New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-13
Temporary Delay Is OBJ
tanned Through Tax
payers Suit
New Deal a Gain,
Mayor Declares
Asserts Present Lessee
Tried to Avoid Pay
ing Rental

temporary injunction restraining
G. Murray Hubert, Dock Commits
sioner, or other city officials from
concentrating the lease of Pier 60,
North River, with the Hudson Dock
and Terminal Corporation, which was
approved Thursday by the Sinking
Fund Commission at an annual rental
$4,000 less than the present lessee.
the Occident Dock Company, was will
ing to pay, was obtained yesterday
from Justice H. D. Hotchkiss, of the
Supreme Court. The defendants are
summoned to show cause why per-
manent injunction should not be
granted on Tuesday.
The court order was obtained in
Taxpayers action, brought by ?latt &
Field, counsel for the Bristol City
Line, of which the Occident Dock
Company is subsidiary, on the ground
of waste of city moneys. The lease as
approved by the Sinking Fund Commits
sion, of which Mayor Hylan is chair
man, gives the use of the pier to the
Hudson company for ten years at an
annual rental of $4,000. with the
privilege of renewal of a further ten
year period at 10 per cent advance,
which would mean loss of $4,000 to
the city, in view of the fact that the
present lessee was willing to renew
the lease at $4,000 year.
Organized With Dummy Directors
Little enlightenment could be had
Yesterday from city officials or the
Bristol City Line representatives as
to the real powers behind the throne
in the newly organized Hudson Dock
and Terminal Corporation. 1t was
learned, however, that all the present
directors are dummies. Two of the di-
rectors, Daniel F. Murray. of 372 Ave
nue. C. Bayonne. and John Mccarthy,
Of $50 Boulevard, Bayonne, are watch
men at the closed plant of the Colum-
bia Oil Company, in Bayonne, which is
owned by Frank Mccoy, Democratic
politician of Queens. Mr.. Mccoy was
an active worker for Mayor Hylan in
the last city campaign and contributed
$500 to the Hylan campaign fund.
The Hudson Corporation was or
ganized in February by the Corpora
ton Trust Company, of 81 Wall Street,
with capital of $4,000, Of which $500
was supposed to have been paid in.
An official of the trust company said
yesterday that he knew nothing. about
the new concern. except that 1T was
made a business of organizing such
concerns, and that the dummy di-
rectors had been used merely for pur-
poses of organization and were ex-
pected to resign when the real di
rectors were selected. He said the
Corporation Trust Company had no
financial interest whatever in the new
concern.
Mayor Issues Statement
The unusual circumstances sur
rounding the approval of the pier
lease. as related in the newspapers
yesterday, prompted Mayor Hylan to
issue a long statement declaring Dock
Commissioner Hubert had acted wise
ly and we'll in recommending the APP
proval of the lease, Notwithstanding
the false impression that some of the
newspapers have willingly accepted
and eagerly sought to spread"
'.The public must learn to read be-
tween the lines" said the Mayor, land
not be misled by the specious argu-
ments Of those who have private axes
grind. The Dock Commissioner has
than $4,000 a year, but there is no
word of commentator for that. The
situation, as I see it. is this:
"By special favor heretofore a pri-
vate interest has been continuously
permitted to use one of the city's docks
for SIS ,000' year, although there is no
question that the privilege was worth
at least $4,000 year. Commissioner
Hubert tried to get the agents of the
Bristol City Line to agree to reason
able rental as condition to the re-
newal OF their privilege. Instead Of
meeting him fairly they shuffied around
and evaded making definite offer In
the mean time the Commissioner &C
cepted another offer Of S25 ,00O Then
the Bristol City agents, realizing that
in their greed and cunning they had
overreached themselves, came forward
and made a definite offer"
George W. Field. of Platt e. Field
who appeared before the Sinking Fund
Commission, declared that the Mayor
was entirely wrong in his statement OF
facts relative to the Occident Dock
Company. He said that the Mayor ap-
parently had not read the afidavits filed
by him with the Sinking Fund Commits.
sion, which related all the facts con.
corning the negotiations between the
company and the Dock Commissioner
over the renewal Of the pier lease.
One of the afidavits fled by Mr.
Field with the commission was made
by James Arkell, president of the
Occident Dock Company for the last
twenty-five years. He set forth tina,
his company had leased Pier 50 prio,
TO April, 1913, for an annual rental Of
$4,000, but since then had paid s15,.
900. He said that on March q, 1918
ne applied in person with his counsel
Eli }. Blair, for new lease, to begin
May l, 1918.
Was Told to Make an Offer
He said they were told that it would
be necessary for them to submit an
offer and that the commissioner would
make his recommendations TO the Sink.
ing Fund Commission upon the basis
Oh any offers 80 received.
Mr. Arkcll related that Mr.. Blair hat
conference with the Dock Commits
sioncr on March 22, at which Mr.. Blai,
Was advised that If his company sub
mitted bid Of $4,000 per annum thu
Commissioner would recommend to thu
Sinking Fund Commission that tht
lease be awarded TO them for pcriot
OF five years, with renewal privilege
Of five years.