New-York tribune., 1879-02-03
DEFAULT OF ELIZABETH
RESULT OF RECKLESS EXPENDITURES
LAVISH sIREEr ndPRoYFMEN1s rNnrAc ~. -

RESULT OF RECKLESS EXPENDTTT-pps
LAVISH STREET IMPROVEMENTS ENDING Is R.x-
RUPTCY-wHAT RESIDENTS OF THE crrv s'"
ABOUT THE mAITER-sUsPENsION nc ~, at
MENTs BY ELrzABETH's OLDEST BANK.
The City of Elizabeth, n. j.. on Satr,d.
made default In the payment OF its bonds and i,y
maturing that day. The total amount WA -
$4,000. On the preceding night the C,.a.
Council Of Elizabeth had been informed by co,orr,'
cation from the Commissioners of the Sinking D.
that default inevitable. and that the Controe,I
informed the fiscal agents of Elizabeth the v,e,,.,,
Loan aud Trust Company OF Eew-YOrk, VI the etv,,
abb ty to meet its Obligations.
The manner 10 which Elizabeth became so de,,,,
vOyed Is only the history Of many o;her cites slbes ~
war; In the period of Initiation which followed tb ~
beOn speculation npurishCd. every one imagined, ~
the city be the chief resort Of the wealthy b
ncss class OF NcW-York. Extensive houses were ,nn.
aud plans for a city of 100000 were drawn and sr.,
t0gs stepped IN to carry uem oUt Streets were lad o
and the owners 0f adjoining property mmeG atey ~.
toned to have them paved. tagged and severed ~
State law OF 1872 tWohrds Of the owners o. land a
q street had the right TO name the material with vb,S
1t should be paved. Owners OF patent wooden nav
took advantage Of ths Law and bought ~ epous
property 10 give them the right TO select "a
pavement n which they we're intcres'cd. They opIv
paid small amount Of cash the purchase. aud vavs
inorgag Tor tue bslance These tOey failed to mea,
and the property fe into tie hands OF the morteaga
WHO, J5 property pgccatrd, tailed 10 pay their aMes
lacuI- and 10 went under hc auctiouecrs hammer %,
OF taxes. Thus EiZab IN spread ont over TIA
plain. city btaut 'u, ,itu1tcd, with Improvement.
thHt were the admiration .uo UouG = Of every visitor
TIE stranger today can follow sOme OF the stree,,
paved, tagged u.b.l aud srw rci until he loses them
N hl of drItei sard aut uG.e1 weeds. Al thee
Improvement, wore TO oe pad for by rhe owner. o,
proper;, through W ch they passed. The corporatoa
was % paw f0- them hy --uing cy improvement ba1s
AMI assess The owners o. properly benefited 10 me.
the interest ana nclpa thereon ~ they accrued Oay
a. small pIoporC of This Assessment was ever pad Al
length Of the persons ssed To- these improve
menis applied to the courts fpr relief and t was de-
cdcd that thty could not b. Comrcllei 10 Day tie
whole ass s,ssmut a. the city at large was teneiedby
the improvements and suoud bear iis share Under
this lccl4iou tIe city compelled 10 make rebate n
esht-'entls aud interest 20 those VITO laf ua their
issued For many years the tx levied ty toe Couar
fell short o. jhe appropraioas. and the cltE issued
Il .ir the lax Arrears Debt u. UNITS 90 ~2i6.Sf9 lie
cty dot was sweIled from 100000 w ycars a o. %
Sjs23 SO on January l, l51J. ms + rc0ucCd 10
S56s6I3 nv c,edIt ng tue cly with - 39i cash on
hand, an. 9l32.34O bonds held Tor investment and G
THE frclmc / ~ El7t0eth on Saturday WAS generally
one OF relef though something held In dread iOf
Th'm'S B. LegcctI. the Controller was 'ound a. IA
grttn- on board ne train fo' this city In conye
,af e tiiY or Ell/tbetI stopped
men. simply bec,u,e of htI Dt.cg inability any longer
10 paw her OBLIGATIONS rs they lcola o We have paA
eSCrytlng al, aud have stOJG w uObly to cur ibs
ltcs a. long as could. We nhd hat IN
,he oppressed condition OF affairs oVn,Is
un O,e TO meet expenses aud interest On
lnci debts The ctI has u" dl'pO>l on 10 go aYthhe
except rdY the inl amount 0l ls dcbt nu t csus0l
affod to pay cent ou ths. The "tdldebi IN round
numb - !, FJ,0aO,OOO, Including ter pOr'iy ioan bs
aud an habl.. lis debt !, mo>v m bonded orm
The statement tnat the city owes SGpOOo currcn x
Y,us-s ana are. Of scLoOi-trac ei police and 'y
utccrs Is Tne cA'~ lJbiniY m tn, rrgu d
* eHdinZ OytI four mOuths. an uhtu 10 aD'Gl SJ1
600. but OF Jhs 100000 has been p"ld 10 gale ihe
effect the pr, default WILL OI course deplecd
OuI bonds, credit oi oil MIDicpn le' VII suAe
with uS. We oW" money Id Eey 10 New -1ufk ln'l
INT Ons ana Tie our credit l. c!lcd down the les
wIa We De able To pay our CT, ditOi% !
