New-York tribune., 1906-06-09
PHONE MEN SURRENDER
STEP TO QUASH RIVAL.
Company to Confess Judgment ON
Duct Contract.

Inc New York Telephone Company has sur
rendered to the Board of Estimate. In order TO
continue business without rival it is UNDER
stood that it will surrender its monopolistic
control of the ducts of the Empire City Subway
Company and confess judgment in S5.OOO,OOO.
now being sued for by the city. alleged by the
/ city to be due the contract
The Atlantic Telephone Company, which has
asked the city for franchise, with a promise
mat II will furnish telephones free to the city
and public service at much reduced rates. ap-
/ parently is being used club with which to
beat the New York company into submission to
the following terms laid down by the Board of
estimation and Apportionment at it's meeting
yesterday:
Resolved. That the New York Telephone Com
| pany be, and it is hereby requested to submit
| to this board within thirty days a petition in
| writing, duly verified. praying for the consent
of the local authorities for a franchise or right
| Tor the pr1vliesNs which it now enjoys through
| out the city of New York, together with in
strument In writing, duly executed by It's presi-
oent and secretary on behalf Of said company
wherein said company shall state the terms and
conditions on which it is willing to accept such
franchise, right or privilege. with an additional
proV1so to the effect that it shall confess judg-
ment in the proceedings instituted by the city.
and now pending. entitled The City of New York
agt the Empire City Subway Company Lin
ited, and agree that the city of New York shall
have the right to enter into possession of the
subways. conduits and ducts controlled by the
defendant in the aforesaid action and it shall
subject TO any valid mortgages or liens then
thereon outstanding not exceeding 30 per cent
OF the actual cost OF such subways. and by leases
ahd contracts then existing for the use thereof.
forfeit its interests in said subways conduits
and ducts and quietly and peaceably surrender
possession thereof to the city of New York. who
thereafter shall own and hold the same; and be
it further
Resolved. That the secretary be directed to
forward a copy of these resolutions to the New
York Telephone Company.
The resolutions drawn in the Corporation
Counsels office
Coupled with the resolutions was motion,
unanimously adopted after the board had ad-
journed the executive session, that the Allan
tic company's application be laid for thirty
days. The adjournment means that the subject
cannot be considered until fall. The Board OF
Estimate is to adjourn on July until after
September IA, and the Mayor starts for Europe
on June %.
Before the hoard went into executive session
the Mayor asked Martin W. Littleton If the sub
ject could not be postponed until after the
ner vacation. Mr.. Littleton and John NJ. Shaw,
president of the Atlantic company, asked some
immediate action. Nh MCGOWAN. Mr. Coler Mr..
Ahearn and Mr.. Bermel were quoted favor
ing the company Controller Metz said he would
vote to give the Atlantic company franchise
if it would give sureties to carry out the terms
of the contract offered. Mr.. Haffen was doubt
full as to how he would vote, and Mr.. Cromwell
of Richmond was known to agree with the
Mayor.
Martin w Littleton, counsel for the Atlantic
company. says that if the city attempts TO give
/ the New Yorl, Telephone Company a monopoly
! of the telephone business in this city an injunc-
ton will be served the city to prevent it from
| violating the laws against monopoly Mr.. Lit
! tleton said:
fOt tha ftIyO Of New good
| faith to grant us a franchise, and intended to
pay for it. We do not think that our appeal
| pei the New York Telephone Company to do
| simple justice, and when that has oeen oone
drive out, send US forth empty handed win win
| the expenditure Of our money and the EFFORTS
we have made all gone for nothing. Inc
power to grant franchises was taken from the
Board of Aldermen and given to the Board OF
! Estimate and Apportionment. and this was
wise provision. but 1t will be questioned II that
board either directly or indirectly, suprILs g., 70
the dtctation Of a monopoly which has oeen IN
trenched in New York City for quarter OF a
century. This fight is on to stay we
! wefe promised that would not be used as
| club If the action of the board to-day means
| anything it means that we will be used as a
club, and. like all clubs when their purpose Is
accomplished we are 10 be thrown aside ana go
for nothing.
After the meeting President Coler said TO Mr.
LittIeton that the vote was put UP" job, but
| that he would that the Atlantic company
gets fair play. Mr.. Metz said publicly that he
/ had voted for the Mayors resolution because II
was all cut and dried and there was no good
opposing it." He said he understood that the
vote would not interfere with any future action
on the Atlantic's application. Mr.. Littleton re-
minded him that the resolution put considera-
ton of the application over to the fall. and the
Controller said he had not so understood it and
that he would move for reconsideration Of the
vote at next weeks meeting of the Board of Esti
mate.
George L. Rives, while Corporation Counsel
under Mayor Low, brought the original suit to
! oust the Empire City Subway Company from
exclusive control of the telephone ducts of this
! city and to compel the company, which is
owned by the New York Telephone Company, to
| pay S5,OOO0OO for the use of the ducts in the
! last twenty years. the company never having
! paid anything for the use of them. In this
complaint. Mr.. Rives says that the defendant re-
fused allow it's books to be examined, and
! that the plaintiff never has been able TO obtain
| from the defendant or from defendants books
a full, true and accurate statement of the actual
| cost OF the construction Of said subway conduits
/ ducts wires, etc, owned and operated by said
! defendant" He adds that, 80 far as plaintiff
was permitted to make such examination. il was
! evident that said books and accounts were kept
by the defendant in a false and fraudulent man
! ner, and with the plain intention of deceiving
! the plaintiff as to the actual cash cost of con-
! struction and maintenance of said subway con-
! duits ducts, wires, etc. and income derived
| therefrom, and the amount due plaintiff under
| said agreement" Facts which, 1t is alleged
show "the bad faith and fraud of the defendant"
are then cited.
| CoLER ASKED TO ANSWER CHARGES
Albany. June S.-Attorney General Mayer to-ds>
requested Bird S. Coler, President OF the Borough