The New York herald., 1921-09-16

OF Docks, and announced he could see
all right and would go on.
you ought 10 be able to see through
the Dock Department now" Assembly,
man Maurice Block commented.
Much documentary evidence dealing
with leases was offered in evidence. This
covered most Of the important piers.
1t was shown that the Commissioners
OF Accounts made an investigation of a
lease of a pier at the foot OF East
Twenty-fourth street to the Maritime
Shipping Company and recommended II
be cancelled. That report. sent to the
Mayor, get forth that the company was
not a real shipping concern but was
organized for tho purpose of suoletting
the pier. The company had revoc-
BILE permit from SEPTEMBER. 1919, to No
vember, 1920, and made a net profit of
$50, 900 by merely subletting. The Com
missioner said that the pier yielded only
$4,000 a year to the city during the
Mitchell administration and he believed
he was doing we'll by jumping the rev.
enue to $4,000 a year.
Hubert Narrates Obstacles.
At the end of the cross-examination
Commissioner Hubert asked pern1is-
sion to make a statement regarding his
administration, and 1t was given him.
He talked for half an hour, detailing
the obstacles he had met and the sue
cess he said he had achieved.
In his statement to the committee Mr..
Brown said:
1T has appeared before the commit
tee that there is no standard in the
practice OF making leases heretofore
based upon reasonable return to the
city for the use of the property and
improvements made in wharves and
piers. and that 1t is extremely uneven,
unequal and, as between the users OF
these piers who arc lessees. orten oppres-
slve, because many pay twice or three
times as much as others for similar SER
vice.
at also appears that down to the
present time the custom has prevailed
of issuing long term leases with pro-
viso that they may be renewed at the
end of ten year periods with an increase
Of 10 per cent. and that such increase,
according TO the experience of the past.
has been wholly inadequate TO meet as
o. return, the Increased vaiue in the
meantime OF the property leased. This
practice. however. has been followed,
and 1t is for the committee to consider
whether or not the practice should be
abated by law or what change should
be made in that particular.
1T is highly important that legislation
should be enacted for the purpose OF
creating as great an equality OF charges
as possible and that the action looking
to that equality OF charges should begin
at once.
zone OF the considerations which have
influenced the letting of dock property
at a lower return has been the desire to
give to the city the cheapest possible
facility for handling shipping, but 80
far as the cases have been developed
It appears that there has been hereto
foro little or no exercise or authority
and the power 20 exercise II In some
cases Is quite doubtful to prevent ex-
orbitant charges for service through
the subleases or through wharfage from
persons holding leases, the consequence
being frequently that 200 or 800 per
cent. more Is charged FOR the actual SER
vice to the ship owner than the city re-
ceives into its treasury from the use OF
the pier BY that ship owner. And II also
appears that this extends TO the tempo
rery or rcvocable permit. that the city
keeps no control over such temporary
or revocable permits for the purpose of
preventing extortion.
These matters have been developed
and are worthy or the greatest consider
alton. There is another Important con-
sideration which must not be lost sight
of, and that is this: The city, as all
agree, is practically at the limit OF its
debt mourning power and it's taxing
power. II has. according to the returns
OF the Tax Department, over s2o0.oo0.-
900 In this dock property. a fair return
upon that property for use by ship own
ers would apparently be smaller
charge than is now paid in many in
stances, and perhaps generally. by the
shipping world for accommodations,
while the city treasury would be bcne-
Stcd 20 the extent Of such rea sonablc re-
turn. say per cent, upon the value or
it's real property for the use and still
leave the shipping world in better
condition. so far az charges 60. than It
has heretofore been. That Is an impor-
tsnt consideration
''It may be that legislation can be
had which will facilitate extension. re-
newal and Improvement OF the dock sys-
tenn. but II that legislation Is passed II
would appear that sucn new construc-
tion ought TO come under the rules which
have already suggested for a reason
able return to the city upon the value
OF It's property and of its improvement"
The hearing will continue to-day.