Daily Los Angeles herald., 1879-02-18
THE INSOLVENT CITY.
Partial Reputation Advocated by the Con.
mon Courcil of Elizabeth.

The bankrupt city of Elizabeth,
N. j., presented most sorrowful
picture yesterday. it being the first
business day after the Corporation
had officially declared itself unable
to pay even the smallest portions
of it debt. Policemen hung list
lessly around the railroad station,
teachers walked earelessly to the
public schools, and even the few
city officials engaged around the
City Hall, when urged to give some
information, had an air rab0ut them
as if they thought that every mo-
ment they spent in the city's
service was so much time lost.
The case was different, however,
with several ladies, some of them
quite aged, who made their way to
the Comptroller's office. They
were, in fact, the principal Wis
itors to the city departments, and
were anxious to ascertain what
prospects there were for them to get
some portion of the money due
their husbands, or sons, so long en-
ployed in the city government.
Quite a number Of then also were
actual bondholders.
A report having been circulated
that the bondholders had already
instituted proceedings against the
the city, q reporter of the Herald
called upon Mr.. Ioggett, the
Comptroller, in regard to this, and
in reply to the reporters inquiries
he said: Cup to this moment /
have not heard of any such pro.
ceedings. am only in receipt OF
a letter from Mr.. Ralston, Presi.
dent of the Farmers Loan and
Trust Company, our financial
agents in New York, and in the
course of his letter he writes:
"'You have my sympathies. You have
struggled nobly and manfully to prevent
this disgrace, which, let me say, falls no
upon you, but upon those only who have
succeeding in pulling you down."
After reading this exirac
the Comptroller added, tina
in so far as the principal creditors
were residing in New York, hi
hoped the Herald and other jour
nails would impress upon the Cit.
Council of Elizabeth tho import
ance of organizing at once. Z"
cannot do anything" added Mr.
Leggett, "without their approba
tion. They are not organized
have not elected q president, and
as executive officer, 1 can do moth
ing without their mandate. Pleas
correct, however, one importan
statement which has gone tn
rounds of the press, and that is tha
the Equitable Life Assurance Com
, pany owns $1,500,000 of our bonds
} To my knowledge they do not hol
any of our bonds"
"Who, then, holds the ST, 500 60
} enormously attributed to this com
, pany?" asked the reporter.
"Aye, there's just where the sui
7 fering comes in" replied tn
Comptroller. "rhey are held al
= the way from Maine to Georgia by
widows and orphans and others.
Y This being partial explanatio
!. for the appearance of ladies !
mourning and downcast wome
. making their way to the secret RI
cesses of the Elizabeth Financ
9 Department, the reporter converse
with several leading citizens, all I
y whom were astonished to hear thu
il the Equitable Life owned no MOI
il Elizabeth city bonds.
}, ''They must have unloaded |
Q time" said an ex-member of th
}. Assembly.
"And why should they not?
II said a member of the City Council
d "They have been well posted as
,. affairs in Elizabeth. AS to whe
the bonds went to, that is very dl
ticult to say; but the Comptroll
no doubt is right when
says they can be found Q
G. the way from Maine to Georg'
A. 1t Is common rumor here, al