The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-05-24
Mr.. w. H. Corbin Asks the
Financiers to Pay East
Jerseys Bill for
S4OO,OOO.
COMPANYS TALE OF WOE
Probability That the City Will
Issue Bonds to Wipe
Out the Claim.

Counselor William H. Corbin on behalf
of the East jersey Water Company, ask
ed the Board of Finance yesterday to issue
city bonds at low rate of interest to
pay the $4Go, 600 due to the company for
water supplied.
1--WE have not been treated fairly by
Jersey City. We reduced the price OF
water 81 per million gallons, threw Off
our bill 100000, all on the express under
standing that the city would pay US
promptly, yet it has not done so. Our
bills are behind all the time and it is
exceedingly embarrassing for u.s." said
Mr.. Corbin in presenting his case.
Referring to a bundle of bills Mr.. Cor
bin continuing said that the last pay
ments made were $50, 600 in February and
$37, 900 in March. The arrearages had in
creased up to Jan l last, $4,000 with
100000 account rendered on that date. He
pointed out the increase in the cohsump-
tion which in April was % and seven
tenths millions daily. When Mayor
Wanser went out of office IN 1897, the city
owed the company 100000. The East
Jersey Water Conlpay, he said, threw off
$20ee coo ana gave water free fer a year.
These srrearag ges had been steadily grow
ing since 1895.
Mr.. Corbin reminded the Commission
ers that since last summer the company
had built for Jersey City alone pipe
line from Little Falls to the Belleyille
Reservoir, which at the expiration of the
contract between the city and the COM
pany in 1902 would be useless. Already
since the supply had been begun the COM
pany had spent over 100000 over a plant
which soon would be worthless practical
ly. The company had to borrow money
to pay for the works and Jersey City
hadn't paid its bills.
Il have the authority to say to you,"
continued Mr.. Corbin. ''that if the city
will pay the interest on our bills we will
come to some arrangement for continuing
the principal by taking bonds which we
could then put into the market If you go
on drifting as you are now before the
year is out you'll owe US $5OO.OO0."
Wont you take off another $500, ,000?'
asked Commissioner Mullins.
we cannot do that replied Mr.. Cor
bin "The company has done enough.
don't think you appreciate the situation.
Your city officers have never taken any
interest in our operations although you
have been invited. None of your officials
have ever come on the work We don't
ask for anything except for what is due
to u.s.
President Lembeck informed Mr.. Corbin
that on the question of issuing bonds to
pay off the indebtedness the Board and
the Corporation Counsel had held many
conferences, and there was no doubt
whether the city would do that but as Mr..
McDermott was momentarily expected at
the meeting another conference could take
place.
Couldn't you," asked President Lem
beck, throw off the interest and we will
give bonds for the full amount of the
bill ,"
ST don't think the company viii do that,
for the reason that we have already re-
duced your rate to the lowest made in
the country, gave you 100000 provided our
bills were promptly paid, but the city has
never kept its word In view of the fact
that after paying for the works which af-
ter two years will be useless, don't think
the company will consent to throw off
interest. There is no question as to our
right to collect interest"
'.The city ought to pay its bills" said
Commissioner Mullins, "and hope that
your company will meet us amicably over
this matter.
Mr.. Corbin said that the whole trouble
was that the city received about SS5O,Ooo
from its water rents. The companys bill
was $500, 900 a year, and after paying in
terest and extensions the rents were in
sufficient to meet the indebtedness. By
the terms of the East Jerseys contract
with the city the bill for water had to be
paid fifteen days after being rendered, but
from the very beginning the bills had been
behind and were now getting bigger and
bigger.
Corporation Counsel A. L. McDermott
came in at this moment and conference
behind closed doors took place. After
long talk the whole subject was left 70
Mr.. McDermott, who will look up the law
as to the right of the city to issue bonds.
1t is understood that the city will issue
bonds for the whole amount. interest and
all, at 81 per cent. and thus wipe out the
claim.