New-York tribune., 1886-01-17
E1lz4BErH AND HEB CREDITORS.
STATEMENT OF THE CITY ATTORNEY AND CON-
TRoILYR-THE DEBT SETTLEMENT.

TROLIFR-THE DEBT SEIILEnENi.
The city officials and citizens of Elizabeth,
whose recent disagreement with the singer
Manufacturing Company over the Of the debt set
Element has gained wide nOtoety, much disturbed
by the criticisms made upon the attitude Of The city 10
TRIBUNE reporter yesterday City Attorney Bergen ana
Controller Carleton made the following ststement con-
corning the attempts TO effect settlement OF It's dent
and tho of theSugor Company n the controversy
"The history Of the ctys financial troubles up TO the
year 1880 ia already well known. At that time deb.
600 mad been for various local improve
mcnts aud this was be@I!ng .Aterest at seven
per cent Legal decisions had rendered
invalid the collection of taxes ny
assessment In sufficient amollts TO meet tho maturing
Interest these bonds and February 1872 found the
city bankruptcy. The corruption and gross miSman
agement Of It's finances by the municipal officers through
long period OF years had brought tho city into cphd
ton where could get further credit to carry
It through the crss Thore nothing eit except Tor
the citizens themselves endcayOr to straghten ont
the difficulty and this they sec thclnseiYeH
heartily and promptly to do. In tho spring OF
1850 negotiations with the holders OF tho bonds for
settlement were begun After an examination OF the
actual condition OF the city, It admitted on
all sides that the debt could not DO carried,
and the burden must be reduced largely. protFaeted
discussion OF many plans took place AMI hnAiiy III
March, 1882 tho late Edward Clark then president OF
the Singer Manufacturing Company recomnended tiat
the city shodld ofcr TO settle tle dsOt Dy issuing III"
bonds bearing per cent interest for one.hah TIE
amount of tho old debt and interest The representa-
tives OF city were assured in writing ut tho me that
upon this lue the Singer Company Will exert all It's
energy and innueca' Tho Mutual Bsnc1t Lie InsGr-
ance Company. the largest creditor OK the city, also
favored the 80 per cont plan. THO CITY Council made
the offer promptly and prOcsoIed in good faith to carry
1t out
"The next step. that of securing the passage
OF law authorizing the issue OF the new bonds.
WIS accomplished but before much further pro-
gress toward the settlement was maze hr'
In the presidency OF the company was George ~
Mckenzie, vino at once began vigorous opposition To
% .ha' line tme um hornr @ pissI jr SSr aid mot mean to
agree settle by accepting bonds for iy per cent
of his and the companys claim bat Was WihnE 70 the
fifty per cent In cash The Other creditors noWeTfT @ @
not understand the agreement ana 10 was plainly I'M
," Nor,yifhsiandl1g this opposition, which has been
maiuialncd wlth uncommon prrsistency through
out the ue.otiations. over three millions o.
ed on the new basis OF fifty per cent bonds
be1rfng a lower rate of interest Inc amount o. the
claims owned or controlled by the singer Company has
all along however. made ii impossible 10 Setts tue deDt
question completely without lis Co"Scnt WIN ~ Il,
fusa 10 submit the matters I'm difference to arbitration
the negotiations with the singer Company wese sus-
pended nearly Year a-o The plan OF sr,t.einen' ha5
uceu going forward steadily between the ,clty duu
the asserting creditor and the approval of tho singer
Company which own pr control oI tle yet
outstanding inde'tedne,s' Us alone nectu %
The scheme aud enable tho city TO get once more uloa ~
feet. The outlook for the cty was encouraging ull'
the beginning OF the recent trouble Win
the singer Company tie occasion Ol It's refusal to py
lt taxes on the grounds that 70 already large and
cola cual creditor OF the city, entitled % eNoMpion
frot taxation pcudug the litigation Of It's claims Ihe
4 the ctT s At prcrcnt carried on ny
special lc -s1tvc enactment authorizing suill assess
DE applied 20 the absolute nceesarica oi nuhc
ipal ll,r such us school, ire lsht police, health ana
highways. inCludug HuJ salaries Tor cty "llcl1i.
This law was a;tec@si nat its validity haa oe'H .Ha-
tAlucd IL is nov ~ operation anu under u the cly -
striyu. % survive until mako some fair adlust
arut ~ dsbt which u beyond IT, power - pay ~ Iu
The ollcct OF tho pscscut attack upol the
c!ty j. 10 break down tAo plan oi
.ctt,eWeut vol advanced, wulcu Woild
rrf M throwing the city hlck again into Tic
ircht!ul condition o; l-2 ana l--3 u the cty can DC
fu eI 20 default lc nov bonds. whose Interest
Do hIs inns lar pan when due, Auu which 10 is now PIE
pared meet for o. come. thc whole scheme anI
progress o( the fcmrut W!u he oVcfthrOWn AMI the
whole s4.i.ct Will bee ppcu-d lor ears o! iuiaer con
;l1.rlsg and LITIGATION shat must increase Tie AeA'S
U.srs already inflicted and cnt 30 the ruin oil thousands
and The ultimate depopulat ou oi Jue city