The New York herald., 1921-09-16
Hubert Puts Blame for
Wharf Extortion on Hylan,
Corporation Counsel and
Sinking Fund Board.
SOUGHT REMEDY ONCE
Admits to Meyer Committee
Weak Spots and Defects in
System Grown Up I'm
der Tammany.
MANY SHIPPERS SUFFER
Official Resents Personal Re-
sponsibility for Port Condi-
tions Exposed in New York
Herald by Gen. Black.
MANY SHIPPERS SUFFER

Profiteering in pier leases Is
crippling New York's commerce, yet
city officials refuse to lift a hand
to curb the menace, Murray Hubert,
Dock Commissioner. told the Meyer
committee yesterday when he ad.
mitted the accuracy of revelations
rnade yesterday by THE New YORK
HERALD OF how the system" Is op.
Grating to extort big profits from
shipping interests.
Most Of the days session of the COM
inittee in City Hall was given over
to discussing statements printed In
THE New YORK HERALD's account OF
the operation of the subleasing sys-
TEN. While Commissioner Hubert
freely acknowledged the municipal
system is bad and destructive, ha
declared he had been unable to stop
it or regulate 1t because the Sinking
Fund Commissioners and Corpora.
tion Counsel had refused absolutely
to give authority to regulate terms OF
subleasing. Mr.. Hubert, just NOM
mated by Tammany for President
o; tho Board of Aldermen, unhesi.
tatingly placed full blame on the
Hylan administration.
Additional evidence showing tho
abuse of the subleasirg system was
given by Elon r. Brown. chief coun.
sci. who showed how the Maritime
Shipping Company. a one man con.
Germ owning a tug and scow, had
paid $40 for the lease, OF a pier at
the foot of East Twenty-fourth street
and sublet IT to shippers at net
profit of $4,000 in less than one yea.
Brown sums Up Defects.
At the end of the Commissioners
testimony Mr.. Brown made a state.
nlent summing up the weaknesses and
defects in the municipal dock opera.
tions as revealed by the investiga.
tion. He said long term leases and
renewals tie up the port; there is no
standard in the practice of making
leases based on reasonable return %
the city: unequal payment for piers
favors some shippers and penalties
others: there is no authority to curb
extortionate charges: the city ought
to work out system whereby COM
merce would be freed OF penalties
and the municipality receive s per
cent. at least on it's enormous invest
ment so that more funds will bs
available for pier development. All
these subjects will be covered in bills
recommending amendments to the
charter.
The city makes no effort to learn
what sums are collected by lessees
for use OF city piers and never has
known anything about that subject.
But Commissioner Hubert admitted
he thought II would be very sensi-
BILE" for the Dock Department 10
check up on the pier rentals.
The Commissioner inserted type
written clause in one contract sent
to the Sinking Fund Commission, re.
stricting the charges that could be
made in subleaslng the pier. Tho
proposal was rejected promptly by
the commission, or which the Mayor
IS chairman, and no further effort
was made to provide O weapon for
ending the profteering and opening
the piers for commerce.
Refused 20 Change Terms.
When the first OF the new staten
Island piers was ready for leasing. the
Commissioner said. he felt IL was time
10 make an amendment to the existing
terms regulating leases and so re-
ferred the question to the Sinking
Fund Commission.
One OF the members OF the COM
mission pointed out he thought II wa3
discriminating against lessees taking
piers at larger rentals than had been
obtained In the history OF the depart-
ment to put burden upon them which
might prevent them from getting back
an amount equal TO the rent they were
paying tho city" Commissioner HUI
bert said
That doctrine was accepted then and
there by the Mayor and his associates
as the guiding principle for handling
the city's new s2o.coO,ooo pier system.
IL was thereby established that tho
lessee have the right TO sublet fig-
ures which would give him use Of a
great pier practically free.
The Commissioner said he never
was able to obtain copy Of the tepcr.