Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-07-28

Mackays life. He spent much time in
Europe, and maintained constant cable
communica ton with the United States
because of HIS great interests in this
country. The. excessive rates charged
by the cable monopoly set the Bonanza
King to thinking. The monopoly was all
powerful. Mackay thought that the abb
solute control Of the telegraph by this
combination placed the markets Of the
world at its disposal.
Tho cables were foreign. Mr.. Mackay
decided that the United States ought to
have a cable. 1Te came in contact with
James Gordon Bennett who had long
cable. Mr.. MaclSay placed half a million
dollars at the disposal of the Commercial
Cable Company and that was the incep-
ton of the MaclSay- Bennett cables.
The scheme did not commend itself to
the financial world. 1t was pronounced
sentiment, not a business proposition,
at the time. II was called "a revolt
against Could" Foreign capitalists would
not enter into the plan. 1t was said that
there was no room for additional cables;
that II the rates were high. cables were
luxury, and those who used them could
afford to pay high rates.
Mr.. Mackay announced that the cable
would be laid If he had to lay it him
self. He and Mr. Bennett assumed all
risks The cable devolved upon Mackay.
1t became. his own enterprise almost as
much as the Nevada mines.
Postal Telegraph Enterprise.
In addition to laying the cable under
the sea it was realized that those who
controlled the American end Of the ca
bles also controlled the land telegraph
system. There were few sporadic lines,
but one company. the Western Union,
practically held the system. 1t was of lit
tie use to lay cable without having a
land telegraph company. Mr.. Mackay de-
termined to start such company. In
the land company Mr.. Bennett had no
interest. Mr. Mackay established the Pos
tai Telegraph Company, which is the only
one that has escaped the NAV of the
Western Union.
After the .Mackay-Bennett cables were
laid the trouble was just begun. The
new line proposed to make rate of 40
cents a word. The old companies said
that the new one must make a rate of
SO or 20 cents a word or they would cut
the price to mere nominal rate.
Mr.. Mackay said he had promised to
serve the public by reducing the cable
tolls to a fair rate. He proposed that
the other companies agree on a rate of
40 cents word.
Then came the bitter war. The old
lines came down to 70 cents a word. Mr..
Mackay fixed his rate at 25 cents word
and stuck to It. The Commercial Cable
Company won the fight. The old compan-
les became tired. They offered to COM
promise on 5O-cent rate. The CONNER
cial Cable Company answered that 1t could
make all the money it thought it ought
to make at a 25-cent rate.
Fair-Mackay Fued.
This cable war had an Influence on the
Neyada bank. When Mr.. Fair went back
10 San Francisco from Washington in
1884 he was so much dissatisfied with Mr.
Mackay's management that he wanted
to sell out his interest or buy those of
Mr.. Mackay and Mr.. Flood.
Long before that Mr.. Mackay and Mr..
Fair had quarreled over domestic mat
tiers. They had not spoken for years.
Mr. Mackay was willing TO buy Mr..
Fairs interest but Mr.. Fair would not
sell unless Mr.. Flood sold too. That is,
Mr.. Mackay must buy the whole bank.
Mr.. Mackay agreed to this and Mr.. Fair
relinquished HIS interest and retired to
Menlo Park Mr. Flood also sold his third.
1t was asserted at the time that Mr..
Fair insisted upon Mr.. Mackay tying up
his money in the Nevada Bank, because
he knew that Mr.. Mackay wanted it for
his cable enterprises, and depriving him of
his cash might bother him.
When Mr.. Fair was out OF the Nevada
Bank Mr.. Flood returned and bought back
his one-third.
Mr.. Fair was credited with spreading
damaging statements in Wall street about
the condition of the Nevada Bank, to the
effect that Mr. Mackay had only SIS, 900 900
when he left the Pacific coast, and that
100000 of this was tied up in the cable
and 81, 900 coo in Mexican railroads. A more
friendly authority said at the time that
Mr.. Mackay had SIS, 10000 of which &c.,
600 900 was in government bonds, and that
he had never drawn his profits from the
bank.
Famous Wheat Deal.
The most trying experience Of Mr..
Mackay's life grew out of the famous
wheat deal of 1887. That was the time
when he was on the verge of ruin. and