The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-19
B. R. 7. 'GOUGED' CITY
HEAVILY, SAYS MOSS
Brings Out Before Thompson
1nquircrs Excessive Prices
Paid for Property.
p. s. E. SANCTIONED SALES

eigrhund Ceders;rom. real estate ex-
BERT Of the Public Service Commission.
told the THOMPSON legislative committee
yesterday about hall a dozen real estate
transactions with subsidiary companies
~ the Brooklyn Rapid Transit Company
which ~revolved about the $1,000. 900
credit allowed by the city to the b. X. T.
N connection with a right OF way through
street. Brooklyn. In some OF the deals
mentioned In which Cederstrom figured
Ind recommended lesser payments than
~as demanded by the various companies
NJ was overruled by the Nublic Service
Commission.
PETERBOROUGH WAS expected to testify,
but Senator Thompson learned that Mr..
Shonts had on. to Atlantic City and
would not be available. MIR. Shonts. he
explained. understood that he would not |
b wanted by the committee until next
week. So Senator Thompson issued "A
request that the thorough head APP
pear on Monday morning at 1890 o'clock.
Tho controversy between Senator
Thompson and his former stenographer.
Miss Virginia L. valva. delayed pro.
ceedinGs for about an hour while the
senator and Meier S~telnbrink. the young
woman's counsel. conferred abou, her bill
FOR $a.s37. which the committee believes
oxorbitant. AZ a result of the confer
eAces. Senator Thompson announced tina,
he had received nis exhibits and the
record from Mss Nalya and that Frank
Mos. the committees counsel. and MI.
Steinbrink would get together on u r.a.
sonable amount to Dc paid for Miss VAL.
vas services.
.Mr. Cederstrom read from his reports
on nve real estate deals IN which the
city and the p. Il. T. or it, subsidiaries
figured In connection with the execution
Of the dual subway contracts. From his
testimony II appeared that charges
which he deemed .xorbi,ant on the part
o. the railway companies frequently were
allowed BY the commission. lie main
ta!ned that ia" commission probably
considered other elements than IN. valu,
Of the PROPERTY from a real estate stand
Dolnt only ami in several Of the cases
oited agreed 10 the charge in order To-
ave costs OF construction or coniemna-
ten proceedings.
MIR. Moss. reading from a resolution
OF the Public Service Commission |re,ative
10 certitcstion of charges by bureau or
division heads ttn6ay yha Communication
asked Mr.. Cedcrstrom If II were not a
taet that n great many items were
charged specifically to construction
which were never examined. Mr.. C.dcr-
strom sAti he did not know that he
never read the particular resolution in
his life. The resolution stated tina, GER
tihcation might he made withou, en-
animation 'anl-ss suspicion was aroused
- the mount were large
Details Of FtSe transactions.
The I'VE transactions ahou, which Mr..
cedarstrom testified We're these
!. 4 nv wear lease Of property AZ
second avenue and Thirty-s-venth street
6y the South Brooklyn Railway Com
pany TO tn New York Municipal Raj.
way Corporation. In the PROPOSED lease
tive rental was $4,000 a Year until GER
tain Ian was filled IN ant $500 "A
NNaF iH''efII'Fs NJ, t1tFstrOn s;tlI ne
recommended to IN" commission that
$4,000 was all III" land IN question was
worth. His recommendation In his case
vas accepted.
!. A proposed lease by the New York
Municipal Railway from the south
Brooklyn company 81 wards AZ Thirty, :
eighth street for nv. years AT So. GOO IA
year. Mr.. cedeySirom said H.. took II
~ with Secretary bennington Of the
South Brooklyn company and recon-
rrended sJS,o0n A. /, reasonable price.
which wac accepted by bot, c%o,npani. =,
~ q saving Ia tn. city OF s1l7,0O0 for
Nc fIe years. Mr.. T.derstroin said he
d!d not have much troub,. bringing the
Orice down.
3. Acquisition Of propert, by the city
ffom the Transit Development Company.
4 y. r. T. subsidiary, :" thar the city
could run d ~loplng earth cut instead 81
building a walled cut for subway tracks,
The Transit Development Company had
previously acquired 9s per cent. Of the
land needed, and the price for the whole
tract was slju,o0u. MIR. C.,lerstroin re-
ported that the land from Il real estate
standpoint was worth only shou, sio.0oo
but the commission agreed to the slj0..
900 charge.
Both Mr.. Moss and senator Thompson
were exercised about this deal. althouGl
Mr.. Cedsrstrom explained that II IN.
city had to build the walled cut il would
cost about $4,000. In reply to a aues,
ton the witness said hat the commits,
Zion probably took into consideration ~.
cost of building the wall and therefor,
approved Of the Sl30.o0O. which he ilat
reported was excessive. lie aided that Il
condemnation proceedings were insti
tuted the properly would have cost thu
city probably more.
"All these deals related 10 the THIRTY
eighth street cut for which the u. u
r. got ST., 900 900, didn't they aske,
The senator.
This Is in addition to the 81 ,000. 900,
Oaid Mr.. Moss.
Asks u City Was GouRed.
"Well. don't you think the Il. X. T
gcuged the city In getting this extr;