The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-03-15
Measure Was introduced in
Both Houses of Legis-
Iature Yesterday.
PROVISIONS OF THE BILL
1t Carries Statement of
West Virginia's Desire
to Pay.

ginia debt settlement bill, as drafted
by the special joint committee repre-
senting the House and Senate, was re.
ported out in both houses OF the West
Virginia legislature by that committee
yesterday afternoon.
Both the machinery for effecting the
settlement of the long standing obliga-
ton, the amount OF which was ascer.
tanned by the Supreme Court OF the
United States, and set forth in its
judgment of June II, 1915, and the
provision for raising the necessary
revenue in equal amounts annually, for
the next twenty years, are provided
for in the one bill.
The state board of public works is
authorized by the bill to set apart
from the revenues collected from the
taxable property within the state each
year from 1919 up to 1889, fund
amounting to at least one-twentieth Of
the total issue OF bonds to be known
as the sinking fund" and to lay a
direct tax on all the real and person
al property subject to taxation in the
state sufficient to keep up the sinking
fund.
1t is estimated that this tax, based
upon present valuations and assess
ments in the state, will be seven cents
on the 500. This does not appear
in the bill, because 1t is presumed that
valuations and assessments will be in.
creased largely in the state within the
next twenty years. permitting de
crease in the rate of levy accordingly.
BY this tit,ei it is "a bill providing
for the payment Of West Virgtnias
part Of the public debt of the com.
monwealth of Virginia prior to jan
uary /, 1861, as ascertained by the
judgment of the Supreme Court of the
United States and adjusted by the two
states, and to provide for the issuance
of bonds and the raising and appro.
priation of money for the payment of
the said judgment"
The preamble to the bill sets forth
the judgment of the court, in which
the amount of West Virginias in
debtedness is stated at S12.3S3929.50,
with interest from July /, 1915. at five
per cent, and one-half the costs of the
suit, the total OF principal and interest
being $14,562,S67.16 up to January /,
1919.
1t further sets forth that Where
as. the state of West Virginia desires
to comply with the decree Of said court
and to satisfy the same as practicable,
and ''.t,''. r'
Whereas, this legislature has been
informed by the report Of the West
Virginia debt commission, as well as
the representatives Of tho common.
wealth Of Virginia, that the bonds Of
the state of West Virginia dated Jan
uary /, 1919, bearing interest at three
and one-half per cent. per annum, pay
able semi-annually on Jnly / and
January /, each year, hereinafter de-
scribed and to the face amount of
13,5o0,9 zoo. together with cash pay
ment of $1,O62,S 67.16 with interest
therein from January l, 1919, at five
per cent. until the date Of paymenL
thereof, West Virginia to pay one.half
OF the costs of said suit as taxed and
certified by the clerk OF the Supreme
Court of the United States, will be &C.
cepted at par in full satisfaction Of
said judgment, now therefore, be it
enacted, etc"
The first section Of the bill author
lied the state auditor to draw his war
rant and the state treasurer his check
in favor Of the commonwealth Of Vir-
ginia for the cash payment received.
The full amount of this to apply upon
the judgment Of the court.
Section two provides that for the
payment OF the residue OF the iudg-
ment, both principal and interest, an
issue OF listable' engraved bonds Of
the state OF West Virginia, coupon and
registered, is hereby created, to the
face value Of $13, 500 900, and the audi
tor and treasurer are directed to cause
these bonds and coupons to be en-
graved as soon as possible after the
act takes effect"
l tbs provided that the coupon bonds
are to be in the denominations Of 500,
$500 and $1,000 and the registered
bonds in the denominations OF 500,
$500, $1,000, $1,000 and $4,000. The
coupon and registered bonds are to be
interchangeable upon the payment Of
a fee OF fifty cents for each such ex-
change.
Charleston and New York city are
the two places at which the bonds are
made payable at the option Of the
holder It Is provided that West Vir.
ginia may redeem any of the bonds
at any time before maturity at par,
with accrued interest. The bonds are
to be signed by the treasurer and
countersigned by the auditor Of West
Virginia
The form Of the bonds and coupons
are then set forth, followed by the
provision for delivery Of $12,356, 500 OF
the bonds to Virginia, and for the hold
ing Of the rest of the bonds in escrow
by the state board Of public works,
to be turned over to Virginia upon Its
presentation for payment Of Virginia
certificates now lost or undelivered.
The remainder Of the bill provides
for the manner Of redeeming or pur
chasing the bonds by the state foI
the raising Of the necessary revenue
for the payment OF the interest on the
bonds for the first six months after
their issuance out OF the general rev