The Washington times., 1906-06-02
OLD VIRGINIA DEBT
AGAIN IN COURTS.
Question of Millions Bor-
rOwed Before Civil War.
WEST VIRGINIA SLOW TO PAY
Assumed Part Of sIs,oco,ooo OblizsA.sx
When the State Was
Divided.

BALTIMORE. Nd. June 2-The sif-
uation concerning the status OF the
Virginia debt represented by the Virgin
Ia Deferred Brown Bros. certificates Is
said to be rapidly improving About
100000 OF the certificates are held in
Baltimore. and naturally there is much
local interest in the matter.
The suit against West Virginia for the
payment Of the principal and thirty
I'VE years interest at S per cent comes
before the Supreme Court next Octo-
oer- II would appear that at last West
virginia pretty well realizes its liability.
and 1t is rumored that overtUres looking
10 compromise OF the original debt
have been made. Il IS stated. however.
that the committee OF which John Cros-
By Brown. Of Brown Bros. CT New York
is the chairman. and George 2. Baker.
president OF the First National Bank
OF New York. is a prominent member.
has summarily refused TO treat on the
basis Of settlement under 100 cents on
the dollar Of the original debt The
question Of the thirty-five years inter
est at per cent. while in the letter
Of the law is claimed TO be just and
equitable. IN view Of the time this has
dragged along, may be subject 70 some
scaling
Interest Exceeds Original Sum.
IT is interesting TO note that II West
Virginia IS called upon 10 pay this debt
with the interest added, the amount viii
exceed three times the original SUN: in
other words. instead OF the $1,000 repre-
sented by each full certificate Of in
debtedness, the amount would be in
creased something over $500 per Ger
tihcate- There are outstanding about
5,4S1. .691-5e OF the certificates.
The Government Is interested IN the
question OF why the State Of West Vir-
gtnia should ignore an obligation q por-
ton OF which was recognized and paid
by Virginia years ago.
Virginia's two-thirds. which she arbi-
trarlly elected was all she owed. was
cumuiated interest
Debt of the Old State.
The certificates are the result Of a.
debt created by the original State OF
Virginia prior 70 the civil war. In 1875
the State entered upon an extensive
system OF Internal improvements. and In
the first twenty-five years thereafter
tne debt had grown TO about $1,000 CO0-
between $50 and 1851 it was increased
S50,oOo.oo0- In 1861 Virginia passed an
ordinance Of secession Withdrawing
from the Union, and shortly afterward
some OF the citizens Of the western rsrr
OF the State called together a conrer,-
non which decided that that section OF
N-IrgiIlia could remain a part os the
United states. il was thus that the
state OF West Virginia was created
Agreed to Assume Its Share.
A Legislature was called together.
and this body, after electing two United
states Senators. passed resolutions to
the effect that inasmuch as a. consider
able portion OF the funds raised By Vir-
glni2 from the sale OF her bonds had
been spent in that section OF the State
II was no more than right that the new
State OF West Virginia should assume
q portion OF the original debt eouaI II,
me amount actually spent within its
ooroers- However. West Virginia never
Settled Ihe debt though many Efforts
nave been made since the civil war TO
get the matter out Of the way.