The New York herald., 1879-02-04
THE INSOLVEN7 CITY.
Partial Reputation Advocated by the Common
Council of Elizabeth.
WHAT COMPTROLLER LEGGETT SAYS
Denial of the Statement that the Debt Is
Held by Rich Corporations.


The bankrupt city Of Elizabeth. N. j.. presented
most sorrowfu picture yesterday. it being the hrst
business day after the Corporation had officially de-
clared itself unable pay the smallest portions
of its debt. Policemen hung lstlessly around the
railroad station teachers walked carelessly to the
public schools, and the few city officials en-
gagged around the City Hall when urged to give
some information had an air about them il
they thought that every moment they spent in the
city's service much time lost. The case was
different however. with several ladies, some of them
quite aged. who made their way to the Comptrollers
Office. They were. in fact the principal visitors to
the city departments. and were anxious to ascertain
what prospect there for them to get some por-
ton of the money due their husbands sons. SO
long employed in the city government. Quite
number of them also were actual bondholders.
report having been circulated that the bondhold-
ers had already instituted proceedings against the
city, reporter of the HERALD called upon Mr.. Leg
gett the Comptroller in regard to this. and in reply
to the reporters inquiries he said:-"Up to this mo-
ment have not heard Of any such proceedings.
am only in receipt Of letter from Mr.. Rolston. pres
ident 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 sympathes. You have struggled noby
and maniuy this disgrace, which, let say,
esoded ss a0S in pull pulling is" you down.
After reading this extract the Comptroller added
that in so the principal creditors residing
in New York he hoped the HERALD and other jour
mails would impress upon the City Council Of Eliza
beth the importance Of organizing at once Il can
not do anything" added Mr. Leggett, without their
appreciation. They unorganized, have not
elected president, and, executive officer, do
nothing without their mandate. Please correct how
ever, one important statement which has gone the
rounds Of the press and that is that the Equitable
bonds. To my knowledge they do not hold any of
our bonds"
buted to this company" asked the reporter.
AYE there's Just where the suffering comes in."
from Maine to Georgia by widows. orphans and
Others"
This being partial explanation for the appearance
OF ladies in mourning and downcast women making
their way to the secret recesses Of the Elizabeth
several leading citizens on the subject all of whom
were astonished to hear that the Equitable Life
owned Elizabeth city bonds.
They must have unloaded in time" said
member OF the Assembly.
.'And why should they not % said member OF the
fairs in Elizabeth As to where the bonds went to,
that is very difficult to say. but the Comptroller
doubt is right when he says they be found all
the way from Maine to Georgia. 1t is common
rumor here, also, that our City Hall has been sort
of brokers' Office for time back where certain
parties have purchased city bonds whenever they
could OBTAIN them ut prices ranging from ten to forty
cents below par and then redeemed them at par at
the City Treasury.
DEp1oRApLE LOSSES
Whatever truth there may be in these reports of
city officials hourshing while the city of Elizabeth
was actually going to financial ruin. there be
doubt of like the following showing actual suf
yesterday young woman about twenty-seven
years OF age. having been ten years principal Of
the primary department in public school,
pot having received dollar Of salary since October
last went TO the Ezabethtown Savings Bank to draw
of her savings for actual and necessary expe-
ditures, when the bank. where she had deposited
all of her savings had just closed its doors, owing to
the fact that too many Elizabeth bonds were among
its assets.
.'what is to be done % was the question asked Of
leading member of the City Council.
I'VE can pay--that is my answer" he said. "Our
debt to-day is $3.50 on every man. woman and child
in this city. We can't pay it: We must compromise
and reduce the bonds to such extent that the city
by equitable taxation of two per cent and by seal
ing of the debt can hold up its 3Sld; We can pay
from thirty to forty per cent on te debt that is air
and the rest must be wiped out"
.'why don't your Council organizer asked the re.
porter.
Because Of the members have an idea that
the moment the Board organizes the bondholders
will get out mandamus compelling the members of
the City Council to vote for appropriation provid
ing for the payment of the interest these bonds
and, really, we are not in a condition to do it, The
majority OF the members of the City Council will,
under circumstances vote for any interest city
bords until such time equitable adjustment
has been made all around.
MEETING THE SCHOOL
At the meeting Of the Board of Education last
called to order letter read from the City Attor
ney i'll reply to the question whether any criminal
won a Tes g o se
ney writes that the case OF the State Hastead
being appealed to the Court of Errors the decision
not having been published lie prefers not to give
opinion for the present.
After the reading of this communication Mr. Cor
bin moved that the Board go into secret session.
Commissioner Egcnolf objected Whatever was
being done. he sad should be open and above board
he did desire shut out the public II the public
Commissioner Corbin stated that some action
had to be taken by the Board that should not
be furnished to the public, and. insisting upon his
notion it was carried and the Board went into secret
session. At the reopening of the doors Commissioner
Day moved resolution that the public schools of
Elizabeth be closed and that expenditures be
incurred by the Board The resolution laid on
the table by vote OF ii to ).
Commissioners Keppler offered resolution that q
committee Of three be appointed to ascertain IL any
disposition of the fund for schools has been
made different than for this purpose; whether it has
been kept intact and needfu to consult the State
authorities in regard to any diversion of the school
fund; also to consult the city counsel to pro-
the necessary legislation aud prevent the
renee of any matters which might endangcr the edu
cational interests OF Elizabeth. The resolution
adopted, and after the appointment of the commit
tee the Board adjourned.
II rumored around tho City Hall last evening
that some OF the Newark creditors had instituted pro-
ceedings for the purpose of obtaining attachment
against the Finance Department of Elizabeth and pre-
vent the payment of the ordinary supply bills.
The exceedingly chilly atmosphere at the City Hall
attributed to of the coal dealers, who, it
was stated, refused to supply the city with any more
fuel.
THE BONDS WELL SECURED.
To THE EprTon OF THE HERALD
Permit me to say that you msinformed about
the amount of Elizabeth bonds held by various par
ties There is not amount of two millions held by
any one corporation, and the you hold
ing that amount does not hold million.
Ihe Comptroller OF Elizabeth makes the debt
SJ,00O0y0, aud he says the property liable for IL
amounts to S25.UDO,UUD, while others, who good
judges. say 1t amounts to Si0,Ooo,0OO. Either sum
will make the bonds good.
The trouble seems to be, in the greed for local
Offices attention is given 20 the city affairs.
nm ahl "a. that fI,oro