New-York tribune., 1922-11-04
Sllearll Finds
Dummy Bus
Line Official
tceu.lsusd from pass ons>

on that date there came up before the
| Board of Estimate the matter Of for
feiting the franchise Of the City Island
Motor Bus Company, Inc, which was
the predecessor Of this Frankenberg
concern; and that Meyer Levy, the
eral manager of the company, and Ber-
nard Helms, representing certain prop
! erty owners, appeared in opposition;
/ and that Grover A. Whalen. Commits
/ sioner of Plant and Structures, ap-
peared in favor Of forfeiting the fran
chise; that no one else appeared.
"You will note that this so-called
Frankenberg Company which. day or
two after this franchise was forfeited,
] West Farms-City Island route, and
which, since that time, has been max
| ing profit of 205 per cent Of the
gross receipts of the corporation; had
been organized and was in existence
and was lying in the offing waiting for
this thing to happen from December
Of 1921 until April, 1929, when, on the
personal application and appearance of
the Commissioner of Plant and Struc-
lures, who gave the Frankenberg con-
Germ the right to charge 20-cent
fare, the franchise was forfeited.
Failure to Pay Fee
Chairman McAneny: "The ground Of
forfeiture, I assume, had to do with
their failure to pay the fee required
by the city"
Mr.. shearn: eyes, the ground of for
feiture recites that the company by
it's franchise was obliged to pay ~
per cent of its gross annual receipts
but which sum shall not be less than
$500 to the city, and it recites that it
had failed and neglected to pay the
city this compensation for the fiscal
years ending September 80, 1918; Sep.
tember go, 1919: September 80. 1920
and September 80, 1921. Now. although
the company had been in default in
the payment of this $500 year for
four years, no action was taken on il
until April, 1922, after the incorpora.
tion of the Murphy O'Neill concern
and Immediately preceding the licens.
ing Of that conceren to levy 20-cen'
fare for this seven-mile haul"
Chairman McAneny: "And the fake
corporation that succeeded it was re-
quired to pay nothing to the city" ?"
Made EOS Per Cent Profit
MIR. Shearn: Nothing. The gross
earnings Of the Murphy-O Neill con
cern, as shown by It's books in evi
dence, were $87,S00 from May Is, 1922
TO OCt@>~vG l4i ieNS, ana Inh Het prom
paid to shis fake company out Of the
25 per cent of the gross earnings, aSte,
deducting the starters salaries ane
Frankenberg's salary, his sons salar,
, and the porter's salary, showed prof.
Of S17,150 for these Ave months. Th'
capital Of the company was supposed
to be-that is. they put in $4,000 cash
!, and the net earnings represented
, merely by that 20 per cent of the gros.
. receipts were equivalent to 85 per cen
. on the capital Investment. or at tn,
rate of 205 per cent per annum.
Chairman McAneny said that on th'
figures presented the city should hav'
had something like $4,000 for the fv
! months OF business under investiga
ton. Commissioner Hardness sal,
, that if the same terms had been exact
ed of the Frankenberg company as wer
!. demanded of the old City Island com
pany, the city would have receive,
t $6,5s5 for fve months business, where
8 az the new company, favored b,
( Whalen, had paid the city nothing
so if the extraordinary privileg
, granted to the concern of charging
: fwenty-cent fare had been coupled wit
{ the requirement that was in force an,
: effect as applying to the predecesso
t concern. the city would have received
/ as you have just pointed out, man,
: Thousands OF dollars year income
: and nothing whatever was done to in
: terfere with the old company unit
Safter this O'Neill-Murphy concern wa
E organized, although it had been in de
: fault on it's payments to the city TO
: over four years" added Mr. Shearn.
! Records Held Falsified
J. Cross-examination of Mr.: Karsch de
{ veioped that the records of the F'rans
: enberg corporation undoubtedly ha
n been falsificd, and on this matter "a Y,
Y Shearn said it was q violation OF IN
< criminal Jaw. Karsch said that Franz
$ enberg was with him for three-qua.
J. tiers OF an hour, and that he appre
t hended that he had come to induce , M
d to change his testimony. hut ! pea pea
him to it by telling him that ! wa e
e going to tell the truth" said harscI
z who later on said that he had COZ @
e tract with his present employer s w
}. prevented him from having any otne
x business connections. =.
S John A. McCoilunl, in charge ol ~
Z Bureau of Franchises Of the boara
3 Estimate, swore that Riedl, VINO
q Mopdnv $asttf7Ad fn Ea6luE MCCDiINi