The New York herald., 1921-10-14
French Line Manager Tells
Meyer Committee Lack OF
Docks Forces Use of BOs-
ton and Other HarbOrs.
SHORT 2 WHARVES NOW
Luckenbach, Unable to Get
Facilities for Fleet, Says
Foreigners Are Favored;
Bribe Hint Spurned.
$4,000 PAID FOR A LEASE
Clerk, Sub Renting City Prop
erty, Runs Bank Account
to Million or More in
Few Years.

Edgar F. Luckenbach, president OF
the Luckenbach Steamship Company.
one of the largest American shipping
concerns, testified yesterday before
the Meyer committee in City Hall
that he was approached by B. W.
Lougheed, the ship broker, who
stated that for $4,000 lease could
be fixed up for pier IS. Brooklyn.
Mr.. Luckenbach refused to make the
payment and did not get the pier.
In sweeping charges made against
Commissioner Murray Hubert, Mr..
Luckenbach stated that the head Of
the Dock Department gave prefer
ence to British shipping corporations
over American companies.
Albert e. Clegg, vice-president Of
the Kerr Steamship Company and
prominent figure in shipping inter.
ests, testified that his company paid
the city s51 1000 for lease of pier 3S
in Brooklyn and in addition gave
| S34, 500 to some one whom he could
not identify as expenses in connec-
tion with that pier. The Lucken.
bach concern formerly had the pier.
Mr.. Kerr, head of the company, knew
all about the arrangements, the wit.
ness said.
James r. Gill. treasurer of the
Oriental Navigation Company, testi.
fled that on August IA. 1919. he paid
s13,500 to p. j. Mclaughlin, broker.
in connection with obtaining a per-
nit for pier S6. Hudson River. Philip
Derondi, president of the company.
made all the arrangements, the wit.
ness said.
Broker Named I'm other Cases.
B. W. Lougheed is the same broker
who was named last week by the
France and Canada Steamship Cor.
poration as having received either
s25, 200 or $4,000 (the amount was
rot fixed positively for having oh.
tanned a pier lease. He sailed for
Europe in September and has not re-
turned.
Mr.. Kerr. who made the arrange.
ments for $4,000 expenses in connec-
tion with pier 33, is in Europe, Mr..
Clegg said.
Mr.. Derondi of the Oriental Navi.
cation Company. named as having
paid s13.500 to Mclaughlin. is in
Europe, Mr.. Gill said. Mr.. McLaugh.
lin has not been found by subpoena
servers. who have been hunting him
for weeks.
The committees hunt for persons
said to possess first hand information
Of. the mysterious expenses and ar
rangements in connection with pier
leases appears to end at the water
front. Several other witnesses will
be called on this subject, however.
Much information was obtained
illustrating how fortunes are being
made out of the city's piers which are
leased at small figures and subIet at
enormous figures by those lucky
enough to get control to shippers who
cannot get piers for their cargoes.
Frank j. Hoey, formerly steam.
ship clerk. went into business for him
self in 1915. Later he established the
firm of Sabbatino & Co. stevedores
He had a charge account at the Dock
Department and was fortunate getting
pier leases.
Small Costs. Bfx Receipts.
AZ different times Hoey had two.
three or four leases. The average
rentals paid TO the city, testimony
showed, was something like $50 a day.
The prices at which the piers subiet
ranged from 800 TO 5000 a day. Testi-
mony showed that the Sabbatino &
Co, bank deposits from 1918 TO 1921
were 1859, i9s. Frank j. Hoey's de
posits for the same period were
s1.oss.0is.
Freight steamships OF the French
Line bearing great cargoes have been
turned away from this port and sent
to Philadelphia. Boston and Baltimore
simply because the company was un-
able TO get piers in New York, Oscar
r. Cauchois, assistant general repre-
sentative Of the line in this country,
told the committee. lie said his COM
pany had been willing 10 pay almost
any price for piers. but for two years
has been unable to get accommoda-
tions here. and so the business Is
being diverted to other ports.
1t was revealed that, the profits o.