University of Virginia Library

AN ACT

Whereas, by a joint resolution of the General Assembly of the State
of Virginia, adopted on the third day of March, eighteen hundred and
ninety, a commission was appointed on the part of Virginia to receive
propositions for funding the debt of the State not funded under the Act
known as the "Riddleberger Bill," approved February fourteenth, eighteen
hundred and eighty-two, from a properly constituted representative of
her creditors; and

Whereas, said Virginia Debt Commission has submitted a report to
the General Assembly, wherein it appears that under a certain agreement,
dated May twelfth, eighteen hundred and ninety, lodged with the Central
Trust Company of New York, Frederick P. Olcott, William L. Bull, Henry
Budge, Charles D. Dickey, Jr., Hugh R. Garden, and John Gill, constituting
a committee for certain of the creditors of Virginia, called the
"Bondholders' Committee," have proposed to said commission to surrender
to the State in bulk not less than twenty-three million of dollars
of the public debt, unfunded under said Act approved February fourteenth,
eighteen hundred and eighty-two, in exchange for an issue of new bonds,
as hereinafter specified, the same to be apportioned between the several
classes of creditors by a tribunal which the said creditors have themselves
appointed; and that, in pursuance of said proposal, an agreement has
been entered into unanimously between the said commission and the said
bondholders' committee, subject to approval by the General Assembly,
whereby in exchange for the said unsettled obligations of the State held
by the public, which were issued prior to February fourteenth, eighteen

hundred and eighty-two (exclusive of evidences of debt held by the public
institutions of the Commonwealth pursuant to law and by the United
States), together with the interest thereon to July first, eighteen hundred
and ninety-one, inclusive, aggregating about twenty-eight million of dollars,
there shall be issued nineteen million of dollars of new bonds, dated
July first, eighteen hundred and ninety-one, and maturing one hundred
years from said date, with interest thereon at the rate of two per centum
per annum for ten years from said first day of July, eighteen hundred and
ninety-one, and three per centum per annum for ninety years thereafter
to the date of maturity, said interest to be payable semi-annually; of
which aggregate debt of about twenty-eight million of dollars the said
bondholders' committee represent that they now hold and agree to surrender
not less than twenty-three million of dollars; and

Whereas, said report and agreement contemplate the surrender of the
obligations held by the bondholders' committee as an entirety, and do not
contemplate an apportionment by the General Assembly between the
various classes of creditors so represented by said bondholders' committee,
the same having been committed to a distributing tribunal, as hereinbefore
recited; and

Whereas, it is the desire and intention of the General Assembly that a
settlement of all the other outstanding obligations of the State (except
those issued under the Act of February fourteenth, eighteen hundred and
eighty-two, the evidences of debt held by the public institutions of the
State in pursuance of law and by the United States) as well as those controlled
by the bondholders' committee, as aforesaid, shall be made under
the provisions of this Act; therefore—

1. Be it enacted by the General Assembly of Virginia, That the commissioners
of the sinking fund, a majority of whom may act, be and they
are hereby empowered and directed to create "listable" engraved bonds,
registered and coupon, to such an extent as may be necessary to issue
nineteen million of dollars of bonds in lieu of the twenty-eight million
dollars of outstanding obligations, not funded under the Act approved
February fourteenth, eighteen hundred and eighty-two, hereinbefore
recited.

2. The said bonds shall be dated July first, eighteen hundred and
ninety-one, and be payable at the office of the treasurer of the State, or at
such agency in the city of New York as may be designated by the State,
on the first day of July, nineteen hundred and ninety-one, and shall bear
interest from date, payable semi-annually on the first days of January and
July in each year, at the rate of two per centum per annum for the first
ten years, and three per centum per annum for the remaining ninety
years; the said interest may be payable in Richmond, New York, and
London, or at either place, as may be designated by the State; provided,
that the State may at any time and from time to time after July first, nineteen
hundred and six, redeem at par any part of the principal with

accrued interest. In case of such redemption before maturity, the bonds
to be paid shall be determined by lot by said commissioners of the
sinking fund, and notice of the bonds so selected to be paid shall be given
by publication beginning at least ninety days prior to an interest-due
date, in a newspaper published in Richmond, Virginia, one in New York
City, and one in London, England; and the interest from and after the
next succeeding interest-due date shall cease upon the bonds so designated
to be paid; provided, that no registered bonds shall be so redeemed while
there are any coupon bonds outstanding.

