The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1907-02-16
Business of big Corporations
Shown to be in Flour
ishing Condition.
NEW CABLE WILL SOON BE LAID
CONNECTING NEW YORK AND
HAVANA DIRECT-PLAN IN
OPERATION FOR EMPLOYEES TO
BECOME STOCKHOLDERS
Speci.II to The Journal.

Mackay Companies was held at Bos-
ton to-day and the number of trustees
was increased from five to seven. The
president. five trustees, Clarence H.
Mackay, VIM. W. Cook. Geo. G. Ward,
Dumon' Clarke and Edw. c. Platt
were reelected. The two new truS-
tees elected are Mr. Piiny Fisk who is
at the head of banking house of Har-
vey Fisk and Sons, New York City,
and Mr. R. A, Smith who is member
of banking house of OSler and Ham
mond, Toronto, Canada.
The annual report of the trustees
of the Mackay companies was issued
to-day. Its essential features are as
follows: The Mackay Companies own
the whole or part of the capital stock
of one hundred and two prosperous
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 Telegraph. The
purpose is to make the basis of the
Mackay Companies so broad and di-
Versified as to render impossible any
fundamental impairment of the value
of the preferred or common shares.
Accordingly, the investments include
stocks in submarine cable companies
in the Atlantic and Pacific oceans and
in the Postal telegraph land line sys-
TEN and dividend paying stocks in the
best telephone companies. The Mac
kay Company is by far the largest
stakeholder in the American Tele-
phone and Telegraph Company conf
monty known as the Bell Telephone
Company, its holdings being more
than four times those of any other
stakeholder in that company The re-
port adds that the present friendly re-
lations should be cemented in the in
terest of the shareholders of both CON-
panies and also of the public at large.
Free From Debt.
The trustees state that notwith-
standing these days of money borrow
ing and mortgage giving, they are
again able to announce that the Mac
kay Companies have no debts. The
outstanding shares are $50 1000, 900 pre-
ferred and SAL 300, 400 common. Dur
ling the past year $685., 400 preferred
shares have been issued in exchange
for stocks of corporations which in
addition to Strengthening the position
of the AEackay Companies pay as
much or more dividends than the
corresponding dividends paid on the
Mackay Companies, and no further
preferred shares may be issued eX-
cepting on vote of the shareholders.
The outstanding common shares have
not been increased during the past
two years. The Mackay Companies in
its investments, confines itself to first
class gable, telephone and telegraph
stocks.
Listed on Exchange.
The shares of the Mackay Com
panies We're listed on the New York
stock exchange on January 23rd
1907 Regular four 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 eX.
cess of the amount required to pay
these dividends, but its policy is 10
obtain from its subordinate companies
/ dends of the Mackay Companies
shares. If the entire profits on the
commercial cable company and its
| land line system for 1906 were paid 10
the Mackay Companies. as might leg
ally be done, and if the Mackay Com
panies used all these profits, together
with its income from other invest
ments, for the payment of dividends
I the amount would be sufficient to in.
crease very largely the present divi
dend on the common shares after pay
ing the full dividend on the preferred
! shares. All surplus earnings are left
| in the treasures of the subordinate
companies for the extensions and the
development of the business and the
increase OF reserves. During the
year 1906. the earnings c. the Com
mercial Cable Company (which has
paid regularly quarterly dividends for
over seventeen years. have shown
substantial gains in gross receipts ana
net profits on both the ocean and LAND
systems. After paying the dividends
on its stock, large amount remaining
was carried TO reserve in accordance
with its long established policy
! The Commercial Pacific Cable Com
pany during the year 1906, laid sub
marine cables to China, Philippine
Islands and Japan and these cables
are now in complete working order
The land line system (The Postal Tele
graph is being constantly extended
and also shows substantial increase
gross receipts and net profits over
the previous years
New Cuban Service.
On Dec. 9Th, 1906, the forty yea
monopoly of all Geographic and cable
| business between Cuba and the United