New-York tribune., 1920-06-26
Threat Made
TO Take Pier
Grab to Court
Commission May Have to
Rescind Award to Firm
of Which One Member Is
Son of Tammany Leader
Hylan Inquiry Indicated
Atlantic Fruit Co. Heads
Think Twice Rental To
Be Paid Would Be Fair

Developments yesterday in the Tam
inlay grab of the city-owned pier at
The foot of East Fourth Street, East
River, indicated that the Sinking Fund
Commission, which leased the pier
Thursday to Carroll, Hagan & Carroll,
stevedores, OF which Foster A. Hagan,
son of James J. Hagan. Tammany leader
of the 7th Assembly District, is & men,
Der, would have to rescind it's action.
At least one of the large steamship
companies which made application to
the city authorities for the pier and
was turned down in favor of the Ha-
gan firm threatened to take the matter
into the courts to force the Sinking
Fund Commission to make an equita-
Bile award of the pier. This was done
in the case OF the lease of Pier SO,
North River, two years ago, under
similar circumstances, when certain
shipping companies interested in the
lease brought action against the city
which resulted in resembling the lease
to a corporation in which a Tammany
politician was interested.
The lease of the North River pier
created scandal in city administra-
tion circles at the time, and the pier
was finally put up at public bidding
for the lease, and the city received
rental double that of the original
award.
Firm Just Incorporated
1t was learned yesterday that the
firm of Carroll, Hagan e. Carroll
was incorporated only the day before
the matter came up for final action
by the Sinking Fund Commission. The
concern filed partnership papers in the
City Clerks Office on June 10, and the
incorporation papers were filed in
Albany on June %.
Mayor Hylan who, with Fiorella H.
La Guardia, President of the Board of
Aldermen, voted against the lease at
the meeting of the Sinking Fund Com
mission, had all the papers and records
in regard to the matter in his Office
at City Hall yesterday, and was under
stood to have begun an investigation.
The Mayor and Major La Guardia were
outvoted by three to two, Comptroller
Craig, City Chamb rlain Berolzheimer
and Alderman Frank A. Cunningham,
chairman of the Finance Committee Of
the Board of Aldermen, the other
members of the commission, voting for
the lease.
Representatives of the Atlantic Fruit
Company, of GIL Broadway, one of the
they would have considered $4,000 a
fair rental. The Hagan firm leased
the pier for ten years at a rental Of
$4,000 and 71s per cent interest an
nually on the amount TO be expended
by the. city to reconstruct the pier.
Dock Commissioner Murray Hubert
yesterday estimated this cost at about
s1S5,OOO, which would make the rental
to be paid by the Hagan concern a
little less than $4,000 a year.
Matter Referred to Lawyers
Officials of the Atlantic Fruit Com
pany declared that they had referred
the matter to their lawyers, with a
view of detrmining what action might
be taken in the courts to force an
equitable award Of the lease
"A. Frankel, president Of the French
American Line, 18 Broadway, another
of the applicants, said that his COM
pany had been trying for three years
to get the East Fourth Street pier, but
lew SAio4iiSu lIOu making any COM
plant for fear it would prejudice the
city authorities when they applied for
other wharfage space. as they had done
at different times He declared, how
ever, that his company would have
jumped at the chance to get the pier
at $4,000 rental, plus the 7la per
cent interest to be paid the city. 1t
developed that the French h-American
Line had made practically the same Of
fer as the Hagan firm. which was based
on 70 cents square foot of pier space.
which Commissioner Hubert explained
yesterday was the average price that
the city-owned piers brought in that To-
cality.
Mr.. Frankel said that Pier 70, at the
loot OF East Twenty fourth Street, had
been promised to his company when
the lease expired on May 30, and that
the company would have paid as high
as $4,000 rental. This pier was leased
Tor $4,000 to stevedore concern.