3. The form of the bonds shall be substantially as follows, to
wit:

Issued under act of Assembly, approved ——— day of
——, eighteen hundred and ninety-two.

The Commonwealth of Virginia acknowledges herself to be indebted
to ——— (in case of a coupon bond, to the bearer, and in case
of a registered bond, inserting the name of a person or corporation), or
assigns, in the sum of —— dollars, which she promises to pay in
lawful money of the United States, at the office of the treasurer of the
State, or at such agency in the city of New York as may be designated by
the State, on the first day of July, nineteen hundred and ninety-one, with
the option of payment at par with accrued interest, before maturity at any
time after July first, nineteen hundred and six, and interest at the office of
the treasurer of the State, or at the agencies of the State in New York
City and London, England, or at either place, as may from time to time be
designated by the State, in such lawful money aforesaid, at the rate of two
per centum per annum for ten years from the first day of July, eighteen
hundred and ninety-one, and at the rate of three per centum per annum
thereafter until paid, payable semi-annually on January first and July first
in each year (according to the tenor of the annexed coupon bearing the
engraved signature of the Treasurer of the Commonwealth, in case of coupon
bonds). And this obligation is hereby made exempt from any taxation
by the said Commonwealth of Virginia, or any county or municipal
corporation thereof.

In testimony whereof, witness the signature of the treasurer and the
countersignature of the second auditor of the Commonwealth of Virginia,
hereto affixed according to law.

Treasurer.

Second Auditor.

4. The form of coupon for coupon bonds shall be substantially as follows,
to wit:

Coupon No.—.

On the first day of ——— the Commonwealth of Virginia will
pay to bearer —— dollars in lawful money of the United States, at the
office of the treasurer of the State, or at the agencies of the State in New
York City and London, England, or at either place, as may be designated

by the State; the same being six months' interest on bond number —.
— dollars.

——, Treasurer.

Each coupon to be impressed on the back with its number, in order
of maturity, from number one consecutively.

5. Said commissioners of the sinking fund are authorized to issue
coupon bonds in denominations of five hundred and one thousand dollars
each, as may be necessary to carry out the provisions of this Act; provided
that registered bonds may be issued of the denominations of one hundred
dollars, five hundred dollars, one thousand dollars, five thousand dollars,
ten thousand dollars; and they are authorized and directed to issue said
bonds, registered or coupon, in exchange for the said outstanding obligations
up to and including July first, eighteen hundred and ninety-one
(exclusive of evidences of debt held by public institutions of the Commonwealth
as aforesaid and by the United States) as follows:

A. Said bondholders' committee may at any time on or before the
thirtieth day of June, eighteen hundred and ninety-two, present to said
commissioners for verification bonds and other evidences of debt, and
coupons or other evidences of interest thereon, obligations of the State of
Virginia, held by said committee, for exchange as aforesaid; and said
commissioners shall determine whether the obligations so presented are
genuine obligations of the State and whether the coupons or other evidences
of interest represent interest accrued on such obligations (exclusive
of evidences of debt held by public institutions of the Commonwealth
as aforesaid and by the United States).

B. Such of the obligations so presented for verification as may be
determined by said commissioners to conform to the requirements of paragraph
A hereof, shall be sealed in convenient packages as the examination
proceeds. Each of the packages shall be numbered, and upon each
package shall be endorsed the amount and character of the obligations
therein contained. Such endorsement on each package shall be signed
by said commissioners or a majority thereof, and the package shall then
be delivered to said committee or its agent. Said commissioners shall
keep in a book to be provided for the purpose a record of the numbers of
all such packages and of the amount and character of the obligations contained
in each. Such obligations presented by said bondholders' committee
as do not conform to the requirements of paragraph A hereof shall be
returned to said committee; but said commissioners shall keep a record
thereof in the book aforesaid.