mink "A ilIr estimate Tie total yalu OF Tie
uropr:ty IN Eiz4be,h woud be 10 100000; Ger.
tHIuiy rfOOOO,uOO, as has been stalled We le Urt
Ter u now tnu ", w,re Two years D-canse We hye
been !y He within our ucoulc. Ihe 'Biy remedy on
our financial cmbaE a-Sutnt- mast come from our ct
,nr- agreeing 10 Grade the on their bonds. lacy
VIII lave consent 10 takc nominal rate 0f III efesi
for year Or two. aud al er tat !, =, s am gd
cent s;oppug at ) per ceut as highest limit lbe
lruclpal "a Il interest our DOud- maturltE todaf
amount 10 $50 900 $4,000 TIE bonds maturing ii,
year without n.erest amount to 100000 ana interest
DI, lanes 5 Green, ex-Mayor OF Elizabeth, whose
term cXuiI ed December 81, 1873 SAID; b.IOre tle
Jaw of 1876, which made AZ Statr prison IN nee. he
Council yearly permitted the eXpenaitnres To eXre'd
the aplToll!tonH. MY lO"Silioh Il tnal "" ~ ~l'e-lS
ture NcW-Jcrscy give 10 the ces ~ the state Eaeh
may become financially embarrassed the night 10 treat
and s-ttv Win their creditors"
port Ot tie Ola} nCht o tde cufftbi eNebses
ana ,t,rIe, o. tlc sohc0. teachers, 20 ice .ld city
"ilcers Ior I last four months Is Only pali true.
Tlcle have DO regular appropriations ,ti tueh
payment, but The cay ehi 10y es nave rceFeu poloa
ot their pay.
provide to prcYrnl tie dc au Ot SATURDAY or Tor
tie payment O the current expenses OF the ciil OWING
~ Il, Luinre 10 effect an Organization. Sire "a N"p
me p.rscn Council breu at d aGock. /. l. con-
posed of Republicans, seven democrats. on" Lax
payer ana one GrccubieArr NJ Reeve Is iht nom nee
ii ih kt ubltcdus President OI the Coanci, au3 M
Crane oi tie DenocIst- Ihe Two outside meh No.e
with the Democrats, but MIR. Connolly, Democrat,
votes with iLe ,LDcan>, aud thus makes he IEeTe
il report an tuc CRY Hail tuat wueu the Councii organ
zcs IL VIII proceed 10 make an appropriation Z" cover
the aciu Tuulug expenses Oi lne clty ihd h'h shta
some gols cu maze Ul thr cay ihucO'eu
nes, y special appropriation viii be vOtei.
On Friday tue EIzabeiHtOWh SAVINGS Ihstltutoh' S
oldest savings bank III tue cay. chartered ID IoJV,
through cOunsrl. applied 10 Chahceof huuyCn ~
order 10 restrain tie INSTITUTION from py lne oui Sy
money The was grant, on oaturIdSi tue OdDA
ceascd pay mrnts, and now II can only receive new
deposits invest them IN GovcInnent Zones, ahO ~
lne Il pUslts wl,eu called iOr. Inc cause Vi tne
sIs pension inany To real re on lto ass ts eop
si-lng of bOud', mortsa-cs, cay DonHe au itai ,ch
The Institution held 10000 n city bOnas, upon Sheh
pnuclpa and interest aDoui $4,000 zen ue on oatu
day. lhe d iaut III te Ply inei "a 'nTse heo - ,,oo
officers 10 taxi step when. OWiDg 10 The dtptta'lVu
OF It's hai prtyiOuSy been cOhsiefod pIOD~yi
The bank owen Its depos't0is aSC9ruJ 10 cn no TSs %
report on the 3ist OF December, 1877, F34f'CO Ins
Chancellor appointed three Of The directors, Df
:. Crane, Mr.. l.. b. Miller, aLd hr hlllah 70, lucAe
Comrs sioncrs to make an examination ana report on
the condition of the bank. ils they expect 10 De 1'H
10 do during the present week.
iherc wcfe rumors in Elizabeth tL@t the National
State Bank. known rs tAe Old state Bank, was "A
trouble, b The bank tLcy were said 10 pc uulOuhus
Ibe Mtyor 3 Vlcc-Presiden, and tie Controller ana
one OF the Council of AsscSsOrs directors OF tls hst
fufiou Rumurs also started concerning the eOr
diiiOu of the Dime Savings Bank, bn THESE couu S gS
traced 10 trustworthy source, aud were seHer4iV
considered rs id.e gossip.
FINANCES OF JERSEY CITY.
The financial condition of Jersey City Is De
ing considered by committee of citi4ens caie1 :"
Mayor Hopper make AN examination OF lts aau'a aua
devise reIne0y. The bonded debt 10 nearly Sl6oOOV
,,nnr a nrnnrrLx yAnatlon OF S6OOuOODO. During Ine