Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-07-22


financial history Of our city calculated
to reflect upon its credit. The Compro-
mise Bonds to which you refer are
proud legacy, token of the sterling
honesty and integrity of our city's leg
islators of over 40 years ago.
In the year 1852 and earlier very lib
eral subscriptions were made by the
city in spirit of enterprise, to the
| Marietta & Cincinnati, the Cleveland q
Pittsburg and to the Hempheld rail-
roads, and issued bonds to cover the
amounts subscribed in each instance,
| which bonds were paid over to the re-
| spective roads
Before many of these bonds matured,
| certainly before the roads were COM
pleted sufficiently TO benefit the city in
any way, the panic of 1857 occurred.
Fortunes were lost rapidly, established
enterprises were swept away, banks
and bankers ruined, states and cities,
towns of much greater pretense than
Wheeling compromised with their cred
itors and in some instances repudiated
their bonds in entirety.
This state of affairs continued for
over four years. In the meantime the
civil war broke out, adding to the dis
tress of the country and more espe-
cially did those of US living in this part
OF Virginia close on the borders OF Ohio
and Pennsylvania feel the effect OF the
combined horrors of panic and war. On
the 18th of March, 1860, one year before
the beginning of the war, upon petition
Of our city council the general as
sembly of Virginia passed an act to en-
able the city of Wheeling to compro-
mise with the holders of the railroad
bonds aforementioned. From the
wording of the act, some doubt existed
as to the legality Of the railroad bonds.
The legislature had legalized the sub
scription but had not authorized the
issuance of bonds. The compromise act
was necessary to legally or, you may
",
city of Wheeling agreed to pay dollar
for dollar the bonds issued to the rail-
roads.
Presumably if the bonds had not
been issued and gotten into the hands
of innocent purchasers the city would
have been justified in repudiating It's
subscription to one of the roads at
least, as the road never reached the
city at a point nearer than about sew
enty-five miles. In these days the act
would have been called a refund IN
stead Of a compromise; the only adj
vantage the city gained was a reduc-
ton of interest rate and an extension
of time.
In reply to the charge that the city
IS now endeavoring to repay its out
standing indebtedness by refund be-
fore the bonds are due, l will say that
an omission occurs in our circular let
ter not noticed until many of them had
been mailed. After the word payable,
referring to the time bonds are due,
should be printed on or before" The
ordinance authorizing issue of bonds,
in every instance, provides for the pay
ment of the bonds on or at any time,
ten years after it's date. For instance,
the issue of 1881 is a 1870 loan and on
the face Of each bond is printed, ANY
of said bonds are liable to redemption
and payment by said city at their par
value on or at any time after the first
day of November, 1891" This or SINH
lar language appears on every bond Of
the city so far issued and no one need
have been deceived in buying the bonds
expecting other terms.
The second series of Main street
bridge bonds, as stated in our circular,
are the only exception. By a special
Arrangement between the commission
ers of the loan and the buyers of those
bonds. they are redeemable in series
beginning in 1900. Each series being
about 4 per cent of the issue, is to be
redeemed annually until the year 1924.
think | have covered the ground Of
your letter fully but not as briefly as a
finished letter writer might. While /
am not native of Wheeling, / am a
citizen of over forty years residence
and any insinuation rejecting upon my
adopted home city challenges my heart
and pen. unused though both are to
wordy contests.
The great state Of Ohio benefited