New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-24
LOCAL TOPICS.
Jersey CITY BEGGARED.


A REVIEW OF THE FINANCIAL MEASURES OF THE
BOARD OF FISANCE-THE cTTY's LIABILITIES AND
BONDED DEBT RAPIDLY INCREASING.
During the closing days of its session, last
Winter, the New-Jersey Legislature passed q supple
ment to the Jersey City Charter giving the Board OF
Aldermen the power 10 elect Board OF Finance and
Taxation, thus removing the existing Board which con
sisted Of the presidents Of the various commissions ana
the Mayor, ex-oicO At the first meeting OF the Alder
men, after the passage OF the law which was held on
All FOOLS Day, 1873 the Board appointed Board OF
Finance, composed OF unknown 10 the majority OF
the citizens. The members were George ii. Farrer,
merchant tailor and member OF the last Legislature;
Charles f. Case, Secretary Of the NewJersey gherage
Company; John ID. Carscallen, -four and feed dealer
Henry NJ. Rodgers, a dock builder; John kennard' q
statoner, and formerly OF Mayor Woods Board OF
Aldermen In New-YOrk: f. NJ Lockwood, formerly
broker in New.York, and Robert Bumstead, a
grocer and President Of the Board OF Aldermen.
being member exofcio. This Board met on April 6,
and organized by choosing John Kennard az President
BY the manner in which they dealt with Mayor ONeill
they incurred his ilwill They met again on April 3,
and ascertaned that the bonded debt Of the city was
s72762O, which they increased by issuing 100000 OF
water scrip bonds, to for term Of 40 years They
elected Corporation Counsel at salary OF 5000 per
annum and an assistant at a salary of $500 yearly,
these sums being more than double the amounts paid to
former incumbents.
Before the end Of their first month they
began TO suffer from the scarcity OF money, and
authorized the chairman OF the Finance Committee to
borrow such sums as might be required At the first
meeting in May the Board authorized the borrowing OF
100000 on two notes demand from the Hudson
County Bank, and these not yet paid though the
demand has been frequently made At the same time
decided to advertise for proposals TO sell bonds IN
New-York On May the Board of Public Works lu-
formed them that Ss35OOO would be required
by them for the current quarter. AT
that time the total amount Of cash on
hand including the proceeds Of the sale OF bonds and
from loans was s552lO 3d. OF which s51525 SO was re-
ceved from the Morris Canal Company for back taxes
The strngency was averted during May by transferring
money from account to another In order 10 meet
expenses though great portion Of the eltys
Indebtedness falling behind. The Board claimed
that the bonds could be sold at par less one percent
as they had BEEN because other cities had been putting
equally good bonds the market at much lower rates
and they said they found much opposition from the
more influential citizens Of Jersey City, which was the
fact, for the wealthy had no confidence in them.
This Lack Of confidence and the inability OF the Board To
procure the interest the bonds ana te
current expenses increased to such extent that one
Of the members resigned. On May 80 the Tres
ident announced that the bonds which the
Board had been able TO dispose Of did
not exceed 100000 and they decided reduce the price
from one per cent OFF and accrued interest 10 two per
off and accrued interest the lowest figures at which
Jersey City bonds offered. They stated In
extenuation that money must be had, and they could
not sell the bonds without making larger discount.
At the first meeting in June, they issued s5OOOO OF
bonds making total up to that time of sl,40oO1O but
by far the greater portion of these bonds remained
unsold. At the meeting OF the Board OF Aldermen on
June H. James GOps insurance broker, was elected
member of the Board of Finance to I'LL the vacancy
caused By the resignation OF j. d. Carscallen, but he
refused accept. On June -, in answer TO request
from the Board of Finance tho various city boards sent
IN statements showing that they would require sllOO
TO pay their running expenses from July to Dec ls73
as follows:
Boari Of Police Commission 1900
Boari 81 Edgcion 50g299VV
Board Of Fire Commissioners 1883
This was at the rate of s23O5l8 per annum and the
fnancers were alarmed They reported that they could
pay all salaries to that date but could not pay the war
rants or other claims and from that time the salaries
fell behind No attempt made to pay improvement
certificates, which were maturing 20 the amount OF
s1O0O0O almost weekly; the interest bonds was al
lowed to fail behind and still the Board tried to find
some one VINO would buy their bonds. Early in last
month the money realized from water rates, which is
designed to pay the expenses OF the waer-works was
transferred the general account ana speedily alb
sOrbed. On July the Board authorized the negotiation
OF all bonds remaining unsOld on the best terms the
of the city creditors had become 50 pressing that the
money to the credit OF the account trans
ferred TO the general account This served to quiet the
camor raised by those who had been on the verge OF
bankruptcy for want of money earned by furnishing
labor and materials TO the city. On the LIST ult
the Board decided that the next annual tax
evy should be S123l,1u 20, which, according to the
estimates would scarcely suffice for six months the in
tentiOn being to issue bonds and improvement certt
Gates for the balance in years gone by During TINS
month the complaints against the Board were loud aud
long on the 5th ult. the Board OF Aldermen passed
resolution calling upon the Board OF Finance to resign,
next ay they succeeded in borrowing 100000 from the
Continental Bank Of NewYork. by pledging s3OOOO IN
est for rs days and refund the amount IN case the bank
should fail to sell the bonds and what was worse the
ana will be absorbed by the two demand notes held by
Hudson County Bank OF Jersey CITY, which Is the Gus
odan of the city funds when there are any AT the time
this loan was negotiated there were unpaid warrants
TO the amount OF s39lOOO, ana overdue one year
Improvement certificates TO the amount OF $4,000,
with interest, total OF S9Oo,OOJ, on when
they have paid $2OOOOO leaving sOsO and accrued IN
teres still unsettled and for tins loan they propose 10
nay about $4,000 commission and interest In tne mean
time the warrants for salaries due teachers pOheeEen
remen and other employees have been hypOthecateIa t
discounts varying from five to twenty per cent. Inc
abOrers employed in cleaning ana repairing tue streets
were nearly all discharged and the contractors Tor the
new main from the pumping WOrhs az bellVflle anu
for the new reservoir Bergen Hill have been COM
pelled 10 stop work These public works absolutely
is th nor sncent supply of water in case OF
large fire. many of the street mains not having water
enough 10 supply than one steam treengine' and
scarcely enough for that. The Board OF n
Board which elected them, passed a resolu-
ton requesting the Board OF Aldermen 10 resign ac
per annun which the amount OF salary each member
receives The liabilities OF the city increase at inc rate
of per month"; and the Improvement certncates
mature even more rapidly there have been large
number issued and every week the number Is larger AS
surveyors certificates granted to contractors ON city
improvements. The total bonded debt OF the city Is
now as follows: General and improvement bonded
Debt 81 Certificates issued to Contractors s6i
652 Water Bonded Debt, si,Oi5sOo total, sl24l3,12
NJ would have been much larger hdd the
BOARD of Finance been able 10 negotiate the
city bonds for there is no limit fixed to restrain them
from Increasing the debt The property valuation IN the
N SAl mLl 900 with 20 low