MMAYOR GIULIANI ANNOUNCES THAT NEW YORK CITY BUSINESSES
WILL RECEIVE COMMERCIAL CARTING REFUNDS TOTALING $5,215,000

Trade Waste Commission Will Direct Refunds to Approximately 16,000 Businesses

Mayor Rudolph W. Giuliani-joined by New York City Trade Waste Commission Chairman and Executive Director Edward T. Ferguson, III; Police Commissioner Howard Safir; Deputy Police Commissioner Martin O'Boyle; Senior Advisor Anthony P. Coles; and members of the Trade Waste Commission-announced today that 16,000 businesses in the City will receive refunds ordered by the Trade Waste Commission totaling $5,215,000. These refunds will compensate businesses for overcharges by their carting companies when the City's commercial waste hauling industry was controlled by organized crime. The refunds will be paid from the proceeds of the sale of carting companies found to have a history of overcharging customers.

"For far too long, honest businesses in this City were victimized by a Mafia-run cartel that forced them to pay the highest prices in the nation for waste removal," Mayor Giuliani said. "Due to the efforts of the Trade Waste Commission, and investigations conducted by the Manhattan District Attorney's Office and the New York City Police Department, the cartel has been broken, competition is vigorous, and carting rates are on average 50% lower than they were a few years ago. Now the Trade Waste Commission is using its authority to require carting companies that unfairly benefited from the cartel to refund money to its victims. This is an excellent example of government working to return money to the people who worked hard to earn it."

Trade Waste Commission Chairman Edward Ferguson said, "Until the mid-1990s, there was virtually no competition in the City's carting industry. Carting companies effectively 'owned' their customers and routinely charged them the maximum legal rate for waste removal service. Many carters exploited the situation further by charging their customers for more waste than they actually picked up."

Under Local Law 42 of 1996, carting companies must receive approval from the Trade Waste Commission before selling their businesses. In circumstances in which the selling company has a demonstrable history of overcharging customers and sale proceeds allow for customer restitution, the Commission requires a refund to the selling company's customers as a condition of approving the sale.

"The customer refunds announced today are another example of the Trade Waste Commission's impressive achievements in restoring competition to the commercial carting industry," said Senior Advisor Anthony Coles. "This vigorous competition continues to benefit thousands of businesses throughout New York City."

The Commission thus far has required refunds to customers of 31 carting companies. The total amount ordered to be refunded to date is $5,215,000. These refunds will be sent to approximately 16,000 New York City businesses in the coming months.

Appearing with the Mayor were owners of overcharged businesses who will be receiving refunds. Jonathan Frisch of Atlantic Paste and Glue in Brooklyn will receive a refund of $12,330. Francisco Espinal, owner of Junior's Meat Town in Brooklyn, will receive a refund of $3,350. Mohsinsaleh Hussain, owner of Saleem Newsstand in Brooklyn, will receive a refund of $1,431.

The Trade Waste Commission is likely to consider the sale applications of at least forty additional carting companies that operated in the cartel era. Mr. Ferguson stated that "the Commission will not hesitate to impose customer-refund requirements on those transactions whenever the circumstances warrant."

Since the Trade Waste Commission was established in June 1996, commercial carting rates in New York City have declined by about 50%-from $14.70 per loose cubic yard of waste (the former maximum legal rate) to an average of approximately $7.50. This reduction translates into an annual savings of approximately $700 million for the City's businesses.

The members of the Trade Waste Commission, in addition to Mr. Ferguson, are Investigation Commissioner Edward J. Kuriansky, Consumer Affairs Commissioner Jules Polonetsky, Sanitation Commissioner Kevin P. Farrell, and Business Services Acting Commissioner Deborah R. Weeks. Mayor Giuliani also thanked the New York Police Department and the Federal Bureau of Investigation for their continuing support of the Commission's efforts.

 

 

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