The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-02-02
ELIZABETH CITY'S DEFAULT.
IT'S OLDEST SITINGs BINK NOW IN THE
CHANCELLOR'S HANDS.
Bonds the Interest Of which the city Could not
Pay said 10 have PrecipItnted the Banks
Trouble what 10 said by EIIxnbethRns.


yesterday. when the taxpayers rend in THE
sun the news TINT the city WIS in default. being
unable TO pay liz bonds and interest coupons
maturing yesterday. and that the Elizabeth
town Savings Institution. tho oldest savings
bank in tho city. had boen compelled to suspend
payment and pass into tho hands OF Chancellor
Runyon. This bank began business in 1850.
and IL has since been rated as one OF the sound
est financial institutions in New Jersey. the
managers being considered men Of irrepronch-
Gblo character. The bank holds t56 900 worth
OF the city bonds OF Elizabeth. and tho inability
OF the city to pay the interest on these bonds
yesterday Is assigned as the principal cause OF
the suspension OF the bank. Mr. NJ W. Halsoy.
tho Secretary and Treasurer. said yesterday
that the bank would have no statement to give
TO tho public until next week. and that the
Chancellor had appointed three OF the man.
agers-Dr. J. S. Crane. l.. b. Miller. and vii
liam Is. Tucker Commissioners to examine
into and report on tho condition Of tho bank.
Tho suspension was caused. Mr.. Hasoy said,
10y the inability TO realize on assets. the non
payment OF the interest ON the city bonds hav-
ing precpitated matters.
An officer Of the National State Bank told the
reporter TINT the Manager Of the Savings In
stitution had for six months past seriously con-
sidered the ACCESSIBILITY of winding up the
business Of tho institution. on account OF the
great depreciation in value OF all kinds of Sc
curitics and the suspension Of saving banks in
every State in the Union. II was believed IN
financial circles. however that the bank would.
in time, under the protection Of the Chancellor.
Doe enabled TO almost fully meet its obligations.
The minority of the securities held by the bank
were nrst-cHss
In the last report to the state Department.
puhligbnl a 1878 tho ngrrppntnd uespfa OF the
bank ut the close Of 1877. rated nj actual value,
were t3s9119.22: liabilities. t347. 7G077 leav-
ing a surplus Of $35.35s45. Tho total value Of
the real estate and mortgaged premises was
$ig0.sl0. distributed rs follows; sllG.375 in
loans on bonds and mortgage ,nrst ienl. upon
which the interest was SIX months in arrears.
aud OF this sl3625 was in process ~ lore
closure: unencumbered real estate. t2S 22i. 90:
lg!ns on bond and mortgage lhrst Hem flle;
o. inter1st que on aiI snid o9hds ani
thereon. fi9is692; value Of land mort
cages. exclusive OF building, t2lQ,32O;
6ii25. as coat raj. $3.50 49, The ' par S value
o. The ely OF Elizabeth lnnied deoii Improve,
bank was $4,000: cost. s79.752 5O; market
value. $40 $50. There were also $500 in Union
County township and Union County Manufac:.
turing Company bonds. the market value OF
which wis rnt.d ~ the pnr value. the cost hav.
INK been ss.4s5 The loan secured by collateral
on railroad aud township stock. par vnlue. was
1920; market value. $500; amount loaned.
i17jf0O. Tho cash on hand. Interest arrrued
and due on stock ana cali loans was sl7 6sl 81,
The total Aggregate OF the assets OF the bank
was then rated As above stated. M an actual
value OF i3s3.ll922. The amount due drpOsi-
credited or To- be credited before Dec. 81. 1877.
wis s3l7. 1GU.11. which LEFT 4 surplus OF $685.
accounts open Jan. /. 1877; at date Of report.
l3iopened or re9pened IN the year 1871 $50;
and 3I5 We're closed.
Since the resigngliop Of the President. Moses
NJ. Woodruff the Vice President. Elias Darcy.
has had charge otthe bank. NJ. w. Hulsey be-
Ink Secretary and Treasurer. The managers,
ns given in The city directory. are Moses NJ
Woodruff benjamin Williamson. Elias Darby
payidw MosqgcTr2n, Joseph A. Davis VI ?. Mul-
Crane. L. 5. Hand. q. c. I. Seaman. and l.. b.
report was circulated in Elizabeth yes,er
day that the National state Bank in which tho
city funds have been deposited. has made MP
phcation FOL, II receiver. Mr. 4. c. kellogg. the
cashier. told reporter Tor IHE Sun that the
bank was as sound as wheat. aud that the pos
sibilty OF It's failure mad never even been con-
added. must have been coniounded WITH the
savings bank. for the National State Bank had
10 report to thu national Government and not
% "a Chancellor. The bank was chartered as a
State bank in 1872. and was made n national
banS,ng institution IN July. 1865,
Counci! was on Friday night offered city bonds
for 40 cents. He said he would not buy them az
any price. The bonds old ut 60 to 10 cents pre-
vious 70 the deaultlng Of the city and the sus-
pension OF the savings bank.
An AT WAS passed by the Legislature which
provided thai the owner or owners ~ the mat
loriiy of l.nral feet on an avenue or street could
nave any Ilnd pavement they wished. Ii was
iouut that tho Rlhg owned the majority ~
liu"al fcotou certain streets. II one man owned
thc majority OF irrt he could have the street
paved with wood blocks even II II sror. ~ ,'t ,,r
property owners were opposed 20 IL. Streets
were paved in that way by men who llvcl in
9ihrr cities. and pad no taxes TO tho city Of
lauds that We're gridirlned with paved streets
hriure Tue assessments were collected these
Sp"nulntors SOLD the property. and the city OF
LI~tnelh mas pceh cunpehrG. IN many cases. 10
cQMuscnto It Tor the assessments anu taxes
d, IU. hepublirans applied 70 the Legislature
IN lSf3 Tor "A Comptrullrrs Till. THIS bill. which
WAS PASSED. provided that when the Common
Council male the annual appropriations To the
departments OF the clty Government. no money
could bee transferred rom an uneNhaustrd nu.
urO priattun 90 one that WINS tXhnustrd. In s7t 4
was made criminal offence To do this OF to usc
money IN advance Ut appropriations. or TO hy-
LnthccNe loans on city bonds Tor that purpose
The Finance Department claim that the col
lection OF taxes did not equal the amount Of the
"hnual appropriations, An eN,Aidrrman AZ
serted yesterday tina, 100000 In bonds hnd been
hypolheentrd 70 III. SINGER Manufacturing
company Tor loan OF $40 Uul. ami that several
hunirrd thousand dollars worth II bonus had
been used "a ~" same manner. He SAID that
some ol the bonds wetc hypoth e'lted u year 40
In 1917 the Comptroller asked the Common
thcrity 20 sell bonds t. the amount OF Al sou 0Io
These 10 ndS were no cons 1,idHtrd or renewal
bonds issued IN 1875 To cover the entire inn
proyemcnl debt bonds. Alderman sheridan. a
mon Council. md tho resolution Lard ovnr one
week, The following We X only 81 900 900 was
ASKED Tor. Alderman sheridan then sull.
We have made s5Ol.u01 by having TINS over
ono week, tllnk We may make 81 900 900 If we
POSTPONE acton on It for another week."
On has motion the p'stponcment WAS made
lie then n~-,rLsiuri thu uil the bonus u the
Issue OF 1870 except s4sl OOD had bern sold
ana that tia Council had no authority Ia SSH,
more than TINT amount. At next meeting only
the siSl 600 WAS ASKED Tor, lu-leud al me
s. 100000 h!sl demandrd ltwas granted.
.fF % lHN