Moses let a favored concessionaire pay the city half of one percent of gross

Evidence

The second issue—discovered by Isaacs—was the nature of the financial arrangement between Moses’ Park Department and the restaurant’s owner, old Moses favorite Arnold Schleiffer. Schleiffer paid the city only 5 percent of his gross income to operate a restaurant in the renovated sheepfold. This was a pittance compared to the rent most restaurant owners paid their landlords—even if Schleiffer had paid it all. … Studying Schleiffer’s contract, the councilman found a provision that allowed the restaurateur to “improve” (repair and renovate) his restaurant and deduct the cost of the improvements from his rent payments. Checking with the Comptroller’s office, he found that the restaurateur had made full use of that provision. In one four-year period, for example, the gross income of the Tavern-on-the-Green had been 1,786,000. On that income, Schleiffer should have paid the city about 90,000—a low enough figure. Instead, he spent more than 80,000 on "improvements." On a gross income of 1,786,000, he had paid the city only $9,000—half of 1 percent. — Robert A. Caro, The Power Broker, 4089

Categorization

  • XREF: Connects to ch36’s treatment of how Moses’ patronage machine enriched favored concessionaires without technically breaking laws. — connects to: Moses enriched concessionaires to fund lavish parties outside the Board of Estimate’s control — Robert A. Caro, The Power Broker: Robert Moses and the…, 4091

Broader Connections