The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-03
AFTER new PHONE FRANCHISE
ATLANTIC COMPANY TURNS TO
BOARD or ESTIMATE.
Wants q 2g Year License With . Cent
Rate Throughout the Cty-Says 1t
Has Is 900 Conditional Contracts
Had Balkod At Board OF Alderm en-,

Wants 1S Year License With q Cent
Rate Throughout the City-Says 1t
Has Is 900 Conditional Contracts
Had Baked At Board OF Aldermen.
Since the enactmen Of the bill trans
ferring from the Aldermen to the Board
OF Estimate the power to grant franchises
many applications for franchises have been
sent to the latter board.
One was from the Atlantic Telephone
Company, which seeks the right to establish
a telephone service. This corporation,
which was established In 1901, has several
times sought consent to construct electrical
subways, but when tho heads OF the COM
pany were told that the consent Of the
Aldermen also must be obtained they went
no further.
In an application for blanket franchise
permitting the company to operate in all
the boroughs Of the city and to lay tele-
phone and telegraph wires it was stated
that the company has capital Of S25, 600 900
and intends to issue bonds to the amount
of $l5,O0O.OOO The president Of the COM
pany is Joshua d. Powers, president Of the
United States Trust Company Of Louisville,
and among the directors are Charles r.
Dilworth, banker, Pittsburg; James R.
Branch, secretary Of the American Bankers
Association; George Mitchell, Los Angeles;
j. B. RUSSELL banker, Of Illinois; Louis T.
Watson, New York; Arthur A. Brownlee
Of the United Copper Company. Edward
l.. Barber Of Barber & Bradley, firm which
has constructed many independent tele-
phone systems, and Arthur B. La Far Of
this city.
Mr.. La Far said last night that the COM
pany has already secured conditional con-
tracts from rs, 900 residents and that the COM
pany would charge only a fve-cent rate,
even for marlborough communication.
and would give unlimited service to private
houses for sos year and business houses
for sos year.
Mr.. La Far said that the company had
applied for a twenty-five year franchise
with a readjustment of compensation at
the end of that period. For the first two
years the company is willing to pay the city
for the next three years and per cent. for
the remaining twenty years. The COM
pany, will also supply the city with 500
telephones free Of cost
were from the Nassau Railroad Company
Of Brooklyn to run cars on Livingston street.
from the Southern Boulevard Company
and thu Union Railway Company to extend
tn ,r lines in The Bronx and from the New
York and Port Chester company for the
system 1t wants to constr uct and naintain
in The Bronx, Port Chester and White Plains.
Deputy Con ptroller Stevenson prese nted
the applications and asked what procedure
I'll Board desired TO ado-t
1Inasmuch as there will be some action
by the Board of Aldermen to test the con-
stitutionality Of this act, put in Alderman
Sullivan, I move that these applications
be referred to the Board of Aldermen be-
fore any decision is taken here"
The clerk will call the roll on the Comp
troller's motion to set public hearings for
June 80. ruled the Mayor.
Mr. Sullivan voted NO" All the others
There are serious and novel questions
Of compensation to / e decided, Mr.. circuit
said, -and think the Finance DEPARTMENT
should lie advised to confer with the { or
poration Counsel and rerort to this board
/ efore the pull lie hearing. There should
/ . some way for the city to make stipula-
tons in fixing the values Of these fran
chises. Under the court decision in fran
chise tax matters as the comp anies read
tax any sums paid to the city.
The companies using the BROOKLYN
Bridge roadway contend now that the
amount they Fay for tolls should Q allowed
against the amount due fro II them for fran
chise taxes. We must find some way to
hold the applicant companies unless the
Corporation Counsel advises US that the
prices charged by this board for privileges
cannot re deducted from the franchise
tax. Some form Of stipulation must 9
drawn up under general agreement with
the advice Of the law Department.
The board agreed with Mr.. Grout, ex-
cent Sullivan. who declined to vote