The sun., 1919-02-16
NACKAY EARNINGS
S4,696,496 IN 1918
0perating Expenses Increased
Materially During Year,
Says Report.
no ADVANCES IN RATES
people Don't Want Federal
Ownership Of Telegraphs,
President Declares.
;s,ciai DSspafcA 10 Tur soS.


psroS. Feb. l5.--The anual report of
,,o Mackay Companies for February 1,
,9ls. to February /. 1919. made public
,o.dav. shows total income investment
4, other companies of si,s95,496. OF
that sum s4.3ss,677 was paid In divi-
dsnds on the Mackay Companies shares;
sg0I.l9o went for operating expenses,
,ncluding Federal taxes, transfer agents.
registrars, auditors and trustees COM
.srsation, &c, and the balance of s5.6sS
was carried forward over tho year.
In referring to the operations of the
vear. President Clarence II. MaciSay
said that "the operating expenses of
both the land and sea systems have In
ceased materially" He pointed out
that this has bean tho experience OF all
Quasi public corporations, snda In fact, OF
all Industry. on account Of the increase IN
the cost OF labor and material, and
the declining purchase power of a
dollar.
1T Is noteworthy he continued.
that telegraph and cable rates have not
been increased Notwithstanding in
creases in general railroad rates and
other forms OF industry. Your trus-
tees believe that it will not be neces-
sary TO Increase telegraph and cable
tolls provided your company remains
ir control. thereby insuring. as in the
east careful management, which may
20 far toward meeting increased ex-
penses, Meantime your land line sys-
lem is steadily developing its long dis
lance telephone business. and is to-day
operating 22,i97 miles OF wire for that
service. This is proving eminently sat
isfactory to the public, particularly as
tie rates charged are lower and the
service better than is given by your
competitors,
TIE Bell Telephone Company has
tried 10 stop the giving OF this long
distance telephone service by your land
line system. and in Indiana filed a com
rlant with tho Public Service Com
mission to prevent your land line sys-
tom from giving this long distance tele-
phone service. That commission on Feb
rlary S, 1913, decided that 1t had no
such power.
Opposition Not Effective.
Opposition on the part OF the Bell
company 10 the extension Of the Postal
company's long distance telephone SER
vice has also been encountered In other
rarts Of the country, but without effect.
It's long distance telephone service goes
flr toward explaining the evident de-
termination OF the Bell company to elm
mate all competition by telegraph COM
panles
The properties OF your land and ocean
tystems continue 10 be maintained In
the best physical condition. During the
war there has been an unprecedented
amount Of Government business, which
Is carried at greatly reduced rates. but
Your companies met the situation and
handled all business efficiently--a valu-
able contribution toward the winning of
Inc war 1t was to your companies that
the state Department turned about a
onth prior 10 the signing OF the armis-
ice. when at its request n special wire
"a a special cable were placed at the
..rposal OF that department and the
resident for instantaneous communica-
ton between Washington and the Amer
lean Embassy In Paris.
During the last year your companies,
after providing for improvements and
rev lines wherever needed or desira-
be, have invested their surplus earn
iags IN the securities OF the United
states British, FrenSh and Canadian
Governments. Your trustees have con-
tnued their investment In preferred
purchase in the market.
The value OF the policy OF your trus-
tees for many years past OF placing a
reasonable amount OF profits each year
~ reserve Is now shown by these oc-
,Nrrenccs growing out OF the war. These
reserves assure the stability of your in
vcstnent, notwithstanding wars. read
justments and hard times, which are
liable TO occur periodically. When nor
NAL conditions are restored these re-
serves 5lso Will be available to meet
me demands for increased facilities on
ilnd and ocean due to the expansion OF
American trade, internally and with for
e.-D countries.
1T has always been the aim OF your
system not merely to provide increased
facilities when actually needed. but to
anticipate, So far as possible, future
leeds FOR quick and reliable Geographic
I'D csuie communication. The result
70 that your system now presents an
h1hroken system of land and ocean
Communication from Great Britain and
lraIle across two oceans and the
ArFrican. Continent TO China, Japan
nd the Phillppines-over two-thirds
around the world. This system has
t"en gradually built UP during the last
LIr'y-hye years, and your trustees have
no intention OF turning II over to pro-
rioters politicians and competitors.
People Against Federal Control.