New-York tribune., 1908-03-10
FRANCHISE BIG ASSET.
Jumps Up SO ,999 900.
One Held by Long Acre Company
Uas Sold an 1927 for 500.

IN 1857 the right to carry wires through the streets
far the transmission electric current sold at
,,rtlic auction for 500: OF the prin-
cipai assets offered security for $5ee0oo bond
issue This franchise is the one held by the Long
Acre Electric Light and Power Company. pros
,,ectlve rival of the Edison company in the sale of
electric current for lighting and power purposes
Its application for permission to issue S50oesS IN
bonds and sle.eoooo0 stock. which is now pending
before the Public Service Commission. has brought
10 light some interesting facts regarding this com
psny.
According the application. the company owns
no real estate. has only small plant which
is operated in building owned by the Manhattan
Transit Company and furnishes electricity 10 few
patrons in the theatre district. But the company
SAYS il plans every cent received from the
sale bonds If permission is received for ssu-
ing them. in buying real estate and putting up e
plant and laying wires through the streets This
property would Of course be part Of the security
for the mortgage 1t is proposed 10 issue any
Of the bonds from time TO time than may be
necessary 10 put the propert plant in operation
I is estimated that 75eso kilovatt plant would
cost seSSs 20
It has been known that the Manhattan Transit
Company. OF which John c Sheehan is the head,
controls the Long Acre Electric Light and Power
Company. but Il learned yesterday that George
Z Bouchie trustee for the Manhattan Trust
Company. holds all except 20 or the 800 shares Of
the Long Acre
The Long Acre Company was Incorporated in
for $4,000 lay wires and sell electricity WIFI
in the limits OF the territory bounded by 59th and
$50 streets. and Fifth avenue and the Hudson
River. On March 81 1906. II secured the franchise
which # holds for laying wires and selling
current in the Borough OF Manhattan and such
part Of The Bronx a. included in limits of
the old city Of New York On May .. 1907. the
1ifcate Of incorporation was altered so as 10 give
company power distribute and sell electricity
in the territory covered by the franchise
This franchise which is considered valu-
able was granted by the Board of Aldermen of
the old city OF New York on May 81. 1851 TO the
American Electric Manufacturing Company. The
on3y compensation required by the city that
the company should furnish free city one
arc light for every fifty furnished 10 its patrons
On april Is 1sSs, the franchise was assigned to
Frederick Z Townsend who d year later assigned
the American Electric Illuminating Company.
This company was placed the hands q
oeiver on November "A. 1877 on the application OF
Francis Dalton. John ". Ward the receiver, hav-
ing reported that the only property he could dis
cover was the franchise. the ordered him TO
sell IL e. public auction.
The record shows that Mr.. Ward as receiver.
sold the franchise in Hampstead on November IS,
-ses- 70 Martin Mint1rn for Sl00 AS he paid out
more than 40 advertising evident that there
vas not . large amount TO divide among the cred
iro-s
NintUrn held the franchise until March p. 1906.
v-1en he transferred il 10 the Long Acre Electric
Light and Power Company for the usual zone dol
lEr and other good and valuable considerations
Some tine the validity OF the franchise was
attacked and the case was fought through the
Court Of Appeals. which found the franchise To be
valid Edgar Van Etten, a former vice-presfdent
O. -he New York Central Railroad then elect
ed president OF the corporation and plans We're al
once started 70 20 into the business on e large
scale. contract has been made with the British
and American Manufacturing Company for the
ACQUISITION Of property and the construction OF
plants
There is mortgage CT the Long Acre amounting
70 E.ene1 10 secure & bond issue Of that amount,
There only s5eo this bond issue outstanding
hoVTeva-- slaoNso ot which held by the British
and American Manufacturing Company as security
1or the performance of the contract il holds with
TIE Long Acre, Walter A knight, general engi-
reer OF the company. testified at the hearing be
fore Commissioner Maltbie Of the Public Service
Commission. that S51oeoo bonds had not been
sold for cash. but what are known as pur-
chase money bonds. having been given in exchange
f0r services or property A proposition for the re-
rireu=nr Of these bonds Is contained in the plan
f. -5e y5o0oa0 0r0 bond issue The Long Acre Com
panv has al unsecured Indebtedness Of S93. 600
Ex-Judge Jesse s L'Arloreaux- of counsel for the
Lrng Acre company. in speaking Of the plans OF
-le company yesterday. said:
The men who are interested in this proposition
u1eu OF large means, who mean to 20 and
compete with the Edison company We believe
vi o in position furnish 70 or Is per
cent cheaper than the old company can do IL
rne 50 GO 600 mortgage. !: viii cover not
orl- our franchise. which would not sell for
r-z-y millions and our present property. but also
al tne property We viii acquire with the money
received from the sale OF the bonds OF course We
TiE issue only such parts OF the S50.Gtl000 from
tine tine may De necessary. The men who
z7e back OF rns proposition will 8 900
O. q GO Of the SGt0e 0}9 stock issue it is pur-
POSED 70 put OFT. and all money received in this
wa VIII go into property. We do not purpose to
T1- out any Of the bonds al less than par. and d
strong trust company stands ready underHrite
issue
The hearing on the status Of the company VIII
- resumed by Commissioner Malthie. Of the Pubic
service Corporation on THURSDAY morning.