The New York herald., 1879-09-20

THE DEBT OF ELIZABEr III.

A CITY OF SPLENDID EXPECTATIONS PLUNGED
NECK AND EARS IN INSOLVENCY.
The city Of Elizabeth, N. j., with population of
$4,000 people. is greatly distressed ut the present
time by of its enormous debt OF $4,000. 900.
The residents imagined that the place would become
great resort OF New Workers and property round
about was bought and held at most extravagant
figure. Among those who willing to lend the
rising city of Elizabeth money the brothers
Peter and Robert Goelet, and their lawyer. Mr. Am
brose Monell yesterday told the following story to
the HERALD reporter
Peter Goelet bought about five years ago the bonds
of the city of Elizabeth The affairs of tho city have
rather precarous for the last couple of years
The interest on these bonds not paid and the
Messrs Goelct brought an action IN the hrst place
against the city of Elizabeth recover the entire
face value of the bonds. claiming tnat their failure
to pay the interest on the bonds of the city justified
them. The Goelcts applied tor receiver, based
upon the ground that the money raised by taxation
should have been applied to the payment of
the interest and principal of the bonds, and that
1t had been diverted TO other purposes This mo-
ton Is still pending. The Goeets subsequently,
brought suit at law to recover the interest due
these bonds and obtained a judgment against the
city of Elizabeth the exec ution OF which however
was returned unsatished, no property being found
upon which the marshal could levy. This failure to
pay interest and the inability to collect the judg
meut has been made the basis OF suppicm entail
complaint upon the motion tor a receiver for the
city property. and which will be urged addi-
u
Comptroller Thomas N Leggctt, OF Elizabeth city.
said in regard to the $50 far applying for
receiver is concerned II is all nonsense because what
is he to receive? All the appropriations for
tain specified purposes, and the interest appropria
ton being exhausted. there was nothing left We
failed like man does In business. Ho do they
pect to be paid? Can you draw blood out Of
turnp? We'll, that is our condition. We
can't pay these people. and they will only
seeking to get money that cannot afford to give
them. The very course that our creditors pur
suing toward us is making US daily poorer and
poorer, from the fact that the enunciation of their
purpose deprecatcs property aud decreases Its
value. The people of this city OF Elizabeth
anxious to do verythng within their ability to
able them do for the bondholders all that
time has now arrived when the interest OF the
bondhoders and the taxpayers is identical, and
realize much without the aid OF the other.
The taxpayer can never get release without the
of the bondholder. Ii takes $780, 900 run
the city OF Elizabeth, and we have got to pay the in
terest on $60O0.0OO most OF which Is owned In New
York city. We have gone into great improvements
and incurred considerable expense. Our rate of
taxation last year was SO SO, and we found that
the income of the property taxed not SUM-
cient TO meet the levy. Ny judgment il that the
bondholders had better meet with the taxpayers
and have concert OF action. The bondholders will
find that can lay before them our full ability to
make arrangements to adjust tho debt to its full
limit In consequence of the suits instituted there
has been great Decentralization and confusion among
citizens and real estate has gone down In value
have done year ago, and each day we are going
from bad to worse. He paid the interest the city
debt to January aud the city detaulted In Febru
airy.