Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-05-19
THE STATE DEBT.
WY VIRGINIA ACTED.


from the Wall street scheme now on foot.
Why VIRGINIA ACTED.
At the request Of a New York broker.
the Virginia Senate passed a resolution
with two objects: viz, 10 pool the cerIin-
Gates, and 70 sue West Virginia A part
OF this proposition was subsequently de-
teated In the House, but resolution was
passed, appointing Commissioners, and
the parties who promoted il expect
70 make some deal with our next
Legislature. 10 was believed in Richmond
that, If the resolution passed, q vast profit
would DO made by settling our debt, and
that Wall street syndicate would furnish
large sum 10 carry the scheme through.
1t is known 70 me taat the Virginia Legisla-
tuIe acted, not at the instance OF the cred
itors, but at the instance only Of a party
who seeks 10 manage this business. The
members OF the Virginia Legislature, who
are Commissioners, will receive their pay
either from syndicate, or will be depend
ent for their prOnt on the success OF their
undertaking. The resolution, stripped Of
words, is simply proposition 10 lecd the
name of Virginia 10 persons proposing 10
act as agents for the creditors OF West
Virginia. 1t is piece OF legislation with
out precedent in this country.
WEST VIRGINIA NOT ACCOUNTABLE TO vIR-
GINA.
The Supreme Court has decided (Vir-
ginia VS. West Virginia, 10th. Wallace)
that the ordinance OF the Virginia COnven-
ton of 1901, providing for the formation Of
West Virginia is binding on the present
State OF Virginia. This ordinance re-
Quires our proportion Of the common debt
10 be asCertained by stating an account
West Virginia is 70 be charged with State
expenditures within her limits, and with
her share Of the expenses Of State govern
ment, aad credited with the taxes collected
in her counties. Members Of the COnven-
tiOn have informed me hat the committee
OF the convention estimated that this ac-
count would fix on our State one-slNth OF
the old debt, but my researches satisfied
me that the amount is less than oneSlXtn.
The presence OF Virginia is not needed
20 state this account. To may De stated 0y
either State without consulting the other
II is evident that Virginia still owes the
balance after deduCung the amount hXed
on West Virginia by this ordinance.
Whatever West Virginia owes is due TO
the creditors of the original State. Nlr-
GINA has no demand on TINS State until
she has paid more than her own proportion
Of the common debt: viz. until she has
paid a part Of the amount fixed on West
Virginia oy the ordinance
The recent Virginia Legislature has act
ed on the untenaOly theory, that she can
hold this State 70 account, and that she
may collect the proportion Of the common
debt due Of West Virginia 10 the creditors
OF the original State this theory were
correct, Virginia could maintain suit al
though she declared her purpose 20 keep
sll the money and not pay the creditors
anything.
The proposition Of the Virginia Legisls-
ture is, that NJ lest Virginia may not settle
her own debt by negotiating with the per
sons entitled TO receive the money, but
shall account 20 Commissioners appointed
by Virginia, but paid by the creditors Of
West Virginia
THE ONE-THIRD THEORY.
The Commissioners are expressly pro-
hibited from negotiating except on the
basis that the proper proportion for West
Virginia is the Ou0-third now represented
by certificates calling for S2l,000, 900, in ad-
ditiOn TO SO, 600, 900 accumulated interest
In 1871 Virginia passed an act which as
sUmed that her proportion was only two
thirds, and that Vest Virginia owed the
balance, and the original bonds were called
in by issuing her new bonds and certif-
iCates. When u Is officially aScertained
than oue-Jhird, the original creditors may
claim that Virginia misrepreSented the
facts about West Nirginia's proportion. If
West Virginia's proportion IS only one
sixth, Virginia still owes the difference
between oue-third and One-siNth, and If
this difference is 10 be repudiaJed the
odium belong entirely 20 Virginia. Under
these circumstances 10 was natural Tor
Virginia 70 prohibit negotiations unless
NTn- rfrfrt d "a
one-third basis.
WEST vIRGINIAs PROPER POSITION,
It's obvious our Legislature should not
do ANYTHING which can be construed into
an admission that West Nlrgin.a'S proper
ton is One-third. But the resolution Is so
vvorded that we accept the basis If we con
cent TO meet the Comm ssiOners. To re-
fuse the basis aud then meet the Commits
siOners, would be as absurd as for the
Legislature 10 meet any olberahat dozen
Virginia gentlemen who volunteered %
invite a conference which could bind no
one. These gentlemen have no authority
until West Virginia agrees % neEO-
tiate on the basis TO which tue
resolution limits them. The Governor
of Virginia is instructed 20 COmmu-
uicate the resolution 90 our Legislature.
lull notice is thus given that the Commits
siOners cannot act unless our Legislature
accepts the basis that Nirginia'S proper
ton was only two-thirds and that West
Virginia is accountable for the balance.
The situation is precisely as II Virginia
had written a letter asking whether our
legislature would negotiate on the basis
that our lust Indebtedness was upwards Of
81. 600. UOO-the amount called for Oy the
Certidcatest
IN is the opinion OF all the many West
Virciuiaus 7 have heard speak OF this mat
ter and fully concur with them, that the
proper course IS for our legislature TO I'M
uediately pass a resolution as follows:
"Rcso'rri, West Virginia declines 90 ne
cotiate on the basis that the proportion Of
the debt Of the or.-jual State of Virginia
proper 20 be- borne by the present State Of
Virginia is only twC-thirGS thereof, and
that the proportion for West Virginia is
the other One-taird.'
10 is presumed that every one agrees that
this state should ShuD a deOtagitatiOu
ike Virginia went through. and IL scans
20 me the mere fact that these COmms-
sioners cannot conclude "a settlement + 70
must report two years hence 20 Virginia
IS of Itself a sufficient reason for refusing
10 commence an agitation. Nothing praC-
tiCal VIII result from discussions with
PROMOTERS: 10 IS unWiSe % become COmRli-
Gated with questions which eu OarrasS Vir-
, g.nIa; nothing, but injurious advertise
lneut, VIII result from conference vi IN
persons who expect % manage this OUsiuksS
as a Wall street speculation.
I'm my Judgment the only position cen
Sistent with the dignity aud safety Of this
State is;
1. The amount Of West Virg.n.s's indebt-
edness depends wholly upon, an3 is meas
ured by. the ordinance or 1861.
. West Virginia is not responsible Tor
sDy transactions between the present State
of Virginia and the holders of bonds issued
by the original State, but viii recognise
the fact that, bv an arrangement between