C. After said bondholders' committee shall have presented to said
commissioners for verification bonds and other evidences of debt and coupons,
or other evidences of interest thereon accrued on or before July first,
eighteen hundred and ninety-one, obligations of the State of Virginia, all
conforming to the requirements of paragraph A hereof, as determined by
said commissioners, and amounting in the aggregate to not less than twenty-three
million of dollars, after deducting one third of the principal and

interest of such obligations as were issued prior to the thirtieth day of
March, eighteen hundred and seventy-one, and also deducting one third
of the principal and interest of such obligations as were issued under the
Act approved the thirtieth day of March, eighteen hundred and seventy-one,
as do include West Virginia's proportion, said bondholders' committee
may at any time on or prior to the thirtieth day of June, eighteen
hundred and ninety-two, present the same in bulk to said commissioners
for surrender and exchange as herein provided. All coupons matured or
to mature on coupon bonds after July first, eighteen hundred and ninety-one,
or coupons of like class and amount, or the face value thereof in cash
shall be surrendered with such bonds, the said cash to be returned if
proper coupons are subseqently tendered. And when the said bondholders'
committee shall have presented for exchange the obligations
aforesaid to an amount of twenty-three million of dollars or more, if the
engraved bonds hereinbefore authorized are not ready for exchange, the
said commissioners shall, upon application of said bondholders' committee,
issue to said bondholders' committee a manuscript registered bond of
the State of Virginia, substantially of the form of the bond hereinbefore
specified, for the aggregate amount to which the said committee may be
entitled for the obligations so presented under this Act, the said bond to
be exchangeable for the engraved bonds aforesaid of character and amount
required by said committee, as prescribed in this Act, and interest in the
meantime on said manuscript bond shall be paid as herein provided for on
the engraved bonds.

D. The said new bonds shall be issued to said bondholders' committee
by the said commissioners in the following proportion, to wit: nineteen
thousand dollars of the new bonds to be created under this act shall be
issued for every twenty-eight thousand of old outstanding obligations
(principal and interest to July first, eighteen hundred and ninety-one), as
aforesaid, surrendered by said bondholders' committee to the said commissioners,
after the deductions provided for in paragraph C of this section;
and a proportionate amount of said new bonds shall be issued for smaller
sums of said outstanding obligations so surrendered; provided that no
certificates issued on account of the proportion of West Virginia of the
obligations of the State shall be funded under this act. When said bond-holdholders'
committee shall have surrendered and exchanged such obligations
as aforesaid to the amount of at least twenty-three million dollars,
said committee may at any time thereafter up to and including the thirtieth
day of June, eighteen hundred and ninety-two, present to said commissioners
for verification, surrender, and exchange additional obligations,
principal and interest, as aforesaid; all coupons matured or to mature on
coupon bonds after July first, eighteen hundred and ninety-one, or coupons of
like class and amount, or the face value thereof in cash, to be presented with
such bonds, the cash, if paid, to be returned if proper coupons are subsequently
tendered. After said commissioners shall have determined that

said obligations conform to the requirements of paragraph A hereof, said
commissioners shall accept the obligations so presented for surrender and
exchange by said committee, and shall deliver to said committee in
exchange therefor new bonds issued under the provisions of this Act in the
same proportion as is set out in this paragraph of this section, after making
the deductions provided for in paragraph C of this section.

E. If on making the exchange provided for in this Act said committee
shall be found entitled to a fractional amount or amounts less than one
hundred dollars in addition to the new bonds delivered to it, said commissioners
of the sinking fund shall issue to the committee a certificate or certificates
for such amount or amounts. Such fractional certificates shall be
exchangeable for the bonds authorized by this Act to be issued in sums of
one hundred dollars, or any multiple thereof, and certificates of like character
shall be issued for any fractional amount which may remain in making
the exchange.

6. For all balances of the indebtedness, constituting West Virginia's
share of the old debt, principal and interest, in the settlement of Virginia's
equitable share of the bonds authorized to be exchanged under this
Act, the said share having been heretofore determined by the Commonwealth
of Virginia, the said commissioners shall issue certificates substantially
in the following form, viz.:

No. —. The Commonwealth of Virginia has this day discharged
her equitable share of the (registered or coupon, as the case may be) bond
for — dollars, dated — day of —, and No. —, leaving a balance
of — dollars, with interest from —, to be accounted for to
the holder of this certificate by the State of West Virginia, without
recourse upon this Commonwealth.

