New-York tribune., 1905-08-28
HISTORY OF FRANCHISES
Justice Seabavy Presents Arguments
for Municipal Ozgnership.

Justice Samuel seabury OF the City Court. this
county, is the author of a two hundred page
book on Municipal Ownership and Operation of
Public Utilities in New-York City.
Municipal ownership promises to be one Of the
leading issues the mayoralty campaign just open
ing. Justice Seabury gives brief history of local
franchises and tells OF their legal character The
gas and electric lighting companies in all the
boroughs what they have done and what has been
done to them receive elaborate attention An
other chapter is devoted TO the street railways In
all the boroughs. Then come chapters on the Rapid
Transit Commission. bridges, the functions Of gov
ernment, regulation and control arguments In favor
of public ownership and operation and legal meth
DDS by which the city may acquire and operate its
public utilities
In sketchlng the history OF the gas companies the
book says in part:
The report of the Thomas committee. in 1885, did
good because it supplied great deal OF tnforna-
fion in reference TO the dark and crooked ways OF
tbe S9ngeroTs character Of this report and copies
of the report became very scarce Professor Bemis
s9panie sagS t bought and burned ali the copies on the
market and hushed up the TgP4Fe orr mos sPge9y ybf
are now merged in or controlled by the Consoi-
pany which was formed in 1923 with $0OO,000 capi-
tal. The Board If Aldermen granted to this com
In the streets south Of Grand-st. The franchise
given away. as the city received absolutely no com
$40 thousand cubic feet for gas.
From time, to time the Harlem Gas Light Com
New-York Gas Light Company. the Anthracite Gas
Light Company obtained franchises sold those
v-Rich they had others Thus the New-York
rot develop or operate its franchises for eight years
Hay ng obtalnsd them II held them 10 sell at a.; a
Gas Light Company.
1t had lawful right or authority to sell its
the latter acquired valid title. In 1876 the KniCk
II auired lis alleged franchise rights by purchase
from The owners Of the Union Gas Light Company,
New -vorE Anthracite Gas Lighting and Heating
CoIIary. This. company paid It's president the
in t><4 the Consolidated Gas Company was formed
public franchise but held the stock Of and there
fore controlled. the following named companies:
politan Nun cipai and K9icEerbockeT gas light
J3 700 of which $43Ot61 was issued for acquisition
of tho properties and franchises OF the constituent
CnnS5Iida ted Gas COMPANY did not include In It's
pool the Mutual the Standard gas company.
made its directors liable for a criminal ofence if
ttev voted for such combinaton The Standard was
also prohih ted by It's charter from consolidating.
company circumvented the law by buying the stock
of these two companies and thus while avoiding re-
sponsibility for criminal violation of the law
accomplished its purpose and reaped the benefits
Tfc New-York Edison Company is 10 the electric
lighting industry what the Consolidated Gas Com
H1 the New9ork y I Edison Company is Witch
IS the aggregate s;nornt OF the Tapital stock Of
| sents gross overcapitalzstion Bonds were issued
bv the company until its total outstanding obliga-
tions gated $40 SSS So Witnesses on behalf
OF the company before the Stevens committee en-
deavored TO make It appear that the company
| owned valuable patents trade prospects and equf-
ties but when these nebulous were analyzed
II was found that majority OF its patents had
| pired and that all OF these items did not exceed
| S3. $4,000. Notwithstanding the enormous and
fraudulent overca talization OF the company its
profits large that II paid s. 600 600 interest
| on its inflated bond debt and accumulated a sur
/ plus OF Ss.Oo000o.
| The veto OF Governor OdeIl alone saved the city
| Of New-York from the enactment into law OF the
Remsen bill This BILL in effect sought TO revive
| and extend every right which the old East River
| Gas Company claimed TO II prescribed nc
period OF limitation. II passed by both houses
Of the Republican legislature. As It was bill az
feeting the interests OF the city OF New-York, n
vas SAINT 70 Mayor koC1sll&n for approval ais-