Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-08-26
CITIZENS LOAN
TO EAST ORANGE
SAVES THE DAY
Mayor Gregory, ON Eve of Va
cation, Attacks Sinking
Fund Commission.

Confronted with an empty treasury
this morning. officials of the City OF
East Orange had lively time scurry-
ing about for cash to meet the paw
roll. due within a week, and pay cur
rent obligations Mayor Julian A.
Gregory had to d, his vacation trip
until he finally slaughtered out the
difficulty by arranging to borrow
$50 from a citizen and got the water
commission to transfer a section of
an unexpected balance of $4,000
The latter bods- has two months
grace on certain obligations and
loaned S26.250.s5 for three months at
5 per cent. interest. and when the
needed warrants, bonds. etc, were
shaped up for the financial transact
tions. the executive departed for his
fortnight's rest in the Beautiful Isle
of Somewhere. declining to say
where, in order to escape any enthu-
siastic supporters who might try to
get him to stand as the Democratic
candidate for the mayoralty at the
coming primaries
one of the annoying features of the
search for loans to meet the lmmedl-
ate obligations of the city was the at
titude of David S. Walton, chairman
of the Sinking Fund Commission, who
told City Treasurer Louis McCloud he
could not have any of the commits
sion,s S24. 900, which is drawing . per
cent. interest in the Essex County
Trust Comapny and Peoples Bank, of
East Orange, unless he would pay
per cent. interest. This attitude of
the chairman plainly rolled the execu-
tive, and Mayor Gregory did not
mince matters in discussing the
"hold-up" of one branch of the city
government by another.
1--WE tried to get a loan from the
banks, who refused to advance money
today. claiming they did not have
any," said Mayor Gregory THE
Sinking Fund Commission has s24 900
for which they are getting per cent.
interest in the banks, yet they ask
us in the emergency to pay 6 per cent.
The bonds of our city are amortized
at 315 per cent, and this is the sum
the sinking fund is expected to realize.
Six weeks ago we got loan from the
commission at Az per cent. when the
banks were charging that sum. l do
not consider /. fair to charge the
people of East Orange 6 per cent. in
terest, as the commission. travelling at
that rate, would be taxing the present
generation for the people of the fu-
ture, as at the end of thirty years,
with this extravagant interest rate.
the commission then in power would
have collateral in excess of It's re-
quirement."
The mayor said he has had trouble
with the commission since he refused
tc grant Alonzo Durkee, it's secre.
tary, 5000 raise in pay a year and
a half ago. He said he has been fire.
quently harassed by the body, which
up to his administration made loans
at per cent. to the city. Mr.. Wal
ton, head of the commission, was
turned down by the mayor for reap
pointment on the Board of Free Lii
hrary Trustees. He was out of the
city today.
One of the features of the transact
ton is the fact that the water
boards money is in the Essex County
Trust Company, one of the banks
which stated to Mr.. McCloud 1t had
no funds to loan to the city. BY the
warrant drawn and signed by Mayor
Gregory and Water Commissioner
Thomas F. Macksey, the latter as
sisting in Strengthening out the tam
gle, the city finally got it's funds
The commission members are Will
lam S. Franklin. an official of the
Peoples Bank George W. Fortmyer
and Edmund R. Crippen. 1t was re-
ported to the mayor that Mr.. Frank
lin, one of the commissioners, knew
nothing of any orders for a per
cent interest charge to the city.
Mayor Gregory had negotiated with
another citizen for loan of $4,000 at
per cent. With the assistance given
by Mr.. Macksey, Water Superintend-
ent Arthur A. Reimer and other off,
cials in securing the water loan, the
mayor was not compelled to make a
further attempt to borrow. The bank
ing situation is undoubtedly due to
the war conditions and no further
embarrassment is anticipated.