The times. [volume] (Washington [D.C.]) 1897-1901, 1900-10-29
WEST VIRGINIA MAY PAY
Efforts to Collect on the Certificates
of 1871.
Democrats Suspcct-.T Tint a Bond
Holding Syndicate Is Playing mt
Politics to Bring About the Elec-
ton of IL Republican Legislature
-History of Tangled Case.

pslt vi iiIi
which is now embraced in the State OF
West Virginia
In 1871 Virginia made a settlement with
her creditors. in which she scaled down
her debt and arbitrarily set apart one
third, amounting to 100000, not includ-
ing interest. and which one-third Vir-
ginia claimed was the portion of Ter debt
that West Virginia should pay. Virginia's
creditors accepted that compromise, and
the latter State issued what is known as
West Virginia certificates for the $1,000
600.
1t is now proposed to reopen this claim
against the State of West Virginia, so set
apart by Virginia, as West virginia's debt,
which. with interest at s per cent. from
1871, added to the principal, amounts now
to about $4,000, COO, very pretty sum, il
West Virginia can be induced or forced to
pay it, to divide among those who have
secured possession of these old bonds, or
so-called West Virginia certificates.
Some time ago scheme was devised to
settle this great debt upon West virginia,
and this is the plan: The holders of many
of these outstanding certificates or bonds
deposited them with Brown Bros. &
Co., bankers, at New York, to be held by
them for collection upon such terms as
that firm can put through.
There has already been deposited with
Brown Bros. & Co. about sS,090.00O Of
these bonds. In March. 1900. a law was
put through the Legislature of Virginia
which authorized the debt commission Of
that State TO confer with the authori les
OF West Virginia to secure a oompro-
mise of the claim: and if that failed the
bonds deposited with Brown Bros. & Co.
are to be assigned to the State of Viz
gnia, then a suit is to be Instituted in
the Supreme Court of the United States
to compel West Virginia to make COED to
Virginia the amount of these bonds. and
before this suit is brought it is quite
probable that the remainder of ttese
bonds will be placed with this firm. By
this plan Virginia is to have no liability
whatever, but is simply to lend her name
to prosecute the suit SO as to give the
Supreme Court of the United States jur-
isdiction in the case against West Viz
ginia. The authority for instituting this
suit is couched in the following Language,
which was, it is said, surreptitiously
placed in Senate bill $3.50, passed by Con-
gress in May, 1899. the title Of which bill
is as follows: "Fifty-fifth Congress, third
SeSSltu, ~, 1000. al ast "
amend an act entitled an act to reim-
burse the Governors of the States ard
Territories fer expenses incurred by
them in aiding the United States to
raise and organize. and supply and equip
the volunteer army of the United Safes
in the existing war with Spain"
This was a bill simply providing for the
reimbursing to the Governors of the sew
eral States the moneys expended by them
in organizing and eqHipping the State
volunteer troops, and the history OF the
bill as shown by the Congressional Rec
ord shows that after the bill had r:.sse-
the Senate the House made some amend
ments thereto. 20 which the Senate did
Eet agree, SO a conference committee was
kappointed and while this bill was before
the conference committee some member
of Congress who was. it is believed, inter-
ested in these bonds or certificates, got
an amendment put in the bill as follows:
Section THAT the expenses incurred by
the Governors of States in carrying out
the provisions of this act shall be paid to
them notwithstanding any unsettled ac-
counts, claims, or Indebtedness CT the
United States against their States, and
without prejudice 20 such unsettled ac-
counts: Provided, That when such unset
tied accounts is caused by default IN
payment of principal OF interest on any
bond or stock issued or guaranteed by any
| State. The ownership of which is vested IN
the United States, the Secretary OF the
/ Treasury be and is hereby authorized and
directed to institute any act or proceed
| ing which he nay consider advisable
sainst such state or its representatives
to secure the payment Of the principal
and interest of said bonds or stock
ha hack from the cOu-
ference committee no one except those who
had been Instrumental in inserting the
4 above amendment even dreamed that such
| an amendment had been made, as it was
| naturally supposed that that committee
| he'd only acted on the matters concerning
which the two houses had disagreed. Not
| until some time after the bill had become
| law did either Senators Daniel or Martin
of Virginia know anything OF this amend
ment and it is said that none but trust
ed few representing these so-called West
Virginia certificates had any knowledge
whatever of what was being done. II West
| Virginia officials can be induced TO COM
promise this claim at even % cents on the
dollar the syndicate will divide a part OF
| the six million thus obtained. II that plan
| cannot be made to work, then the suit au-
| thoriZed by said amendment will be
| brought. Whether West Virginia shall wiz
! this suit depends, ii is said. solely upon
| the ability and honesty of those who shall
| represent her. In this connection it Is i'm
portant for the taxpayers OF West Vir-
ginia to know who compose this syndicate
| II any of her public officials are in it, then
West Virginia stands to lose. Since this
scheme was launched these bonds or GER
| tificates, which before could not be sold fol
81 on the 500, have advanced rapidly till
| bay otaI Of on he Sim and
SO desirable have they become that they
| are now, for the first time in their his
| tory, listed on the New York Stock Ex-
change and are there being dealt in a!
| other bonds and stocks are. This is i'm
| portant TO remember. as 1t shows, 1t is
said, that no great opposition from Wes
| Virginia is being looked for. 1t is charged
that the syndicate that mas bought W
| these certificates is secretly taking al
active part in the pending campaign il
West Virginia, seeking TO elect the STATE
| ticket and secure majority of boil
branches of the Legislature. and has con,
| tributed largely to the Republican cam
paign fund to COLOMBO negroes in that STATE
and to corrupt the voters who belong there
A contribution Of ! cent on the dollar o.
| these certificates amounts to S2J0. GOO.
prominent West Virginia Democrat
| in discussing this case with a reporter fol
The Times, said:
| 1T is plain that unless Legislature
and State administration shall be elected
which are favorable to the bond syndi-
cate they can never succeed, as the only
way BY which West Virginia could pos
sibly lose the suit would be by betrayal
of her interest. upon the part of those en-
trusted with representing her. This is &
matter of great Importance to the people
of that State, for the same influence and
the same hand that surreptiousy put that
amendment in the act Of Congress viii