Laptop Battery Although ridership on its ferries doubled not long after the Sept. 11 terrorist attack, New York Waterway, the largest private ferry company in the region, collected nearly $360,000 in federal grants designated for businesses that suffered losses from the attack.
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Thinkpad New York Waterway said that it had suffered more than $8.6 million in losses from Sept. 11 through the end of 2001, according to its application for the World Trade Center Business Recovery Grant. As a result, state and city officials who administered the federal program approved three grants totaling $358,188, according to state records.
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Microsoft But by November 2001, the number of ferry riders traveling to New York and New Jersey had climbed to 52,549 passengers a day from about 33,000 before the attack, according to the New York City Department of Transportation, as commuters sought alternatives for the damaged PATH rail lines. In the months after the attack, the president of New York Waterway, Arthur Imperatore Jr., said in interviews that the number of ferry passengers had doubled.
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Laptop Computers Bob Riker, a transportation consultant and a former executive with the Port Authority of New York and New Jersey who oversaw ferry operations in the 1980's, called New York Waterway's grant "unconscionable" in light of the tragedy and the subsequent increase in ferry service.
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Laptop Computer "The other ferry companies who volunteered their services received $20,000 or $30,000 for their evacuation work and found that increased revenues on subsequent days covered their expenses," Mr. Riker said.
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Desktop Computer New York Waterway, which city officials say accounts for about 94 percent of the more than 63,000 passengers a day who use ferry service to get to work in the area, dismissed the criticism, saying the grants and the subsequent jump in ridership "was hardly a windfall." A spokesman, Pat Smith, said the company's revenues rose 45 percent, to $73.8 million last year, but profits increased by only $200,000, to $6 million.
Notebooks The authorities have not said that they are investigating New York Waterway's use of the business recovery grants. But the company is the subject of a federal investigation into a separate issue of whether it defrauded the federal government of hundreds of thousands of dollars for subsidized ferry services between Hoboken, N.J., and Lower Manhattan after the Sept. 11 attack.
Lenovo The inspector general's office of the Port Authority and the Justice Department are conducting a joint investigation.
Hard Drive The company has denied any wrongdoing.
Travelstar In a written statement about the nearly $360,000 in business recovery grants, Waterway said it had spent $400,000 to keep 23 ferries operating for 20 hours after the attack on the trade center as it evacuated 160,000 people from Lower Manhattan. The company said it lost another $150,000 in revenue when ferry service to Lower Manhattan was halted for five days after the attack.
Gateway New York Waterway also said that after the attack, it leased more boats at "greater cost" to operate additional routes to serve commuters affected by the shutdown of the PATH line, but that it did not raise its one-way fare of $3 to Lower Manhattan.
Laptop Parts But under its contract with the Port Authority, New York Waterway was reimbursed for the cost of 10 charter boats it leased for service between Hoboken and Lower Manhattan. It was also paid more than $400 an hour in operating expenses for each boat, which included a 20 percent profit.
Software Based in Weehawken, N.J., New York Waterway now operates 26 ferry routes between New York and New Jersey with a fleet of 53 vessels, up from 11 routes and fewer than 35 boats in August 2001.
Hard Drives The chief operating officer of the Empire State Development Corporation, Kevin Corbett, who oversaw Waterway's grant, said the company was "certainly a business affected by the attack." He said the company, which provided tax returns from 2000, qualified for a grant based on a loss of revenues compared with a comparable period a year earlier.
Electronics David Stafford, general manager of Seastreak, another ferry operator based in New Jersey, said he was surprised that New York Waterway had gotten so much money. He said his company received about $29,000 to offset the cost of shuttling medical supplies, construction workers and volunteers on ferries between Highlands, N.J., and Lower Manhattan in the days after the attack.
Canon "I find it incredible for these amounts of money to be paid after they bragged about doubling their ridership," Mr. Stafford said. "Everybody struggled. We put on special boats on Sunday morning after 9/11. I'm stuck for words."
Desktop Pc Last month, two investigators from the inspector general's office of the Port Authority served a federal subpoena to New York Waterway asking for all business records, e-mail messages and credit card receipts related to ferry operations paid for by the Federal Emergency Management Agency through the Port Authority.
Desktop Computers The company has received about $2.03 million a month in subsidies, including $290,000 for a route that ended April 30. Investigators say they are looking into whether New York Waterway submitted inflated bills to the Port Authority for ferry services it provided to replace the commuter rail links between New Jersey and Lower Manhattan that were destroyed by the terrorist attack.
Think Pad One person who works with New York Waterway said the matter was a "billing dispute." The company has issued a statement saying that it is cooperating fully with the Justice Department inquiry. The company said it was "confident that the inquiry will confirm our good work."
Repair By Charles V. Bagli
New York Times - 5/6/2003
Topic: Transportation
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