The New York herald., 1921-02-16
NEW YORK-LONDON
CABLE MINUS RELAYS
Mackay Co.'S. Report Shows
3.461 Undersea and 1863
Miles of Linez Used.

In the fiscal year ended January 81,
1921, the Maclay Companies holding
corporation for the Postal Telegraph
and affiliated concerns, brought London
and New York into direct communication
by cable without relays. without sacri-
ficing any advantages Of the old method
Of operation and with distinct advan-
tages OF the new, according to the an
rual report made public yesterday Ny
Clarence II. Mackay. president. The SER
vice over which this direct and constant
transmission is maintained. Mr.. Mackay
said. is composed Of 3fs1 miles OF sub
marine cable and Isr sagscs OF under
ground lines, the total distance amount
ing to 3,s2s miles.
Income from Investments amounted TO
S4,SSS.sS6. compared with s5,o2i.o95 in
the preceding year. while It's operating
expenses. including taxes, totallcd $685.
800. against $644.SS4. Dividends paid
totalIed S4,230.S3S. compared with
S4.s55. .ssS I'm 1919. and the final surplus
was s1oS,252, against SCOPES.
"Tne position Of the companies Mr..
Mackay said, continues to be one of
great strength. The gross receipts and
net profits of the cable and land line sys-
year. are nevertheless very satisfactory.
During the year the cable system was
maintained in excellent condition and
transmitted a volume of traffic greatly
in excess of any pre-war year. and the
prospects for a continuance OF a heavy
volume of cable business seem assured.
particular attention has also been
paid to the continued development OF the
long distance telephone service, operat-
ing principally in the South Southwest
and on the Pacific coast. One hundred
and fifty-four cities and towns are now
reached by that service and apptexi-
mately 10000 miles OF wire are utilized
and provided for its use.
''rhe long distance telephone service
is conducted over wires which stimuli.
taneously carry telephone and telegraph
traffic, thus creating a by-product from
our present facilities. This, Of course,
makes the investment nominal and en-
albles us to give the service at rates
lower than those charged by other tele-
phone companies. The increase in reve-
nue. from that service in 1920 was ap-
proximately 35 per cent. over that Of
the previous year.
The value to the land line system
or the extension of this long distance
telephone service is very great. and in
order that that branch of the business
may be properly fostered. srccial de-
partment has been created to have par
ticular charge or its development Great
possibilities are seen not only for de-
veloping a countrywide long distance
telephone Service, with a practically
nominal investment. but also for its col
lateral effect on our telegraph business,
and 1t is proposed gradually to extend
to all the important centres in the
United states. including New York city,
At the annual meeting Of the Mackay
Companies, held in Boston yesterday,
Morton S. Patton of New York was
ad ded to the board of trustees. The fol-
lowing trustees were unanimously re-
elected: Clarence Ii. Mackay. Charles
III. Sabin, Lewis l.. Clarke, Frank l..
Polk. Sir Edmund b. Osler, Sir Thomas
Skinner, George q. Ward, Edward G.
Platt. George Clapperton, Milton w.
Blackmar and William j. peegan.