The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-09-06
PARK BOND COLLAPSE
Various Reasons Assigned
for the Hesitancy Of
Local Capitalists.
VIEWS OF PRESIDENT THURsTON
The State May Take Some and s,
May the Owners Of the Park
Lands---Expensiye Mr..
Dugan.

Dugan.
The failure of the effort to self ths
County Bonds has aroused no end Of in
terest among the taxpayers of the city
and everybody is asking everybody else
how it happened and why it was. II the
bonds were to have been sold for the use
| and manipulation of the Board Of Free.
holders no one would have been sur
prised at the absolute failure of bids.
The scaly reputation the Freeholders en-,
| 1oy-yes, really seem to enjoy-would
have explained it ALL But the money
that is to be realized from the
sale of these securities Is to go to
the making of necessary public
improvement and is to be disbursed
by commission of gentlemen than whom
there are none Of higher standing in tho
county. Was the mere fact that it had
been made the duty of the Freeholders to
market, them enough to overcome the
value the connection of their high toned
commission with The enterprise should
have given them? One of the best known
| financiers in the city intimated that per-
haps that might have had something to
| do with it.
| III gentleman who was known to
have standing here, he said, chad gone
into the market with the bonds and said
they were all right. why the likelihood is
that they would have gone"
That Is only another way of saying that
the fact that they were to be given out
/ only on the assurance of the Freehollers
was the thing that made bidders wary.
Mr.. THURsToN's REASONS.
Mr.. Charles B. ThurSton, the president
nj 1Trfy
| variety of reasons to offer in explanation
of the failure of bids when he was visited
this morning.
In the first place." he said, ssthe time
for the advertising for bids and for the
| opening Of bids was unpropitious. The
summer vacations.
"Then, in the second place, ''the local
advertisement was mistake. The notice
was not seen by outside capitalists who
ought to have been tempted by it.
sIn the third place the bids happened
to be invited at time when there is an
over stringsncy in the money market.
Money is commanding high prices now,
and four per cent. bonds were not tempt
ing enough. They had better investment
tor their money.
MR. DUGAN's COST.
.Then, too, investors generally like to
know that all the powers that handle
public securities are in accord The atti-
tude OF the present County Collector may
cost the county many dollars. he says
he will not sign these bonds. at Z leAss be
has said SO. don't know wheoher he is
of the same mind still, or if he is, how
deep his determination is. But his an
| nouncement that he would not sign was
a presage of litigation that investors did
/ not like. 1t may deprive the county Of
premiums that IL might have received by
the sale il he had been with u.s.
| sHTh0n tl6re'a annEFar ciFCTITYlQfaFe9
The advertisement for proposals declared
that the lot must be sold in blocks of not
less than $4,000. We have received as-
surances thai many of those whose prop
erty we propose to take for park pur-
poses are willing to aooepB bonds for the
price, and that, too, without any increase
in the price. Except the Highwood site
owners, none of them come up to the
$50, 900 limit, however, and so we could
not do anything with them AS to the
Highwood site owners can say nothing.
They may be willing to take bonds in
payment, and then they may not. Mr..
Smith, the agent for the owners of the
Cartaret site, says that majority of
these are willing to accept payment in
the bonds at par.
THE STATE MAY BUY.
"The absence of investors from the city
is, as have said, q considerable factor in
the failure. Even the members of the
Park Board were away except one or two
when the bids were to be handed In. Col
onel Heppenheimer, one of the Park Conn
inissioners, said that he thought he might
induce the State School Fund Commits
sioners to invest $150,000. 1t would bo
only an exchange of government four per
cents for the county four per cents But
Colonel Heppenheimer was away in the
Adirondacks while the bids were being
solicited and when they were opened ]
have not seen State Treasurer Toffey or
State Comptroller Anderson since that
time, and so can't say what the chance
of doing anything with the State School
Fund Commissioners is
do you not think that if the bonds
could have been issued by the Park
Board without the interference of the
Freeholders-do you not think that you
would have had better luckr' Mr. Thurs
ton was asked.
81 can't say that" was the reply. '"The
parks are for the benefit of the county.
The bonds should be county bonds. They
should have the signature of the county
officials and the great seal of the county
affixed to them. They should 20 out as
county securities, and not as private pub
lie securities. It was proper, therefore,
that the Freeholders should have been di-
we have nothing to do with the market
ing of the bonds. That is the duty Of the
Freeholders."
BIG DEMANDS FOR MONEY.
"Why should the bonds have been
sold?" asked another well-knewn finan-
cier who was spoken TO on the subject.
Investors can get more than four per
cent. for their money. They can see six
and eight per cent. for their spare cash
for some time ahead. The time is MOI
favorable to the floating of the bonds"
Another gentleman expressed the opin-
ion that the failure of bids will not affect
the market value of the bonds favorablv.
Colonel Toffer mny bring the proposition
that the State School Fund exchange
$3.50, 900 of it's government four per cents,
for the new securities 20 the notice OF tho
trustees of the fund at their meeting on
Tuesday next.
Manager Appel Home.
Mr.. Appel, manager of Kessler's Hall.
arrived home last night. He was met at