The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-17
Report Shows Fine Physical and
Financial Condition Despite
Trade Reaction.
WIRELESS NOT A MENACE
government Lines Shown to Be
Impractical and Fraught
With Disaster.

After commenting upon the general
rade reaction Of 1913 as mirrored in the
reports OF many railroads and other
oaas, public corporations the trustees say
that they are able to report that "the
extensions Of your systems have gone on
"a usual without the issue Of obligations
and without the use OF any part OF the
reserves which have been built up In the
past" The report continues:
mo; only this. but the reserves have
been increased. not 30 largely as in pre-
Nous years. but substantially. while at
the same time the physical condition OF
the properties Of your systems has been
kept up to the highest point of efficiency"
The extension Of the land wires into
parts OF Missouri. Oklahoma and North
Dakota anu the renewal OF parts OF three
OF the Commercial Gable Compnny's old
est cables between Ireland and England
are mentioned and there Is II brief word
concerning the wonderful Colt invention
By which land wires and cables may be
,oned in one continuous circuit and the
whole operated by the Morse instruments
In the Morse code.
The work of extending the system 10
summed up In this way in the report:
Your combined land and ocean sys-
tenn is the largest In the world. The
Western Union Telegraph Company has
q larger land lire system. hut II owns no
cables across the Atlantic Ocean. merely
operating cables under leases On the
other hand, while one of the oldest Eng
lsh cable companies owns and operates
q larger cable system to the East and
Far East than your cable system. yet
;ha; company has few land lnce. Such
- Il has are short connecting links"
wireless Not . Menace.
There is a word about the $4,000. 600
realized about four years ago through
the sale OF the Msckay Companics
American Telephone and Telegraph stock.
put by for an emergency fund. and still
Kept intact in cash and the highest class
Of securities" and then the report takes
Up the question OF possible competition
from wireless lines. 1t says:
The wireless telegraph continues TO
demonstrate itB usefulness In Its own
field. which may be defined rs cormuni-
cation between moving points or between
fxed and moving point. There has
been no development to modify the op,r-
Ion We have already expressed that wire
less biography In no way threatens the
supremacy OF the submarine cable rs a
rapid, reliable and accurate means OF
communication"
IN proof that this view In the general
one the report calls attention to the fact
that nearly 5000 miles OF new cable were
made and laid throughout the world In
1913. 1t says:
The mileage Of cables during the last
five years has increased from 900 to
100000. The Governments have Increased
their cables by % per cent. and the prl-
vate companies by IL per cent There Is
10 instance OF the abandonment Of a
submarine cable and the substitution Of
wireless biography"
Unfsir Competition Ended.
The mos, important matter affecting
TIE companies. saws the report was the
action OF the Attorney General by which
the American Telephone and Telegraph
Company Was compelled to sell it's hold
inss OF Western Union Telegraph Com
pany stock and by which complete
separation OF the two companies. such as
existed before the stock purchase in 1909.
was brought about OF the Importance
o. 'ae action the report says:
II has taken four years TO demon
Hrate that the union of the Bell Tele-
phcne companies with the Western Union
telegraph Company was Illegal and un-
fair. not only as against the Postal Tele-
graph Cable Company but as against
public interest. The result is gratifying
70 your trustees and II Is hoped that the
diversion OF the Postal company's bust.
hes 10 the Western Union will now
cease"
sacrament Lines Impractical.
Taking UP the proposal OF the Post.
aaster-Cieneral advocating the acquisition
o. telephone lines by the Government 70
d used for telegraph as we'll as tele.
phone purposes In competition with tho
present two telegraph companies. tho re-
port says:
"Snph &. v,ro,o,,tt,,, ali, s-.,
mend Itself to the Intelligence and fair.
ness Of the American people. Further.
more. Il has been pointed out that :,
would require at least $4,000. 900. 900 10
pay For the physical properties and the
earning capacity OF the telephone and
telegraph plants (Which earning capacity
must be paid for under the decisions OF
The Supreme Court Of the United S.ates)
and that the Government would have to
pay the railroads In order To acquire
Their rights In the telegraph lines now
or the railroads. the same as England
had 10 do
Attention is also called to the fact
that telephone and telegraph companic,
pay from 3I5. 00O. 900 to SEQ. 000. 900 a yea,
n taxes. and the loss OF this revenu,
would make the burden OF such purchase
stu heavier
In this connection mention IL made oil
Eneland's experience In Government own
ersh!p and the conclusion III drawn tina
the vast sum OF purchase money woui,
hs lost because the operating expenses
year by year would exceed the income"
In the course OF a comparison Of rates
the statement Ia made that In Mexico
where the Western Union has a monopoly
telegraph raten are exorbitant" say
the report:
The Western Union rate between New
York and Mexico city II Si.75 for mes
sage o' ten words The distance u
ssi7 miles. The Postal company's rat
hei.e.n New York and Gan Francisco Il
= 81 This distance is 3.400 miles. Tina
telegraph communication between TN
United States and Mexico should be undo
the control OF single telegraph system
IN the present condition Of AFFAIRS II
Mexico is serious matter. since tn
whole press OF the country and the publ
have no alternative channel OF transmits
sion"
In concluding Its account OF the imam
c.al conditions OF the systems. the repor
says.
THE Mackay Companies has no debts
Its outstanding preferred shares $3.50,
OoO.06O) have not been Increased durinI
, the past seven years. IL outstandln
common shares O<l.as0.<o0) have no
been increased during the past nine years
No bonds. notes or stock have been %
sued and no debta incurred during tn