Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-02-13
THE VIRGINIA DEBT.
islature = Wall Street Parties Fighting
Such Proposition as the Committee Will

the Register memorial which will be
presented at Charleston asking the Legis-
lature to consider a plan of settlement.
The papers are too long to be printed in
full and are condensed as follows
The committee state that they are try
ing to bring about such cooperation
among the owners of Virginia certificates
as win enable West Virginia to take ac-
ton That a statement of the account
required by the Wheeling Ordinance will
prove that West Virginia does not owe
as much as the amount for which Vir-
ginia issued certificates. That the West
Virginia Debt Commission of 1871 says
that if West Virginia's proportion of the
Virginia debt is reckoned on the basis
of population, she will owe SAT-, 6f2 49,
with interest from 1854, and on the basis
of revenue 1921, 4S5.1o. That the Virginia
Debt Commission employed an accountant
to state the account required by the
Wheeling ordinance and that he est
mated that a statement of it would bring
West Virginia in debt above $1,000,0V0.
and that the Wheeling convention of 1861
estimated that such an account would
bring West Virginia in debt between six
and seven million That up to this time a
majority of the owners of the certificates
have refused to cooperate for the propo-
sition which the committee have recon-
mended to them. That proposition is to
make a settlement on the basis for the
actual amount expended by Virginia in
West Virginia for internal improvements
and other investments. The surprising
statement is made that holders are misled
to expect a very much larger amount
than this proposition offers, but $50 own
ers of s, 100000 of certificates have depos-
tied and thereby agreed to a settlement
on this basis, and that 50 other holders of
$1,5C0000 have agreed to deposit The
committee say that if the Legislature will
appoint a committee to act in this mat
ter, every effort will be made to bring all
the certificate holders into cooperation,
and that any who refuse will be without
remedy and without sympathy. Atten-
D ton is called to the fact that the Vir-
ginia act of February 8, 1863, transferred
TO West Virginia all the property owned
by Virginia within her boundaries, and
that the constitution of 1863 applies this
property to the liquidation of the debt
and that the West Virginia act of Febru-
airy e, 1864 and subsequent legislation,
has preserved intact the principal of the
proceeds of such of this property as has
been sold. That the West Virginia Debt
Commission of 1871 did not attempt to
state the account required by the Wheel
ing ordinance and their report was never
adopted by the Legislature. Their report
does. however, give a partial list of the
roads and other internal Improvements.
within West Virginia, paid for out of the
treasury of Virginia. This partial list
shows that So, $50 was expended. That
the commissioners accidentally omitted a
number of appropriations for internal i'm
provements within West Virginia, which
were made between 1855 and 1928, a hist
of which viii be found among the doc
uments printed by the Virginia conven-
ton of 1851 That when these and other
omitted appropriations are added, it will
be found that the State expenditures
for internal improvements within West
Virginia amounted to- approximately, 4,-
100000. That it will be the earnest effort
of the committee to aid committee ap-
pointed by West Virvinia in making such
an investigation as will preclude any risk
of charging West Virginia with any
amount which is not represented by some
public improvement which was paid for
out of the treasury of the original State.
folows3
The committee ask leave to state that
they were induced to act in this behalf
because it seems to them that an adjust
ment of this the only State debt which
remains unsettled, is a matter of such
public importance, and private right, as
to merit the earnest attention of all
thoughtful men in West Virginia and Vir-
Uinja mr. ain Of oil xrbn hoy ct
heart the best interests of these States
but it was evident that, under the pecu-
liar circumstances of this case, neither
State ought to be asked to make any COM
mitments unless the certificates were as
sembled under such contract as would
insure a prompt and unconditional sur
render of them in exchange for whatever
amount West Virginia might pay in liquid
alton of her just share of the debt incur
red by the original State or Virginia.
The preface of the plan of settlement
States
list. The original State of Virginia is
sued bonds to construct roads and other
internal Improvements; many of which
are in that part of her territory subse-
quently formed into West Virginia. The
old State was divided by an ordinance
WHICH requires an account 10 De stated
to ascertain the amount of West Virgin
las proportion of the debt incurred by
the original State.
ID The present State of Virginia has
called in all the bonds of the original
State by assuming two-thirds and issuing
a certificate for the other third, which
was set aside to await settlement by West
Virginia.
Sd. 1t seems to be an accepted rule
among financial men that. when a long
defaulted debt must be compromised in
terest should be abated at a much larger
percentage than principal.
4th. A settlement may be effected in
either of two ways: Virginia may settle
with West Virginia and deliver the pro-
ceeds to the certificate holders, or Of
holders place themselves in a position to
be dealt with as a body, West Virginia
may conclude a settlement directly with
them. Any arrangement, involving a sur
render of all the certificates, will neces-
sarily exclude any further demand. be-
cause, if the certificates are surrendered
no one can set up any claim
5th. 1t may be assumed that the Legis-
lature will not undertake to determine
the equities between the different issues
of certificates but will require them to
be surrendered in mamss in exchange
for the amount of bonds to be issued in
settlement.
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