The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-12-22
A TOWN.
Why the Singer Sewing Machin Works at
Elizabeth, N. j., Shut Down.

why tn0 olEScr StHtnS aCIAH ftOEhS at
Elizabeth, N. j., Shut Down.
Special to Philadelphia Press.
AS a terrible example of financial inebriety the
trouble of Elizabeth is unique. 1t all began
years ago when Comptroller Leggett induced the
Singer Manufacturing Company, a heavy holder
upon the collateral of 5000, 900 of new bonds, the
ostensible object Of the loan being to tide the
city over for a few months and save its credit,
then first becoming dubious.
The money went to pay interest on the old
bonds, as lots of borrowed money before had
gone, and left the city owing not only its bonds,
but the loans as we'll. This sort of thing ended
up very quickly one day when the Comptroller,
unable to borrow any more cash with which to
pay interest, shut up shop and set his clerks to
figuring out how far underground financially he
had buried the city, the Singer people meanwhile
mixing up an interesting batch of arithmetic
and indignation in determining how much they
would have saved if they had let the city 60 to
smash when it first sought their help.
The clerks found out that the city was under
meath something like So, 600, 900 of debt, at rates
of interest that kept it crawling upward with
the relentless regularity of a hungry thousand
legged worm in pursuit of a grub.
The Singer people, which means the Singer
company, Edward Clark, its president (now
dead), George Mckenzie, now its president, and
other officers figured out that besides their origi-
nal investments they were out the 800, 600
which they had to show a heap of scraps Of
paper, which said that the city of Elizabeth
would pay them something like 81, 1000, 600 some
DAY. yhev ..;a .,.u,,, ..n -,,,oa 49,. -. ,,.v
said it was awfully sorry, but it guessed they
were about right. Awful sorrowfulness wasn't
recognized as legal tender in the Singer Office,
and, the city being unable to scrape up any more
substantial satisfaction, relations between the
TWO parties quickly became strained. The most
promising plan of settlement of all those preached
In the succeeding years of negotiation was at a
critical point when Edward Clark died and
George Mckenzie succeeded to the control of the
Singer interests.
Mr.. Mckenzie is Scotch and honest He didn't
see why cities shouldn't pay their debts as well
as anybody else. He expressed his opinions
plainly. Comptroller Leggett and his treasurer
had gone to prison and the new set of men at the
city crank knew not Mckenzie and the old favors
of himself and his company to the city. When
Mckenzie said that the city was q thief the Off
GERS "sassed back"
The Singer people obtained enormous judg-
ments against the city, aud then got mandamuses
to compel the city to pay these judgments. The
city assessors who were commanded to levy the
taxes and meet these mandamuses resigned. No
new ones were appointed, and, on the plea that
municipal chaos was the only alternative, the
city induced the Legislature to pass, all in a day
and unbekuownst-like, a bill for the Governor to
appoint State Commissioners to assess ane have
collected tax enough to pay the police, school and
other absolutely necessary municipal expenses.
IIlS placed the CITY Wnere 1t coul1 St with
polar severity and watch the mandamuses and
interest pile up, secure in the assurance that
forever, unless it sooner ruled otherwise or
the law was changed, it could refuse to pay q dol
lar of the debt and still have all its running ex-
penses regularly paid.
Mr.. Mckenzie said that this was more thiev-
ing. The city officials said in speeches and
papers that he was a pig headed old Scotch mad
man, and that if he had died instead of Clark tho
debt would all have been settled years ago. Mr..
Mckenzie's angry. passions were not
assuaged by little pleasantries Of this
nature and bitter personal animosities
quickly and trebly complicated the difficulties
between the Singer company and the city. The
courts sustained the new law, and the attempt
to collect the taxes levied under it upon the
Singer works has brought about the present
crisis Mckenzie threatens, besides closing the
| works, to add a million and a half to the aity
debt at a stroke by selling for the next to moth
ing that they will bring the 5000, 900 bonds and
accrued interest that he holds as collateral for
the old 500, 600.
Meantime. between the obstinate president
and the obstinate city, 5000 workingmen and
their families are wondering what they shall
substitute for the slice of daily bread they have
regularly carved from the big Singer works loaf
for as many years back as most Of them ever
take the trouble to remember.