The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-17
No Outstanding Debts.


ing these days of money borrowing and
mortgage giving. they are again able to
announce that the Mackay company
has no debts. The outstanding shares
are S5O,O00,0O0 preferred and SAL, $50, 400
common. During the past year 50. 354, 400
preferred shares have been issued in
exchange for stocks of corporations
which in addition TO Strengthening the
position of the Mackay companies, pay
as much or more dividends than the
corresponding dividends paid in Mac
kay companies preferred shares. The
entire authorized preferred shares of
the Mackay company have now been
issued, and no further preferred shares
may be issued excepting on a vote of
the shareholders. The outst anding
common shares have not been in
creased during the past two years.
Regular Dividends.
The Mackay companies in it's invest
ments confines itself to ffrst-class ca
bic, telephone and telegraph stock. The
shares of the Mackay companies were
listed on the New York stock exchange
on Jan. 3, 1907. Regular per cent div
idends are being paid on both the pre-
ferred and common shares The income
of the subordinate companies of the
Mackay companies is largely in excess
of amount required to pay the divi-
dends. but its policy Is to obtain from
its subordinate companies only enough
money for the payment of dividends
which are being paid on both the pre-
ferred and common shares. The increase
of the subordinate companies of the
Mackay companies is largely in excess
of the amount required to pay the divi-
dends. but its policy is to obtain from
its subordinate companies only enough
money to meet the dividends on the
Mackay companies shares.
Large Surplus Earnings.
If the entire profits of the CONNER
cial Cable company and its land line
system for 1906 were paid to the Mac
kay companies as might be legally
done. and if Mackay companies used all
the profits, together with its income
from other Investments, for the pay
ment of dividends. the amount would
be sufficient to increase very largely the
present dividend on the common shares,
after paying the full dividend on the
preferred shares All surplus earnings
are left in the treasures of the ssubor-
dinate companies for extensions and the
DEVELOPMENTS 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
vears) have shown substantial gains in
! cross receipts Of net profits on both the
| ocean and land systems. After paying
| the dividend on its stock a large
amount remaining was carried to re-
serve i'm accordance with its long estab-
! Iished policy. The Commercial Pacific
| Gable company during the year 1906
laid submarine cables to China and ia
pan. and those cables are now in COM
plete working order.
Postal Telegraph.
| The land line system Cthe Postal Tel
| egraph) is being constantly extended,
and also shows substantial increased
gross receipts and net profit over pre-
vious years. On Dec. s, 1906. the forty
year monopoly of all Geographic and
cable business between Cuba and the
United states granted by the Spanish
government in 1866 to the Interocean
telegraph company. and later acquired
by the Western Union Telegraph COM
pany. came to an end by the expiration
Of the forty years. The report states
that the trustees deeming il important
that that part OF the world should also
be reached by the cable and telegraph
system. applied TO the American gov
ernor i'm charge of the provisional gov
ernment Of Cuba for the usual permit
for the landing and operation Of a sub
marine cable between the two eoun-
tries. and such permit has just been
granted.
Direct Cable to Cuba.