Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-12-09


fSpeciaL)-It now looss as If the long
pending contention of the State Of vir-
Sinia against the United States. growing
out of the expenses incurred by the State
in outfittins soldiers for the war OF ls12
would be finally adjusted. and the ac-
count would be finally settled.
This will mean that the United States
government will allow the State of vir.
ginia the amount she claims is due her.
about s1.725.0o0. which includes principal
amounting to nearly 100000. and interest
amounting to about s1.4oo,o0o. from 1si4
to 1884. On the other hand. Virginia will
have to allow the United States s1.72s,-
577.O5. this being principal and interest
on bonds held by the United States and
guaranteed by th- State Of Virginia
This is the basis upon which the United
States government agrees to settle. ac-
cording to the law enacted May q, 1907
Virginia has always disputed the Justice
of having to pay the bonds against her.
but the case is up to her and she will
settle on that basis.
virEinia's Payment, S1,soO,OoO.
In the first place. Virginia expended
nearly Sl.s00.o0o out of her treasury during
the war Of 1872. OF this she borrowed
nearly 100000. The government refused
to allow her interest OF. the whole amount.
but only on that part OF it which she
borrowed. That which was not borrowed
was allowed to her at dates between 1Sl4
and 1879. along with Goo under act Of
Congress of Marcn 3. 1875. In 1851 tho
government settled similar claim with
Maryland on different basis Since then
at various times Virginia has sought to
reach a final settlement on the same
basis. The Virginia delegation in Con-
gress has from time to time sought to
have the matter corrected. and final
settlement reached on the whole mat
ter.
Matters were finally shaped up VIXEN
the Congress passed in the omnibus
claims bill OF 1902, a paragraph providing
that the Secretary of the Treasury be
authorized to readjust the Virginia claims.
This was to be done on the basis above
recited. and the adjustment was to be-
made at the date at which the account
would most nearly balance.
Indian Trust Fund.
Tho bonds held by the government
against the State were Of the Indian
Trust Fund, and Chesapeake and Ohio
canal bonds. In taking the lands Of tho
western Indians they were allowed so
much for them, and the proceeds were put
in the shape OF trust fund. the interest
on which was paid the Indians Virginia
guaranteed, so the Federal government
holds. s581. .00e of these bonds. The govern
ment has all along looked to her for tho
principal and interest. and it had come to
such 4 pass that Virginia had nothing to
~ IT, -
paid on these bonds since 1861. except 6
per cent. from January 1. 1867. to January
1. $50.
The Federal government, therefore. m
figuring the matter out. demands the rats
of per cent for the entire term, deduct
ing, of course. the per cent paid
Auditor,s Figures.
The whole matter was referred to the
Auditor for the War Department, Mr..
Rittman- He has studied the case caro-
fully. and figures it out as follows.
Amount found due the State
upon settlement of ,Februa-
ry II. 1894. 94..........-.............3 : 1853 II
interest on NEUTRALITY-SUSPICIOUS.. I, 425. az 73
Total .......................-.... .79. $50 So
From which deduct the following:
Principal of bonds held by the
United States... 5ai.sc1 o.
Interest from: January 1st. 1861.
to February II. B9i-...-...--.... 1.1S1, 500 80
Total Observation-Disclosures. 81. .77S. .4so q
Less interest at 4 per cent. on
s51.ooo ......... ....-........... se.s1o %
s1,7os. .s53 q
And add as Offset Treasury
settlement OF 1ssa............ 1903 70
s1.7257 ca