The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-10-23

President of the Board of Finance and
Taxation OF Jersey City. Upon his retire
ment from that position the Argus
said: THE withdrawal of Allan L. Me-
Dermott from the management of our
municipal finances is public calamity.
His clear head, his honesty of purpose
and untiring energy have rendered him OF
inestimable value to our city. He has in
troduced and enforced rigid principles OF
ECONOMY in our local expenditures, and
has, with the aid of his colleagues, estab-
lished an admirable financial system,
which has placed our credit above cavil or
suspicion" When Mr.. McDermott left
the Board of Finance this resolution, on
motion of former Congressman Augustus
A. Hardenbergh, was unanimously adopt
ed-
Resolved, That we express our re-
gret at the sundering of relations by
Wnlcn we have for the past year been
so amiably bound in the common en-
deavor to discharge our obligations to
the citizens sof Jersey City, and that
we testify our admiration for the spe-
cial services rendered by the Hon.
Allan McDermott for the faithful and
diligent performance of duty as Presi-
dent of this Board whereby the best
interests of this city have been con-
served and its credit placed beyond
the reach of controversy.
1t is to Allan McDermott that Jersey
City is greatly indebted for the acquisi-
tion of that valuable tract of land known
as the South Cove. In the early part of
1885 he began an investigation into the
matter. He consulted with Supreme
Court Justice Gilbert Collins, who was
then Mayor of this city, and at Mr.. Nc
Dermott's suggestion the Mayor sent a
letter to the Board of Finance, advising
that the necessary steps be taken to se-
cure possession of the grant. The Boards
of Works and Finance followed out the
suggestions of Mr.. McDermott, made
through the Mayor, and then began the
famous fight with the American Dock
and Improvement Company which, after
many years of litigation in the courts of
New Jersey and the United States, re-
suited in victory for Jersey City and
placed her in possession of very valu-
able tract of land.
At about the same time he was MAX
ing the fight for the citys interests in
the South Cove matter Mr.. McDermott
was struggling to raise the credit of Jer-
sey City from the disastrous condition
into which it had fallen and he found
it when he became a member of the
Board of Finance and Taxation, as it was
then called. The financial affairs of the
city were in such a deplorable condition
that Marcus Beach, Marmaduke Tilden,
]. Witsch and Simeon Smith resigned
from the Board in fear that bankruptcy
was inevitable. The financiering of this
gentleman resulted in Jersey City six per
cent. bonds selling for 81. There were
several hundred thousand dollars worth
of indebtedness to be met within six
months after Mr. McDermott was made
President of the Board. Fearlessly he
went to work, devoted his time and en-
ergy to the difficulties confronting him.
and within one year what appeared to
others an insurmountable barrier had
been removed. Jersey City bonds were in
demand at lis, and millions of dollars
This seemingly miraculous change of the
financial standing of Jersey City was due
to Mr.. McDermotts efforts.
One of the most important decisions of
the Court of Errors and Appeals in this
State. and one which attracted great
deal of interest, was one in which Mr.
McDermott saved Jersey City from pay
ing a fraudulent claim of $4,000. This
was known as the Elmendorf case. In
1871 the Street Commissioners of Green
vile awarded to James Elmendorf a con-
tract for the Improvement of the new
Bergen Road, in the Township of Green
vile, from Myrtle avenue to the Morris
Canal His bid of s1Oo, go was the low
est, but on the certificate of Henry D,
Butts, then engineer of Greenville, he
was paid. slO4, 1855, four-ffths of the
amount certified to be due him. Butts
gave Elmendorf a certificate showing that
there was still due him $40 1880. Before
the township could pay the amount a
bill was filed in Chancery to stop the
payment of the money on the ground
that the claim was fraudulent, inasmuch
as he had failed to comply with the pro-
visions of the contract.
In the meantime Greenville had become
incorporated with Jersey City, and while
the suit was pending Elmendorf secured
the passage of a measure which was
signed on April 9, 1875, by Governor Bedle.
This bill provided that sin any case any
work has been done or materials fur
nished for the Improvement of the new
Bergen Road, from Myrtle avenue to the
Morris Canal, in any township now in
cluded within the limits of Jersey City,
and such materials were not duly adver-