New-York tribune., 1907-06-04
METZ AGAIN UNDERFIRE
REAL ESTATE BLUNDER
Paid Too Much for Nerc Bridge 4p-
pr0ach Property, SAY Iccusers.

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blunder in purchasing real estate at private sale
that viii mean to the taxpayers net loss of fully
81 0O0OOp- Corporation Counsel Ellison is draft
ing a letter to the Controller asking him to ex-
plain how It happened that by private sale on
the recommendation OF Mortimer j. Brownie
the Controllers real estate expert the city paid
$4,000 for lots In Cherry street assessed at
$4,000 Figured out on the lines used bv real
estate operators the city paid at the rate OF
S31.S00 lot for the Cherry street parcels al the
Controllers private sale, while at the same time
the Law Department has discovered that for no
more valuable property in the same street the
city purchased lots at from $4,000 to $4,000
The cost 10 the city is figured at round
million dollars. because. it is held by the COR
poration Counsel. the price paid is fully 20 per
cent too much, and it sets price which prop
erty owners or the East Side can Use with tell
ing effect in any proceeding brought by the city
10 condemn private property.
Controller Metz about ten days ago criticised
the Cooperation Counsel's office. asserting that
an assistant TO the Corporation Counsel receiv-
ing $1,000 a year. acted for an opposing inter-
est in real estate condemnation proceeding.
This charge made a lot of trouble in the Law
Department. as explained in The Tribune on
Sunday. Assistant Corporation Counsel George
r. Sterling went far as to say that il might
be to the advantage Of the city 10 pay $1,000
year the amount the Controllers salary to
keep him away from the Stewart Building for
his entire official term Apparently Mr.. Sterling
had the Cherry street private business deal in
mind when he attacked the Controller When
seen with reference to the Cherry street deal
yesterday Assistant Corporation Counsel Olen-
dorf said
1t IS matter that Mr. Harris, recently ap-
pointed city magistrate had directly in
han hal 7 civ &c axe from he
official records on file in the office"
Reading from memoranda, Mr. Oendorf said:
In April. 1906, the city bought from Jessie L.
Goodspeed and others in Cherry street Nos. $50,
lS2 and lS4. The whole parcel was SIS feet m
Cherry street o. @i4.I on one line and 1910 in
the rear BY pos hack 10 Cherry street On these
lots were an OLD brick three story school build
ing and two Two story brick buildings. perhaps
wortC. ali told. about $4,000 The records show
that the city paid for these lots the sum OF S215
0o0 The assessment books show that this
property was assessed at $4,000. The plot con-
taIned an area Of 1882 square feet. and the
price per square foot appears to have been about
al2 -, at the rate of .S3i,SOO lot. The ratio
q assessed valuation to the price paid
30 10 per cent, the purchase price being nearly
three times the assessed valuation. This plot
Vas bought ostensthy for playground on an
appraisal made by Mortimer J. Browne, of Mr..
Metz's Office On Nj Brownies report the
Board Of Estimate and ApPCrIiorment passed
resolution. introduced by Mr.. Metz. 10 buy the
parcel at the price already mentioned. $215GO1
On April 4, 1906, the Corporation Counsel,
Mr. Deany, wrote the Controller protesting
against the purchase Of the property at tho
price stated. Mr. Metz's answer TO this protest
was that the city must have the land
because 1t was planned TO lay out the
Manhattan Bridge approach through II. The
high price was justified The that the
plot would face on the street. As matter of
fact. only thirty feet Of the parcel can be
said u abut on the bridge approach The law
department had the parcel carefully appraised
ana found that il worth not to exceed S149-
400. the assumption that IL TO front on
the bridge approach.
IN q letter to the Finance Department Corpora
ton Counsel Delany said:
The description I have given is taken from
the certificate and is the title which will be in
sured by the Lawyers Title Insurance and Trust
Company. This description differs materially
from the description in the contract whereby the
city agreed 10 purchase certain property from
Jessie I. Goodspeed. Henry S. Goodspeed and
Gertrude c. Goodspeed for the sum of $215,G00.
Corporation Counsel Delany in the letter says
he has made inquiries in regard to the
street and learns that the Board OF Estimate
and Apportionment has not changed the map
or plan Of the city of New York by laying out
new street, IS referred TO in the contract. The
letter 10 the Controller, continuing. says:
! am confident that If this sale takes place
for the consideration OF S21J,OOO il will be used
With great effect against the city in the
denaation proceedings now pending and In the
Manhattan Bridge proceedings which viii be be
gun within the next few months. In view Of the
great discrepancy between the description in the
ute company 1 unable 10 advise you that
me title TO the property as described in the con-
tract is good and marketable.
In view Of the fact that this office is conduct
ing condemnation proceedings TO acquire lands
Tor public purposes on South Oliver and Water
streets; James, Oak and Oliver streets. and
on Cherry and Clinton streets, and Will shortly
institute proceeding TO acquire all the remain
ing property for the Manhattan Bridge / deem
u my duty 70 call your attention TO the price TO
Dc paid for this property.
You are aware OF course, that the sale Of a
ef far1tf fylJr
Noulo De used with telling effect all OF the
proceedings which pending or which
are 10 be begun in this locality. II would he
contended that if the city Of New York paws a
given price lot for property in this locality that
establishes a unit Of value. This plot is covered
with Old factory buildings which at the outside
cannot he worth more than $4,000
One Of the experts employed by the city TO
testify IN the above mentioned proceedings and
,kho who by reason Of actual sales made by him in
Llat locality ls thoroughly familiar with values
mas valued this property as follows:
Two lots Cherry street $l7 900 .....--.. s34 Ono
Three lots "a No" street 25xsI3 at $1,000 for a
&c lot q fest 81 2ssl ax89 in rear 3SSS 30 90
44oc 3u;idtEu a1t 20 and 10000
sI49 12o
This valuation IS based Oh the assumption
laat The new street viii be opened shortly but
i sIo1la TINS moi take place the above valuation
.""ia necessarily be materially reduced
me reason gtren for the purchase of this
pVperpy at private sale" continued Mr. Olen-
Was that it needed at once Tie
- department has looked the matter up ana
discovered that the old buildings have not
i" uo"n, that playground has been
a. 'ae place. and that the bridge work
-'o' progressed that far as yet. In fact. the
Coo.7spe4d~ d. IN question leased 10 the
-..rrl - Nlo sid the lots to the CITY
,,bl 'D.i fsssing feat,Ir. OF the case Is that
,riifq,fi ..rir' 4"y private purchase pays an OK