The New York herald., 1921-09-15
Meyer Committee to Delvc
Into Millions Made by
Agents. or Modern
Ship Pirates.
MANY SHIPS HELD UP
who Gets the Money" Will
Be One Object, With Band
Of Shipping Men in
Offing.
CONGESTION HERE DENIED
Gen. Black, Getting Data for
Ship Board, Says: you'll
See What's the Matter
With New York.
CONGESTION HERE DENIED


ing in the subleasing of New York
city piers. resulting in enormous
profits pocketed by compact little
hand of shipping men. is to be re.
yealed by the Meyer committee.
which began yesterday its inquiry
into the city's harbor facilities.
Evidence in possession of the com.
mittee shows that piers leased by the
city at rates ranging from SIS to
800 a day for each berth have been
sublet anywhere from s125 to $400
day. In numerous instances les.
sees of piers having advantageous
terms with the city have leased their
piers costing $50 a day for $500 q
cay.
The committee has proof of how
the system operates. What it will
seek to establish in the public hear
ings to-day and tomorrow Is who got
the money. The system lays heavy
hand on commerce. The penalty falls
back on the general public. which in
the end has to pay the bills.
Pier Shortage Is Denied.
Further, the committee is prepared
to prove that in spite of all the
shouting of officials that New York's
rier facilities are totally inadequate
there is ample wharfage space now
available, and has been for years IL
II were administered wisely and prop.
erly. This will be backed up by the
engineers OF the United States Ship.
| ping Board.
Aside from the Illicit profteering
| exacted from shippers, the system has
| operated TO drive commerce away
| from this port. Maladministration il
held responsible for that. and again it
| Is the entire city which suffers through
this unnecessary loss OF business.
Operation of this profteering Is
simple--so simple that the marvel Is
il never has been revealed. Here Is
| how il works:
Under the law IL the city leases a
pier that pier cannot be subleased ex-
cepting on terms that are acceptable
to the Department Of Docks. Tho
| municipal rates usually are very low.
The piers are leased by the year and
as entities. the lessee being left free TO
do with the property as he wishes.
/ The way Of getting around the law
Is this: The pier lessee is allowed to
charge for berthing space, by the day,
as much as he pleases. That Is not
\ considered a lease within the law as
\ long as the pier Is let out by the day.
Some kind OF q gentleman's agreement
4 Is made between the lessee and the
/ agent which is not reduced to writing
I and is not a contract by which ship
/ receives the privilege to dock by the
| day.
Gcnttemnn's Agreement subIet.
The agent subleases his gentle
mans agreement" 70 another man and
the latter charges as much as he can
| get Of the visiting steamships com.
I mander. who Is compelled TO find
docking berth. The berth is defined
as the space on one side OF pier oc-
cupied by a ship. There are hundreds
OF steamships visiting this port which
have not permanent pier accommoda-
tons. II is 10 them that the day
leases are given. the rates ranging
from 5000 to s40o day.
The agents" are the modern ship
\ ,,fy vfr bnfH Nn ..s-ft
steamship captains and exact the big
] Profits for their proateering masters.
Judging from the magnitude OF these
operations Il is believed there must be
scores II not hundreds, OF these agents.
\ II Il one Of the most modern and most
4 profitable ways OF money making and is
\ possible because of the municipal
system Of running its harbor business.
y The Meyer committee has come into
\ possession OF valuable document COM
\ piled by Gen. William II Black chief
engineer. U. s. A.. retired. when he was
i employed by the Emergency Fleet Cor
poratlon. IL was he who first dis
| covered how the pronteers we're operat-
\ ing through the sublcasing system, but
I his report never has been made public.
II forms the basis for the Meyer COM
mittee's investigation and Is to be read
4 into the records, probably to-day.
Mtg Profits That Arc Made.
The extent OF the profit that can bs
exactei through the manipulation of ths
subleases. this report shows, is limited
only BY the extent OF commerce and the
enterprise of the agent engaged IN the
technical" observance of the Law while
breaking II.
Piers that are leased from the city Al
the rate OF $50 a day and leased out .or
5000 berth would NJ a net profit
OF 1850 for each berth or 1900 for the