West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1915-06-17
WEST virginia HELD LIABLE
BySUPREME COURT FOR DEBT
Decree Holds State Must Pay More
Than Twelve Million Dollars as
Its Share of the Old Virginia
State Debt Decision Handed
Down by Justice Hughes

WASHINGTON. Juno Ia. 80. Tho
amount which West Virginia will have
10 pay as It's share OF the debt of tba
state of Virginia when the state was
divided was fixed by the Supremo
court OF the United States today NJ
S2'S95'92O, with interest nj 8 per cont
from today until paid.
me principal of the debt was fixed
IN 1911 at $I1S2 ,5O746. Credits woro
today allowed on this amounting 70
SE'"oO'OOO leaving the principal of tho
debt -. 2l5,000. On this IL was found
,hat interest should be charged from
January l. 1861. at the rate of 4 per
cent up to January /. 1891, from which
timc Till the present. the rate OF inter-
est was TO be but per cent.
From January /, 1891, TO tho nreso,,
the rate of per cent was fixed bo-
cause that was the rate of interest
paid by Virginia on it's refundip,
bonds issued about that date I'm se,-
tlement of it's part of the old state
debt
Ihe interest on the debt up to today
part OF the time at per cent and tho
rest ut J per cent amounts TO $s.17s.-
ooO' bringing the entire debt with in
tereSt up to the present time to more
than $12.OOO,OOO.
Ihe repo OF the late Charles n. Lit
tleIeld. as special master. was UNFOLD
III every particular except one minor
finding.
inc report OF the master I'm fixing
January ], 1861. as the date for VAL
uing the liability credits and begin
hlhg OF net liability was upheld by tho
court
Justice Hughes announced the opin-
ION or the court and said tho decroe
would provide that interest at the rate
OF per cent would be charged from
the date OF the decree until the debt
is discharged
The case has been before the Su-
prcme Court for several years, tho orr
ginal opinion as to West Virginia's lia-
bility being In 1911. At that time the
court made 1t very clear that In the
opinion of the court some means would
be found to enforce It's decree, should
that be necessary.
There has been talk of reputation
by West Virginians OF more or less
prominence, but the Supreme Court
has declared that the way would be
found to enforce it's decision, even be-
tween states. An effort was made by
the court to have the two states agree
upon the question of interest, but very
early In the proceedings it was found
this could not be done.
The reduction of the principal was
victory for West Virginia much more
than Offset by the opinion that inter-
est must be paid on the amount for
which West Virginia has been found
liable.
Ihere Is no appeal from the final
opinion Of the Supreme Court OF the
United States. and the famous old
case seems TO be ended unless IL
should become necessary to begin
b'N"N'Nihbo w tuiOTEe the
courts decree.
The debt controversy arose over the
separation OF West Virginia from Vir-
ginia at the outbreak OF the Civil war.
After the war, Virginia contended the
new state should assume an equitable
share OF the former states debt ex-
isting prior to West Virginia's admis-
sion to the Union. West Virginia re-
cognized this claim at that time, and
wrote into It's constitution provision
That II would assume an equitable por-
ton OF the mother states Indebted
ness The two states after this could
never agree upon the amount of West
Virginia's share despite the appoint
ment Of commissions TO conduct nego-
tiations with the hope Of reaching such
an agreement.