Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-12-04
ELECTRIC COMPANY
ACCUSED OF CHOKING
OFF" COMPETITORS
Attorneys for Corporations
Deny Accusation Conduit
Contract Is Intended
to Ward Off Rivals
CITY DEMANDS UCTS

The Philadelphia Electric Company was
accused of choking off competition in two
Instances today by Assistant City Solicit
tor Lowengrund at the hearing before the
Public Service Commission on the city's
objections to the lease Of the Keystone
Telephone Company conduits to the elec-
trio corporation.
Lawyers representing both companies
that are party to the lease denied the
assertion of the Assistant city Solicitor
that the lease is intended to prevent fu-
ture competition rather than to make the
10 100000 feet of conduits involved avail
able for the electric company
Commissioners Monaghan. Ainey and
Magee sat for the hearing. President
John Il. Mccall of the Philadelphia
Electric Company, was the first witness
The city won the first point when Chair
man Ainey ordered Mr. Mccall to sub
init plans showing how soon and to what
extent his company intends to utilize the
conduits covered by the lease
ut is impossible at the present time
to say when and to what extent the ducts
will be used" said MIR. Mccall. "They
Will be used as business warrants. The
lease was made in good faith and there
was no intent to choke off competition.
There arc not enough ducts to contain
all the overhead wires of the company
especially as some of the Keystone con-
duits extend to sections whore we have
no wires"
AS evidence of the electric company's
desire to get all it's wires underground
AS soon as possible, he said that It is
now constructing underground conduits
that parallel those of the Keystone com
pany and which the Philadelphia Electric
bn ic
by the commission.
James G. Jones, attorney for the Key
stone Company, explained that the cor
poration has about 23OO miles of under
ground conduits. About 1900 miles of this
is covered by the lease which runs for
an initial period of II years. with the
privilege of two extensions that would
give the Philadelphia Electric control for
70 years in all. Fred w. Fleitz, of Scran-
ton, represented the Philadelphia Electric !
Company.
Assistant City Solicitor I.owcngrund |
said that one of the companies seeking to |
enter this city carly in 1915 was the Com /
tn Electric Company. He at |
tackled the terms of the lease, four cents |
a foot. as an excessive rate. Attorneys |
Tor the two companies denied this Ac- |
cording to Mr.. Lowengrund the Com
nohwtalth company was "choked on by |
the lease. Another firm proposed in the |
belief that the conduits were on the mar
kes likewise was "Choked off," he said
The contention of Director Cooke. of
me Detar!ment of Public Works, that
the conduits not in use should revert to |
inc city Tor lease to all comers was put
forth for him by Mr.. Lowengrund.
Director Cooke later took the stand
himself. He was "A star witness. support
ing 1hc charges made by Mr. LOwen-
grund' He cited numerous instances from
1854 until 1915, when electrical companies
were organized but frozen OUT by the
Philadelphia Electric.
Most of these companies have gone
the long way" said the Director; "the
others are still hobbl nE about waiting for
a chance to compete. All of them con-
lemplated the use of these unused con-
Quits.
This Is a unique situation No other
city In the country has such a vast sys-
tenn of conduits going to waste. Nation
wide competition would result If these
ducts were put on the market and cleo
tric power could be sold at much lower
rate than the Philadelphia Electric Com
pany charges"
Chief Clayton w. Pike, of the Elec-
trical Bureau. submitted a number of |
estimates on rental rates He said the
ordinance that requires that all wires
be placed underground has been allowed
10 slide" Attorney Jones contended
Chief Pixies figures were of no value.