New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-07-08
CHARGED WITH CONSPIRACY
ELECTRIC COMPANIES AND THE SUBwAYs.
THE WESTERN UNION AND THE BELL TELE
PHONE CORPORATIONS ACCUSED OF COM
BINING TO NULLIFY THE LAWS
OF THE STATE

BINIEG TO NULLIFY THE LAWS
OF THE STATE
A ccmpIant and notice of suit have been served
upon Theodore ~ Vail the former head OF the Meuo-
poitan Telephone and Telegraph COMPANY out 10"
the president Of the Consolidated Telegraph anu
Electrical Subway Company. and D. Morgan HlIure'l'
,r president OF the New York Underground Telegraph
company at the instance of the North American
Underground Telegraph and Electric company VIM"
eorporation has instituted in tho supreme Court HUI
cation that promises surprising developments as 70
why the work of tearing down the overhead wires III
the CITY OF New-York has ceased. through iS
counsel Charles W. Brooke, II claims that D!
violation OF contract it has been damaged I" ~'0
sxtent Of 50, 100000 and it therefore desires ah
,wsrd OF that amount and that furthermore us
contract be enforced 1t specifically charges tha'
conspiracy has been entered into by the western
rnion Telegraph and the American Bell telephone
company the successful result OF which mas Dccn
the capt,re OF the Consolidated subway Company anu
the continuance Of the overhead wire system
The complaint in the action quotes by way oi Piel-
are the act of the New York state Legislature Vi '"
Iss4 which provided for the burial of all telegraph
,oephone and electric lighting wires use0 IN any ln
corporated city of the state having popuIsiloh w
1000 or more, and giving until November -
for the removal from the surface OF inc suco. W '
telegraph poles. The document also relates N iAii
formation OF the Electrical subway Ooins9lo" "
June. 1885. which body charged with the ic-
sponsibilty of enforcing the provisions OF the pre
aot These commissioners in July 1856 entered mo
an agreement with the Consolidated Telegraph ana
Electrical Subway Company, Of which EDWARD Lauto
bach is president whereby the corporation a1ter ss
iug that II was willing and DESTROYS TO act as servant
of the commissioners. agrees g TO furnish the cap'
necessary to build the subways herein contempialeu
mot less tian SO, 900, 0o0-and will build equip MAIN
,.,n nd onerafe the same herein provided
In March, 1888. the Consolidated Telegraph ana
Electrical subway Company, in pursuance Of the rights
thus vested in it, entered into sealed agreement "i'h
The North American Underground Telegraph and Elec-
tic Company the plaintiff in this case Tor the use anu
operation of the underground method known a. the
Johnstone system which is embraced within the patent
properties of the plaintiff which by that contract sold
and assigned to the Consolidated Telegraph and Elec-
t4csI Subway Company the sole and exclusive license
10 manufacture and employ in the city Of New YORK
Alone all the patents and appliances owned by the
plaintiff The New-York Underground Telegraph Com
pany became party 10 the same agreement by reason
Of It's being possessed through State statute of certain
grants and privileges for the laying of electrical con
ductors throughout and under the streets of New
York The whole tenor of the arrangements made was
that the tombstone system adopted by the subway
company and its use agreed upon, and the vcepreSi
dent Of the plaintiff corporation William II. tombstone.
himself was in pursuance Of term Of the covenant
elected one of the directors OF the subway Company.
Tho subway Company proceeded to construct and oper
ate q number of miles of the adopted conduit. but
after short period, without any notice to the plaintiff
this work suddenly suspended, although that por
ton Of the system which was laid then and still is
being successfully conducted TO its full capacity.
1t is distinctly charged that the Western Union
Telegraph Company and the American Bcll Telephone
Company, through their being practically the owners
and controllers of a certain other corporation known
tbe Mar .rd TaIa ,h |
pany By of being in possession of the greater
portion Of the shares of its capital stock did CONTROL
ftrect and determine the affairs. operations and bust
ness Of the subway Company; that while the Metro
poltan Telephone and Telegraph Company is the ap-
parent owner Of large majority Of the capital stock
81 the Subway Company, as matter Of fact these
,hares the property Of the Western Union and Bell
Telephone oompanies The following four paragraphs,
which quoted in full, give strong indication Of
Ae serious character Of the sworn allegation:
That the said corporations the Western Union and
amounts x capital invested in the construction and
maintenance of the system Of wires usually termed
charges the said corporation and each and every one
of them. were opposed 70 any and every system and
md remove such wires and conduct their system 10y
my other means save those which during many years
hey had maintained overhead.
That il became a necessary and popular demand
Tor the safety of life and the protection of property IN
through their legislative representatives., that such
,Iectric wires telephone Geographic and electric
light and Of whatsoever description The same might
bel should thereafter be removed from overhead con
dons and constructed and operated beneath the sur
face Of the ground.
That the legislation aforesaid, being designed 70
control the construction and operation OF such cleo
rc systems OF communication underground, the acts
VI the Legislature of The state of New York we're as
foresaid especially leveled and directed against the
hercnbefOe mentioned and referred 10,
Is well as other corporations operating electric con
doctors overhead
The plaintiff further alleges that by Of the OBJ
)ects Of such legislation and the consequences to such
corporations, aforesaid said corporations In
In the general administration and conduct of the affairs
Of the said defendants The Consolidated Telegraph and
Electrical Subway Company, and thereafter TO accom-
pish such purpose in the OF their said creature
hereinbeore referred to as the Metropolitan Telephone
control and direction Of the affairs Of the said defend
ant, The Consolidated Telegraph and Electrical Sub
way COMPANY for the purpose OF defeating the objects
70 aud amendatOry thereof.
The plaintiff charges also that although the system
which 1t controls has been in practical operation for
Fears in Chicago and Philadelphia and is the only
available for distributing purposes, the defendants
have instructed their engineers and officers not only 10
prevent the laying and construction Of the tombstone
lystem but also with the view and purpose To in
tuce public belief that subway communication for
erctrica conductors is in itself unprecedented have
been induced ~ lay conduit systems which they thor
oughly knew 10 be useless, impIaCtcabe and worth
less" In addition 10 this, II l. alleged upon odlh
that the plaintiffs system Is actually and absolutely
laid upon the top OF the most expensive experimental
stem now laid beneath The surface Of the ground Al
the instance Of the subway Company aud that IN the
eonduts OF this latter system not single electric
wire Is operated with the exception of only few con
be used for distributing purposes.
This litigation is said 10 promise remarkable devel-
out as TO the methods of some public officials: The
attendants have twenty days in which to file an
answer, which will be made by their counsel HOadly,
Iauterbach Johnson.
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