The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-26
TELEPHONE CO. READY topaz.
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= ~,a...io f.om 10 ~'elcphone Industry w.
~ Ir al 'n discuss the question with
o. VIZ. d. ~ crmmticc that ma, he desis-
... Do, .Du for the purpose
0. otter als, lefers Ia the -econd report
.',.a RIroau of Franchises on the applica-
'.. + 'he Atlantic company. which con
in r, his .tatcment ~ II we're possible Tor
~ althcritics to control the rates and the
k.rI ~ sory 90 ~ the New York Teler hone
CONF any. tho present monopoly Of New
Y.r. uiiy. there would seem Ia he no reason
VIII another company should he allowed TO
enter the field
The Communication then goes on 10 say
ma The company doea not question the
right = tho public to subject IL 10 regrla-
ton # necessary to secure reasonable rates.
and declares that a practicable plan Of
publicity can doubtless be formulated and
carried out. The letter continues:
II IL impossible to make an intelligent
comparison between the incomplete and
Illogical schedules OF rates proposed by the
Atlantic company and the present or pro-
posed rates Of the existing companies. re-
rardless of the wide dill erences In scope
and character Of service. In January last
the existing companies announced that.
pursuant TO the policy followed since 1891.
a reduction In pay station rates would be
made July 1. 1909. Other contemplated re-
auctions were subsequently announced. to
take effect on the same date. These changes
must therefore be made as announced.
whatever action may be taken by your hon
orable body on the application Of the Atlantic
company. The new rates will be published
in detail within a few days. and in many
respects will be lower and more advantageous
n the public than the rates proposed by the
Atlantic company.
The New York company, through its coun-
sci, John G. Milburn and Melville Egleston,
has submitted a memorandum to the Board
Of Estimate concerning the subway conduit
situation. At the hearing before the board
recently, Martin w. Iittleton, attorney for
the Atlantic company, charged the Empire
Subway Company with fraudulently with
holding from the city a large sum Of
money, said to be $1,000, 900. which is due
tothe municipality for its share Of the rents.
The memorandum says that his state
ment was absolutely without foundation"
and goes on to relate the history Of the
action brought by the Corporation Counsel
10 determine what, II any, sun was due the
city under the contract between the Board
Of Electrical Control and the Subway com
rany made on May Is, 1901.
The memorandum also denies the charge
that what .subways had been, built and what
oonduits in the subways were occupied was
a secret known only to the company and as
to which neither the city authorities nor
anybody else could obtain information.
The fact is, says the memorandum. that
such information is always available to the
city in it's own files and Offices, and then it
continues:
There is not, and never has been, anything
mysterious about the construction and owner
ship Of the subways, though the facts have
been distorted TO create an impression that
In some way or other the subways really
belong TO the city and have been ~unlawfully
appropriated by the subway company or
the telephone company
The subways Of the Empire City Subway
Company are owned by 1t. because the city
and n n,Al t,r so. ia a. LY,tlI Ah4na l
with its own money and to own them. The
city did hot contribute one dollar to the cost
OF construction, but has on the contrary
largely benefited thereby. not only indirectly
BY the change from an overhead to an UNDER
ground system, but directly In the provision
which is required to be made for it's use with
out compensation.
Martin ". Lttleton, counsel to the Allan
tic Telephone Company, in q statement re-
plying to this letter, said;
In our brief, which we submit, we nave
proved. first, that the telephone is not a nat
ursl monopoly; second, that a dual system
Is not a hardship to the community, adding
TO the expense Of the service and furnishing
no advantages; third. that New York city
to-day does not enjoy the best telephone
service in the world; fourth. that the New
York Telephone Company has not treated
ne patrons and the city fairly: fifth. that the
rates charged are not reasonable; sixth. that
the Bell Telephone Company cannot be relied
upon to develop it's territory to the full ca
pacity warranted by the demands for ser
vice, seventh. that II there are evils In the tele-
phone service they will be corrected by COM
petition: eighth, that the automatic system
Is the most perfect. the best developed. the
most satbfaotory. secret. speedy and eoo-
nomic system yet devised for telephone COM
munioatiou.
The proposition OF the New York Telephone
Company made to the Mayor 10 o good deal
like the question Of the old darby who asked
IL q floating chimera n >space any evidence
OF second Intentional
In q supplementary brief submitted by
Charles Neave, a counsel. the Board Of
Estimate 10 told why the New York Tel6.
phone Company has refused to install the
automatic system sudh 90 the Atlantic oom-
pany intends to put in II IL gets q franchise.
Mr.. Neave says that II was rejected because.
after an exhaustive investigation, II was
found that there 10 no known automatic
system which can be relied upon to give
satisfactory service under the conditions
which obtain In New York.
The committee OF the Board OF Estimate
which ta 81 ..x~Ak $780,. Il -~-t--At-