The New York herald., 1921-07-07
URGES CANCELLING
OLD DOMINION LEASE
Charged With Subletting Piers
for More Than 1t Pays
City.

Mayor Hylan forwarded yesterday to
Corporation Counsel oBrien the charges
OF David Hirshfield, Commissioner OF
Accounts, that the Old Dominion Steam
ship Company has violated its agree
ment with the city IN subletting Piers
25 and 2s, North River. at larger sums
than 1t pays the city for the leases. He
forwarded also the Commissioners rec
ommendtaion that the leases be can
celled.
At the same time the Mayor passed
the buck to his predecessors in Office
for the condition alleged to exist. The
leases" he said, were made during
past administration, and l suppose the
company was granted the privilege OF
subletting and is now taking advantage
of it. This administration is nowise re-
sponsible for the conpany's action
The Old Dominion Steamship Soii-
pany. through a statement issued py
it's president and general manager' n
3. Walker. in reply to Hirsnrieio aiie-
rat,ons contends that the Commissioner
is entirely without grounds for his
action. and adds:
''It goes without saying, therefore,
that any Ill conceived attempt on the
part of other interests to oust the COM
pany from it's present leased premises
will be resisted to the utmost
Mr.. Walker stated that the Old Do
minion Steamship Company not only
has not undertaken TO embarrass the
Old Dominion Transportation Comapny
but has aldad by allowing it the use OF
Pier 26 at less than going rates. Pan
ming, however. TO build new steamers OF
its own the steamship company declares
1t finds it necessary to ask the trans
portation company to relnquish the pier
for the lessee's use. Mr.. Walkers's re-
ply to Hirshfield follows In part;
"Under its leases covering Piers 20
and 26 the Old Dominion Steamship
Company is entitled to collect wharfage
from steamers and steamship owners
using the said piers just like any and
all other lessees of wharf property be-
longing TO the city of New York 1t has,
to the extent that its piers were not re-
uured for its own business. permitted
other vessels to enjoy wharfage privi-
leges thereat, but beyond that 1t has not
gone. 1t has sublet none of its space
and does not propose to. The rates
charged by 1t for wharfage have in all
instances been reasonable and in no case
higher than the going rates. and. so far
from profiteering, the company actually
operated at a loss during the last fiscal
year.
80 far as the business of TIE Old Do
minion Steamship Company Is con-
cerned 1t was obliged following the re-
turn of the line to the corporation after
the expiration of Federal control to
withdraw from the coastwise steamship
business for the time being in order to
avoid heavy losses that 1t certainly
I. al Tt ut t.
time that certain individuals in Norfolk
desiring for purposes of their own to
maintain q service between Norfolk and
New York devised n plan of purchasing
two of the Old Dominion Steamship
Company's steamers and operating them
between those two points. To meet their
desires the Old Dominion Steamship
Company disposed of two of its steam
ers to corporation formed in Norfolk
by these gentlemen called the Old Do
minion Transportation Company.
The transportation company, unable
to obtain from the city officials a place
at which to berth its vessels in New
York. asked the Old Dominion Steam
ship Company to extend wharfage facili-
ties to IL until it could obtain pier
from the city. And it was solely out Of
the desire to befriend the transportation
company that the Old Dominion Steam
ship Company finally consented to allow
the former to enjoy wharfage at its
piers. at no little inconvenience to itself
and at much lower rate than any then
prevailing.
"The Old Dominion Steamship Com
pany thereafter, in view Of the want of
practical experience on the part of the
transportation company's officials. con-
stantly gave them the benefit OF its
knowledge and advice in the matter of
the operation Of their steamers Numer-
Gus other services IL rendered, for none
of which however. did it charge any
compensation. The transportation COM
pany now finds it desirable for it's own
purposes to enjoy permanent bei thing
privileges at Pier 26, North River. and