Done at the capital of the State of Virginia, this — day of —,
eighteen hundred and ninety-two.

— —, Second Auditor.

— —, Treasurer.

The certificates so issued under sections five and six of this Act shall
be recorded by the second auditor in a book kept for that purpose, giving
the date and number of the transaction to which it refers, the amount of
certificates, and the name of the person or corporation to whom issued and
delivered; and as such certificates, authorized by paragraph E, section
five of this Act, are exchanged, the same shall be cancelled and preserved
as herein provided in respect to the evidences of debt refunded.

7. The commissioners of the sinking fund are hereby authorized and
required to receive on deposit for verification, classification, and exchange
such of the said obligations of the State as may be presented to said commissioners;
provided, that said commissioners shall not receive on deposit
for the purposes aforesaid any outstanding obligations of the State which
have been once deposited with the bondholders' committee, or may be
hereafter deposited with them; the said verification and exchange for the

new bonds of the obligations so deposited to be conducted in the same
manner as hereinbefore provided with respect to the obligations deposited
with the said bondholders' committee; and the said commissioners of the
sinking fund shall issue to and distribute amongst said depositing creditors
after they have fully complied with the terms of this Act, in exchange
for the obligations so deposited, bonds authorized by this Act as follows,
viz.: To each of the several classes of said depositing creditors the same
proportion, as nearly as may be found in their judgment practicable by
the commissioners of the sinking fund, as the same class shall receive
under the distribution which shall be made by the commission for the
creditors represented by the bondholders' committee: provided, that no
obligations shall be received for such deposit after the thirtieth day of
June, eighteen hundred and ninety-two, nor shall any coupon bonds be
received which do not have attached thereto all the coupons maturing
after July first, eighteen hundred and ninety-one; but for any such coupons
as may be missing, coupons of like class and amount, or the face
value thereof in cash may be received; the said cash, if paid, to be
returned if proper coupons are subsequently tendered; and each depositor
shall, when he receives his distributive share of the said new issue of
bonds, pay to the commissioners of the sinking fund three and one-half
per centum in cash of the par value of the bonds received by him, or a
commission equal in amount to that which may at any time hereafter be
fixed by the said committee of bondholders upon any bonds deposited
with them, not, however, in any case to exceed three and one-half per
centum; and said sinking fund commissioners shall cover the fund thus
received into the treasury of the Commonwealth.

8. All the coupon and registered bonds issued under this Act shall be
separately recorded by the second auditor in books provided for the specific
purpose, in each case giving the date, number, amount of obligations
issued, and the name of the person or corporation to whom issued, and
the date, number, amount, and description of the obligations surrendered.

9. All the bonds and certificates of debt, and evidences of past due and
unpaid interest, taken in under the provisions of this Act, shall be cancelled
by the treasurer in the presence of the commissioners of the sinking
fund, or a majority thereof, as the same are acquired, and by him
carefully preserved, subject to disposition by the General Assembly; a
schedule of the bonds, certificates, and other evidences of debt so cancelled
shall be certified by said commissioners and filed by the treasurer
for preservation.

10. In the year nineteen hundred and ten, and annually thereafter, there
shall be set apart of the revenue collected from the property of the State
each year up to and including the year nineteen hundred and twenty-nine,
one-half of one per cent. upon the bonds issued under this Act, as well as
upon the outstanding bonds issued under Act approved February fourteenth,
eighteen hundred and eighty-two; and in the year nineteen hundred

and thirty, and annually thereafter until all the bonds issued under
this Act and the said Act approved February fourteenth, eighteen hundred
and eighty-two, are paid, there shall be set apart of the revenue collected
from the property of the State each year one per cent. upon the
outstanding bonds issued under the aforesaid Acts, which shall be paid
into the treasury to the credit of the sinking fund, and the commissioners
of the sinking fund shall annually, or oftener, apply the same to the
redemption or purchase (at a rate not above par and accrued interest) of
the bonds issued under the aforesaid Acts, and the bonds so redeemed shall
be cancelled by the said commissioners and the same registered by the
second auditor in a book to be kept for that purpose, giving the number
and date of issue, the character, the amount, and the owner at the time of
purchase of the bonds so redeemed and cancelled; and in case no such
purchase of bonds can be made, then the amount which can be redeemed
shall be called in by lot, as provided in section two of this Act. All bonds
of the State issued under the provisions of the Act aforesaid, approved
February fourteenth, eighteen hundred and eighty-two, and now held by
said commissioners of the sinking fund, shall as soon as at least fifteen
million of dollars of new bonds shall have been issued and delivered pursuant
to the provisions of this Act, be cancelled by said commissioners and
preserved in the office of the treasurer of the Commonwealth.

