New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-01
THO CITIES IN DISTRESS.

FINANCIAL TROUBLES OF ELlLADEIH'
| A DEBT OF NEARLY SIX MILLIONS INCURRED FOR
SUBURBAN IMPROvEMENTs-THE TAXPAYERS
UNABLE TO PAY PRINCIPAL OR INTEREs1-A
| DEFAULT TO-DAY.
| The City of Elizabeth, n j., will default
today on $4,000 payable at the Farmers Loan and
Trust Company in this city. This is the amount stated
by Controller Lcggett yesterday though rumOr and I'M
authentic report had placed 1t much higher or TINS
$500 600 is interest bonds and 900 il due for the
| redemption OF maturing bonds. No money mas Oeeh
deposited with the Trust Company TO meet
these obligations, aud tho City treasury
| Is empty Interest viii fall due on the first
day Of each month to come, and there are no
Indications that any provision will be made for the pay
| ments The city Is bankrupt.
The story of tue city's troubles may be briefly told
Under the provisions the charter the of opening
streets grading, sewering, paving, etc. has been
assessed upon AUDITING property in proportion to
the ncal feet OF frontage Early IN the history OF the
city appeal made to the courts, and tins method
OF assessment sustained; hence no doubt OF It's
legality was entertained. In tho days of wild spec
| ulaon aud inflated values, tho owners Of
suburban property were anxious TO increase
Its value by having It laid out into city
lots; and the Council was readily induced to
extend in all directions when requested to do 20
by the landowners, VINO cOntended that the expense
would ultimately fall upon them Thus city improve
ments were extended out into the country, and pro-
which now has only $4,000 The expenses OF these i'm
proycmcnts were by sixyears improvement
bonds, which when they fell due were replaced
with other bonds The increase OF population
did not keep pace with the improvements
and when the financial stringency came and property
deprecated the OF the property assessed for the
useless openings appealed to the courts and it
was decided that the provision Of the charter under
which the assessments had been made was unconstu
tonal and that the cost Of improvements could be
assessed property only in proportion to the benefit
derived from them.
The benefit conferred the outlying corn
fields and pOtatOe-patches, by modern pave
ments and well-aid sewers not very APP
parent and nearly the whole Of the six millions of inn
provement bonds was thrown upon the city at 9rsG
100000 1t mentioned as special hardship that
the improved property Of the city, wuicn must bear the
built up before the charter had been pro,
nounced unconstitutional; and the owners mao
and must pay for the new by which they are not
benefited. All with whom THE TRIBUNE reporter con-
burden OF debt which rests on the city upon the de-
cson of the COURT but they were compelled to admit
csion had been otherwise "a the property originally
assessed could not have satisfied the city claim sgast
city's burden would have been ligheued only little
Elizabeth" said Controller Leggett yesterday, has
always paid It's bonds aud interest TO the 1st day of
March and the ambition and intention Of her best cit
zeus to pay all obligations fat as they fall due.
But we find IN consequence the setting aside by the
courts OF ali our assessments for improvements that
all assets have been taken from Us The bonds were
back property both principal and interest
these iai Bonds d Ws admit that 0 they are
worth 100 cents on the dollar in the hands OF the present
holders. and that they entitled to It, On the other
hand, admit utter inability to pay either prinei
pal or interest for the peseDtnthat Is owing to the
the city large together with the great depression in
Illustration l know OF a house which cost the
owner $4,000 He put a mortgage on lt OF
gaze $685. a9es, sls go? water taxi SIS; in
surance $40, and he rented the house for $50 lie
be no better of The entire debt OF the city Is about
and 81 900 floating debt. unwilling TO say
the holders of the bonds 1t would do no good
at has gone abroad the residents talk OF repuda
ton 1t not so. do hot hesitate to say that they are
the bondhoders are. But can do nothing
illegal the small politicians, and they can give no
for their protested belief What want 70 convey
bOndhOldeIs and to ALL IL that this debt was con-
racted with the best intentions aud with the full expec-
tauOn OF paying 1t but that In consequence OF the
required We endeavOred TO get a bill through the
Infringement with our creditors but it met with great
opposition aud Withdrawn. Therefore We nave no
feeling among taxpayrrs is that the bondholders Will
ultimately be compelled to meet them part way IN
cated they saw fully one-haif; The debt must be im-
ished In such proportion A IL stands, they eI-
claim In despair that they cannot pay It,"
AN EMPTY TREASURY IN JERSEY CITY.
HEAVY DEBTS DUE TO-DAY FOR WHICH NO PRO-
VISION HAS BEEN MADE-CoNsULTATIoN OF Of
FICERs AND TAXPAYERS.
1t was reported in Jersey City several
days ago that the Treasurer would be unable
to meet the interest obligations which would
fall due to-day. At It's meeting last week
the Board OF Finance and Taxation passed
aresouon nsructng the Treasurer to pay in advance,
all interest that would he April l. The salaries OF
the city employees for the last month also due City
Treasurer Earle stated last night that he had not signed
warrants for the salaries there was no money
with which To pay them. loan OF 1925 900, which
was obtained some time ago from the Equitable lle
Assurance Society Of this ely and which was due yes
terday, was not paid An application to the society
the matter under consideration On May l. S2OO,OOO
Will be due to the Importers and Traders National
time interest to the amount OF 100000.
The presidents OF the banking institutions OF Jersey
the Board of Finance and Taxation. Congressman Har
denbergh, the president OF the Hudson County National
taxpayers, and ask them 10 eAucatc the city from It's
financial euibariassments, or To suggest some plan OF
reek He also favored the funding Of the floating debt
The Board Ol Finance ana Taxation hed meeting IN
| the afternoon to deyi-e some means OF raising
| the Large amount of back taxes due to
the county. The matter discussed for time.
but decided action taken The County Treasurer
threatened to open SUIT 10 compel the city TO pay The
amount due CITY bonds winch sold AT 81 in December
and January. bringing only 30 cents. A pOr-
ton he interest due to-day has been paid There IL
also large amount back taxes assessments due
the city which II expected would have been paid
before this. They have not been paid. however. and
the city has run behind The municipal debt Is Sl6
100000. or this sum- S6OOO,0O0 Ii sclt-susainlng.
The property valuation OF jersey CITY is $SOOOOOUO.
FIGHT or THE LOCAL FACTIONS.
: II