The New York herald., 1921-09-17
Brown Tells Meyer Commit
tee of Enormous Sums Di-
verted by Extortioners.
PROFIT 280 PER CENT.
Gen. O'Brien Calls Manage
ment Ubiquitous and In
sists Guilty BE Caught.
RENTS LESS THAN COSTS
Dredging Absorbs Income Of
One Pier-Legislature Held
to BE to Blame by Hubert.
PROFIT 28O PER CENT.
RENTS LESS THAN COSTS

OHueT WudL ElOn II. brown, c0un-
sci for the Meyer committee, de-
scribed as "a secret uncontrolled sys-
tenn of extortion," the municipal
piers have been sublet by private
agents with profits at the rate Of
more than s4000,000 a year. This is
either a loss to the city or an un-
necessary burden on commerce en-
tering this port, resulting entirely
from bad management.
Operation of the Chelsea piers, the
finest in this port, was defined as
absolutely iniquitous" in that totally
inadequate returns are paid to the
city, unjust discrimination is given
in favor of few shippers who hold
the piers and the public suffers the
penalty.
Gen. Edward c. O'Brien, who was
Dock Commissioner under Mayor
Strong and special Investigator for
the United States Shipping Board.
charged that the Department OF
Docks was guilty Of criminal negli-
gence in permitting profiteering by
the corporations and persons leasing
city piers. He told the committee
that it's duty is never to adjourn
until 1t has searched out and con.
victed the men guilty" of practising
extortion on commerce here
Hubert Treated "UnfairIy."
At the end Of the days session in
City Hall Murray Hubert, Dock
Commissioner. issued statement
saying he had been treated unfairly
in the newspapers; admitting that he
was the best Dock Commissioner
New York ever had and stating that
any one who read the testimony
taken by the Meyer committee would
recognize instantly that this state
ment was a fact.
Investigation OF the Dock Depart.
ment was suspended at least tenn.
porarily yesterday. The committees
agents were sent to the offices OF
the United States Shipping Board to-
go through reports filed there by Gen.
William NJ. Black. r. s. A., retired.
dealing with profiteering on piers.
Senator Meyer said he was not GER
tain when the dock inquiry would be
resumed. There is much evidence on
the subject yet to be presented. The
committee spent two days going into
evidence presented by THE New
YORK HERALD and its own case as
prepared was delayed.
The Police Department is next on
the schedule and the plan now Is to
open with Commissioner Enright on
the witness stand next Monday
afternoon. The police inquiry prob.
ably will take two weeks.
The city's rental from twenty.four
leased piers is s1,4S4,717, Frank c.
Rippon. Investigator for the Meyer
committee, testified. These are the
piers covered in Gen. Blacks report.
At the rate they charge the shipping
interests who lease these piers re.
ceive S5,6S5,000 year in revenues
for wharfage and service through
subletting.
Profit or ESQ Per Cent. shown.
This figure is based on the assump.
tion that the piers were used to ca.
pacity, whereas. in fact, they were
occupied under suitcase only part OF
the time. The average berth charge
demanded by the lessees Is s240 and
the amount received by the city is
S63. This represents a profit of $50
per cent.
Mr.. Rippon read into tho record a
report made by David Hirshfleld, Com
missioner OF Accounts. questioning the
advisability Of getting only IA per
cent. return on city investment through
a proposed lease Of Pier 2. Hudson
River. The lease was fnadc. however,
on that basis. The city adminstra-
tion after that went ahead with it's
Staten Island project costing s2s.-
900 900 and issued leases on the same