The New York herald., 1921-09-16

y. =. a.. retired. formerly OF the Snlp-
ping Board. VINO first exposed the SUD-
leasing system of prodteering In New
York harbor. That report was pub
lished in THE NEW YORK HERALD yes
terday. when Mr.. Hulburt first learned
the seriousness of its charges.
You understand that the system OF
permitting lessees to charge rates like
those to which your attention has
been called through the report OF Gen.
Black is destructive of the main pur-
pose of maintaining piers to facilitate
commerce IN New York harbor?" Mr..
Brown asked.
II have been trying as hard as /
could to stop it," the witness said.
1T has been injurious down to date?"
1T is injurious"
"And it has not been stopped?"
NO"
"And you haven't any authority to
stop 1t. and you have not been able to
stop II in any case?"
Under the statement of the law
made by the Corporation Counsel !
have no authority to stop it, but ! do
not agree with his Interpretation.
CITY Gets 500; Company $3.50.
Take ono case: Black shows that
the city is getting $63 berth per Day
from Pier 1s, Hudson River. from the
Eastern Steamship Company. and the
company collects $3.50 day. Commerce
was hindered and discouraged and the
city lost money: that is what hap
pened"
: .sThere is no doubt about that. Those
who suffer from the extortionate charges
have IL in their power more than / nave
to test out this question under the law.
but they seem to be willing to so along
and pay the charges
Wouldn't 1t be a good idea Tor you
to collect a little more money Tor the
city if they are in that frame OF mindYs
"Wil you show me how to do TT
the witness asked.
"At any rate. this condition revealed
in Gen. Blacks report ought to be rem
edied and terniinated?" Mr.. Brown
asked.
II have been trying to end it,
"And there has been no progress
made?"
mo: neither by the city nor the
Legislature"
But you never put It up to the Legis-
lature until 1919" Senator Meyer said.
At the opening of the days session
Commissioner Hubert asked permission
70 make a statement In relation to the
publication in THE New YORK HERALD
of the articles dealing with profiteering.
The witness described the articles by
their headlines, and took UP Gen. Black 5
:, pert. He continued:
after Gen. Black retired as Chief OF
Engineers OF the army he was engaged
as consulting engineer of the Shipping
Board, and he came over to New York
TO Investigate the conditions at New
York respecting proriteerng In pier
leases. I placed all the records In my
department at his disposal under an
agreement with him that the report
which he made to the Shipping Board
would likewise be furnished to me. Gen.
Black did not furnish me with a copy
OF the report, as promised. because he
stated. that the work had not been COM |
p,eted l made several efforts to obtain
this Information from tile Shipping
Board without ever having been able |
to get 1t.
Denies sanctioning Extortton.
"But I resent the Implication that
might be drawn or the Inference that
might be drawn that the Dock Depart
ment or that the city, either directly or
Indirectly. permitted or sanctioned the
gain OF 5000 day on piers leased at $50
a day from the piers mentioned in this
statement of Gen. Black.
"on the contrary. in a number Of in
stances. we made an indepe ydent investi-
cation when we were unable 20 get the
facts from Gen. Black. for the purpose
of ascertaining whether the conditions
OF the lease against srbletting had been
violated. had this matter up a number
OF times with the Corporation Counsel.
There was. and Is, a difference Of opinion
between the Corporation Counsers Office
and myself with respect to the interpre-
tation OF tho provisions of the charter
relating TO the charging and collecting
of wharfage, and In only one instance
lave ! been able 20 take steps TO test
this question and that IS in the case of
Pier e6. North River. where at the
present time there Is litigation pending
TO Sc. aside or annul the lease upon the
ground that they have violated the
provisions of the lease against sub-
letting
Mr.. Brown took UP the questioning.
He said:
"'rnE NEW York HERALD article states
that Pier 10, North River Eastern
Steamship Corporation. has a rental OF
S3S.330 per year. which would be an
average OF S63.sS per day, and that they
made and received charge or $3.50 a
Gsy?'
yves, sir" the witness said.
THAT is, they made and received a
charge Of $3.50 a day for the subletting
OF that pier"
Il contended. that what they werc
6oing was sublctting and 7 complained
about it 10 the Commissioner OF
Accounts and he conducted an investi-
cation and submitted to me copy OF
his report TO the Mayor and took that
matter up win the Corporation Counsel
and requested the Corporation Counsel
Is take proceedings against the Eastern
Steamship Company"
''The point about Il Is whether they
rad violated their lease?"
"Thc Corporation Counsel held that
fhey had not. because there was a pro-
vision ~ oar leases which gives the
tenant tho right TO collect wharfage"
which says you have a right to fx
wharfage on public and private piers"
Mr.. Brown said. Just turn to that pro-
vision OF law"
Section S63 provides: IT shall be the
DUTY Of every person owning or having
charge or any pier, wharf bulkhead or
slip in the City of New York to cause
to be printed on the back of all bills
presented by them for wharfage Sec
tion $50. which provides the owner