New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-12-24
oprN FOR REPUDIATION.
,,rsnv yrsrIcH NOT FOR TER CREDITORS


Formulation Uy 4 State or country Is always
-, Glow and tqsid Ols growth. Tho notable cases OF
,atio BIZ c0mmaniti.s Of honestly cOntrac'ed de''s
no 70 shown thar they took advantage OF existing laws
ira mel COR or purposes 10 protect their rePud"uD9
action Repatriation IN Ills country has long oeeh re-
garie as ex lusiyely OF southern growth Inc results
of tho war lef, Southern communities In desperate
nlhts There was mana cement OF local analrs aler
the war, AMI in too many cases the quick way to wipe
ont TIE debt At the expense OF honor was adopted But IN
fem Of these cases could ToI u0atOn have taken place
but or the existence OF enactments that frnshed TIE
looph9les OF es ape some timo ago TRIBUNE reporter
had his attention drawn to the fact that the course OF
legislation across the Hudson during series OF years
would snow alarming advance IN the possibility OF
reputation becoming plant Of Northern growth. An
investigation started which has occupied several
weeks extending into all the laws passed affecting pubic
credit Ia New rsey Ii has resulted in tho discovery
Tat the door stands open in that state for any COM
uuty 10 repudiae its debt and laugh at It's creditors
1t should said Justice the people OF New-Jersey
that this condition OF affairs has been brought about
without full knowledge The apparent necessity to
leslate for single city led Legislature after Legisat
ure 10 pass laws the general effect OF which was not
studied at all THE TRIBUNE representative taOuated
ana summarized these laws and took them 10 a prOm
ncnt citizen lawyer OF the State for Ierusal, VINO
said: amazed at the exposition you make here
knew of every one OF these laws. l knew they were
them and doubt If any other lawyer in the state mas
done So There can doubt that under these laws
there might be general reputation by every com
munty in the State II is not likely that any such '
Will take place but opportunity established no one
can predict what may result
The laws to which especial reference is directed In
order to understand the situation passed by no less
than four different Legislatures As they lent them
selves 10 directed TO the dishonor % single CITY
they contemplation of any general ten
dency laws they enacted The first Oh the series
WAS the Vail Mandamus bill in 1880, providing that be-
fore any could direct judgment against munle
patty to Oe collected by taxation II must make inquiry
into the value and taxable capacity of the real estate n
tereste and determine how much tax such city can en-
dure without undue hardship and then deducung the
amount required the State, county and city expenses
give the residue, If any, to the judgment creditor In
word. the creditor only was to do the walking The
courts declared the law unconstitutional the ground
that impaired The binding force Of contracts and took
away rights OF enforcement which existed when the CON
tracts were made.
Tho second measure quietly enacted by the Lesis
laturs OF 1852. Under then existing laws judgment
creditor of municipality could, as right obtain a
mandamus compelling assessors to levy taxes to satisfy
his Judgment. The law wisely made it misdemeanor
for an assessor after duly qualifying, to neglect to per-
form his duties This held TO cut of any right to r.
s.n pending the competition Of his work The object OF
such law is obvious. The proper assessment ana coec
ton Of taxes lie at the foundation Of all government
this work must be done or anarchy prevails The ability
to hWart implies the ability 70 reyOlutOniZe society
and hence this law But this the law ut which the
promoters Of repudating laws next struck, procuring
ae passage allowing TO resign at any
time 1t is SAID that the bill went through without the
legislature really understanding Its import ana per
haps this Under the protection OF this repeal
four assessors of the city Of Elizabeth suddenly and
simultaneously resigned the night OF Juue l, 1855
aud their resgnaions instantly accepted without
comment by the City Council MandAmuses were ia
pending behalf OF creditors TO whom no interest had
been paid in years The subsequent attempts OF
small creditors, among them Chancellor Theodore Kun
yoD, 10 serve man iamuses met by the statement
that DO quorum existed in the Board OF Assessors to
recognize the writ
No attempt was made to fill the vacancies until after
the creditors had signed stipulation that they would
not press their judgments into the tax levy Then the
same assessors reappOinted 10 I'LL their une1
PRED 1t IS held by some eminent authorities that
tits law is clearly in contraventiOn Of the Constitution
Is well as those which followed.
The third measure was an act providing that the
county board Of assessors might levy taxes for state and
county purposes The object was to keep State ana
county authorities from interfering compel the filling
Of vacancies In boards OF assessors in behalf Of their
own treasures.
The fourth law known as Bill 4G7," passed in
1854 with railroad speed 1t passed through six lead
ugs references to committees two reports ana TWO
engrossncs in fortyeigh IL furnishes the spirit
purpose and opportunity Of deliberate population Iae
two preceding just quoted passed in 1882
designed as tho foundation OF" Bill 467" II provides
that when there shall be quorum OF the assessors Tor
ten days after the first day OF April the Go'ernor may
appoint Commissioners OF Taxation who shall be re-
gared as officers OF the State and not OF the city, aud
thus DC mandamused for any Judgments against
such city. They shall levy taxes substantially as asses
ID INIT hay arapY
any tax for any salaries Except those connected with
leyyng and collecting taxes Judgments, or interest on
any bonds other oblig cations Penalties Tor on-pay
en are OF unparalleled stringercy tenants furni-
ture may sold by the c0nstables IN payment OF the
landlords tax on realty. Under this law Reputation
becomes local option Throughout tho State OF New
jersey Whenever half board OF assessors choose
10 resign and a majority Of Common Council agree to
accept their designations the bonds and other obligations
o. such city may become no more valuable than waste
paper for all Of enforcing payment OF either
PRINCIPAL or interest eectualy cut Off Capitalists
are asking, Car such law be constitutional Can 1t be
upheld by Of the STATED" Their questions re-
eeiye a significant answer further on.
The fifth law followed in 1885, and enables city On-
fals 20 pay their salaries notwithstanding Bill 467
BY providing that balances from appropriation may
lie transferred TO any other Thus by levying an excess
on each OF the items Of fire. highways police poor and
schools aud voting the excess 10 pay salaries, repudi-
atlng city may 20 swimmingly suffering for nothing
though cheating ITS creditors out of the last dime
The sixth law also enacted In 1885. II provides
that the county board OF levy taxes for
interest on any bonds which may be Issued Ia
change for old ones for interest any Old
The state singles class OF bonds and distinctly
declares that no taxes shall be levied for interest
them by county board which 1t as distinctly author
ies 10 levy taxes for interest on newer bond Tho
anomaly thus presented Of county board levying
inside a city, on a strictly city tond which bond must
be a scaled down compromise bond is one which ha
not before been presented In American Jurisprudence
Here Is a cham OF laws beginning IN 1880 and extend
ing to 1885 all having IN them the possibility Of the lega
destruction Of "a creditors right Of recovery.
feature OF the case the attitude OF the state courts
Since the overthrow OF the Vail law the courts have IN
yar,ahlv sustained these laws. Bill 467 has been