The sun., 1908-06-27
NO RIVAL LIGHTING COMPANY
r. s. BOARD SAYS A MONOPOLY
ISN'T ALWAYS DETRIMENTAL.

-
Issue $40 900 900 In Securities to
Compete with the Edison Company.
The Public Service Commission. denying
the application OF the Long Acre Light and
Power Company to issue $4,000. 600 OF pre-
ferred stock and $50 900, ,000 bonds in order
to establish an electric lighting system in
the theatrical district. declared frankly yes
terday that q monopoly Of public utility
was not always detrimental to the public
interests.
In the many public hearings which were
held by the commission II was brought
out that the Manhattan Transit Company.
of which John G. Sheehan was the head.
controlled the Long Acre company and
that the company owned no real property
and operated a small plant in q building
owned by the Manhattan Transit Company
and furnished electricity to few patrons
in the theatre territory About 5000 900
worth of bonds has been issued by the
Long Acre company and q proposition for
the retirement Of these bonds. which now
have small value. was contained In tho plan
for the $50. .OOo, 600 bond issue.
The avowed purpose Of the company
was to enable it to raise enough capital
to build a plant OF sufficient size to compete
with the Edison company and thereby
lower the rates for electric lighting.
Commissioner Maltbie. who presided
over the public hearings, made a long re-
port to the commission yesterday in which
he suggested that the competition sug-
gested by the Long Acre company could
NOT he henetc;aI to the community. Part
- "a, ,o,>,.. ro,a
The Long acre Company says u mas use
more emcient lamp IMAM ihe carbon ma
ment lamp ms commission nus poNer
10 compel the present coihpanieS W uo 'o
and they nave already agreed 10 supply lhe
most encient types commercially asahsoe'
Inc Long Acre company says ,nVenus ~ W
supply current au eishe Genus a n w. ~.
~Nhou1 lamps. Inns coun.ss'oi nag po"e.
10 order reuuc,ioh ol rates suo'so' on,y
to the provision .hat they may "o' pe h'auo
'ohlisoatory' anu no eoiiipany van upp,. ~,
current at loWer rate LOT ahy oo.s,uel aoae ae
period III eight cents VIII a'iow ia'r prom.
this commission can hk an eisn. cen. rug
Tor the present companies upon 'he ming vi
complaint In proper FORM.
ms commission also mas power W orue1
improvements IN the manutaoture ana os,
tripution OF eiectricity anu III 'he pisnt anu
equipment. 10 regulate the inethoos oi supply
and to have general supervision OF all eieo-
trcal corporations, II tnere Is ahythins
advantageous TO the consumer Which tne
competition OF the Long acre company VIII
even temporarily produce that cannot Do
brought about by thls commission uhoer ehe
Public Service commissions isw' tne com
pany has not called attention 10 h.s furtner'
II experience should develop any weaknesses
IN the law whereby the companies escape
doing what the commission considers proper
1t Is believed that the Legislature VIII CONFER
still other powers.
In my opinion IL would pe very unIortunate :
for this commission. at the very beginning OF
its work before tt mas oeen demonstrated
that public regulation ana controi is no!
an ADEQUATE substitute ior competition ana
when the experience OF other STATES anu
other countries strohsV lno'cates Inas ~ 10
decided Improvement over competltioh' 70
authorize the Issuance OF seo'ooo.ooo IN Sc
cnrities and thus allow ahoener company 70 20
enter the electrical heid IN Manha..an'
the evidence presented had SHOWN that ,ne
present companies were not properly serving
the public, that a new company wouio do so
and that the same results couio noe DC seouieu
by this commission. u might De necessary
In such case 10 au'horiNe ne" eohpany
TO come IN.
Rut the applicant uia not proouce suh'c'en'
evidence to estaolish these conoiusions.
VI course the aeclsion IN ,hls case upon
me iacts preseheeo pV .he e',uehoe uoes "Us a.,
80 -. 4 -.
other cases ID other WORDS IL must no. oe
assumed thAt the reiusa, 10 sanot,on ooii,
petition In this case indlcates that " VIII
never be- permitted. Upon the contrary.
m. rsy s..,,v IN, uine n aeries Of circum-
one no. .s',.,inm ai.,tri,si onn,
stances "neIe ooihpe.'hs siee'.ieei ooi,i- :,
pany would be necessity Mucn depends
upon the attitude OF the present companies
toward the publio and this commission II
IT, shs.,a .annt a r,licy ~ hostiIitv and
tney shoulu auop. pVoy y. ..n 80 y.
interference II might become necessary to
permit another company to enter the hcld
In conclusion recommend that the ap-
plca.,on oe uen,ea ior .no .. ,o.i..',
rlrst-No ceftincate 10 pogih coastr uce.o"
has been obtained from this commission
or ia nredecessor. the Commission OF Gas
sa T,.e.s,o,t,,
ana hiectricIty. A. ,.
eecond-lt 10 probable tnae the pohos
Already issued are illegal and there 10 grave
do,Ibt Of the legality Of the stock, neithe,
-. h,S 49,, .vnrorad NV tbs Conr,ia
ue s@s S.S oso r,satp,c,tv
"Vm ". o1s Is o.. -. sISt,,,i ,v...h.r th. ,i+,. =,
tnlo-' uoup'lu, "Aen 30 s1.n"S,..
tne Long acre company W 'ho iie''n''e
which is claims 10 per1ect'
Fourth-R the bonds already Issued are
Illegal. the approval OF the appiication woule
authorize the capitalization OF franchise,
which is contrary to law.
Fifth-The amount of bonds Of the new
issue ia very much too large as compared
with the amount of voting stock.