New-York tribune., 1909-03-19
FOR WIRE FRANCHISE
APPLICATION BEFORE ES-
TIM4TE BOARD TO-DAY.
Committee Has Decided to Report 1t
Fa0orably- Opposition from Tele-
phOye Com pany Expected.

Alleging that the New York Telephone Com
many is demanding a rental for the use Of ducts
that viii yield the company profit Of more
than ! poo per cent. the United Electric Service
Comranv viii come before the Board Of Estimate
snd Apportiourrent to-day asking for a franchise
TO Law wires in the streets and TO operate
messenger fire alarm and burglar alarm service
The franchise division OF the Board OF EST
mate and Apportionment has discovered, It Is
alleged. that the New York Telephone Company
owning the Empire City Subway Company, Linn
fted has leased a limited number of wires 20 the
United company at Ss4 a mile a pair of wires
and that this service does not cost the Empire
company more than - a mile q pair Of wires
The attempt on the part Of the United com
pany IS one OF many made by that company 10
break in" TO the business controlled by the ola
companies. The franchise division Of the Board
os Estimate has reported TO the board, in sub
stance that the telephone and telegraph business
.s controlled by monopoly. made possible by
agreements between the old companies and
-,rohahle ownership OF the part Of the New
York Telephone Company. of large interests In
the two leading telegraph companies and the
messenger service companies controlled oy thenl-
The fight made by the United company re-
eembles in some respects the one mace os III
dependent telephone companies &c do business
tn this city in competition with the New YORK
5cOrnnzuN- Il has not Eeen abis 10 81 q o-S
stantial foothold-
The United Electric Service Company In June
1905, tried to get franchise to occupy the
streets with its wires as a business corporation
the law Department decided that il could not
have one. In 1906 1t Incorporated under the
transportation law, and under that law IL no"
seeks q franchise The United Service company
IS substantially the same as the United District
Messenger Company. The latter company, not
being able 10 occupy the streets, leases Few
wires from the Empire City Subway Company,
which in turn is owned by the New York Tele-
phone Company. In a report TO the Board OF
Estimate and Apportionment Harry P Nichols
chief Of the franchise division, says
The presiden: OF both the messenger and the
zsrvice company has made the following state
snents 10 me in relation 10 its dealings with the
New York Telephone Company;
First-rt has oftentimes been impossible 10 in
stall messenger call boxes at profit 10 the COM
pany because OF the exorbitant charges MADE by
the New York Telephone Company for the use o1
3ts wires.
second-At the time Of the application Of the
messenger company these charges were at the
rate of S10S mile per anDum for each pair OF
wires and the minimum charge was for one
quarter Of a mile. Since that time the price has
been reduced one-half. S54 mile per annum,
but the New York Telephone Company has re-
Gently declined to lease any more wires 10 the
messenger company.
Third-It has frequently occurred that the
messenger company has been required to lease
wires over d route very much greater In length
than would be necessary II the company had the
right TO use the subways and lay its own wires.
For example. in order TO connect the building
at No. III Broadway with the branch office OF
the messenger company, at No. % New street,
the company was obliged TO lease a wire from
No. - Broadway TO the Broad street central
station Of the New York Telephone Company, at
No. 95 Broad street; thence TO the Cortlandt
street central station, az No. 10 Dey street. and
thence TO No. III Broadway, thus necessitating
the lease Of about 400 feet OF wire TO reach
points only about 900 feet apart
I am informed that the charge made by the
Empire City Subway Company for duct space Is
about $500 mile per annum for duct capable
Of holding two hundred pairs Of wires or more.
Il IS SEEN therefore, that II the company had a
franchise a very large item Of expense would be
saved by renting duct space from the Empire
City Subway Company. Limited, and laying its
wires
The company states that should it obtain a
franchise. and thus be in position 10 reduce the
operating expense, II intends 10 extend its field
OF operation TO include fire and burglary alarm
service in addition the messenger call service,
and II IL upon these three services alone that
would propose that a franchise be granted to the
service company
The select committee Of the board has decided
TO recommend the granting of a franchise TO the
new company, and the matter viii come before
+he board to-day Opposition from the old COM
pany is expected The United company is under
stood 10 have the backing Of some OF the inde-
rendent telephone concerns, which also want
franchises II is understood that if the United
company gets a franchise the independent tele-
phone companies viii renew their fight for sim
far privileges