The lease will contain the usual covenants and conditions, in conformity with the provisions of law and the ordinances of the Board of Aldermen relative to ferries, and shall provide that the lessees will maintain and operate the ferries during the whole term, and will provide ample accommodations in the way of safe and capacious boats and sufficiency of trips; that if at any time during the term hereof the Commissioner of Docks, or the person or persons then performing the duties now exercised by the Commissioner of Docks, shall be of the opinion that the boat or boats furnished by the party of the second part, or that the number of trips do not conform to the requirements of this lease, he may direct the party of the second part to make such improvements, construct such new boat or boats, or increase the number of trips as in his opinion the service demands; and in the event of the failure of the party of the second part to comply with such directions within a reasonable time, a Commission shall be appointed, composed of the Mayor, the President of the Borough of Queens and the Commissioner of Docks, on behalf of the City, and three other persons selected by the party of the second part, which Commission shall be known as the Arbitration Commission, and in case of their failure to agree as to the improvements to be made in the service, they shall appoint a seventh person to act as umpire, and if they are unable to agree within five days upon such umpire, then, at the request of either of the parties hereto, he shall be appointed by the Presiding Justice of the Appellate Division of the Supreme Court of the State of New York, First Department, and the decision of four of said seven persons so selected shall be conclusive and binding upon both of the parties to this lease; also conditions that the lessees shall dredge the ferry slips, etc., as required by the Commissioner of Docks; that during the term of the lease they will erect and build, at their own expense, and will at all times well and sufficiently repair, maintain and keep in good order, all and singular the floats, racks, fenders, bridges and other fixtures of the landing places, and in the event of any damage to the bulkheads or piers from collision by the ferryboats or otherwise, from any accident or negligence on their part, they will immediately repair and restore said wharf property to its previous condition free of cost to The City of New York; that if at any time during the term of the lease the Commissioner of Docks shall require any of the wharf property used for ferry purposes in order to proceed with the water-front improvements in the vicinity of the ferry landings, the said lessees shall surrender and vacate the premises without any claim upon the City for any damages whatever, upon written notice being given to the lessees three months in advance of the intention of said Commissioner; shall, by the said notice, terms of description, or by reference to the plans and specifications of the proposed work of improvement, specify the character of the alterations and improvements to be made in regard to said water-front, affecting the property and rights hereby authorized to be demised, and upon receiving such notice the lessee may elect to terminate the lease of said ferry privilege or franchise by serving notice of such election upon the Commissioner of Docks within one month after receiving such notice from the Commissioner of Docks of his intention to improve the water front in the vicinity of the ferry landing; also that in case only a portion of said wharf property shall be required for the purposes aforesaid, then a reasonable reduction will be made from the rent reserved by said lease; that sworn returns of the amounts of ferry receipts shall be made to the Commissioner of Docks, when required by said Commissioner, and that the books of accounts of the ferry shall be subject to the inspection of said Commissioner, or to any person designated by him in writing.

The lease will contain a covenant providing that upon the expiration or sooner

termination of the said term of ten years the lessee may, and upon demand, in writing, by the Commissioner of Docks, or other proper officer or Department of The City of New York thereto duly authorized, shall, at the cost and expense of the lessee, forthwith and at the utmost practicable speed, wholly remove from the premises hereinbefore described buildings, platforms, floats, bridges, ferry racks, piling and fixtures which shall have been erected or placed by the lessee, its successors or assigns, upon or within the limits of the wharf property leased, so that there shall be in the slip adjacent to the hereinbefore described wharf property used for the purposes of said ferry, and in every part thereof, from the bulkhead out, at least ten feet of water at mean low water.

The rates of ferriage and charges for vehicles and freight shall not exceed the rates now charged on said ferry.

The lessees shall provide such lifeboats, floats, rafts and life preservers as may be directed by the Commissioner of Docks.

The form of lease which the purchaser shall be required to execute can be seen at the office of the Commissioner of Docks.

The right to reject all bids is reserved, if deemed by the Commissioner of Docks to be for the best interests of the City so to do.

By order of the Commissioner of Docks.

The foregoing terms and conditions of sale were duly approved by the Commissioners of the Sinking Fund under resolution adopted , 1903.

MAURICE FEATHERSON, Commissioner of Docks.

