The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-06-24
ELIZABETH CITl'S BIG DEBT.
ONE IHIRD or THE MEAN ESTATE IN
NON-RESIDENTS' H.iNDS.


Sinking Fund. delegations OF inc common
Council and residents OF Elizabeth. n. j.. prom
ises to Mt least result in informing tho taxpayers
of that city what the extent of the municipal in
debtedness IT, Some statements with regard
to the manner in which this indebtedness was
created were recently made 20 n reporter OF
THr Sun by Councilman John 7. Dunn Of tho
Eighth Ward. who represented the First
Assembly District Of Union County In
the Legislature Inst year. he said that
the present condition Of affairs was due
very largely II not entirely. to gross
mismanagcment Of the citys finances. This
charge has been openly mado In the Common
Council, tho subject has been discussed in tho
local papers. and has eliminated in an applica-
ton to the Supreme Court by twenty freoholders
forasummnry investigation Of the city finances.
The Frances OF the city have for long
time been in the hands OF a Ring or
clique. This situation dates from 1872
when, owing TO split in the Democratic
ranks. the Republicans elected the Mayor. Prior
to that time the citys finances had been In the
hands Of n Treasurer. who acted under the SUI
pervision Of the Common Council Tho winter
the Republican Mayor went into the Office. the
party had passed by the Legislature an act
known rs the Comptroller bill. 1t placed tho
city finances virtually In the hands OF the
Mayor. by giving him power to MI by appoint
ing Fund Commissioners for one. two. and
three years. Offices created by the act Tho
Mayor and the Comptroller were to complete the
Board OF Sinking Fund Commissioners. Tho
bill passed. was vetoed by Gov. Parker. and
was passed over his veto by the Republicans as
ADafty measure.
This Ring has not preserved its party char
Gcter. At present Mr.. Dunn said. the people
will not pay their taxes. because they arc not
satisfied with tho conduct OF tho city finances.
Many of them declare that they will not pay
taxes so long as the present Comptroller
Thomas b. Leggett holds his Office. His
term OF five years expired Jan. 1. 1875 and
Mayor Green would make no appointment for
the position. The present Mayor. Townley. re-
nominated Leggott but the Common Council
rejected him. and clinched the rejection 10y re-
considering and again rpJecttng. Tho question
as to whether bis bonds are stu binding is
case OF Railway official. The citiz"ns
want more lgnt upon the details ot ~.
this purpose tho Common Council hns tried to
make an appropriation to cover the eAueusr Of
books OF the department but the Ring is able t.
defeat the measure by commanding the number
OF votes necessary to defeat the Appropriation.
-, Mr.. Dunn iavors the scaling OF tho debt OF
the city TO point where the city can pay
legal interest on the bonds and provide n sink
ing fund for the payment Of the principal
when due. His reasons for scaling are as fol-
lows; In the first place. the abilityo OF the CITY
has been largely overestlmated. Much OF the
debt that stands against the city to-day WAS in
CURED for improvements IN the assumption that
the assessabe valuation Of tho city would he
como upward OF t25 900 900 or even greater.
This assumption has never been realized. The
highest point reached was little over sl6.-
100000. and from that it has been reduced to
tl3.5O0,0O0 for last year. and this year
The city is assessed at $1,000 900 less
tinue to talk Of 500 OOOO 900 and upward. and
when the city delauIted on It's bones last Feb
Ina Harlra triN van To TfIE
Bun by an on 'iHl as a lair estimate. Mr.. Dunn
said that these figures had given some OF the
the paying power Of the city. and that 10000
900 Is a much iairer estimate Even NJ the
present valuation OF ell 500 900 much OF the
property in the city is assessed AZ more than II
will sell for. In casual stroll through Broad
street, which runs through the best part OF the
city. and is withal RS handsome a street AS any
provincial town can show. there arc numerous
proofs Of this TACT. One house and lot that was
assessed last year az s90OO ana this year al
$1,000, was sold recently At that figure and partly
paid for with mortgage. Another elegant
Residence for which eos 900 was refused in 1872
has since been divided in halves. and mort
gage placed on the house and hall OF the lot
mortgage OF Sc 900 was placed on H. When the
first mortgage was forecosed recently. the
mortgagee had to buy the property tor the face
Of his mortgage. IL il assessed at $4,000.
Another lot and residence, which cost $40 900
six years ago. was mortgaged for $4,000 the
mortgage was sold for $4,000, and the pur-
chaser took possess ion OF the property. II is
now assessed at $4,000, and could be bought ut
tlZ,OOO. AnOtner mansion, Whlcn COST tlhO.uOO,
WAS sold . its present owner for less than
$4,000. The house q tho City Treasurer was
burned IT wps HT Tn @ sns sn e9 ,b 10.
city could have il tor the taxes.
These are only few Of the many instances
that could be- cited. The history OF the in
debtedness Of Elizabeth does not encourage
the cltizens TO pay il in full. the first bonds
Issued were Improvement bonds. They were
Issued uader an act thnt provided that all i'm
proyemenis should be mot 10y the property i'm
proved. To aid owners 10 these improvements
thew made by the city. which issued tt4
bonds for that purpose. The city accepted the
obligation Of the owners to pay the cost Of i'm
proyement in live equal annual installments.
As improvements were made. bonds maturing
In five years were issued 10 detray tho expense
The expectation WIS that IA they nntured. the
oity would receive tho money from tho persons
benefited This syst'm was Carried out from
about 1867 until 1870 Under II certain large
property owners were enabled TO enhance the
value OF the property 10y having streets laid
through II ana the same thoroughly graded
paved, &c. But when the bonds began to fall
due. property owners were IN arrears to n large
The Ring then. in 1878. had the Consolidated
Improvement Bond bill passed By the Legisla-
,ure, and took ~ tho hrst-named bonds by
bonds issued under the new act BY this change
the large debt for improvements that had here
tofore been lien upon the property improved
became lien upon the entire asscssnhle prop
erty OF the city. much to the Indignation Of those
whose property had not been improved. Then
mented by applications from those who had
paid their special asscssments under the old
system for rebate OF the diffcrgnce between
aggregated about 500 900. and were paid out Of
the city treasury from money obtained by the
sale of s7l2,O0Q bonds known ms funded assess
ment bonds at yS. They were issued last year
Newark refused to pay similar demands fol
rebate MS did also New York.
In addition to the three classes OF bonds
spoken Of there are f755 900 of funded DEBT
bonds that were issued To meet deficiencies IN
the city budget Of 1870 10 1875 inclusive. II has
been the custom Of the finance Ring" AS Mr.
Dunn calls IT, to issue bonds whenever any
money was demanded " the city. Long ago il
acquired the habit Of expanding the amount 81
the tax levy year in advance. The first work
OF each Common Council. on its organization
on the LIST Of January. was to pass the tax low
ordinance fixing the amount to be raised
and almost before the ink waR dry with whicf
II was written. aud the assessment rol
made out. when in fact the ordinance was no
worth the paper II was written on, the Counci
authorized the Comptroller 10 raise money
on Il in anticipation OF the collections to b'
made In tho fall. This the charter permits; bu
It is tho only provision that II makes Tor OBJ
tanning a temporary loan. This wholesale
pawning OF the tax levy has kept the city con
Btantly anticipating its income by a year.
At least ono-third OF the real estate
In Elizabeth is owned by non-rcsidonts
Thoy have come into the property n,
the result Of unfortunate Investments, and il
the existing state OF affairs many are willing I,
let tho city have IN" last reminder Of their mis-
judgment. Another third is in immedial,
prospect Of falling into the hands Of non-resi'