The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-06
LETTERS BARE HITCH
OYER P. 0. SUBWAY
McAdoo's Valuation Of $1,000
900 Based on Theory That
Y. S. Owns Property.
NOT so, SAYS P. s. BOARD
Their Appraisers Assert Gov
ernment's Right Has AL
most No Cash Value.
NOT so, SAYS P. s. BOARD

The correspondence between the Public
Service Commission and Secretary NJ the
Treasury McAdoo in regard 70 the subway
easement under the Federal Building.
which Mr.. McAdoo has thus far failed TO
grant, was made public yesterday after Il
had been sent to the transit committee
OF the Board OF Estimate at Chairman
McAnenys request.
IT reveals one important point hitherto
concealed--that the appraisal of the ease
ment at 100000 by Mr.. McAdoo's real
estate advisers, Horace S. Ely & Co. Is
based on the assumption that the SUBJ
oect should be considered as II the prop-
erty were In private ownership" Tho
Public Service Commission. the Board OF
Estimate and the Corporation Counsel are
proceeding on no such assumption. In re-
porting that possible damage to the prom.
.erty would be only nominal the Douglas
Robinson. Charles s. Brown Company.
advising the commission az real estate
experts. said:
by the term OF the deed from the
city to the United States Government
the Post Office site can be used only
uor post Office court house, or both.
Nhe FEDERAL Government has no fee
IN TINS property other than for tho
aooVe speclhc use, and in the event of
the uiscohtinuance OF the property for
ehese purposes the fee reverts to the
city without compensation to the Cow
eminent.
Ihe only possible use to which tho
United states Government could put
greater suosurface area than at
present used would be in the con-
struction or a new modern building
Whlch either required or called for
deeper basement than thirty-eight
Ieet' and II the city Of New York
agrees to compensate the Govern
ment for any additional cost of con-
structlon directly due to the presence
or tho subway structure under the
property. II Is our conclus on that no
monetary damage Is caused the Gov
ernment by reason of the action by
the city.
The city has already agreed to com.
pensate the Government for additional
construction cost
The other real estate expert consulted
by the commission. Joseph +. Day. reached
these conclusions. which also support the
oty's contention.
First-That the fee in the land 10
not a commercial proposition so IA
as the United States Government Is
concerned because the removal OF
the Post Office and court would re
suit in the fee in the land revertng
to the city of New York and the
Government would have no right to
sell this land to an outsider.
Second-An easement under tho
land In this case cannot injure the
United States Government in
market value sense, because the
reversionary clause In the deed pre-
cludes consideration OF market value
OF land.
Thrd--Damage can only be based
loo Of, nd of fh..
space taken plus the cost OF changes
In building structure.
Fourth--Cvst of changes in build
ing structure are already provided
FOR In the agreement between the
Rapid Transit Company and the
United States Government which
leaves only the question OF use and
occupancy of space In the sub-base-
ment taken by the railroad, The
space so lost Is very minor matter,
and as far as the plan shows will
make very little apparent difference
In the possibilities Of the use or tho
building for all purposes for which II
is Used at the pre- sent time, and the
damage In my opinion would be only
nominal damage.
It also appears from the correspondent
that Mr. McAdoo has not fixed upo
81 O00, 900 as the sum which the cit
snust pay unless 1t adopts the alternaI
route beneath City Hall Park and Spruc
street. The secretary OF tne lTSdsuT.
through Assistant Secretary c. S. Han
Sin. simply informed the commission {
Horace $. Ely a Co.'S appraisal. an
added, in a letter dated May 8; I'VE al
making further inquiries into this ma
ter, with a view to speedy decisio
thereof"
The speedy decision" has not arrive
The last word from Mr., McAdoo's off,
was note from Mr.. Hamln on May
acknowledging the receipt OF maps ar
drawings, and saying: Your courte'
and promptness are much appreciated
the Department"
The Rapid Transit Committee OF d
Board OF Estimate will discuss the stu
ton on Monday. II II possible that N
&cAueny will try to have personal ia
with Mr. McAdoo,
At Yesterdays meeting OF the Boa
OF Estimate Comptroller Prendereast sa
that the Secretary OF the Treasur,
course had delayed subway relief q
rnoNtrs and that the matter ought to
carried 10 the President. Mr.. McAne
characterized the delay rs 'holdup
New York subway work"