Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-03-09
WEST VIRGINIA
MUST PAY SHARE
Cannot Shake Obligation Incur
red at Time of Separation
from Parent State.

Washington March THE supreme
court IN decision handed down yester.
uaN holdS that the State OF West Virginia
should pay S.1S2,507.ie as her propor-
uohate snare Of the original public del-
VI me oid state Of Virginia as II exist cd
III 1871 The decision was written bv
Associate Justice Holmes and concurrod
IN by all the other members OF the court
when West Virginia applied for sepa
rate Statehood IN 1861 and parted com
pany with the commonwealth OF Vir-
ginia there was a large outstanding bond
ed Indebtedness which the old dominion
mad incurred. largely through the In
huence OF that part OF the state that IL
known as West Virginia. The money was
TO have been used for the DEVELOPMENT
Of West virginia Railroads and canal,
were to be built and avenues of commerce.
opened up
In the constitution adopted for the new.
state of West Virginia il was agreed
as part Of The terms % the separation
that the new state should assume its
equitable share If the bonded debt Rut
the amount was never paid The COM
monwealth Of Virginia carried tho bur
den, although the Indebtedness has taken
on new forms through refundng. Tho
original amount was approximately $40
ono, geo
In 1871 this debt was refunded and credi-
tors agreed to accept new issue OF 6
per cent. bonds in payment of two thirds
OF the sum and look to West Virginia for
the payment of one-third, which, accord
ing to the contention OF tho common
wealth of Virginia. was the proportiona;e
share to I've contributed by West Virginia
on a basis of area and population For
the one-third Of the public debt charge
able to West Virginia interest bearing
certificates were issued.
The commonwealth Of Virginia has
been trying ever since the Civil War to
get a settlement Of the differences with
her offspring. Finally the matter was
submitted to tho Supreme Court by bill
filed on behalf Of the State OF virginia
asking that the proportionate share Of the
public debt that should he borne by West
Virginia be ascertained and satisfied.
The court to-day IN an elaborate opinion
found the amount 20 be due as stated
above, which does not include interest
and which is subject as a final adiudlca-
ton to further conference between
parties" The court did not adopt the
contention of the commonwealth OF Viz
ginia and determine the share Of West
Virginia on the basis OF area and popu-
lation IN 1861 II took instead the report
OF a commissioner OF the ratio of the as
sessed valuation of real and personal
property In West Virginia to that of the
commonwealth of Virginia as It was re-
turned for taxation in 1861. On this basis
the court found that Virginia should pay
efter certain deductions were made 76.5
rer cent of the whole debt and that
West Virginia should contribute 235 per
cent.
The court commented on the unusual
character OF the proceeding, characterize
Ing 1t as "Quasi-interna tional." Justice
Holmes said that there was no municipal
code governing the matter" He said:
"As this is no ordinary commercial
suit but, as we have said, a quasi-intel-
national difference referred to this court
in reliance upon the honor and constitu-
tional obligations OF the States concerned
rather than upon ordinary remedies We
think II best at this stage to go no further
but to await the effect of a conference
between the parties which. whatever
the outcome must take place If the
cause should 70 pressed contentiouslv 20
the end II would be referred to master
to go over the figures that We have given
Professionally. and to make such Calcula-
lions as might become necessary. But
this case is one tina calls for forhearance
upon both sides. Great States have a |
temper superior 70 that Of private lit !
giants, anu 1t is to he hoped that enough !
has been decided for patriotism, the
fraternity Of the union and mutual con-
sideratons. to bring IT to an end"
The case for West Vireinia was argued |
by the late John G. Carlisle and ex-
Senator John G. Spooner. one Of the con- |
tentions made was that the common
wealth OF Virginia. having ~Xtinguishcd
one-thrd Of the debt by an agreement
with the bondholders In ISL. West Viz |
elna was abSolved from any further |
liability. because by her own contention |
the commonwealth of Virginia had fixed |
tho proportionate share 81 West Virginia
contribution at one-third; but this con |
tention did not appeal to the court. The |
court held that there was p valid contract |
and 1t also decided that the contention |
in the answer 0l"d for the State OF West
Virginia that the commonwealth Of Vir-
ainia should not maintain tho action as |
trustee for bondho!dcrs was not well
taken.