The Birmingham age-herald., 1911-01-21
t>y SUPREME cQsyy|''i IS
 FACING . 7 PROBLEM .
 Debt of the Two Virginias Is
 Very Complicated DENIAL OF LIABILITY West Virginia Refuses to Pay Debt of the Original Stnte From Which
 the New State Was Cut or
 and Formed

Washington. January 20.-The stag gering arithmetical problem, compli- cated by questions of International law,
 of how much of the $33,0o0,0o0 debt
 of the old state of Virginia, West vir- fore the supreme court of the United
 States for it's solution.
 Recognizing the intrieacy of the
 problem and the importance of the
 outcome the court consented to de-
 vote practically all its time until next
 Thursday to hearing of arguments
 in the case. This is more time than
 had been given to any other case
 argued before the supreme court of the United States in many years.
 The debt of Virginia at the time West Virginia was organized is recognized
 as about, $33,oo0,O00. Many more mill
 as to interest The commonwealth of Virginia seeks to have West Virginia bear about one-third of the debt.
 West yirgina denies her liability for one cent. To settle tue ccntroyersy l it may be necessary for tlIess supreme
 court to review the expenditures and receipts of the state of Virginia since 1925 and figure out from that exam nation the liabilities.
 The bitterness of the contest, which
 has been manifest for years, was re-
 flected today by the earnestness of
 Holmes Conrad of Virginia In opening for holders of $15,000,000 worth of cer- tiicates representing part of the debt.
 In the present litigation the certificate holders are urging that West Virginia be required to pay the debt repre- scented by the certificates.
 Mir Conrad only had time to lay be- fore the court a part of the founda- tion for the contest He took the court back to the days of 1925 when Vir- gina inaugurated q. system of con structing roads, canals and railroads, extending from the Atlantic to the Ohio
 river That, he said. was the time of the origin of the public debt of Vir- ginia as 1t existed in 1861.
 MT Conrad told of Virginia's strug- | gles to bear the debt, to induce West | Virginia to assume its share, and | finally to find relief from the burden | by issuing new bonds for two o-thirds | of the debt and giving certificates to the old bondholders for the other third l HIS was uOnS Witii tuc dhuOi Stahu- | ing MT. Conrad said, that the state of Virginia would be liable for the re-
 maining third if West Virginia did not | pay it. He acknowledged that Vir- ginia's liability for the remaining third was disputed and also Vir- ginia's right to West Virginia for | the third. He claimed that Virginia had right to sue as & trustee"
 l Just before the court adjourned he said two plans would be advanced for l the settlement of the account. One he designated as the International law
 plan" and the other the "Wheeling ordi- nance plan" He approved the former The commonwealth of Virginia in | 1906 began an action in the. supreme court to have an accounting with West Virginia to determine the latter's
 reputable share of the indebtedness | of the old commonwealth" Prior to the civil war and just before West Vir- ginia was organized as a separate state Virginia claimed that the indebtedness
 amounted to more than $33000,000.
 West Virginia objected to the suit
 but the supreme court sustained the contentious of Virginia on this point and finally appointed a special master
 former Representative Charles P. Lit
 tlefield of Maine, to take testimony 1 evidently with view to settlement.
 Mir. I.ittlefield reported, but both | sides took exceptions to his report Today the case was set for argument | of these exceptions. s fsl