The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1916-08-14
WEST VIRGINIA REPUBLICANS DECLARE FOR
PROGRAM Of PROGRESS AND EFFICIENCY N STATE

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entitled to the same, without single
penny Of cost to himself, or without
running the risk OF being burdened to
! the point OF ruin by the assessment
OF the cost OF litigation. The opera.
ton OF this law assures to the people
OF West Virginia equitable and progress.
sive development OF our great natural
resources by the various public utility
companies engaged therein, and at the
same time assures also to capital n
fair return on investment and ample
protection in all their legitimate &C.
tiyities.
The Virginia Debt
The Democratic party came into
power in West Virginia In 1871 and
started on its inglorious career OF a
| quarter of a century. II had COM
plete control OF the state government
and both branches Of the legislature.
| The suit OF the commonwealth OF Wiz.
ginia against the State Of West Vir-
ginia for the recovery Of jurisdiction
over the counties OF Jefferson and
Berkeley having been ended, the door
was open for a settlement OF the vex-
ed question of the Virginia debt.
The commission of 1871 was appoint
ed and made its report but It was not
even considered by the legislature.
The first two Democratic governors
persistently insisted in their various
messages that as long as the question
OF the liability of West Virginia for
portion OF the debt OF Virginia re.
lnalned unsettled and unadjustcd, 1t
1 NtEnt kA n 10 tat.. h.
people, and that the legislature should
take prompt and decisive action In
the premises.
Governor Jacob recommended that
pending the fixing OF basis OF al.
justmcnt. a sinking fund should be
provided for as a means Of ultimate
liquidation. But the legislature paid
no attention to this or any other rec-
ommendation that was made. Dur
ing the whole time the Democratic
party was in power not single step
was taken by It's legislative body look.
| ing to an adjustment and settlement.
In 1871 the general assembly OF Vir.
ginia decided that two.thirds Of the
debt should be assumed by that com.
monwealth and arbitrarily allotted the
other third to West Virginia, for which
certificates were issued to and &C.
cepted by the bondholding creditors in
settlement thereof. These certificates
created such flutter In the financial
world that they brought three. four
and five cents on the dollar. A golden
opportunity was offered.
Even II the Democratic party OF
West Virginia had not desired to en-
bark In the brokage business, 1t would
have not been condemned II It had
developed enough astuteness to have
IN some way taken advantage OF that
enticing financial situation.
On various occasions. during the
period OF Democratic ascendency, ten.
alive propositions were made TO set.
tie the debt at Insignificant figures, as
compared with present claims, bu;
they were given no consideration. In
1882 certificate holders pooled their
holdings and offered to accept six
cents on the dollar. but there was no
taker. Had the Democratic party,
during the period Of Its control OF the
political policies Of West Virginia. Civ.
en- the debt question the consideration
II was entitled to receive, any obli.
CATION that West Virginia might have
had could have been determined AMI
settled far a mere pittance as com.
pared with the demands that are be-
Ing made at this time. But It failed
to take advantage OF the opportunity
and was guilty OF gross neglect. And
to II came to pass that when the par-
ty was shorn OF its power, the Repub.
lican party became the residuary le-
gatee of Democratic folly,
The most serious question that coli.
fronted Governor Hatfield upon his in.
duction into office was the question OF
the Virginia debt. After long and te.
dious litigation, the supreme court OF
the United States had rendered a sug.
gestive opinion in which It held that
the proportion of the debt of the con-.
monwealth OF virginia prior to the
first day Of January, 1861, that West
Virginia should bear, was twenty.three
and one.half per cent, or something
over seven millions OF dollars. The
questions of interest was held In abey.
ance. Under joint resolution of the |
West Virginia legislature the governor
appointed a debt commission consist. !
inS OF six Republicans and five Demo.
Craftsmen OF prominence and the
hiSnesL StunuiHs. lHey at once en-
tered activity into their work and had
the hearty cooperation Of the govern.
or, the board of public works and the
legal representatives OF the state. |
Governor Hatfield. was impressed with
the idea that there must be stocks
and other assets of value that had |
not been revealed. In which West vir.
ginia had an equitable right. Expert
accountants were furnished the com.
mission. who went to Richmond and
In the limited time OF five months in.
vestigated virginia records running |
back over period Of ninety years. A |
report was made by these account.
ants disclosing net equities Of over
four million of dollars. for which 1t |
was claimed West Virginia should
have credit. On the basis OF the find.
ings OF the accountants tentative OF.
fer OF settlement was subsequently |
made to the Virginia Debt commission
but 1t was refused. The work, how.
ever, had not beeen in vain. It ulti.
mately led to the re.opening OF the
case and upon tho final trial the su.
preme court OF the United States al.
lowed West Virginia a credit with
equities amounting to over three and
half millions Of dollars.
Whatever the result may ultimately |
be. we feel that the record made by
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