Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-26
SECOND AUDITOR PACE
DISCUSSES BOND VERDICT
Says Reports Of Courts Decision
Does Commonwealth OF Vir.
ginia Injustice.
iCARA NTEE APPLIED no $500 900
Estimate That State Escaped Liabil-
hy for $4,000. 900 Worth OF OBJ
legations by lnterposing Technical
Defense Shown to BE Wrong.

Published reports of TIN. decision
"i TIL" city Circuit Court Friday in
the cas-" Of Stuarts executors against
The Board Of Sinking Fund Commits
Sioners of Virginia. said Second Audi
tor Roosevelt IaS. yesterday hav.
wrongly left the impression that TIA"
state. by invoking the technical de-
t"nSc OF the statute OF limitations has
escaped liability for about 10000
900 worth Of antc-bcllum industrial
bonds, tn" payment OF which il had
Guaranteed
Il. - Stuart. in 1898 invested in
So1oo worth Of the bonds OF the Chesa-
p"akc and Ohio Canal Company after
the General Assembly had authorized
III" state Treasurer TO indorsc them.
Before the bonds maturcd the company
became insolvcnt. About three yea rs
ago Stuarts executors. X w. Hunter
and julian s. Jones brought sui;
against the Sinking Fund Commission
"rs to recover on thcs. Statc-Kuaran-
tccd obligations. The court returned
verdict for the defendant.
nONDS GUARANTEED
AMDI NTED TO x3U.0Ou
Statements 10 the effect that the
state, under this decision, escaped lia
billy for about sl0.o00.00u worth .;
bonds similarly guaranteed. and that a
verdict for the plaintiff would have
wealth. brought from Second Auditor
i'agc. yesterday the following state
inslt
AS a matter pf fact. the claims sim
liar "a this amounted originally 10
$4,000 Of which nearly the whole
amount WAS settled between the hold
crs Of the bonds and the Common
wealth many years ago. which settle
mont was brought about hy Genera!
bradley r, Johnson in 1877. who was
specially employed 20 represent tn.
Commonwealth. in these mattS's.
And go far as the liability OF The
Commonwealth IL concerned. as lat. as
1909 the Commonwealth 81 Virginia
received OF the United states govern
ment of this issue $4,000 OF similar
honds. which we're not included in the
settlement mentioned because they
were held by the United States gov =
"rument at the time.
LF:GISIATI'HE TOOK STEPS
TO PROTECT STATES CREDIT
And so careful Was the Legislature
To protect thc credit OF the state from
any charge Of repudiatine her ob!iEa-
lions that in the law authorizing this
suit 10 be brought against IN" com
monweaith which limited IL to two
years from the passage Of The act. /;
Was expressly provided tina, the Board
az sinking Fund Commissioners should
not uterpose the technical plea of
statute Of LIMITATIONS, unless IN tn.
judgment % the said hoard ii was
proper and necessary 10 do 50 To pro-
tect The Common wealth from the iny-
mentS OF unjust and iuequitahle de-
mands
II hay" not yet seen tn. opinion %:
IN" learned judge who decided this
question, and am only writing this Let
tor 10 defend the good nam. Of the
commonwealth from the charge ot
having. by pleading III. statute 81
limitations, saved herself from q So
o"rco0 liability So far from there
having been 10000 900 OF such bonds
a appears thar there We're only $500.
40" guaranteed by the state under act
or March !. lSi7. and that subsequently,
hN IN" act of March -. 1879 $500. O0C
MAS EuarsntecdS The first isSu. was
involved in The settlement already re.
f"rr"d 10. and the last issue Was Fuly
raid ny the canal company on Angus,
T. IS.