the Virginia legislature would have vo-
ted against such resolution if they had
understood its real purpose, but the resolu-
7 ton is so worded that a careless reader, who
] has not studied the subject would not sus-
r pect the scheme The substance Of this
t resolution is as follows
Whereas, Virginia has assumed that West
Virginia's proportion was one-third of the
common debt, and has issued certificates
which call for SAC, 900, 900, to represent such
! one-third; therefore a commission is sp-
pointed to negotiate settlement Of said
certificates with West Virginia. But the
commission shall not act unless West Vir-
ginia agrees that Virginia is not bound ex
cept for two-thirds. All expenses incurred
by the commission, including pay to its
members, shall be paid By the benefciaries
= of the settlement or out of the proceeds of
a settlement
If our legislature appoints a committee
to meet commissioners under such resolu-
ton, West Virginia is at once advertised as
conserving to negotiate settlement Of a
debt of 100000 600
: 1t is said that the certificate holders will
agree to accept from Virginia whatever she
can collect from West Virginia. But this
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