The New York herald., 1922-02-16
NEW CABLE TO LINK
UP US. AND FRANCE
Commercial Company Will Lay
Line 1898 Miles Long by
Way of Azores.

The Commercial Gable Company has
decided TO lay new cable from New
York 10 France by way of the Azores
aslands and has filed applications with
rhe United States, French and Port
uguese governments to obtain the neces-
sary consents. The line will be S,S9s
miles long and will supplement the pres
ent Commercial Gable line which lands
al Havre.
I Announcement of the new undertake
ing was made yesterday by Clarence
IT. Mackay in the annual statement of
the Mackay companies which control
the Commercial Gable and Postal Tele-
graph companies Mr.. Alackay said
4 that negotiations were under way with
Z the French authorities regarding the
Z opening of Commercial Cable offices in
< France for the purpose of dealing di-
/ rectly with the public and that 1t was
expected permission would be granted
! Such a service. ne said, would attract
( additional business TO the company
! Second Project since War.
{ The new French cable will be the sec
I ond transatlantic line undertaken by the
Mackay Companies since the end of the
I war. On January II, 1921, a contract
was, executed with the German Atlantic
/ Gable Company whereby the latter is
Z TO lay a cable from Emden TO the Azores
/ before October /, 1928. to connect with
I Commercial Cable line leading to New
1 York. The German company engaged
: to transmit to the Macllay organiza-
! tion all its traffic TO America originat-
I ing in Germany.
Z The Mackay Companies report for the
! year ended February / said that the
I years operations were satisfactory, COM
( pairing favorably with the war years
4 and were substantially in excess Of
J The pre-war years" Income received
I from investments, which constitute the
Z sole revenue of the organization,
! amounted to s4.3O9.252, a decline Of
Z s559,736 compared with the result In
I the preceding year.
{ The constituent corporations turn
over to the holding company enough
\ funds to cover yearly dividends and a
small surplus. Dividends on Mackay
/ Companies shares amounted to $4,1S0,-
\ 3i0 and after paying operating ex-
penses. Federal taxes, &c. a balance of
Y s46141 was added to the profit and loss
account The balance sheet showed that
Investments We're valued at 93,301, 957,
n about $93, 1000 more than a year before.
and the accumulated surplus was
s2093,767.
N improvements From Surplus.
The report said that all new construc-
tion in the fiscal year, as well as addi-
tlons to plant, were paid for from sur
plus earnings. The reserves of the
Mackay Companies continue TO be in
vested in United States. British. French
\ and Canadian Government securities
and in securities of American munich
palities and railroads.
I "The new position of the United States
in the affairs of the world" said Mr..
Macllay. makes imperative a broad and
constructive program on the part of
American cable companies. backed up
by the moral and diplomatic assistance
OF the United States Government, and
that the company is fully alive to the
situation is evidenced by the extensions
and improvements in progress and in
contemplation"
Among the extensions under way is a
second Pacific cable to run from San
Francisco TO the Far East. The applica-
tion fer landing place in California is
under consideration by the State Depart
fnent.