The New York herald., 1921-07-06
$296,465 GRAB LAID
TO PIER SUb-LEASES
Hirshfield Reports Old Do
miniOn Steamship Com
pany Broke Contract.
Barred BY COMPLAINT
Commissioners Recommends
Revocation of Leases to
That Concern.
CITY RENTAL Is $126.285
International Mercantile Ma
rine, Sublessee, Alleged to
Have Pyramided Rents.
Barred BY COMPLAINT
CITY RENTAL Is $126,285

Despite Mayor Hylans declaration
year ago OF vigilance over the rev.
enues derived from city piers, the Old
Dominion Steamship Company during
the last year has collected almost
$175000 to which ii was not entitled
by subletting Piers % and 26. North
Rfver. according 10 figures of the
Mayors own investigator, David Hirsh-
field. Commissioner of Accounts.
On top of that. according 70 the
same figures, the International Mer-
camille Marine Company, a sublessee,
has piled an additional subrental of
$125,000 from the United States Ship
ping Board and other sub-sublessees,
thus running up an approximate total
annual rental of s422. 75o for piers from
which the city receives only s126,2s5,
a difference of 1926, ,465.
1t appears further that the exposure
OF hat alleged state of affairs. the
elimination of which Mayor Hylan, con
fron'ed by an expose of a Tammany
pier lease grab conceded was essential
to the retention of shipping IA this port
was not due to the vigilance of the
Hylan Administra ton, but was revealed
only when a sublessee OF Pier 25--the
Old Dominion Transportation Company
-vcomplained that 1t was about to be
forced out of place to dock its boats
Revocation Recommended.
Hfrshfield recommended yesterday to
the Mayor that tie leases OF the Old
Dominion Steamship Company on Piers
25 and 26 be revoked on the ground
that the lessee has violated its agree
ment with the city in subletting the
piers. He recommended also that the
Old Dominion Transportation Company
be provided with facilities at Pier 26.
The Old Dominion Steamship Com
pany. which formerly operated line Of
steamers between this port and Norfolk,
abandoned that enterprise last year to
enter into overseas trade The Old Do
minion Transportation Company then
was organized and bought two steamers
from the older company for $S50,0OO
paying 100000 in cash and giving a
note for $3.50, 900. obtaining also from
the older company an agreement for the
use of Pier 25 at $500 a day.
That agreement expires next August /,
and unless an arrangement can be made
whereby the transportation company can
obtain use of pier in the same locality,
which is In the vicinity of the produce
market. the new enterprise will be seri-
6eld. He states that the steamship com
pany. finding transocean business un-
profitable and desiring its former bust
ness back. previously has sought TO en-
har-rass the new company by refusal to
renew the promissory note and that the
new company was rescued from that
difficulty by the Intervention of business
men OF Norfolk in buying stock
Hirshfeld's report to the Mayor stated
that the Old Dominion Steamship Com
pany has pier 25 under lease at $63.-
603.9T a year for a term of years eX-
piring in 1880. and pier 26 at s62. $50. SO
for term expiring next May 1, with
an option of renewal for ten years more.
ContractuaI Feature.
For the purposes of preventing prof
teering on city pier leases and of pro-
viding the most reasonable possible
wharfage rates for vessels in order 10
encourage and retain business at this
port city piers are leased with the pro-
vision that they shall not be sublet at a
greater rental than that paid by the
original lessee to the city
Hirshfeld alleges that the Old Do
minion Steamship Company obtained
S297 900 from the two piers in the year
ending last April /, the international
Mercantile Marine Company paying the
lcesee at rate OF $4,000 a month
THE International Mercantile Marine
Company. however, did not bear the bur
den Of the SIS 900 worth a month alone"
says Hirshfelds report, because 1t re-
cefved at the rate OF $3.50 a day from
the United States Shipping Board for
the use of their piers % and 26.
From records obtained from j. w
McGovern, manager of piers and
wharves for the Shipping Board il ap-
pears that the Shipping Board paid the
Mercantile Marine company $3.50 q day
for 2s9 days IN the twelve months from
April 1, 1920. to April l. 1921. and the
records of Herbert B. Walker. presi-
dent and general manager of the old
Dominion Steamship Company. also
show that during the same period the
White Star Line berathed it's ships at
these piers for nineteen Gays, the Trans
atlantica Italiana line for fourteen days
and the Royal Beige company for sixty
one days. for which a total of s32. 900
was paid "