, 1881-06-19
MORTGAGING A CITY.
The Entire Town OF Eiixubeth, ". T.,
Likely to E:e Confiseatcd to Pay the
Town Dehty-A Court Decision by
Which Public Creditors Cam Seize

, | Al1AEl3 tO Eat &OHk*cItCu Gb 1A4 kaC
ToWn Dehty-A Court Decision by
Ns'l11c1, Public Creditors Cam Seize
Private Property.
N<n r"r's H<rul. J,.ne u.
The City Of Elizabeth, y. D., has reached
another stage in its progress rs bankrupt
concern, aud by decision Of the Supreme
Court Of the State, given on Thursday last,
is now i'll the possible danger Of Il rate Of
taxation which would amount tn Il virtual
contiscation If all the private property in the
| city. Tile fact Of a bankrupt city is not TN
common, but Il city where it is possible for
creditors to secure Il mandamus directing
the Assessors to fix II rate or yall1a-
tIon so high as to lie 4 virtual conscati0n
of the property is unique. Considering
the amount Of debts under which the city
is resting, the citizens take the matter very
calmly, and i'll solc instances are rather
pleased witt, the Situation than otherwise,
since it gives them Il present very low rate
Of taxation, 4 reporter yesterday visited Il
number OF officials and reaLestate holders in
the city, and found a great conflict of opin-
ion prevailing. One officer connected with
the financial department Of the city said:
!" 1t would be long story to 30 back to lsG4
and thereanouts, and tell how War eNtraya-
gallce anu other stronger loss.s affected the
city officials, and olr big debt began 10 creep
up. we ran streets out over the county in
4 manner which was tiazzillg for time.
and left. Ont OF one batch Sl5o. 900 were sold
| 1T IT even before the signatures had BECOME
try, and the money lay fur eighteen months
i'll i fayorit bank, and the City ne1er gut a
until January, Is79 that the city
finally declared, its inability 10 meet
the claims upon it for interest and other
things, though before that time measures had
:ll Of no avail, as tie city was bankrupt a
lung time bcfurc the crash finally came, and
any officer with grain Of conl,uun seslse or,
what WAS more needed, common honesty,
| would have Known il and not lave gone I'll
! rakn. the money. from the people to ;lcconl-
! piisl1 Il feat which was simply impossible.
| Well, it CAME, and We have TWO of our ex-
! city OFFICIALS safely locked up in prison be-
others are out simply because nothing was
ever done against them: According to the
statement made Jan. l, 1881, our city intebt-
curess is aas follows: Consoltlateet improve
S::;l ,o;o; 1unded assessment bonds, s697, 900;
ss;sarasr;: ;io'sSs"t S"aas ooS4 o5; s;noa 'E
"as GoSas '2S; s5S 600: *''o39 ;-os nretonSc sonS
$1,000. and temporary }olns, ;s:,sam: total,
'',:t4l,'l- In these attempts to make the
taxes meet the demands of the clty's credit
ors TIC assessment roll in 1875 was pushed
NY ~ @H,pUV,nuV+ Will IL lAlt VI .>.trJ f cent.
but even this lid not suffice and IN $50 the
valuation came down to II little under ST.
co., U50. with rate OF IL. Last ycr the rate
w;!s LII, but l!l::lnlailsls added rs, making
the tot*! .li .Ihe largest creditors of the
pary, from whom much OF the eight hundred |
thousand and odd Of the lloating debt was OBJ
1:!inct, and the Mutual Genelit Insurance
Company: The former compan; las al i'll
tterest 1t from one to one and L half millions
III the city i'll lis large sewing nachine works,
while the Insurance company has about one |
and q half millions i'll fifty pieces OF property |
taken IN under foreclosure: They. have not |
s1tcd Oh the bonds especially, as these have |
some time to run and have only dctaultcu i'll |
their interest. but the money lent could be |
sued for at any time, and it is this point that
Is being pressed.
Meanwhile Railway was in fully IL, bal !
q state OF debt a,.l with special reference |
to that cit; the Vail Mandun,us act was |
passed: This made it pOsslble for Il city to
be dealt viii. different from any other debtor,
alld provided that when city was declared, !
bankrupt and judgments were secured |
against il, Il Judge Of tie Supreme Court |
sloul step i'll lis I'LL arbitrator, rirst seeing to
1t tllat the current expenses of tile city were
paid. si1t then apportluNing. such moneys to
the creditors rs jle thought proper. Some
one who llutla $',0U0 claim against Railway
Eot Il Judgment agalilst the city. and the
'fta"egians,' IN PLACE Of lixln@ this creditor
l>y providing for his lr1satcllc ont of the
taxes undertook to force him i'll Under the |
Vail act, and when it was brought to trial
anu appealed to the Supreme Court the act
was declared 10 be unconstitutional because
it might l:terferc with vested rights, anu be-
c;suse the State. though sovereign and not to |
be sued WITHOUT its consent, could llos 1ra,ls-
Ter that sovereignty to Il city, and that il city
must Eo under the same rule rs any other
debtor. This decision was given on ThursUay.
and Oh Monday when the Elizabeth case
came up of course we could mt 20 under the |
'al MAiltia'nns act, though the counsel rep
resen'lnE the Mutual Benefit Insurance Com
pany and the Singer Company said that thew
were PERFECTLY willing to regard the Vail act |
Is binding, and the Court gave them the priv
llegc ot taking ln;ndanllls to compel the
AZ ssess"1S to pes tGo oo ~ the pending tax levy
pressing for payment. This was not issued,
but instead an appeal WAS taken which sends |
the matter OH for another year, and. besides.
these large creditors do not wish to have
such Il measure. They cannot srixc the Dub
tic property i'll use for public purposes. The
amount put III tile taxi Levy means Il tay rate |
o1 1o ler c2nton our present valuation which |
Is really :ontlscation, and this IS nut on real
estate onl5:, but on personal properly. II ail
the assessors resigned, as they have 4 right
to no., there would be no one on whom to !
serve the mant'a,nus We would elect other
T. ASssssorf n: ;;;t ;a;cSorn IN to law but until they
te. served, :l1sd by refusing to quality they
would st:1ye oll service, and meantime w.
would pe living III 4 state Of bankrupt bliss
Ut roalrst We could raise no taxes for the
Of Dl!r city government, but we
could have 4 vigilance committee IT, Earn
prdrr, ant the lighting Of the streets cnuid H.
lone hy prly;lt: means. We could hire State
,ollstabieS, and the schools could bu run as
private pay schools open to all.
"New Jersey, being the most prosperous
State IN the Union. would ncet! No Statc /
taxes. and tie county. if no taxes were naid &
il, Wntlld have to take Il turn lit the line Of
creditors" ~ W !
Another person having large interests in
said: We are in il pretty 1iy. in
Iced, and Just now l think Elizabeth is II I,nt-
er plage to UT ont Of than stay in. There
ire wl!ule tracts of land which ina ,
,ccn abandoneu, and although the f:n,- i
tuller. las put them III for sale in
accordance with the tax-Iaw the city w's ?
:"HMpsilcd HI to buy the'si in. Elizabeth ouyt
here btin. eighty trains Il div to ths III; c;tv
.i'ti the SAME returning But there arc mani
iyuSes vacant. aud house cnstinr g ~, t t