The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-16
SHOULD TURN THE TABLE
TINE UNITED STATES CLAIMS OYER
AHALF MILLION DOLLARS
which virginia Is Said to owe, While This
State is the Creditor OF the Federal Cove
eminent for Nearly Two Millions.

from Washington
"Replying to House resolution ask
~. n,h.t steps have been taken TO col
rrocure a settlement OF the
-, and interest OF certain State
bonds and stocks, now belonging to the
United states. Secretary Carlisle trans
,,i,s a communication from the Attorney
General indicating that further legisla-
ton bv Congress Is necessary, before the
dorartr,ent can enforce settlement.
The state OF Virginia refused payment on
her bonds when the demand was made"
1,he bonds referred TO in the above tele-
gram have repeatedly been the subject OF
discussion in the General Assembly OF
Virginia as well as IN the two houses OF
congress Major r. Taylor Scott, the
Acknowledgement OF Virginia, has thor
ourblv investigated the matter. and has
clearly demonstrated ia his report TO Gov
eruor O'Ferrall FOR the year 1894, that
! virginia has a counter claim against the
United States. which very largely eX-
oeeds the amount which the Federal Gov
eminent wishes TO collect from the Com
mOnWealth.
UNITED STATES DEMAND.
Under May II. 1885,. Mr.. j.. y. Morgan,
Treasurer Of the United States. directed
the following communication to Mr. W.
r. Russell
"ln accordance with the request OF the
Secretary OF the Interior. dated May H.
1894. you are hereby directed to receive
from this office $4,000 in registered bonds
of the State Of Virginia, described as fol-
lows: One bond. No. 10. $4,000, and one
bond, No. 1l6 $4,000, upon which interest
I I
to January l. 1851. and at per cent. from
January /. 1861, TO January 1, 1870 and
nj O. nor cent. from January 1, 1870, TO
date. said bonds are dated July 3, 1917,
and matured January l. ls5t
"you will proceed 10 Richmond va,
and there make demand of payment OF
principal and interest OF said bonds rom
Treasurer Of said state. II payment Is
offered. YOU viii communicate with the
Treasurer Of the United States by wire
and receive further instructions II pay
ment is refused, you VIII request VIII
ten reply from the Treasurer or other
authorized officer. stating the reasons Tor
said refusal. The bonds will be retained
I'm your possession. and returned safely TO
the custody Of the Office. when the neces-
sity of their presence In Richmond has
ceased. The actual and necessary cx-
penses incurred by YOUR compliance with
these Instructions viii be paid. upon pre-
sontaton OF proper vouchers. by Com
missioner Of Indian affairs"
THE DEMAND REFUSED
few days afterwards Alr. Rssseu. the
special agent Of the United States Treas
ury. called upon State Treasurer Har-
mon and demanded payment OF the
amount stated. which was promptly re-
fused. At tho same time he was in
. a. q 49,
prepare the letter asked for boy the Treas
urer Of the United states which was 20
contain the reasons why the payment OF
the amount asked for had been refused.
In his annual report 10 Governor OFFER
rail- for the year 1874. Major r. Taylor
/ Scott. the Attorney-General. gives the
/ following explanation Of the action taken
! in this matter.
ct was consulted hy Treasurer A. ".
/ Harmon. Jr.. and after careful inquiry.
/ prepared his reply 10 the United States
/ demand. ON the 2sth day of May I az
/ companied Mr.. Harmon 10 Washington
/ city and there conferred with Senators
/ Thurston and Daniel. Both Senators
! approved my letter and Mr.. Harmon do
/ livcred it 10 the Major"
/ This letter. which was addressed 10
! Hon. j.. y. Morgan. Treasurer Of the
/ United States contained I'm part the fol-
/ lowing statement from Major Scott:
! "As instructed by your letter OF the
/ lith inst. Mr. W. r.. Russell called and
/ demanded payment Of $4,000 registered
/ bonds held by the United States and
| claimed to be the genuine bonds Of the
! Commonwealth OF Virginia. I declined
| payment for the following reasons:
GIVING HIS REASONS.
al q
! Virginia, in session when these BONDS
/ became due. did not make. nor at any
previous session. has made. appropriations
| for payment Of the bonds held By the
/ United States.
| Second. because the bonds were ISSUED
before the state OF West Virginia was
| formed out OF the territory OF Virginia.
| and u was a condition precedent as
/ scented TO By the United States and by
1 West Virginia. that the new state shall
! take upon Itself a Just proportion Of t|e
/ public debt OF the Commonwealth OF Viz
/ ginia prior 10 the lst day Of January,
| 1851" but no credit is allowed FOR West
/ Virginia's equitable proportion Of these
| bonds.
Third. because the government Of the
/ United states Is indebted 10 the Common
wealth OF Virginia for advances made and
money loaned during the war of 49, as
/ follows.
Advanced by Virginia for United
states in lsls.................... $3.50 900
states in isl4'........................ 80. 900
SAT- in isl5'.................... $4,000
states In 1sl6........................ 10000
A s,at0s in o isl7. ..' SOD
| Advanced by Virginia for United
States from ISIS 10 ls-S.............. 2,Sl
Total advanced .....-..............S,'92 1881
IT SHOULD BE PAID
THE records OF your Office. the Journals
| Of the House of Representatives, and Sen