The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-02-01
CITY'S DEFAULT.
TNrRIVIGfNCE ~ STREET IMPROVE
MEMS. IND THE RESULT.


che Interest l. SOt aud Cannot he pntd.
The Comptroller Of Elizabeth, N. j., has
ri,cu formal notice to the Farmers Lonn and
Trurt Company. the fiscal agents OF tho city
that ho will le unable to pay the bonds and in
trr.-t coupons maturing to-day. and at the close
ofhusiucas hours the city will be In default.
The Commissioners of the Sinking Fund
,rrt On Monday evening last. and Comptroller
lccgelt then reported that the city must default
b. .au-c she could not borrow money, aud the
Cnmmiss ioncrs. after n long md serious dis.
question. approved the Efforts of the Comptroller
to maintain the credit of the city. and directed
him to give the notice 10 the Farmers Loan and
Trust Company NJ New York rhy that he gave
yesterday afternoon. The Comptroller was
nl-odlrrtrd to reduce the clerical force IN the
Finance Department to two clerks. and to cur
tai expenses i'm every possible way. Tho city
l. in delft for current expenses and salaries Of
school teachers. police and city officers. to the
rm.unt Of 10000. no salaries having been paid
fer four months past The city owes also about
t5irUO 60 banks for temporary loans. one local
lan, having advanced about $4,000.
For year last the Comptroller has made
strenuous Efforts to avert the disaster that has
c.ruo lie urscdihe Mutual Benefit Life Insur-
nu., Company of Newark. tho Equitable Life
ly-nrnnrr Company OF New York. and the
Hff 'iuIuINNlNIlUE company Ni ENxNlttn-
p.rf. tonrr,pt u lower rate Of n,crcrt than
g.. cont. n tho city bonds that they hold. These
co,p.r.;Iou- own the large majority Of tho
rl- The smaller hondholdrrs were willing
g. fa.o q lower rate ~ interest. but the Mutual
j. 10 demanded the full rate. Comptroller
1.-:eu was. therefore unable to pay the sal
arcs of tn" city employees; hence school
g.. 'Arr- and police oflccrs had to hypoihecate
h''rpuy warrants at runous discount Re-
c'Ny. however. even the spectators refused
r.. .ount their bay warrants. and the families
o' 'H' school teachers and the police began TO
tt.non the authorities for relief The Com.
r. % Council. ia the hope Of tdins over the
hrHu'ul crisis. authorized arrears Of taxes
lCa1- 10 the amount Of sijnOOO.
Eut here again an insurmountablc obstacle
" encountered. Tho law authorizing arrears
of .Ncs bonds iorhids the sale Of such bonds ut
lc- than 9j cents. II Is y general law. not in.
t.'tod 90 avpiy to F2ihcth. hut it does apply
g. ler. aud TO her disadvantage: for when the
hon.'s wore offered in the market no one would
lur them. because the city Improvement bonds.
wli'h are more valuable. are quoted at 70
CENTS. and even rs low H. Go
u - now expected that the now Common
Council would provide means OF relief for the
Suffering families Of the c,y's employees but
wien h convened In the first week ~ January
=
nine Democrats and seven Republican Alder
mon In the Council. One Of the Democrats.
Alderman Connolly. voted with the Republicans
und made "a deadlock in the Council aud nj
every meeting the vot, has been Sios. Al the
meeting on Friday evening last Assem- hlyman
juan Dunn. who is q member Of the Council.
