New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-22
READJUSTTNG ITS DEBT.

ACTION OF ELIzABETHS CITY COUNCIL.
The City Council of Elizabeth. n. j., held a meet
ing last night to hear report from committee
appointed to confer with the city's creditors with
reference to adjusting the debt For the last three
years no interest has been paid on the bonds. The
debt on February l $6,40000O, much
of il having been contracted between 1866 and
1873. and was incurred by opening new streets,
putting in sewers and laying pavcments. Real
estate for several years has been steadily depTecl-
ating in value. and there has seemed TO be no help
for it, Several plans for raising the debt have been
suggested One was entire reputation, but that
naturally failed to satisfy the creditors aud then
it was suggested that the debt be adjusted a
reasonable basis of settlement. The creditors have
steadfastly refused to listen to any proposals for
settling the debt de ir ing nothing rather than
part of what was considered All honest debt. The
principal bondhodcrs were the Singer Manufactur
ing Company. the Mutual Benefit Life Insurance
Company, of Newark, the Goelet estate, of Now
York, and the -EtRa Fire Insurance Company, of
Hartford.
Soon after Mayor Seth b. Ryder assumed the
duties of his office last January he appointed a
method of settling the debt This committee ap
pointed a subcommittee consisting OF James K.
Eng ISL. the Rev. DR.. 4. Kempshall, pastor OF the
president, Peter Bennett, Patrick Sheridan and l..
\. Fulton. This subcommittee reported
last night through its , Chairman a5.n,; Mr
which the committee had in getting the creditors to
agree AS to any terms of adjustment the report adj
vses four things An offer OF the city to pay all cred
tors III per cent bonds bearing interest semi-annu
ally, the basis of settlement OF fifty cents on the
dollar; to appoint aman by the Mayor whom the
City Council shall approve, who shall be en-
plOyed to regulate the exchange OF the new for
the old bonds; that the bonds shall run from
five to forty years at the option of the
city, and that the interest for the first
year shall be put in the next tax levy, and only used
for the benefit of the creditors who accept the
diuons OF the reuuced Indebtedness. The report
was adopted, and the motion of Councilman
Rankin it was resolved that the City OF Elizabeth
should offer to settle its debt by issuing bonds for
one-half the amount of the Indebtedness; that the
bonds no dated from July |, 1882, and that the in
teres for the first year be added in the next levy OF
taxes, and the City Attorney be authorized TO pre-
posed new bonds. committee OF four members OF
the City Council was appointed to assist the Mayors
Committee In arranging with me creditors for the
satisfactory settlement of the debt. The committee
il as follows: W. NJ. Deutsch. o. ID. BarInore, \. Is.
Knapp and L. j. BlatZ.
The action Of the Council seemed to give entire sat-
isfacuOn last night; so far as could be learned The
fact that over So U00, 900 of the debt stricken
out bv the Council after a consultation with the
largest creditors made many taxpayers believe that
there still hope for the prosperity of the bank
rupt city" The one man who more than any other
opposed this adjustment of the debt was President
Grover OF the Mutual Beueht Life Insurance Com
pany He was determined that the stockholders
of his company should not lose anything in
this settlement, but AMI DOdd, who succeeded
him IN the presidency of the company, said
that as the company had great deal OF property in
Elizabeth compromise OF the bonds would do less
harm to il than the steady depreciation OF its real
estate. When once this company was willing 10 ac-
cept from the city, smaller creditors concluded
TO do likewise. The Singer Sewing Machine Com
pany through its president, Edward Clark, con
sented last week to agree To the proposition of the
Council and the 1Etna Fire Insurance Company
has been DESTROYS of having the other creditors take
what the city can afford ~ pay.