Dated The City of New York,

The City received, under the terms of the lease which has expired during the year 1902, the sum of $9,902.26, or nearly double the minimum price, showing the gross receipts to have exceeded $184,000.

I see no objections to the approval of the terms and conditions for the sale of this franchise, as proposed by the Dock Commissioner.

June 9, 1904.

EUG. E. McLEAN, Engineer, Department of Finance.

In connection therewith the Comptroller offered the following resolution:

Resolved. That pursuant to the provisions of section 826 of the Amended Greater New York Charter, the Commissioners of the Sinking Fund hereby approve of the following terms and conditions of the sale of the franchise for the operation of the ferry between the foot of Ninety-second street, East river, in the Borough of Manhattan, and Astoria, Borough of Queens, as transmitted by the Commissioner of Docks, viz.:

The franchise of the ferry, as more particularly hereinafter described, will be offered for sale by the Commissioner of Docks, at public auction to the highest bidder, at Pier "A," Battery place, at o'clock, M., on the

1904, for a term of ten years from May 1, 1904.

day of

The ferry to and from Long Island City, Borough of Queens, over and across the waters of the East river or Sound from and to the foot of East Ninety-second street, in the Borough of Manhattan, The City of New York, together with the

wharf property belonging to The City of New York assigned to be used, or which has been customarily used, in connection with and for the purposes of said ferry.

Terms and Conditions of Sale.

The lease will be sold subject to the approval of the terms thereof, by the Commissioners of the Sinking Fund.

No bid will be received which shall be less than the upset price, namely, five per cent. (5%) per annum of the gross receipts, such five per cent. (5%), however, to be not less than four thousand five hundred dollars ($4,500) in any one year of said term for said franchise, and seven hundred dollars ($700) per annum for said wharf property for the said term of ten years.

The purchaser will be required at the time of the sale to pay, in addition to the auctioneer's fee (viz., $50), to the Department of Docks and Ferries, $1,000 as security for the execution of the lease, which $1,000 will be applied to the payment of the rent first accruing under the lease when executed or will be forfeited to the Department if the purchaser refuses or neglects to execute the lease, with good and sufficient surety to be approved by the Commissioner of Docks within ten days after being notified that the lease is prepared and ready for execution at the office of the Department of Docks and Ferries, Pier “A,” North river, foot of Battery place.

A surety or guaranty company, duly authorized by law to act as surety, to be approved by the Commissioner of Docks, will be required under the lease to enter into a bond of obligation, jointly and severally with the lessees, in the sum of double the annual rent, for the faithful performance of all the covenants and conditions of the lease.

The lease will contain the usual covenants and conditions, in conformity with the provisions of law and the ordinances of the Board of Aldermen relative to ferries, and shall provide that the lessees will maintain and operate the ferries during the whole term, and will provide ample accommodations in the way of safe and capacious boats and sufficiency of trips; that if at any time during the term hereof the Commissioner of Docks, or the person or persons then performing the duties now exercised by the Commissioner of Docks, shall be of the opinion that the boat or boats furnished by the party of the second part, or that the number of trips do not conform to the requirements of this lease, he may direct the party of the second part to make such improvements, construct such new boat or boats, or increase the number of trips as in his opinion the service demands; and in the event of the failure of the party of the second part to comply with such directions within a reasonable time, a Commission shall be appointed, composed of the Mayor, the President of the Borough of Queens and the Commissioner of Docks, on behalf of the City, and three other persons selected by the party of the second part, which Commission shall be known as the Arbitration Commission, and in case of their failure to agree as to the improvements

