Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-02-06

Newark financial men, and that was
the reason, acting through Their ad-
vice, that the city did not place the
Market bonds on the market before
the time that we sold them.
@. Alderman Littlefield testified
that he came to you at the meeting
of the seventh of January and spoke
to you about the proposed sale of
bonds. What is your recollection as
To the time, if at any time, Alderman
Littlefield spoke to you about bond
issues? n. He spoke to me on the
first of January. There were three
bond issues or four went through
that day. He talked to me about
them and asked me whether it was
obligatory upon him to sign as a
member of the finance committee. ]
told him that the school bond issue
was mandatory and that the council
was compelled to pass 1t. the law
gave no option in the matter.
@. At that time the 100000 issue
was not under consideration? A. No
not at all. The 100000 issue, If !
remember correctly, was the only
issue passed at the meeting on the
seventh of January which Mr.. Little
knew all about.
Q. How do you know he knew all
about it? A. oh, we'tallSed about it
@. You talked to Mr.. Littlefeld
about it. A. Yes.
Q. When? A. Several times;
talked with all the aldermen about it
Standing of Law Firm.
@. Have you had any experience as
to the standing of the firm of Haw-
hns. Delafield & Longfellow, as law
yers, on the issuance of municipal
bonds, and the effect an adverse opin-
ion by them might have upon the
sale of municipal bonds at public
sale? A. They have had for several
years practically the whole field to
themselves. Before that Judge Dill
lon was the principal authority, but
Hawkins. Delafield & Longfellow in
the city since l have been city coun-
sci, which is going on eight years
have passed upon them.
@. And what Is your best Judgment
as to the effect that an adverse opin-
ion of Hawkins, Delafield & Longfel-
low, on the sale of municipal bonds al
public sale would have? A. An adj
verse opinion would prevent the sale
at any price to any of the New York
institutions or any of the institution:
in the Eastern part of this country
In fact their opinions on bonds are
taken all over the country. An adj
verse opinion would absolutely pre-
vent the sale of those bonds at PAL
or anywhere near it.
@. Did any one of the members Of
the council of 1914 ask you any ques.
lions with reference to tho PROPOSED
sale at private sale of the 800, 00(
issue of bonds? A. There was an in
formal meeting held in my office,
think, the night of the adjourned
meeting of council, that is, the ad.
journed meeting of the council of 1913
the 10Th of December. or about that
time. We talked over the reported
rundown of the bond sale and the
would be a good thing for the city tc
dispose of these bonds and not have
the impression. at least not have the
news got out that Newark bonds ha6
been turned down, as 1t would give
the city's credit black eye. and
that it would seriously handicap the
proposed sale in January of 100000
which were sold afterwards.
Q. The last letter that was received
by Mr. Boggs as city attorney from
Hawkins, De1afield & Longfellow was
a
day after Christmas.
@. And you Immediately took some
steps to see what could be done? A,
Yes.
@. And your action with reference
to the sale of those bonds to the Fed
eral Trust Company was taken after
the receipt of this letter? A. Yes
During the talk about this adverse
opinion of Hawkins. Delafield &
T 7 4. .l<nx. - 1,T
finance committee almost daily and
talked the matter over. 1t was vel
known through the City Hall and te
the aldermen that we had received
this adverse opinion.
Q. And that same information was
given to the members of the council
not members of the finance commit
tee? A. oh. yes; they all knew
about it.
@. So there was nothing secret
about 1t? A. No.
Q. From your judgment, Mr.. MI
gent. as a result of your experience
in the last seven years or more, what
have you to say as to the sale tc
Adams e. Co. at price somewhat
less than the bid of Kean, Taylor &
Co., which was turned down by theil
attorneys? A. I think it was a very
good sale for the city. 1t kept the
Circuit OIL the CITY ITOn1 TcCtlN11R any
setback. Another condition attached
to the market bonds that moved the
aldermen and myself in thinking that
this was a good sale was that these
bonds were not direct tax on the
people. but were to be paid for out OF
the rents of the market. The present
revenues of the market are now suf
ficient to take care of those bonds
and, keeping in mind the fact that
we were going to increase the rev.
enues greatly, We thought that the
loss not falling directly upon the tax.
payers, or being part of the tax levy
would be an additional good reason
for selling the bonds. Some bonds
are issued by the city for which there
is direct taxation, some are paid by
revenues; this is one of the revenue.
producing bonds.
Fort Cross-Examines.
Mr.. Nugent then was cross-exam.
ined by Mr.. Fort:
@. In the receipts that you refer tc
are included the receipts from the
farmers market, are they not? A
Yes.
@. And is it not planned as a part
of this building to cover up the space
now used by the farmers market
A. Yes, and tear down the present
market and put the farmers market