The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1898-07-15
CL0UO[D TITLES FOUND
East Jerseys Right to All
the Pequannock Shed
in Doubt.
PROPERTY LIENS NOT CANCELLED
Newark's Board of Works and
Law Department Prepar-
ing for Emergencies.
Q Especial to oThe Jersey city News."l

y Especial to THE Jersey City News."1
NEWARK, July Is. 1s98.-yvith a view
of determining the exact status of every
phase of the contract betWeen the city
and the East Jersey Water Company,
representatives Of the local water and law
departments have been comforting re-
Gently to get at certain facts. Under the
terms of the contract the city can nave
no remedy at law unless proceedings shall
have been instituted before September "a.
1900. While it is not certain that the local
authorities will have to resort to the
courts to get what they deem Newark is
entitled to, there are said to be a number
of questions remaining to be settled salts
faetorily before the final payment should
be made.
1t was intimated long ago that the IL
ties held by the water company to lands
included in the reservoir sites. and en-
braced in the pipe line right Of way, were
not as clear as it is desired they should be.
The News has told that the Fidelity
Trust Company was engaged to examine
the titles to the water plant property in
Essex County. Partial reports have since
been made by the examiners, and they
show that the i~nsinuations respecting tt
ties were not entirely g~roundless. In a
number Of cases, the report shows that
tax liens apparently exist against pipe
line property. Some of these liens date
back a number of years, and further ex-
a~rninations show HI the money was
actually paid in some cases. but nobody
took the trouble to formally cancel the
lien ON the County Clerks records.
The result of this neglect leaves the
titles partially clouded, but in a shape to
be made clear by the expenditure of a
little trouble and a nominal fee. In one
or two instances the Fidelity Company's
examiners have unearthed unsatisfed
mortgages against property. It may be
possible that the mortgages, like the tax
liens, have been paid. but not cancelled.
and further inquiry must be made. For
this reason the reports of the examiners
nave been quietly turned over to the law
department by the Finance Committee Of
the Board of Works, with a view of hav-
ing amicable settlements made with the
water company, if possible.
To get at the work Systematically eff
forts are being made by the law depart
ment to get a sort of searching bureau
established SO that the additional work
would not interfere with the other SER
vice required by the city. 1t might be
said that the work is fairly under way,
though the searching of Essex county
titles is by no means the most involved
work of the entire proceedings. Only a
comparatively small proportion of all the
land included in the water plant lies with
in his county and it is in Morris, Passaie
and Sussex counties, where the storage
reservoirs are located. that the impor-
lance of clear titles is greatest.
No argument has been entered into for
the searching of titles in the latter three
counties. but the matter is under advise
ment. There are said to be something like
300 titles to be looked over and the Fidelity
Trust Company has asked for a good
round sum to do the work. There is some
apprehension on the part of members of
the Board of Works that similar discrep-
ancies in title will be found in the other
counties and as the water is
obliged to make good all deeds, it is i'm
perative that the conditions should be
known before the plant is turned over to
Newark.
There is also said to be a disposition on
the part of the city officials to induce the
company to clear UP certain involved
water rights and turn the same over -
the city. As Newark holds $500, coo worth Of
bonds in escrow to cover this feature of
the contract, in addition to the 81 600. oG0 re-
served of the original payment there is no
uneasiness felt but that the city's inter-
ests will be taken care of. But in the sup
Elementary agreement covering the bonds
in escrow it is provided that when the
company pays out money to perfect titles
it might draw a corresponding amount
from the escrowed bonds. There have
been Instances where the water cempan
has perfected title or settled law suits over
water rights, notably the Butler Hard
Rubber Company's case, yet the titles
were not turned over to the city nor were
iAstalinents of bonds asked for.
There remains to be settled, also, the
ownership and control, after September
"a, 1900, of the Canistear reservoir and
Echo Lake. The reservoir was com
structed several years ago. yet the deeds
for the property have never been turned
over to the city. Neither has the water
company referred to the huge basin in its
reports to the city. Al the time the res
ervoir was built Echo Lake was developed
so that its capacity as a natural storage
reservoir was increased. This. too, was
left out of the company's water reports
to Newark and the corporation has given
no assurance that 1t would turn over the
necessary deeds in time.
Both Echo Lake and Canistear reservoir
are in the P~equannock watershed and the
contract specifically states that after
Newark assumes control of the whole
plant, the company cannot divert or take
any water from the water shed above
Maeopin Intake for the use of any other
municipality. Neither will it be able TO
authorize any other person or corporation
to do so. AS this provision is construed
by the local commissioners they cannot
understand the company's purpose in
Withholding the deeds. One theory adj
vanced is that the mi was holding
off iii the hope of being able to sell the
developed work to the city. but recent de-
velopments are said to indicate that the
corporation will not make much of a
fight on tina point, if it makes any at
all.
There still remain plenty of time to
settle the question at issue, but Chairman
Herr of the water department. is anxious
to have the contract affairs Strengthened
out long before the city shall be called
upon to assume control of the plant and
to that end he is being assisted by his
colleagues.