to be made in the service, they shall appoint a seventh person to act as umpire, and if they are unable to agree within five days upon such umpire, then, at the request of either of the parties hereto, he shall be appointed by the Presiding Justice of the Appellate Division of the Supreme Court of the State of New York, First Department, and the decision of four of said seven persons so selected shall be conclusive and binding upon both of the parties to this lease; also conditions that the lessees shall dredge the ferry slips, etc., as required by the Commissioner of Docks; that during the term of the lease they will erect and build, at their own expense, and will at all times well and sufficiently repair, maintain and keep in good order, all and singular the floats, racks, fenders, bridges and other fixtures of the landing places, and in the event of any damage to the bulkheads or piers from collision by the ferryboats or otherwise, from any accident or negligence on their part, they will immediately repair and restore said wharf property to its previous condition free of cost to The City of New York; that if at any time during the term of the lease the Commissioner of Docks shall require any of the wharf property used for ferry purposes in order to proceed with the water-front improvements in the vicinity of the ferry landings, the said lessees shall surrender and vacate the premises without any claim upon the City for any damages whatever, upon written notice being given to the lessees three months in advance of the intention of said Commissioner; shall, by the said notice, terms of description, or by reference to the plans and specifications of the proposed work of improvement, specify the character of the alterations and improvements to be made in regard to said water-front, affecting the property and rights hereby authorized to be demised, and upon receiving such notice the lessee may elect to terminate the lease of said ferry privilege or franchise by serving notice of such election upon the Commissioner of Docks within one month after receiving such notice from the Commissioner of Docks of his intention to improve the water front in the vicinity of the ferry landing; also that in case only a portion of said wharf property shall be required for the purposes aforesaid, then a reasonable reduction will be made from the rent reserved by said lease; that sworn returns of the amounts of ferry receipts shall be made to the Commissioner of Docks, when required by said Commissioner, and that the books of accounts of the ferry shall be subject to the inspection of said Commissioner, or to any person designated by him in writing.

The lease will contain a covenant providing that upon the expiration or sooner termination of the said term of ten years the lessee may, and upon demand, in writing, by the Commissioner of Docks, or other proper officer or Department of The City of New York thereto duly authorized, shall, at the cost and expense of the lessee, forthwith and at the utmost practicable speed, wholly remove from the premises hereinbefore described buildings, platforms, floats, bridges, ferry racks, piling and fixtures which shall have been erected or placed by the lessee, its successors or assigns, upon or within the limits of the wharf property leased, so that there shall be in the slip adjacent to the hereinbefore described wharf property used for the purposes of said

ferry, and in every part thereof, from the bulkhead out, at least ten feet of water at mean low water.

The rates of ferriage and charges for vehicles and freight shall not exceed the rates now charged on said ferry.

The lessees shall provide such lifeboats, floats, rafts and life preservers as may be directed by the Commissioner of Docks.

The form of lease which the purchaser shall be required to execute can be seen at the office of the Commissioner of Docks.

The right to reject all bids is reserved, if deemed by the Commissioner of Docks to be for the best interests of the City so to do.

Which was unanimously adopted.

The following communication was received from the Commissioner of Docks relative to a lease of 150 feet of space at the inner end of the south side of Pier 4, at Wallabout basin, in the Borough of Brooklyn, to the American Ice Company:

NEW YORK, May 26, 1904.

N. TAYLOR PHILLIPS, Esq., Secretary to the Commissioners of the Sinking Fund:

SIR-This Department is in receipt of an application from the American Ice Company for a lease of 150 feet of space on Pier 4 at Wallabout basin in the Borough of Brooklyn, and after considering all the facts I would respectfully recommend that the Commissioners of the Sinking Fund consent to and approve of the execution by the Commissioner of Docks of a lease to said company covering 150 feet at the inner end of the south side of Pier 4 at Wallabout basin in the Borough of Brooklyn, with the privilege of maintaining an ice bridge, scales and tally house thereat, at a rental of $2,250 per annum, the lease to be for a term of five years from the first day of the month following the date of authorization; the ice bridge, scales and tally house to be erected thereat under the direction and supervision of the Engineer-in-Chief of this Department, and in accordance with plans to be approved by him. The remaining terms and conditions of the lease are to be similar in every respect to those contained in leases of wharf property now in use by this Department.

The American Ice Company now occupies the premises proposed to be leased under a permit at a rental of $2,000 per annum, and the proposed lease, if executed, will net an increase of $250 per annum in the revenue of the Department.

Patterson & Elder have a lease of 200 feet of bulkhead on the westerly side of Fleeman street, Wallabout basin, with ice bridge privilege, at a rental of $1.500 per annum, and Richard J. Foster has a lease of 150 feet of bulkhead, with ice bridge privilege, between Piers 3 and 4, Wallabout basin, at a rental of $1,500 per annum. It will thus be seen that the rental for the premises which it is proposed to lease to the American Ice Company is considerably in excess of that charged at this location for similar privileges.

Yours respectfully,

MAURICE FEATHERSON, Commissioner.