New-York tribune., 1906-07-18
FOR PHONE MONOPOLY
OFFER OF $500, 900.
Companies NoSo in Control 4sk Ea,-
clusiue Franchises for 95 Years.

Acting Mayor MCGOWAN made public yesterday
.ha sont reply OF the New York Telephone Com
nsny and New York and New Jersey Telephone
ronpany 20 the invitation OF the Board OF F,sri-
nate for an offer 20 the city for the privileges
.rbeh they enjoy. The companies say their re-
ssal TO comply with the request 10 surrender their
ryssent franchises and apply for new ones may be
misunderstood and offer TO the city s85c0oo0 for
the term Of twenty-five years. so long as they hold
,he exclusive franchise in New York City
me Atlantic Telephone Company which seeks a
s,anchise offered s26sOcc0. and also 100000 addi-
.sonal 10 be paid within thirty days after signing
,se contract. The Bureau OF Franchises has pro-
rosed that this initial payment be s25Oco0 which,
= agreed to- would make the total offer Of the
aslsp1io company S2.9S0.OoO
The payments offered by the New York and the
ss.u York and New Jersey telephone companies
-. purposed 70 be made annually. charged against
revenue and part OF the operating expenses. and
e Increased from sl6.ccO for the hrst FIVE years
- qss0p for the fifth five years. after which an
sr of $4,000 Is made The payments for the sec
ona third and fourth periods os 1--WE years are put
81 r22O00 $4,000 and Sl52.coa respectively
The communication OF the telephone companies
n the Board OF Estimate. which is long and
.o,ehed in humble and conciiatory terms prom
i,ss 10 adjust their rates from time 20 time TO
INIT their net earnings TO approximately 10 per
cent on the actual investment OF capital after
caring for depreciation. They express the belief
,af II least that amount is reasonable and proper
As 10 their earnings investments and expenses
she companies express their willingness to file an
ruaIy with the Controller verified reports audited
ana certified. II desired. by public accountants ac-
ceptsbs or designated by. the Controller To the
ciry Of New York. within its limits and for official
use the companies offer reduction of so per cent
from schedule rates.
n stating their reasons for declining 70 surrender
their present franchises, the telephone companies
say:
Torking under their present franchises. the COM
sirs n New York City to a stage OF development
sN7a, We respectfully submit, is greatly TO the
= me = S ls eTIe6sTe Se, "e ,deVel0ped telephone
Is gene-slly conceded that nowhere is there BET
Ter service. Every effort has been made by ths
companies 70 anticipate and fully meet the public
requirements for their service. No pains or eg-
pense have been spared to improve the service Re-
sasnt that we're in sound condition have been dis
caTded 70 be replaced by other newly invented and
mere perfect apparatus. Most careful and continu-
study has been given to the question OF rates
aies cohslslenI Win an e1lclent operation OF the
system ano such return upon capital as was
capital required The rates have also been ad-
jused 10 the needs Of the different classes in the
community. so that within a very wide range all
Tho have needed telephone service have been able
his service according TO the facilities provided and
the extent OF his use.
The companies believe that It would have been
impossible for such extensive development. eff
cent service and reasonable rates TO have been
Effected and established If they had not been free.
under franchises which permitted adjustments 70
constantly changing conditions to work the
s:a ssE difficult problems which they have had to
The New York Telephone Company also makes
EEiatenaent for the Empire City Subway Company
Gimted). against which an action has been
Eought by the city. The complaint in this action
GIsges the company owes the city money because
has earned more than the net 10 per cent on its
investment The subway company offers to CO.
operate with the city to expedite the trial Of the
case or negotiate for settlement out Of court,
By arbitration if possible.
Martin ". Littleton, counsel for the Atlantic
Telephone Company, said last night about the
statement Of the opposition companies:
York 5s ge5bdJ ai1 trouble & with the Of the New
New Jersey Telephone CornpsnV is fbst = o,e ne 1 ii
y saying that it declines TO comply with the re-
Esllate and Apporuonment and then devotes two
pages as 10 why it thus declines This EXPLANATION
sm0lnts 10 misstatement of the facts concerning
rs own treatment of the public and is but repetf9
Ioh o. lis advertisements. The New York TeIe-
phone Company and the New York and New Jersey
tteiephone Company realize that the fight of the
A14shuc company has developed the fact that
SS.SaI S5I o. those companies has franchise to do
ttcclpglng the streets up6er a permit which could
r. g ttexokea al any time and, realizing this and
e9none Company established it as fact. these two
SslapsIles, the New York Telephone Company and
AseE jersey Telephone Company, are anxious to
give some sort OF bargain with the city which
~ hot Talse the question as 70 whether they have
s.Hahcnise or not but which will result in the
~ scQuiescing in their unlimited OF the
tSssts IN other words. If the city takes pay from
len qnoer written agreement the city could not
-. ssen claim that they were wrongfully in the
eHSels, ana II by hook crook they can get the
G,y 70 take pay they viii then be in position 10
gssm that the city has recognized their rights in
.I5i, Ihs answer a.. is sham, hunbug fraud ana an
Insult or not
D. A Reynolds. president Of the Great Eastern