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“It was a thrilling experience to be whizzed in a “lift” a quarter of a mile heavenward, and to see New York spread out like a marvellous tapestry beneath us. There was the Hudson – more like the flash of a sword-blade than a noble river.” I hope this answer helps you with what you are looking for.
The phrase from the excerpt that suggests that Krogstad is prone to engage in crime and may, in fact, be a criminal is the following one:
diseased moral character
It is the only option that talks about somebody being a bad person, which is what Krogstad is. The other options do not show that moral ambiguity this option does.
It achieved its first commercial success in New England