Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-18
THE MkCkAY COMPANIES.
Annual Meeting Held and Reports for
Past Year Made Public.

|
Companies was held at Boston Friday
and the number of trustees was in
creased from five to seven. The pres
ent five trustees, Clarence II. MaclSay.
| William w. Cook. George G. Ward, Du-
mont Clarke and Edward c. Platt were
reelected. The two new trustees elect
! cd were Pliny Fisk who is at the head
of the banking house of Harvey Fisk
and Sons, New York city, and r. A.
| Smith who is a member of the bank
| ing house Of Oslcr and Hammond,
! Toronto, Canada. The annual report
Of the trustees Of the Maclsay Com
rani"s was issued today. Its essential
| features are as follows: The Mackay
| Companies own the WhClc or part of
| the capital stock of ten hundred and
| two prosperous cable, telephone and
| telegraph companies in the United
States, Canada and Europe. including
| The entire capital stock of the Com
| nercial Gable company and the various
companies constituting the Land Line
system known as the Postal Tel graph.
The Mackay Companies is by far the
| largest stockholder in the American
Telephone and Telegraph Company
| commercially known as The Bell Tclc-
| phone Company. Its holdings being
| more than four times those of any 9TH
| or stakeholder in that company. The
report adds that the present friendly
| relations should be ccmented in the in
| tercsts of the shareholders of both
companies ana also of the public At
large. The trustees state that not
| Githstandin~ these days Of money Dor
rowing and mortgage giving they are
again able to announce that the
Macllay Companies has no debts. The
outstanding shares being $50, 600 pre-
fc.rcd and $il, $50, 400 common.
| During the past year $685. 400 pre-
| forred shares have been issued in eX-
change for stocks of corpora tons
which, in addition 10 strengthening the
| position Ct the Macleay companies pay
as much or more dividends than the
corresponding dividends paid on the
Mackay Companies preferred shares.
The entire authorized preferred shares
| OF Ma ckay Companies have now been
issued and no further preferred shares
may be issued excepting on Il vote Of
| the shareholders. The outstanding
| common shares have not been in
creased during the past two years. The
Macllfy Companies in its investments
| confines itself to first class cable. tclc-
phone and telegraph stock. The shares
| OF the Mackay Companies We're listed
| on the New York stock exchange on
January ed 1907. Regular four Per
cent. didivenGs arc being paid on both
the preferred and common shares The
income on the subordinate companies
| Of the MGckay Companies is largely in
| increase of the amount required to
| pay these dividends, but its policy is to
| obtain from its subordinate companies
| only enough money to meet the divi-
| dendS OF the Mackay Companies shares.
| If the entire profits Of the Commercial
| Gable Company and its Land Lines sys-
| TEN for 1906 We're paid to the Macilay
| Companies as might be legally done
aud if the Mckay Companies used all
| these profits together with its income
| from its other investments for the pay
mcHt of dividends, the amount would
| be sufficient to increase very largely
the present dividend on the common
| shares. All surplus earnings are left
III the treasures of the subordinate
Companies for extensions and the de-
vclcpmcnt of the business and the in
| crease of reserves.
| During the year of 1906 the earnings
| Of the Commercial Gable Company
| (Which has paid regular quarterly divi-
| dCndS for over Il years. have shown
substantial gains in gross receipts and
| ret profits on both the ocean and
| land systems. After paying the diYi-
| GnndS on its stock, large amount re-
| manning was carried to reserve, in ac-
| cordance with a long established policy.
| The Commercial Pacific Gable 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 Ohe
| Postal Tciegraph is being constantly
! extended and also show substantial in
creased gross receipts and net profits
over the previous year. on December
9th, 1906, the 20 year monopoly of all
telcgrarhic cable business between
Cuba ana tho United States granted BY
! Spanish government in 1866 to the in
tcrnational ocean telegraph company
and later acquired by the Western
| Union Telegraph Company, came to an
end. The report states that trustees.
deeming it important that that part OF
| tle world should also be reached by ihr
! cttiIt ana tclSSfttpH SNSj'l1- dDi'iittt ~
| the American governor i'll charge Of the
! provisional government Of Cuba, for
| the usual permit for the landing and
operation of a submarine cable between
| the two countries and such permit has
| Just hccn granted. The trustees have
| decided to lay a submarine cable di-
| rect from New York to Havana, thereby
giving 4 three minute service as
against an average 80 minute service.
The entire cost OF this important *
tension to Cuba will rc paid out Of cur
rent profits.
| According to the profit cpd loss ac-
count the income from investments in
otter companies for the year February
list. 1895. to February 1st 1907, was
| s.. 30 321 a3. Of which $2.9S5,S7t.G0 was
| paid out in dividends S2i,624.S3 for va
Iinus expenses and 9a,s29.1O was car
1icd forward as q balance. The bal
ance sheet is as follows: Investments
in ether companies, $91, SS7 $3.50, cash,
500, 1922 Total. $92 .101 .947.22. Pre-
ferred shares issued $4,000, 10000. com
mon shares issued. s41.3S0, 10000. Sur