The Sun and the New York herald., 1920-06-26
CITY PIER LEASE
is ASSAILED AS
TAMMANY PRIZE
Ship Men Had No Chance to
Bid Against Hagan, Is
Complaint.
WOULD OFFER $4,000
~ -
Investigation May Follow Let
ting of Valuable Dock for
Only $4,000.
WOULD OFFER $4,000

The lease by the Sinking Fund Com
mission of city pier at the loot O
East Fourth strest to n firm OF steve
do.as IN which Nbster A. Hagan, sor
M n Tammany lalder, Is a partner
was assailed yesterday from two quar-
,Srs The award Of this prize to Tam
rarv men at less than half the city
oo,Id lave obtained in the open mar
hat from steamship companies Is t'
he investigated, with the prooaoilitS
tbat a court action will be started &c
break the lease.
Mavor Hylan, who voted against
xiving the contract to- the firm OF Car
,n,, Hagan Carroll, sent for the
naners and began an inquiry OF MS
own The Atlantic Fruit Company OF
a. broadway referred the matter to
LAWYERS as a first "tep in testing 'he
lsvalItv of the action taken by the
Hinking Fund Commission.
II developed that Carroll Hasan ana
Carroll entered into their partnership
an ,June 19, at which time they ootalheu
,.nars in this city, and that they IN
tarorated under the State law on June
"a ,wo days before they obtained the
,Sn.o from the city. Thomas L. Carroli
Io r,omher of the most successful
az. - stevedores In the city, Is a
49, - Tr,erd Of James ]. Hagan, the
Tany leader OF the Seventh AS
...,hiv district, and IN turn close
ns.sonal friend of Charles f. Murphy.
the Tammany chief. Young Hasan.
the partner in the firm Is aoout q
years old
Wanted Chance to BID.
Officials in the Atlantic Fruit Com
nanv stated they considered $4,000 would
haIa fair sum to pay in annual rental
sor the pIer, They did not make an
offer for the reason that they had no
onnortunity, the steamship officials
stated. The price placed by the Sink
Ing Fund Commission to the Hagan
firm is $4,000 a year. plus 7'a per cent.
os the cost Of putting the pier in re-
nair. This covers a period of ten years
with renewal prospects, bringing, 1t is
estimated, the revenue the city Will get
to about SOS 900 a year.
q. Frankel, president of the French
American Line, at IS Broadway, said his
company would have been glad to pay
VERY substantially more" than the
prIce fixed by the city. This company
made a bid which was about the same
as that OF the Hagan firms.
FIorello II. La Guardia, President of
the Board of Aldermen, again de-
nounced the lease as an Outrage" say
ing he could not learn why the lease
was not offered at public bidding.
Knowing the needs of the steamship
companies for docking facilities, and
pointing out the necessity OF getting
more food to the city. he said 1t was
astonishing that sucn action should
have been taken. He would favor TAX
ing any step to break the lease, he
said.
Nor has Mr.. La Guardla, although q
member of the commission which made
the award. been able to find out why the
uier lease was not on the regular calen-
dar at the meeting of the commission.
This was all the more surprising, he ex-
planned as the disposal of this particu-
lar pier had been discussed by city Of
hcials for three months. and both he and
the Mayor had taken unqualified stands
against making any lease with steve
dOre company unless 1t was established
that no regular steamship company en-
gagged in transporting foodstuffs. cared
to bid for the property.
II kept this pier lease lin committee
for three months knowing an attempt
was being made to hand out private
lease" Mr.. La Guarda said. Jim
Hagan came into the commission meet
ing one day and in a discussion about
the lease shook his finger at Comptroller
Craig and demanded, Are you going to
vote for this leaseT The Comptroller
answered meekly that he was.
willing to Pay $4,000.
The policy laid down by the Mayor
laRt March, just after there had been
a great furore over another pier lease
which was upset in court, was that
American steamship companies should
have first bid for city piers, and compa-
MES flying foreign flags, but actively en-
gnged in the food and fruit business,
second place. The next alternative was
to keep piers open for all, and as a last
recourse. that "hy-by-night stevedore
companies" might have leases
Although this was the policy of the
city, steamship companies generally did
not have an opportunity to bid for the
pier at the foot of East Fourth street.
OF the companies which learned Of the
possibility of obtaining the lease, the
Northern Steamship Company OF II
Battery place offered 1854 for ten
year lease, plus the ~ per cent recon-
struction cost. The French American
{ Line made an offer of 10 centA a SQUARE
foot. but indicated it would like to enter
into bidding and the Atlantic Fruit
Company did not even get as far as
submitting figures because no opportun-
I, ity was presented.
At the office of the Atlantic Fruit
Company the secretary to the president
stated that 1t was regarded as doubtful
6 whether such lease as that given TO the
liagan firm could stand The lawyers
ior the company have instructions to
tlnd out what action can be taken. and
K was stated something would be heard
rom 1t in a few days"
Mr., Frankel of the French American
inc. said officials OF that company har
heen assured they would have an on
portunity to bid for lease on Pier ~
Soot OF East Twenty-fourth street, when
The tenancy thereon expired on April 20
4 No opportunity was presented. he said
although the company stood ready 10
pay $4,000 for the lease. He said Of
ters had come to the firm from the
Northern Stevedore Company of rental
for that pier at 5000 a day.
THE only exclamation offaraJ fo. -.
ing such a lease for the East Fourth
street pier was that the pier is only 3el
feet In length, which makes it available
only for the small coastwise steamers
Tho longer piers bring much larger
revenue.
Hubert Didn't o. X, Plan.