New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-19
Deal in R0ckaWay Land,
Inquiry Bureau Charges
Neponst Realty Company Realized 400 Per Cent Profit
on Sale to City Says Bullock-Asks
Governor to Investigate

enc railway company, owning tne lorI
site through a subsidiary corporation.
at is from this subsidiary corpora
ton that Greve leases the fort site.
Greve has been active in promoting
the sale of the site TO the United
States government. II the exchange
of property between the city and the
United States is carried out as Mayor
Mitchell has indicated, il appears that
1t Will materially benefit Greve and
his associates. This benefit will &C
crue by reason of the fact that Greve
owns Plum Island, apart from the
United States reservation. These
facts are proved by Greve's own tes-
timony when a witness for Reynolds
in the Dreamland Park purchase"
In Summary of the Main Facts
the Bullock report makes the follow
ing assertions:
Before the Neponsit Realty Com
pany bought the Rockaway tract 400
acres were offered the city for ST.
100000. After the company bought
the tract 24S.38 acres were sold 70
the city for a total of sl,341 1904.
The known profits Of the Neponsit
Realty Company on this deal were
s631 1882. The actual profit appears
TO have been several hundred thou
sand more.
What the City Paid
"The city took an option from the
Neponsit Realty Company for the
248.3S acres for S1,225,000 and paid
an award of S1.250.000 plus interest.
The city paid $4,000 more than the
option. although Controller Prender-
CAST stated that no more than the
option price ever could be paid. Con-
troller Prendergast has not answered
a written request for the names and
estimates of appraisers, employed by
him, and by whose apprasals he was
persuaded the option OF Sl,225.OOO'
or S4,930 an acre, was in the best
interest of the city.
William II. Reynolds, by the city's
option on his South Brooklyn prop
ertv, makes 100 per cent profit. On
forty-seven acres of Rockaway Park
the profit is 2,400 per cent.
"The Neponsit Realty Company
bought these forty-seven acres from
the state for 5000 an acre and sold
them TO the city for S5.032 an acre,
paying the state $4,000 and getting
s236. 5O4 from the city, a profit of
s227.1O4. not including interest. The
Mitchell committee had
knowledge that the forty-seven acres
bought from the state were 70 be sold
to the city and included the forty
seven acres in the option, which was
at the rate Of s4,93O an acre.
"a Joker in an act Of the LeGis-
lature prevented the city from OBJ
tanning for nothing the forty-seven
acres for which the city paid total
of 1858. 6S7.79 This Joker was in
serted after the bill had been passed
by the Assembly. The bill was re-
called from the Senate, amended by
adding the Joker and returned to
the Senate. Charles E. Hughes when
Governor sent special message TO
the Legislature certifying TO the ne
cessity Of the immediate passage of
the bill. This special message came
to the Assembly when il was consd-
ering the Joker amendment.
Neponsit Company Favored
"Tbe State Land Commission, in
GLIDING Horace White. James ".
Wadsworth. jr., and Samuel s. Koenig,
at the request of the Neponsit Realty
Company struck out clause IN the
grant from the state "hICh NOulu
have permitted the city TO recapture
the forty-seven acres at the SOU an
acre maid the state by the company.
"When the Neponsit Realty Com
panv was buying the acreage from the
state the assessed valuation on the
adjoining property owned by the
company was decreased and when the
company was selling to the city the
assessed valuation on the same land
was increased.
"Revnolds and the other three wit
nesses for the Neponsit Realty Com
PAW valued the park as if it were
improved. instead Of the barren waste
of sand and water which the park
was then and is to-day"