Denounced Alderman Connolly rs traitor -
his party and an enemy Co. the best interests q
tho city. Tho Council alone hnvr tho power 81
nt a
ments 90 tho city Government Tn" RurrppriA-
lions made lat year are about exhausted. and
new appropriations must be made or else the
police must Ice discharged. tie school houses
closed. and tho gas turned n n th" s'r"et-.
pop%a tom Is e.tmsi e j d TaS y tvab@ @
property in ISIS was sii 6ii9is Tho taxable
property in 1876 was so 25u SO. Within a
ysar Il was discovered that the Rs-cs-ors.
elected 10y III" people. and sworn 10 assess prop
eriy at It's fun and fair value wcrr as- oss boz =
som' property W eighty per cent Of iis value.
and oihgr properly NJ twenty per cent. ot it,
value. The Arcndc, for ins'ancci rercntly
mortgage on It u sjO.pOO. II cost tl5O.hn To-
hutd. and tn" land even now must tr worth
S21 uOO. 4 comuanv in Eiz,hcthport is assessed
for real ".tu- $500 0OO. and for personal prop
erty 100000. The machinery OF that com pHny
cost $500 900 W good Judges shy that the
dollars for real estate and half a milton Tor
personal. A Democratic Assessor In R'puh-
friends and made their taxes So light that yrar
nf'er year he Is rea!octed. A proper yauafon
L.
1t s stimated. foot up at 800 l0.0lO.
~ az onset to part OF tha city debt there arc
- .sO00W, which would reduce the debt
H.op.poO, or ten per cent Of the city's prop
The administration Of the citys affairs has
improved in late years. In 1873 the rity's eX-
p"ndlture was t2s7 900. and the tax lew Of that
year WIS only t222.O0l. In 1874 the eNnendi-
ture was 1908 900. and the tax lcvy WIS 1895 Ou0.
u 1910 the expenditure was t270.0Oo, and the
tax levy was 23i 900. In 1873 expenditure WAS
reduced To Slt4 600. and the levy
500 900
The ciiy's embarrassment is not duo TO either
oyerissue OF bonds or defalcatOn OF any kind.
Neither ono nor the other Is charged. Wooden
pavement schemes, aided by owners who
addition 10 the yearly expenditure being more
than The yearly income. are the cause OF all the
solid and substantial kind, but many OF them
are quarter Of century ahead Of the times.
The city has Of paved streets, % miles opened
streets, IS miies: severed streets. SO miles {;
nlgged streets, IS miles.
Tho matter Of paying the debt or the interest
on II has been openly discussed in the cry
council and b} the public Tor years Al meet
ing Of the city Council in November last. when
N" question u creating $3.50 900 city bonds WIS
under DISCUSSION, Mr.. Patrick Sheridan Of tho
ghth Ward said; In the Lords name. don't
and above bonrd. and he madr no bones about
that ne bonds would never be paid, Mr., J..
Harvey Cory q the Sixth ward replied that
In 1867 the bonded indebtedness Of Elizabeth
did not oAceed $4,000 ami Mo floating debt
spIcuous IN the Pacific Mail steamship Com
Eany, bought ffty area near what has become
known rs Quality Hill. in South Elizabeth
early in 1861. and began NJ once to im-
prove the property He and others pottiourd
the. city 10 pave the streets at Quality Hll
with wood pavement The city paved the
street, the Nicolson Pavement Company doing
The. work, and then issued improycment bonds
and assessed tho property benefited. The
assessments were 10 be- paid in five annual in
stallments Of 20 per cent. each. but more than
one-hali Of the assessments have not been paid.
street Spectators in Elizabeth saw that there
were millions in the wood pavement bonanza,
and they soon organ ized what was known as
The wood Pavement II ng, which was composed
OF wealthy and Influential Democrats and Re-
publlcans. The success attending the suceula-
lions OF Dimmick and his neigh ors. in South
Elizabeth, tempted other men 10 embark Ia the
wood pavement bus iness, Crane 4 Tubs, sash
and blind makers, who We're backed by wealthy
m"n connected with the local banks and insur-
unce companies got the contract for paving tho
htrects in North Elizabeth. with Brorklebank &
Iuypors patent wood payement4 and they
paved the grand boulevard from Elizabeth TO
Newark. Then II number Of property owners
ln West Elizabeth, among whom were Judge
Colbert ) Green. Dr. Carleton Of the Methodist
Book Concern, pr. Green, and other wealthy
mon, had the John Bryant & CO. patent wood
pavement laid IN their section OF tho city pr