New-York tribune., 1906-06-21
LOSS ON PIER LEASES
RIG COMPANIES FAVORED.
Citu Three Millions Ont by Action
of the Mayor.

>r.,or Mcclellan and his colleagues in the Sink
snr Fund Commission yesterday hatIy ana ui-
.o,,vocaiIv committed themselves to the prihcPie
- .o.r,s,i, subsidy The commission, by unani-
nous vote decided 10 Les the new Chelsea piers
.o rhe international Mercantile Marine company
.ha c,,nard Company and the French Line at about
$1,000 less a pier than the same companies onered
% nay for the same piers in December. 1913.
-,,e cor,nanies get the piers thirty years op-
.ona leases ard the lowering OF the price as COM
rared with the figures agreed upon oy the COM
pantes in December. 1903. will cause loss to the
city of more than 100000
Mayor Mcclellan seemed surprised when IN
formed by a Tribune reporter that the companies
which got the piers yesterday were ready two and
q half years ago TO pay $4,000 a year more pier
than the terms agreed upon yesterday
.eooubtless the city could get more for the piers
bv putting them up at auction" said the Mayor
.7br,t in that case perhaps some tramp steamship
oompanies would in and bid, and the Dig COM
panies would be driven elsewhere. The SINKING
Fund Commission believes il to be sound business
policy TO make the terms so reasonable that the
commerce Of this port will be fostered
For more than three years the city has been
concentrating a lease OF the Chelsea piers 10
the big companies. Not long ago President NOT
man q, the Maritime Association and A Foster
Higgins Of the Chamber Of Commerce. were ap-
roanted as non-oficial members OF the SINKING
Fund Commission 20 report the rental terms
These gentlemen had a great deal 10 DO Win tie
prepRration OF the report the rental terms Inc
Fund Commission lIldiANcN A4ieS0
ror,-oFlc1ai members of the commission FOR their
,,o-t ans flnen adopted the report they presented
The renort recommended leasing the five north-
erlv piers 10 the International Mercantile MARINE
the three southeriy piers 10 the Cunard Stealnshp
Company, and the remaining pier NO o., 10
the Compagnie Generate Transatlantque Inc
city Is TO erect the necessary sheds ana GO the
dredsdng TO maintain the proper depth Of water.
The companies are TO do ell necessary repairs.
The term of the lease Is TO be for ten years. with
privileges OF renewals OF ten years each at an
advance OF 10 per cent over the previous term;
the rental for the first term OF the lease TO be
$1,000 a year for each Of the piers with two sides
evaiiable for wharfage. seven IN all. and 1880
each q year for the two piers with but one side
available for wharfage.
Mr.. Franklin. for the Cunard company, thought
that an increase OF 6 per cent would be ample.
but he admitted that at the rates the steam
ship companies are saving about $4,000 year.
Mr. Bensel told the commissioners that the piers at
the prices fixed VIII return the city s170oOo00 in
thirty years.
Mr.. Higgins made short speech on behalf OF the
Chamber OF Commerce. in which he said that for
the rst time IN forty years the city had acted with
'5ustioe and generosity" in dealing with outside
interests.
The International Mercantile Marine Company,
after months OF preliminary negotiations. Feb
ruary a. 1902, sent Commissioner Hawkes. a letter
saying that IL wanted five and one-haf piers IN
the Chelsea section. On December Il, 1903, the
Ha&fes. Offering to pay si5oo6o year for the five
and ore-half new piers they wanted On December
q. lP0a, the CUnard Steamship Company wrote the
Commissioner offering 10 take two piers in the
same section the terms-about $4,000 year
for each pier for the first ten years. Under these
offers the tenants 10 have built the steel
sheds. each OF which would cost many thousands of
dollars Under the terms agreed TO yesterday the
city viii have TO build the sheds
Commissioner Hawkes. estimated that on the
terms offered by the companies at that time the
city would get q Of about Al per cent on its
investment Of about SIS 100000 for the piers
Commissioner Hawkes. acceIIed the offer of the
International Mercantile Marine Company and the
C,unarc company December IS. 1893. and this
made the terms binding the city and the COM
psny, subject 10 the approval Of the Sinking Fund
Commission The Commission accepted the offer
OF the CunaTi people December 81, 1903
At the first meeting OF the Sinking Fund Com
mission under the Mcclellan administration. in
January. 1904. there read request from Com
missioner FeatheTson withdrawing the offer OF
the two big steamship companies No reason
was given for the Withdrawal This Withdrawal
left the tentative acceptances Of the companies
in the hands Of the Dock Department The
. minutes Of the Dock Department show that
II hack in the hands Of the Dock Department the
companies unwilling accept the terms they
previously had agreed 10. They Withdrew their
ofefs OF the ground that the prices named IN the
terms We're prohibtive although both companies in
upon
The judgment OF the companies that tlnev could
make better terms with the Mcclellan administra-
non tnan with the Low administration seems TO
have been amply justified. as the new terms will
years. ''