The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-07-16
JERSEY CITY'S FIX
NO SINKING FUND AND NO
MONEY TO PAY BILL.
Array of Counsel Here to Try and Have
Modified Order Regarding Mu-
nicipal Water Arrears.

James B. vredenburgh, George L.
Record and Robert Carey, ounse rep
resenting jersey City. and William H.
Corbin and Gilbert Collins, counsel rep
resenting the Jersey City Water Sup
ply Company, Joined issue today before
Vice-Chancellor Stevens on the appli-
cation made by Mr.. Corbin to modify
the order signed by Vice-Chancellor
Bergen fixing the terms of payment by
Jersey City of it's water bills, which
the court fixed upon in issuing an in
junction restraining the Jersey City
Water Company from prosecuting a
suit at law to recover about $4,000 of
arrears due 1t from the city. The in
junction issued two years ago.
1t was late when unlitigated causes
gave counsel in the case an foppor-
tunity to be heard. Mr.. Corbin opened
the proceedings by reciting the status
of the case and reading the order
signed by Vice-Chancellor Bergen. He
said the suits between the parties had
been going on for two years, and in all
probability would go on for several
years to come. He hen read the affi-
davit of John l.. Leal, expert for the
water company, which said In sub
stance that the receipts of the water
department for 1904 were 1892, 000; for
1905, 1926, 600; for 1906, $1,053, 900. Dur
ing the same period its expenses for
water account were. 1904, 1897 900; 1905,
1887, 900; 1906. 81, 053, 900.
The affidavit went on to say that the
water department of Jersey City was
without money to pay It's arrears to the
company, and that it is the practise
of the company to spend all its money
without providing a sinking fund or
other distinctive accounts.
Mr.. vredenburgh interrupted Mr..
Corbin before 1.-THE legal affidavit had
been fully read, saying that its evident
purpose was to put all the issues be-
tween the parties before the court. He
said he had the affidavit of William c.
Patterson, Deputy City Comptroller, to
meet that of Mr.. ~Leal and was not
therefore Directing to the reading of
the affidavit, but to the irrelevant
matters it brought into the present ap-
plication.
great injustice was being done the watei
company by reason of the increased cost
of carrying the $1,000, 900 of indebtedness
"when your honor hears this case or
October 12," said Mr.. Corbin. the differ
erence we shall have paid on these carry
ing charges will amount to $650,0 900 over
the interest rate fixed In the contract.
think we ought to have this order modl-
fed and have II in accord with the terms
of the original contract. The city is re-
ceiving 81, 900, 900 a year In water rent
and Il should be required by the order
of this court to use the money so derived
for the payment of these bills"
Returning to the Leal affidavit, Mr.. Cor
bin proceeded to read 1t to the end, and
continued by way of supplement to it to
give an outline of the whole case, the court
interrupting at intervals to ask questions.
Mr.. Vredenbureh then read the affidavit;
of Charles X. Hart, water assessor OF
Jersey City, which has been published. anC
that Of City Comptroller Nelson, the latte
showing that the present ratables of Jer
sey City are S16S, 900, 600 and Its bonded deb
$19. 000, 200.
The AFFIDAVIT of Garwood Ferris, unit
July 1, 1907. superintendent of construction
of the Jersey City Water Supply Com
pany, giving a detailed stimat of tn
cost of the Jersey City water system
was read by Mr.. ~Vredenburgh with con
Of the plant, as 1t stands today, a
IS, 547, POS. The deponent declared that dur
ing the years he was In charge of thu
work he kept a careful account of tn
cost of various branches of the work
and that the figures he gives are based oil
these accounts.
Mr.. Vredenburgh, at the conclusion o
his reading of the af1davits. said tina
there was no equitable basis for the pres
emit application. He commended that thu
status of the case was not in any sens
different from what 1t was two years age
when the whole matter was passed upol
by Vice-Chancellor Bergen.
'If your Honor shall impose upon tn,
city of Jersey City, said Mr.. Vreden
burgh. IAN order requiring us to pay II
accordance with the optional agreemen
which we rejected because we say tn
Water Supply Company has not fulfilled
its contract to us, then you must hav'
the whole case before you and go into tn
merits
Mr.. vredenburgh insisted that the cit,
was amply able to pay in accordance
with the order signed by Vice-Chancello
Bergen.
Mr.. Corbin said that no step had beel
taken by Jersey City to meet the pay
ments prescribed in the courts order. II
said that the city was obtaining its wa
ter at an a~verage-of about $S4 a million
gallons.
He insisted the aff1daVitS offered by thu
city were all based on accounts receivable
and that the charge made by the JERSEY
City Water Company that the ,city had M
money specifically set aside to meet IL
water bills was not denied.
s'They have carefully refrained from
saying that they had a dollar in such al
account" declared Mr.. Corbin. "The en-
tire water revenues of the city are beini
spent. The money derivable from axe
are not available to pay these bills"
Mr. Vredenburg and Mr.. Carey both ros'
to answer these structures, but Mr.. Corbir
went on to declare that the books Of thu
city showed its tax levy was two years
behind. and that the arrears of taxei
amounted to 81. 1886. 900. adding: "a mos
pitlable situation for a city to be in" de
clared Mr.. Corbin, 'anf one that makes
our contention more clear that this ordel
ought to be modified"