New-York tribune., 1910-01-22
NOT In MERGER
SO SAYS c. H. MACKAH.
1'estifes Before Committee
Mrs. Mackay Talks Suffrage.

Clarence III. Mackay head of the Postai
Telegraph system, fatty denied yesterday
that his company was in any way con-
cerned in the recent merger of the western
Union and the American Telephone and
Telegraph companies Mr.. Mackay was
the principal witness at the days session
of the state commission which is investi-
eating the telephone and telegraph situa-
tion with regard to the advisability of
placing the telephone and telegraph COM
panies under the Public Service commits
sions law. The report that the Postal COM
pany was included In the merger. he said
was due to a general misunderstanding Of
The names of two companies. He said:
Il wish to make the statement that
the Postal company has been free and in
dependent from the time of its organiza-
ton, in 1856. and purposes to remain So III
has not the slightest Influence or controt
over the American Telephone and Tele-
graph Company or the Western Union Te.e-
graph Company. 1t took no part in the
recent purchase of the Western Union
Telegraph Company by the American Tele-
phone and Telegraph Company and was
not consulted and knew nothing about it
until after it had been accomplished. The
Postal company will now have to compete
with both of them, instead of competing
with the Western Union alone. as here
tofore.
''The recent statements in the press that
the change of name of the Postal Tele-
graph Cable Company to Transeontinental
Telegraph Company is a part of the COM
bination is incorrect. Confusion has re-
suited from the fact that we have COM
pany known as the New England Tele-
graph Company, while the Bell Telephone
interests have a company known as the
NAL. ,.I,
Company, with which company we have
nothing whatsoever to do
1--WE are proceeding now to change the
name of our company. the New England
Telegraph Company, to Postal Telegraph
Cable Company, so that the business may
continue to be done in the Postal name. I
would again say that there has never been
a time in the history of the Postal COM
pany that it has not competed, and that
competition will continue. We shall not
take part in the combination, and we feel
confident that we shall be able to retuin
our telegraph business, and even to in
crease it gradually by extensions and by
good service.
The Postal is the only company that has
ever succeeded in competing with the old
land line telegraph monopoly and # has
done SO for twenty-five years. If the
Postal Company were united with the tele-
phone and Western Union there would
never be another competing telegraph COM
pany. because no telegraph company can
succeed unless Ii reaches every state and
every important city and town, and not
only would that require a vast sum of
money, but 1t would be physically irnpos-
sibe.
Between many of the important COM
mercial centres. as, for instance. between
~ to
sible now to find another right of way on
the highways for a through line. The
Postal Telegraph Company will be the last
competitor in telegraphy, and when that
competition ceases there will be choice
only between monopoly and government
ownership"
In reply to questions Mr.. Mackay said he
considered per cent fair net profit for a
company after paying operating expenses.
maintenance and all fixed charges He
also said that, though president of all the
companies in the system, he drew no sal.
ary for his servions. and that. allowins for
cost of materials and work, for the fact
that addresses and signatures are sent free
and for the great distance covered the
service in this country was the cheapest in
the world.
Mrs. Mackay attended the hearing with
her husband In the recess she talkee
woman suffrage with Senator George
Davis, who presided and promised to call
on him for his support at Albany
The other witnesses were Edward
Neatly first vice-president, and Charles p.
Bruch, second and third vce-president. of
the Postal company. The hearing was ad-
journed to Friday morning as Senator
Davis is acting president of the Senate
The committee expects to report ON
March l.