New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-16
AFTER TELEPHONE MEN
alderman Freeman Disorders That
Nezr York Co. Has No License.

Alderman Clarence Freeman, who represents
she silk stocking 29th Assembly District in the
Board Of Aldermen. says that the New York
Telephone Company is operating without
license, and he is in favor Of compelling the
company 10 pay for the use of city conduits
Nj. Freeman says that the Committee on Laws
Of the Board OF Aldermen has Just discovered"
that the telephone companies are doing business
without a franchise and that they owe the city
perhaps as much as 100000
The aIdernans discovery seems TO be some
what belated. Corporation Counsel Rives, in the
Low administration, brought suit against the
Empire City Subway Company. Limited. and
the Consolidated Telegraph and Electrical S1,h-
way Company, controlled by the New York
Telephone Company and the Consolidated Gas
Company. 10 recover something like So, 900. 600
for rentals alleged 10 be due the city for use
Of the conduits by The telephone people and by
the electric lighting companies. The suit is still
hanging fire, the companies never having made
an accounting.
When the Atlantic Telephone Company made
its application for franchise last May John G.
Mnburn, counsel 10 the New York TELEPHONE
COMPANY said that his company was negotiat-
ing settlement Of the city's claims The ne
gotiations seem 10 be pending Nj. AIilburn
when asked about the matter last night SAID
that the New York Telephone COMPANY was
operating under a franchise and that the con-
tenuon Of Alderman Freeman was ridiculous
Alderman Freeman asserts that the companies
have contended that if any act or grant were
necessary on the part OF the local authorities
the Board Of Electrical Control was vested with
the power 10 grant the companies thu REQUIRED
HgAts. The alderman says that by the decision Of
the People agt. the West Side Electric Company
and the Consolidated Electrical Subway Company
the board has no such power. and that the only
board possessing such power is the Board Of
Aldermen.
Alderman Freeman says the argument now is
based on examination by the Committee on Laws
and Legislation Of the Board Of Aldermen of
the original charters Of the city including the
consolidation act and the greater New York
charter. al Of which he says. vested the control
Of the streets in regard to such franchises in the
Board Of Aldermen, Common Council and Board
Of Estimate and Apportionment
The alderman declares that number Of Court
Of Appeals decisions. decide that telephone COM
psnies must obtain consents IN cities for the
erection Of poles and wires or placing wires in
oonduits. and he says that as no franchise has
been obtained such companies are under the
necessity Of applying anew to the city. He also
says that since the discovery the Bureau of
Franchises has recommended to the Board Of
Estimate and Apportionment that the Bell tele-
phone companies should be placed on the same
footing as the new companies applying for fran
cilises, and the Bell people have been invited TO
surrender their rights and make new applica-
tons for franchise privileges. They have de-
cliued.
The alderman says the report Of the Bureau OF
Franchises shows that in thirty cities in the
United States competition resulted in lowering
rates He says the companies pay nothing into
the city treasury, but that the city pays them
S265 900 a year.
The alderman says that in the suit between the
city and the Empire City Subway Company, in
the Supreme Court, in the complaint II Is set
Forth that after alleging that the verified an
nual statements Of said company are in fact,
false. fraudulent and untrue the company re-
fused to permit examination Of its books TO
the actual cost Of construction, While agree
nent exists between the city and company that
the city shall have share ia all profits after
the company has earned 10 per cent on its actual
Investment. He also charges that the first and
second mortgage bonds for construction work
we're charged against the cost of construction
at their par value, though they were issued at
less than their par value. the amount Of the dis
count on such bonds 50 charged against the cost
!or construction being S1,1S0,Neo."
The alderman also says SHS14.5IO IS was paid
oUt Is interest and charged against the earn
lngs o. The subway company before the city was
permitted 10 take part in the earnings