The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-02-16
GOOD SHOWING BY
MACKAY COMP ANIES
Annual Meeting OF SharehoId-
erS Held in Boston
NEW CABLE GOES TO CUBA
Plans Contemplate Laying Line Direct
From New York to Havana-State-
ment of Profit and
Loss Account.

Boston, Mass, February 15.-(special)-
The annual meeting of the shareholders
of the Mackay companies was held ut
Boston today. and the number of trustees
was increased from five to seven The
president, five trustees, Clearance II.
Mackay, William M. Cook, George G.
Ward, Dumont Clarke and Edwin C.
Plat, were reelected. The two new trus-
tees elected are Mr. Pliny Fish, who is
at the head of the banking house OF
Harvey Fisk &, Sons, New York City, and
Mr. r. A Smith, who is member of
the banking house of Osler & Hammond,
Toronto, Can.
The annual report of the trustees of
the Mackay companies was issued today.
It's essential features are as follows:
THE Maekay companies own the whole
or part of the capital stock of 102 prosper
Gus cable, telephone and telegraph COM
panies in the United States. Canada and
Europe, including the entire capital stock
Of the Commercial Cable company and
the various companies constituting the
land line system known as the Postal Tel
egraph The purpose is to make the basis
of the Mackay companies so broad and d.
versifed as to render impossible any fun
damental impairment Of the value of the
preferred or common shares. According
| ly, the investments include stocks In sub
marine cable companies in the Atlantic
and Pacific oceans, and in the Postal Tel
egraph land line system. and In dividend
/ paying stocks in the best telephone com
panies. The Mackay companies are by far
the largest stakeholder in the American
Telephone and Telegraph company, com
monty known as the Bell Telephone conf
pany, Its holdings being more than four
times those of any other stockholders in
that company"
The report adds that the prssen- friend
| ly relations should be ccmeuted in the in
| terest of the shareholders of pcth COM
panies, and also of the public at large.
The trustees state that notwithstanding
these days of money borrowing and mort
gage giving, they are again able to on
| nounce that the Mackay companies have
no debts. The outstanding shares are $780,,
| 100000 preferred and $41,S00,000 common.
During the past year $9354,400 preferred
shares have been issued in exchange for
stock of corporations which in addition to
| strengthening the position of tho Mackay
| companies pay as much or more dividends
than the corresponding dividends paid in
| the Maekay companies which have now
| been issued and no further preferred
shares may be issued excepting on vote
of the shareholders. The outstanding cCm-
| mon shares have rot been Increased dur
| ing the past two years. The Mackay COM
panes in It's investments confires itself
| to first class cable, telephone and tele-
| graph stocks.
Cement Friendly Relations.
The shares of the Mackay companies
| were listed on the New York Stock eX-
| change on January %, 1907. Regular 4
per cent dividends are being paid on both
the preferred and common shares. The
income of the subordinate companies of
| the Mackay companies is largely in excess
of the amount required 10 pay those divi-
| dends, but its policy is to obtain from its
| subordinate companies only enough money
to meet the dividends of the Mackay COM
panies' shares
Profits on Land Line.
If the entire profits on the Commercial
Cable company and its lan1 line system
for 1906 were paid to the Mackay COM
panies as might legally be done, and if
| the Mackay companies used all these
| profits together with its income from
| other investments, for thu payment of
| dividends, the amount would be sufficient
to increase very largely tho present divi-
the full dividend on the preferred shares.
All surplus earnings are left in The treas
uries of the subordinate companies for the
extensions and the development of the
| business and the increase OF reserves.
| During the year 1906 the earnings of the
Commercial Cable company (Which has
paid regular quarterly DIVIDENDS for over
seventeen years. have shown substantial
gains in gross receipts and ne. profits on
both the ocean and land systems.
After paying the dividend on its stock
a large amount remaining was carried to
reserve, in accordance with its long es-
tablished policy. The Commercial Pacific
Cable company during the year 1906 laid
submarine cables to China and Japan, and
those cables are now in complete working
| order.
The land line system (the Postal Tele-
graph is being constantly extended, and
also shows substantial increased gross
receipts and net profits over the previous
year.
New Gable to Cuba.
| On December 6, 1906, the forty-year
monopoly of all Geographic and cable
business between Cuba and the United
|