Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1915-06-17
WEST VIRGINIA LOSES.
Supreme Court Says That State Must
Pay SI2,J03, 020.5O.

Fay SIZ,Syo,SES.oUs
Adecisionrendered by the United States
Supreme Court on Monday last DEGREES
that West Virginia shall pay Si2 1893, $3.50
as her share of principal and interest OF
Virginias ante bellum Indebtedness. OF
this amount 81, 1852 IS represents West
Virginias share oiihe principal rs OF Jauu-
airy |, 1861, and $S,17S, 3O7 p is interest
on this sum for 81 years and six months.
If West Virginia does not pay over the
amount by July ! next, the court DEGREES
that the State must pay per cent interest
on the total of Sl2, 1913 .929 so until is paid.
Justice Hughes handed down the opin-
ion for the court. II contains 1900
words and is an extensive review OF the
financial controversy between the two
States.
Virginia won the biggest point in the
ease when the court held that West Viz
GINA must pay interest on IFS share OF the
principal which the court had originally
fixed. II was on this point that the two
States could not agree and broke negoti-
atoms, compelling the Supreme Court to
again take cognizance OF the case and after
Chief Justice White had urged the two
commonwealth 10 settle the question
amicably. West Virginia had steadfast-
ly resisted the contention that she should
pay interest, although expressing a will
ingness 10 pay her share OF the principal.
West Virginia won point which had
the effect OF reducing her share OF inter
est and principal about 81, 900 600. The
Younger State contended il was entitled
to a share OF Virginia's ante-bellum as
sets. This claim Virginia resisted, hold
ing that the Supreme Court, when it fixed
ST, 1S2, 507. 46 as West Virginia's part of
the original debt, took into consideration
Vhginia's assets. The court, however,
overruled Virginia's contention and al
lowed West Virginia s., 966, SS5.l5 as
credit on her share of the principal, cut
ting the latter downto .2l5, 622.2l. Had
Virginia S contention been sustained down
the line, West Virginia's total obligation
would have gone over $25, 0OO, OO0in view
of the opinion Of the court that the State
must pay interest as well as principal.
In computing the intereStth court held
that from January |, 1861, 10 July |, 1891,
West Virginia should pay per cent. or
S., l43, 059 IS; from July |, 1891, 10 July
|, 1915, payment should be at the rate OF
3 per cent, or $3,035, 4S04. making the
total interest charges s., lis, 1922, which,
with the principal, makes the grand total
$l2, 393, 929 80.
The question now arises whether West
Virginia will pay this award and il not,
how can the State be made to pay. BY
the decision West Virginia is Saddled
with debt of nearly $l3,0OO,OOO. The
State has no outstanding bond issue, be-
ing prohibited from issuing bonds by the
constitution. Major Holmes Conrad,
representing the holders OF the old debt
certificates, has already taken steps TO
compel West Virginia to pay. He has
filed luotion with the Supreme Court
asking for the appointment OF a receiver,
who shall go to West Virginia and collect
the verdict. This motion was filed in
anticipation that West Virginia would lose
and has never been formally laid before
the court by the clerk.
Not one cent OF the award would 60 10
Virginia-all will be claimed by Specu-
latorS and financierS, principally in New
York and Baltimore, who have acquired
the certificates in many cases at a mere
trifle. In 1904 -05 the certificates sold for
three and four cents on the dollar AT
that time il was believed West Virginia
would never pay them, as she had broken
off negotiations with Virginia. The re-
cent quotations were around 90 cents on
The dollar. Ii is believed that 10 per cent
of the old certificates have been lost and
thrown away under the belief they were
worthless. Many investors bought them
up at little or nothing as "long shot"
chance OF realizing on them, and only a
small percentage OF the certificates are
now held by the original owners. Balti-
more holders have about 100000, "a
New York syndicate some 100000
while the balance are scattering.