The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-04-07

careful consideration made up his mind
that he had found him in the
person of Allan L. McDermott.
After much solicitation Mr.. McDermott
was persuaded to take the Office OF Presi-
dent of the Finance Board. lie did so on
the understanding all round that he was
to have full charge of the finances of Jer-
seq City, and with the other members
then appointed-M -Messrs. Otto Heppen-
heimer, Thomas d. Jordan and Emil e.
Datz-was to take up the task Of counter
acting DIR. McGill's evil influence and re-
pairing the breeches which that gentle-
mans letters had made in the financial
reputation of the city.
"Thetsyndicate referred to by DR.. Nc
Gill was formed after Allan McDermott
had taken his hnal stand in reference to
the payment of the interest on the bonded
debt which was done next day. In this
crisis he took the position that those most
interested must either furnish the money
to pay the semi-ann unl coupons maturing
on bonds or he would stop payment right
there and let the matter go to the Courts.
The decision of character and firm
ness which he showed sufficed to
secure very favorable terms for
the city from the syndicate. They
advanced the money to pay the maturing
obligations on reasonable terms. 1t is
plain they were acting from no love for
the city but simply to protect their own
dealing with weak man or man of linn
tied ability they might have dictated al
most any terms they pleased in consider
alton of the advances they made. But
Allan McDermott was not the man to
stand coercion. and the city got the relief
1t wanted on fair and easy terms.
MGILL REMOVED.
"Mr. Hardenbergh was not q mem ber
of the Board at this time. He was never
q member at the same time as DR.. Nc
Gill. On the contrary, he succeeded
him. / appointed him in DIR. McGill's
place because believed that the Doctors
theories tended towards repudiation, and
/ had no sympathy with any such idea.
That l am right In my views as to the
tendency of his mind, am sure can be
distinctly shown by reference to the files
of the Journal. l believe perusal of
his letters will make it apparent to any
one who knows anything about financial
affairs that he did advocate repudiation
of this city's Indebtedness at that time. in
order to extort better terms from the
creditors.
MR.. M'DERMoTT's ABILITY SHOWN.
"If man of less backbone and intelli-
gence than Allan l.. McDermott mad been
President of the Board of Finance he
would certainly have become an instru-
ment in the hands of the bank interest,
which at that time had full charge aud
control of the funds of Jersey City in ad
dltion to being creditors for portion OF
the floating debt.
Mr. TAUSIG's EXPLANATION.
"Of course-I have no object inantagon-
iziug DR.. McGill. simply desire to bear
witness to the facts in the general inter-
ests of justice and fair play. l desire to
say that have not been solicited by Mr..
McDermott or anyone else to make this
statement. 1t is wholly voluntary on my
part. AS for DR.. McGill's notion that in
justice was done him in any of the articles
which have been published in praise of
Mr.. McDermott's financial services at that
time. have only to say that in my judg-
ment DR.. McGill wholly misunderstood
the needs and the situation of Jersey City,
and that was the reason l dropped him
from the Board of Finance and appointed
Mr.. Hardenbergh in his place. Had I
thought his views were sound, certainly
should not have disturbed him. After
Mr.. Hardenbergh's appointment the
Board continued harmonious until the
Court of Appeals decision terminated
Mr.. McDermott's tenure of Office From
the day when the city weathered its great
crisis under Mr.. McDermott's pilotage,
its credit has steadily improved and its
bonds increased In value"