Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-06-15
WEST VIRGINIA
LOSES IN SUIT
v1HE SPA
Offspring Of Old Dominion
Ordered to Pay
!. sl2,393,929.5O
OLD STATE is UPHELD
Thirty Years. Ago the Obligations
. Gould Have Been Discharged by the
Payment of sl,OOO,OOo.

b, Washington, June 15-The 5O-year
old State debt controversy between
Virginia and West Virginia was final
ly adjudicated yesterday when the
Supreme Court of the United States
held that West Virginia shall pay
$l2,393,929.50 as her share of princl-
pal and interest of Virginia's ante
bellum Indebtedness. Of this amount
S4,215,622. % represents West Vir-
ginia's share of the principal as of
January l, 1861, and $8,l78,307.22
is interest on this sum for 81 years
and six months. If West Virginia does
not pay over the amount by July
next, the State must pay per cent
interest on the total of $l2,393, ,929.-
so until it is paid.
All of this money will he paid to
the holders of the old Virginia debt
certificates. One million dollars worth
of these certificates are held By
Baltimore bankers and individuals
and about S3,0O0,OOO are held in New
York. Many of them are in posses
sion of West Virginians.
When Virginia readjusted her ar
te-bellum debt 32 years ago, she is
sued new bonds for two-thirds or
this obligation and gave certificates
for the other third at the same time
promising the bondholders to use her
good offices to compel West Virginia
to pay the certificate, with interest.
Justice Hughes handed down the
opinion for the court 1t contains L.
900 words and is an extensive re-
view Of the financial controversy be-
tween 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 which the
court had originally fixed. 1t was on
this point that the two States could
not agree and broke !; negotiations
compelling the Supreme Court to
again take cognizance of the case and
after Chief Justice White had urget
the two commonwealth to settle the
question amicably. West Virginia hac
steadfastly resisted the content;or
that she should pay interest, although
expressing a willingness to pay he!
share of the; principal.
West Virginia also won an i'm
poFtant,point, which had the effect o7
reducing her share of interest ane
principal about S12,OOO,oO0. The
younger State contended it. was en-
titled to a share of Virginia's ante
bellum assets. This claim Virginia re
sisted, holding. that. the Supreme
ourt, when it fixed 81, 1S2,5O7.46 a:
West Virginia's part Of the origina
debt. took into consideration Vir'
ginia's assets. The court, however
overruled Virgna's contention and al
lowed West Virginia S2,966J 6JSS5,l5; a:
a credit on her share of the principal
cutting the latter down to $4,215.622-
21. Had Virginia's contention beel
sustained down the inc, West Vir
ginia's total obligation, would hav
gone over S25,OO0,OO0 in view of tn
opinion of the court that theKana
wha State must pay interest as We
as principal.
These two euestions-the questio
whether or not West Virginia shout
pay interest and how much, and tn
question whether or not West Vlrginl
should be allowed part of>Nirginia
old assets and how much-were tn
important issues at stake in yeste'
days opinion. Another point OF mate
rial bearing was the date when tP
amount of principal should be hXe'
West Virginia held it should be jar
uary l, 1861, and Virginia held
should be July l, 1864. AS stated. TT
court had several years ago neld ths
West Virginia should pay % l-2.pe
cent. Of Virginia's old debt. whic
on January l. 1861, was $SO,56S
S61.56.
The court, in It's opinion. pract,cts
sustains Special Master Littlefield
his estimates of the allowances