The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-11-27
BANKRUPT ELIZABETH.

DECISION IN THE SUIT OF PETER GOBLET AND
OTHERS AGAINST THE C1TY-THE APpLICA-
TON FOR RECEIVER DENIED.
The city of Elizabeth, N. j., which has popua-
ton Of over thirty thousand. has been for long
time in such serious financial difficulties that its
creditors wished to have receiver appointed. re-
ceiver for city is q feature in legal history.
Only two prior cases to that Of Elizabeth are on
record. One is that Of Elizabethtown. KY, which
was decided last June, and the other is that OF
Memphis, Tenn. during the preceding summer.
From the parties interested in this last cause celebrS
the wing facts cleaned The city of Eliza
beth owes its rapid expansion and development to
the influx Of New Workers, who were compelled to
seek outside the metropolis suitable homes lorg de-
MED them on Manhattan Island on account of the
absence Of rapid transit In an evil hour q NUM-
cipa ring was formed and this ring went to work in
the most approved Tweed fashion. Experiments
were made to the most lavish extent in fancy pave
ments and boulevards and in a brief space OF time
the debt Of the city went up into the millions Tho
usual result Of such jobbery and extravagan was
reached and Elizabeth was unable to meet her obi
CATIONS. Over hundred suits were entered in the
against her, and one day in September, be-
fore the Supreme Court at Trenton, five cases were
heard. One was an application for a writ OF man.
damus to compel the Council of Elizabeth to meet
and pass an ordinance directing the Board of Assess
sors to assess sum of money on the property OF
the city to the Judgment and also to compel the
assessors to meet and assess the necessary tax.
THE GOBLET CLAIM.
Yesterday the suit of Peter Goelet and others
against the city OF Elizabeth decided in the
United States Circuit Court at Trenton. This
was argued before the Court by Messrs. Elbrdge L.
and Messrs. Benjamin Williamson and Robert 4.
Chetwood for defendants. The points in the de-
csion Of the Court are as folows:-The case was an
application for injunction against the city OF
Elizabeth restraining its officers from receiving the
debts due to the city. and for the appoint.
ment OF receiver to take charge OF
the moneys and effects of the Corporation
for the benefit of its creditors. The application
was based upon the grounds that the city insol-
vent having a bonded Indebtedness of upward OF
5000 900, and being unable to pay the interest on
the The city officials, after collecting the
Of the Corporation, spent them in extrava-
giant salaries and still more exravagant public works.
The complainans hold six bonds of the city to the
debt bonds, and were authorized by a city ordinance
and act Of the Legislature. The city did not pay
compliments obtained judgment against the city
for the of $6.307 %, the amount of interest due
them and an execution which was issued was re-
turned "nulla bona" by the marshal
DECISION
Tho Court decided that the cases of the compl'in-
ants have no standing in court of equity ut may
be true" the decision says, that the compliments
have not plain, adequate and complete remedy at
law for all they ask but the Court of opinion
that they have for all that they are entitled to-
ceding for the present that they are judgment crcd
tors Of an insolvent municipal corporation. and
that they have failed to realize upon their execution
the amount of their claim, yet their remedy ut law
IL not exhausted. 1t appears from the charter OF
the city OF EllZaDeLn tnat the common COUNCIL
the general power to raise by taxation money to
pay the interest upon the city debt. upon temporary
loans and upon such part of the principal may be
due and payable. The supplement thereto, under
which the complainants bonds arc alleged to have
been issued, is silent as to providing the means
of thcir payment. The Legislature prob bly,
thought that the authority in the original charter
was ample enough, as the supplement- gave no
power to incur liabilities. but simply to ISSUE
funded debt bonds for the amount of the floating
debt already contracted The supreme Court OK
New Jersey has the power to compel the Corpora
ton to provide by taxation the means to pay the
accrued interest upon the bonds or the complain
ants which is all at the present time that they
entitled to. Whether this Court has the right to
interfere by entertaining proceedings In equity after
the remedies ut law have been exhausted 1t Will 10
time enough TO consider when the emergency arises.
II has not vet arisen. Under the circumstances, as
they now exist tho Court is OF opinion that the suit
cannot be entertained. and tho bill of complaint Is
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