New-York tribune., 1918-05-11
Craig Opposes
Leasing Piers to
Dummy Concerns
Bay State Company, That
Got Permit, Has $500 Cash
Capital, Says Controller

The city pier leases have become u
disturbing element il the Sinking
Fund Commission and the Board of Es-
innate. The lease Of Pier SO, North
| River, to dummy company last month.
which was later rescinded by the
Sinking Fund Commission, aroused
strong public criticism. The approval Of
the lease Of q part of the pier at the
foot Of East Fifth Street, Manhattan. to
the Pewtucket and New York Trans
portation Company by the Sinking
Fund Commission Thursday prompted
Controller Craig yesterday to write
the commission and Dock Commits
sioner Hubert demanding reconsidera-
ton and serving notice that the lot
ing OF piers to dummy corporations
should be stopped.
When the lease to the Pawtucket
and New York Transportation Com
pany was approved The Controller de-
cllned to vote, on the ground that he
had not yet been able to obtain infor-
nation from the Massachusetts, au.
thorlties as to the financial status of
the company. He urged that the mat
ter go over, but the Mayor and other
members Of the commission voted for
its approval. Dock Commissioner HUI
bert urged the approval of the lease.
The lease had been recommended by
the committee on dock matters.
Cash Capital Of s3o0
The committees report stated that
the Pawtucket company had a paid up
capital of 100000. Controller Craig
yesterday received information from
the Secretary of State of Massachu-
setts in regard to the Incorporation
and status OF the lessee. showing that
only $500 cash had been paid in of
the capital stock. The remaining
s499,700 of stock was issued for good
will and options. services in securing
options and expenses Of incorpora-
ton"
The three persons whose names ap-
pear as incorporators of this company"
said the Controller, "are shown by the
Massachusetts, records to be the hold
crs of one share each of common stock.
The fair inference from this is that
they are dummies"
The incorporation papers OF the Paw
tucket company show that it was or
Massachusetts laws, with John l.
Casey, OF 1872 Elton Street, Providence,
X: l., as president; William w. Staples,
OF Al freeman Street. North Attleboro,
!, Mass. as treasurer, and Everett W.
Crawford, of is Copley Street, Boston
: as clerk. The name of Louis NJ
) Schneider> of Beverly Road, Brook
, line, Mass, appears as an incorporation
, with Mr.. Casey and Mr.. Staples. The
papers show that the organization
!. meeting was held on March 49, "at Is
, Beacon Street, Boston, Room Co.
which is the business address Of Craw-
1ord, who Is a notary public. The
charter of the concern is the usual
incorporators the privilege of carry
ing on most any kind of business ex.
ccpt banking.
Controller Craig explained that he
had included all the information from
the Secretary OF State of Massachu.
setts in his letter to the Sinking Fund
Commissioners and Commissioner HUI
bert, and pointed out that he refused
to vote for the approval Of the lease
because he believed that "there was no,
sufficient information before the Com
missioners of the Sinking Fund TO,
proper deliberate action" at that time
Wants Lease Revoked
He said further in his letter;
"The form of pier leases now made
forbids the assignment or sublettine
of lease without the consent and ap
proval Of the commissioners of the
sinking fund. Such n provision is
nullitied if leases are made to corpo
rations having nominal capital DC
cause the entlrc capltal stocA "a suci
CORPORATION can be sold to any. one
This would carry with it all OF thu
: rights under the lease.
, 1At this next meeting Of the commits
sioners of the Sinking Fund, | lntenc
to move that the approval Of this leass
be reconsidered, and that the facts 3
above referred to be placed on record
so that the policy may be determihee
definitely whether lenses OF TINS cha1
"Some weeks ago a lease Of Pier 50 tt
the Hudson Dock and Terminal Cor
poration was approved after had ex
pressed my desire, in the face OF con
ditions disclosed, to have the mater
laid over. Under the plea OF urgency
however, did not persist in TINS re.
quest and voted on the approval OF r .ns
lease. The experience that has pee,
had in reference to that lease ougn
X not To he repeated"