Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1879-11-29
WHnicipaI Indebtedness

Yesterday tho suit OF Peter Goelet aud others
against the city Of Elizabeth was decided in the
u6itt,: States Circuit Court at Trenton. This
case YES argued before the Court by Messrs.
E!JrIdgo /. Gerry and Bradbury G. Chctwood
for compaiuarts aud Mts;rs. Benjamin Viii.
hanson aud RobtrS h. Chetwool fer defend
ants Tho points 10 tho decision tf The Court
arc as follows: The case vas an application for
an ItJuCcion against tho TRY Of elizabeth, ro
srainug lis caiee,s from receiving tho debts
Que 10 the rliy, end iOr The appointment Of
recover 10 take charge Of tho moneyG and
cli,c els OF tic Corporation for tho benefit of is
creditors. Tho application was based upon Tho
grounds that tho city WGs inSol7ent, hev!pg u
bonded Indebtedness Of upward of $1,000, OiO,
ani being unah!c 10 pay The Interest on tho
same. Tho city officials, alter collecting tho
revenues OF the Corporation, spent them 10 tx.
IraroeaDt eastics and Etl nero cyt,apagant
ru! so words. Tho cGmrialnanIs hold six hoods
oi The city To Tie amount Ct $l29, 600, which
arc dcnomlna:cd funded debt bonds and we're
authorized by n city ordinance ard On ant of
the Legislature. The city dl not pay tho in
te:cat On these bonds. Ga September Is tho
oompInlnanIs obiaiArl Judgment against the
city Tor tin sum Of $G,S0T.32,;. Tho amount OF
interest Gu2 them. and an execution which was
Issued was returned 'nnlla bono" by The mar
shnl.
Tho Court decided that tho cases Of the COM
piaInanls hhrr II" standing in court of equity
ut may bn truo.' tho decision sayP. that tho
ccmrlalnnnls have not u plain. adequate and
comploto remedy at law for all that they ask,
nut Inc Court is ct opinion that they hayo fer all
that they Sro entitled 10, Concrdinc for tho prn:-
Ont that thny are judgment creditors If an in.
solvent municipal corporation, and thSt they
havo lalicd to 1cah:o upon their execution tho
amount OF their claim, yet their romody at law
IS mol exhausted. 1t appears from tho charter of
thO city OF Elizabeth that tho Common Council
had Tho general power 10 rRlso by taxation mon
~ To pay The interest upon tho city debt, lnon
principal Hs may bo due and payable. Tho
supplement thereto, under which tho com.
plnnsHts' bonds FRO alleged TO have been
issued. Is silent rs TO providing The means
OF their payment. Tho Legislature probably
thought That tho authority in Tho original char
ttr WAS ample enough, rs tho supplement gave
40 power to incur now liabilities hut simply 10
Issue lundod debt bonds for tho amount Of tho
lloatlng debt al ready contracted. Tha Supreme
Court OF Now jersey has tho power to comuol
tho corporation to provide by taxation tho means
TO pay Inc accrued lntore.t upon tho bonds Of
Tho compliments, which ia all at tho prosont
umo that they ere entitled TO Whether this
Court has The right to interfere by entertaining
proceedings in equity af,or tho remedies a! law
have been exhausted it will be time enough TO
consider when tho emergency arises. Ith5s not
yet arisen. Under the circumstances, a. thoy
now exist Tho Cont is of opinion that tho suit
cannot be tcrtained. and tno bill Of complaint
ls accordingly dismissed"