Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-02-04
West Virginia Debt.


The act Of 1871 set aside $4,000 coo OF
the debt, and provided that the certiii-
| Gates should read:
| This certifies that there IS due to bearer
3, being one third bond No..
Payment OF said one third. with interest
from July. 1871, Will be provided for in
accordance with such settlement as shall
be had with West Virginia, and Nir-
| ginia holds said bonds. so far as I'M
| funded. in trust for the holder.
These certificates. with interest. now
amount to about s39,c00.0O0. \ Wall-street
syndicate pooled some OF them on the
| theory that Virginia will pay the balance
| II West Virginia pays less than the
amount they called for. The certificates
| in this POOL are deposited under a con-
| tract dated in 1890, and to expire in June.
| 1895, which forbid5 any settlement unless
| holders realize stipulated percentage.
| This contract would not have been sug-
| gested by any one acquainted with Nir-
| ginia affairs. In view of her policy in
regard to her own debt, Virginia will not
| become party to any proposition which
| stipulates that West Virginia shall pay
| anything, nor will Virginia do anything
| which may create a demand on her part fer
| any part OF the one third which has been
set aside for West Virginia
A block OF certificates being thus I'm
| providently pooled under a contract i'm
| possible of performance. some West Vir-
| einia, Virginia, and Baltimore gentlemen
consented to attempt n settlement, pro-
| vided the certificates were deposited under
| n power of attorney, which authorized
such a proposition as, in their judgment,
both States should accept. As soon as the
| Baltimore plan was published, every one
ngDffnfuta1 uyif tho cf ha
no other plan was practicable. But, in
credible as 1t may seem. large ma
jority OF holders followed a leadership
which insisted that the Virginia Legis-
lature could be induced to order q suit
against West Virginia, although doing so
might leave the old State liable for any
balance West Virginia did not pay. This
nonsense controlled many holders, and,
as less than 100000 OF the certificates
we're deposited under the Baltimore plan,
the creditors are not in a position 10 make
any proposition to the present Legi.la-
ture. The opportunity has been lost
Il Is now understood that the syndicate
have abandoned their absurd scheme. and
only desire such legislation as will enable
them to repool the certificates under some
new contract. In other words, the syndi-
cate wants legislation TO drive unwilling
holders into their new pool. This may be
accomplished by amending Mr.. Wickham's
resolution, so that 1t will not take eject
unless the certificates are deposited under
the Baltimore contract but substituting
Wall-street parties for the Virginia, West
Virginia. and Baltimore gentlemen.
The insuperable objection to Mr. Wick
HAMS resolution. as it now stands. is that
1t commits Virginia TO making a settle
ment which will inevitably result in
claim on her for such part OF the certi-
ficates as West Virginia does not pay.
The Baltimore plan proceeds on the idea
thai Virginia will not take any action
unless the holders OF the certificates first
acquit her OF any supposed liability. and
have also agreed to accept whatever West
NirginiS may consent to pay-be It much
or little. II is based on the idea that
virginia Ill not become a mere volun-
teer In this matter or lend herself 10 any
device to force unwilling holders into a
poo. 1t proceeds on the idea that Vir-
ginia will not revive the debt agitation
by raising questions In the courts as TO
her liability u West Virginia pays less
than the certificates call for. This Bal.-
more plan has been pronounced the only
feasible one by Governor Lee, Senator's
IIunton. Daniel. Senator-elect Martin,
'~NSN' NfOitHNo tVhttbis SldTSEdti NC
Corrnick. and all OF the many other promi-
nent Nirginians more than one hundred
In aurnbeD whom We have had oppor.
tunity To consult.
Mr. Wickham's resolution forb,ds a
settlement unless approved by a majority
In value, OF the cer,ifcate-holders; but,
as the State comes forward as a mere
volunteer In this matter, Is IL lust 10
lind the minority by the action OF n mn
Jority-especially when such majority may
have purchased their certificates at Less
than per cent. The certificates were
quotc1 last summer in New York at 2
cents on the dollar. and this was abou.
per cent. on their face value, Including
interest. Again, II holders OF certificates
calling for sli.0oo.0O0 decline terms ac-
cepted by the holders of sl5,oo00o. how
can they be compelled to surrender their
certificates?
A coctor Is often called in too late.
J. IA. Mason.
CHARLESTOwN. W. VA. Feb. 2 isa4