11. Executors, administrators, and others acting as fiduciaries, may
participate in the settlement of the debt herein specified in the manner
hereinbefore provided, and such action shall be deemed a lawful investment
of their trust fund. Executors, administrators, and others acting as
fiduciaries, may invest in the bonds issued under this Act, and the same
shall be considered a lawful investment.

12. All coupons heretofore tendered for taxes and held by said tax-payers
in pursuance of such tender, shall be received in payment of the taxes for
which they were tendered, and upon their delivery to the proper collector
or the amount thereof in money, the judgments obtained against the said
tax-payers for such taxes shall be marked satisfied; provided the said taxpayers
shall have paid in money, and not in coupons, the costs of said
judgments. All coupons heretofore tendered for taxes and held by the
officers of the Commonwealth for verification in pursuance of the statute
in such case made and provided, shall be received in payment of the taxes
for which they were tendered, and the money collected for such taxes
returned to the parties from whom it was received; provided the said taxpayers
shall have paid in money, and not in coupons, all costs incurred in
legal proceedings to verify said coupons.

13. The treasurer of the Commonwealth is authorized and directed to
pay the interest on the bonds issued under this Act as the same shall become
due and payable out of any money in the treasury not otherwise appropriated.

14. The plates from which the bonds and fractional certificates authorized
by this Act are printed shall be the property of the Commonwealth.

15. All necessary expenses incurred in the execution of this Act
shall be paid out of any money in the treasury not otherwise appropriated
on the warrants of the auditor of public accounts, drawn upon the
treasury on the order of the commissioners of the sinking fund.

16. The Act entitled "An Act to ascertain and declare Virginia's
equitable share of the debt created before and actually existing at the time
of the partition of her territory and resources, and to provide for the issuance
of bonds covering the same, and the regular and prompt payment of
interest thereon," approved February fourteenth, eighteen hundred and
eighty-two, and the amendments thereto, to wit: An Act entitled "An
Act to declare the true intent and meaning of, and to amend and re-enact
section five of chapter eighty-four of Acts eighteen hundred and eighty-one
and eighteen hundred and eighty-two, approved February fourteenth,
eighteen hundred and eighty-two," approved August twenty-seventh,
eighteen hundred and eighty-four; and the Act entitled "An Act
to amend and re-enact an Act approved August twenty-seventh, eighteen
hundred and eighty-four, entitled an Act to declare the true intent and
meaning of, and to amend and re-enact section five of chapter eighty-four
of Acts of eighteen hundred and eighty-one and eighteen hundred and
eighty-two, approved February fourteenth, eighteen hundred and eighty-two,"
approved November twenty-ninth, eighteen hundred and eighty-four,
are hereby repealed.

17. The commissioners of the sinking fund are authorized, if it shall
seem to them for the best interest of the Commonwealth, to make one
extension of the time for the funding of the said twenty-eight million of
dollars of outstanding evidences of debt for a period not exceeding six
months from the thirtieth day of June, eighteen hundred and ninety-two.

18. The commissioners of the sinking fund are authorized to exchange
coupon bonds issued under this Act into registered bonds in the denominations
hereinbefore provided, and to arrange for the transfer of registered
bonds. For every bond so issued in exchange a fee of fifty cents shall be
charged by and paid to the second auditor, and shall, upon his order, be
covered into the treasury to the credit of the sinking fund; and bonds so
taken in exchange shall be cancelled in the manner hereinbefore prescribed.

19. This Act shall be in force from its passage.

At this point it does not seem inappropriate to give the
following gleanings from a volume issued by the Commissioner
of Agriculture for Virginia, and published by authority
of law. It pictures the Virginia of today: