The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-06-08
TELEPH hone GRANT
Hudson Company's Explana-
ton Of the Franchise
Awarded by Board
Of Works.
EXPANSION OF OLD ORDINANCE
Growth of the City Made Ex-
tension of Lines Neces-
sary-A Jersey City
Company.
EXPANSION OF OLD ORDINANCE

After the Board of Street and Water
Commissioners had passed the ordinance
of the Hudson Telephone Company over
the veto of the Mayor, the officers of
that company held a meeting and decid-
ed to begin at once the work OF laying
conduits through the streets named In
the ordinance So many wild and erro-
neous statements have been made about
the company, emanating, it is said. from
those interested in the defeat of the home
company that the officers of the Hudson
Telephone Company deemed it proper to
set a plain statement of fact before the
people.
They wish especially to emphasize the
statement that their company's stock IS
entirely owned in this city and county
and they believe the service which they
are now able to give will be a distinct
boon for the people. They have been un-
able to understand, they say, why they
have been so completely shut off from
competition with strong rival, and,
while not rejecting on any one in par
ticular, they think that the cry OF a TAX
on franchises was cloak to keep the
field clear from healthy competition. Ihe
views of the company are set forth IN
the following SldleEleHl--
"The ordinance passed yesterday py
the Board of Street and Water Commls-
sioners has received the fullest sort OF
discussion, and casual reader might
think it was a valuable grant which the
company received.
s.,rhe company did not apply for the or
dinance with this idea, but asked for the
ordinance to be able to complete the sys-
tenn which it had commenced. In the
early eighties the city granted the Hud-
son Telephone Company an ordinance
throughout all the principal streets OF the
city as it then existed. that ordinance
permitted every street named therein TO
be opened for subways and permitted pole
lines to be built thereon with the consent
of the abutting property owners. The
owners of the company at that time were
Messrs. James B. vredenburgh, Lewis e.
Wood and e. F. c. Young.
.sLater the Board of Aldermen rescinded
the ordinance and upon review before the
Supreme Court the action of the Alder
men was declared invalid and the ordi-
nance suStaineds
'sWithin the last three or four years the
company has abeen actively at work
against great odds. 1t has steadily, by
confining itself to a local business at low
rates, SO developed it's system that it was
necessary to have rights to do business in
those parts of the city which have de-
veloped since the old ordinance was
granted. If Jersey City had not grown,
no additional ordinance would have been
necessary.
1.-THE company, with the desire to lessen
the number of poles, had asked the Board
of Street and Water Commissioners for
permission to use the poles of the police
and fire systems to reach outlying GUS
toners; the Board agreed to this provided
consent was given by the Police and Fire
Boards, but these Boards have never act
ed notwithstanding that the Bell Com
pany use these city poles and maintain
their high rates. enlarge their profits at
the taxpayers expense, and as the 1Aud-
son Telephone Company had a large wait
ing list of subscribers who were becoming
impatient it became necessary to apply
for the ordinance. The company asked
for no pole privileges except those incl
dent to underground construction and Of
fered up to its ability, as young COM
pany to perform them, certain concessions
to the city. The first offer the Mayor
thought insufficient, and new terms were
offered and the Board accepted them.
"The company has provided an efficient
and cheap service, has built substantial
underground system through Montgomery
street and Newark avenue, and by the help
of many property owners, who have per-
mitted the erection of poles in front of
their premises, has acquired a property
that cannot be disturbed. Its wires are
not on poles belonging to the city or any
other corporation who by ordering them
off could destroy the company's service
1t is doing its own business on it's own
property and its presence in this city has
kept telephone rates at reasonable fig
ure as it's local rates form a basis OF
comparison.
This company is the only one possess
ing Jersey City franchise that is today
owned by Jersey City people. The stock
is largely distributed and is in small in
dividual holdings, while the stock of the
Bell Company is held by people outside
of the State. The company provided a
way and the stockholders assented there
to, by which the company cannot be sold
out until 1902. The company named Chas.
B. Thurston, James B. Vredenburgh,
Spencer Weart, George H. Atkinson and
L. M. Simpson as trustees, permitting
them to hold more than the majority of
the company's stock, the trustees agree
ing that they will not recommend sale
unless they are unanimous and their rec
ommendation must be supported by nine
ty per cent of the stockholders.
1.-THE company has it's main exchange
in Henderson street and branches in Cen
trail avenue, Jersey City and in Union
Hill and Harrison"
The company further states that the
poles now used by the opposition COM
pany are owned by the Fire Department,
and whenever the Hudson Company has
attempted to use these poles to string
their wires they have been prevented by
the Bell Company, thus preventing the
Hudson Company from giving service to
the public offices. The right to string
the wires will now be tested in court.
MATTERS OF F9CE