Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-06-15
VIRGINIA WINS
DEBT LITIGATION
West Virginia Must Pay Bond
holders $12,3e3,o ,o2e.5O With
Interest.
POSITION OF STATE UPHELD
While Small Part Accrues to
Treasury, Result Is Complete
Vindication for Virginia.

BESIDES winning by the fnal decision
of the United States Supreme Court in
the Virginia West Virginia debt case,
rendered yesterday, many millions for
the bondholders. the Commonwealth of
Virginia has won complete vindication
for the principles on which It's claims
against West Virginia were based.
Virginia comes out of the fight with
flying colors. her cause justified and
the validness of her old bonds cstab-
lished by the supreme decree of the
highest tribunal of the country
While the amount that will come
into the State treasury is small in
comparison with the moneys accruing
to the holders of the bonds in America
and abroad, the triumph achieved by
the vindication of Virginia's honor in
this matter, and the Supreme Courts
acknowledgment of the justice upon
which the States contention with West
Virginia over the obligations involved
in the long -drawn-out controversy was
based, must rebound enormously to
Eirginia's credit
DECISION is ANNOUNCED
ny JUSTICE HUGHES
The decision Of the court in this
cause celebre was announced in Wash
ington by Justice Hughes The report
or the late Charles F.. Littlefield, as
special master, is upheld in all particu-
lars, except one minor finding. The
court held that West Virginia was en-
titled to It's share of the assets arising
, from the original principal debt, and
fixed that amount at s2.s66.O0o.
West Virginia is held liable for s12,-
3s3,929.50 as its share of principal and
interest of Virginias ante-bellum
State debt.
The decision of the court is n victory
for the Virginia lawyers. The court
sustained their contention that West
Virginia shall pay interest on it's share
OF the principal This contention was
strenuously resisted by West Virginia,
and resulted in the breaking off Of
negotiations for an amicable settle
ment Of the controversy.
or the S12.393.9295 s4,215,6222S
represents West Virginia's share Of
the principal, as of January /, 1861,
and ss.17S.3o7.22 is interest on this
sum for iifty-four years and six
months. If West Virginia does not
pay over this sum by July next, it
must pay per cent interest on the
full amount, s12,393,9o9.50, until il is
paid. None of this money. under the
decision of the court, will go to the
state OF Virginia. All of IL will be
paid TO the holders of the old Virginia
debt certificates. Several State insti-
tutions, however, are owners of such
certificates.
VIRGINIA WINS on
QUESTION OF INTEREST
Two points-the question of whether
or not West Virginia rlust pay in
terest. and how much and the aues-
tion whether West Virginia shall be
allowed a part of virginias old assets
and how much-were the important
issues at stake in the opinion.
Another point of material bearing
also was the date when the amount of
principal should be fixed. West Etr-
ginia held 1t should be January /, 1861.
and Virginia held 1t should be July l,
1864. The court had several years ago
held that West Virginia should pay
% 1-2 per cent of Virginias old debt,
which on January l. 1861, was s3O,-
563,s61.56.
Justice Hughes handed down the
opinion for the court. 1t contains 49,
600 words. and is an exhaustive review
of the financial controversy between the
two States.
Virginia won the biggest point in
the case when the court held that
West Virginia must pay interest on its
share Of the principal. 1t was on this
point that the two States could not
agree and broke off negotiations, com
pelling the Supreme Court to again take
cognizance of the case after Chief
Justice White had urged them to try
to settle the question of interest AMIGA
bly,
WEST VIRGINIA WINS
IMPORTANT OFFSET
West Virginia also won an important
point. which had the effect Of reducing
her share OF interest and principal
about s12,0oQ,000. The younger State
contended it was entitled to share of
Virginia's ante-bellum assets. This
claim Virginia resisted. holding that
the Supreme Court when il fixed ST.
1S2.507.46 as West Virginia's part Of
the original debt took in consideration
Virginia's assets. The court, however
overruled Virginia's contention. and
allowed West Virginia s2.966.SS515 as
n credit on it's share of the principal.
cutting the latter sum down to s4.2l5,.
622.21. Had Virginia's contention been
sustained clear down the line. West
Virginia's total obligation would have
gone over sab,OOo,0O0. in view of the
opinion OF the court that the latter
State must pay interest as we'll as
principal.
POLLARD GIVES FULL.
CREDIT TO HIS ASSOCIATES
When the news of the victory scored
by the State and the bondholders was
communicated to Attorney-General John
Garland Pollard yesterday afternoon, he
said:
1T is splendid victory. Great credit
should be given to Major William A.
Anderson. during whose term of office
the litigation was begun, and Randolph
Harrison. for the very able manner in
which they conducted the debt case.