New-York tribune., 1906-04-18
NO NEW TELEPHONE co.
Dcldlly Kills Last Hope of Great
Eastern People.

An opinion rendered yesterday by Corporation
Counsel Delany took from the Great Eastern
Telephone Company it's last chance of estab-
fishing telephone system in New York City
unless 1t obtain a new franchise from the
Board of Estimate and Apportionment. The
company wished to operate under franchise
granted by the Board of Aldermen il 1883 to
the Electric Lines Company, which it controls
The Electric Lines Company applied last
month to Commissioner Ellison for permit to
lay wires etc The Department Of Water Sup
ply, Gas and Electricity, OF which Mr.. Ellison is
the head' is the legal successor to the old Board
Of Electrical Control. Edward NJ. Grout. as coun-
sci for the New York Telephone Company. filed
brief against the application, and Mr.. Ellison
referred the question to Mr.. Delany, with re-
quest that he decide the status Of the franchise
of the Electric Lines Company and also the
validity of the standing Of the company itself.
Mr.. Delany's opinion says that the Electric
Lines Company never had franchise that it
did have license, but that II has forfeited by
disuse. any rights it might have had. He says.
also. that he doubts very much the legal exist
ence of the Electric Lines Company.
The Electric Lines Company was organized In
1882. and received its alleged franchise in 1888.
1t is owned by the Great Eastern Telephone
Company, of which D. A. Reynolds is president
In 1884 the Legislature passed an act to require
the placing or all electric wires III
conduits. The Electric Lines Company held that
this law did not apply to it, as it had received
it's franchise prior to the passage Of the act.
and began litigation TO compel the Commits
soner of Public Works of the old city of New
York to give it the necessary permits. On this
contention it defeated in the Court of Com
mon Pleas and up to the Supreme Court OF the
United States.
In his opinion, which is very volumlnous ana
quotes numerous decisions of court, the Cor
poration Counsel holds that the legislation or
1884 to which the company did not conform was
in the exercise of the police power or the state
and that the decisions against the company re-
turn ii TO its original license. which has eX-
pired from non-use. Furthermore, Mr. Delany
holds. the original permit was for telegraph and
not telephone business. Commissioner Ellison
Is advised to revoke at all old city permits
or licenses granted to the Electric Lines Com
pany.
Mr. Delany says that the law of 1884 spe-
cifcalIy required the company TO go before the
Board of Electrical Control and have its plans
approved for placing its wires underground
This was not done Now, he says, the new ap-
plication for permits raises squarely the ques-
ton as TO the corporate existence of the conf
pany. It never attempted TO exercise any rights
from April 10. 1883. to August 1885 and never
had any intention TO do other business than TO
build subways for electrical conductors for use
by other companies. Evidence of this the Cor
poration Counsel finds in letter dated Jan
uary g. 1888 addressed to the Board of Alder
men and signed by Sidney F. Shelbourne as
president.