| Show PAYS DIVIDENDS AND NO DEBTS D Mackay Corporation Makes a Showing of Great Interest to Public Generally G CABLES CROSS THE OCEAN TELEGRAPH LINES ALL OVER THE CONTINENT Boston Feb 16 The annual meeting of or the th shareholders of the Mackay companies was held at Boston yester day and the number of trustees was ras In Increased Increased creased from five to seven the present live trustees Clarence H Mackay William TV W Y Cook George Georgo C W C Ward Dumont Clarke and Edward C Platt were reelected The two new trustees elected are Pliny Fisk Flak who Is at the head of the tho banking house of Harvey Flak Fisk Sons New Now York and R It A Smith who Is a member of ot the banking house of ot Osler Osier Hammond Toronto Canada The annual report of trustees of the Mackay companies s was issued today its essential lal features are as af follows olt ws Q the he Companies Compa Jea The Mackay Macka companies comp owns the whole or part of capital stock of ot W Prosperous cable telephone and tele graph graph companies In the United States Canada and Europe Including the en tire ure capital stock of at the Commercial cable company and the various compa companies companies nies constituting the land line system s Known as the Postal Telegraph The purpose Is la to make the basis of the Mackay companies so 50 broad and di dl diversified versified ed as to render impossible any fundamental impairment of the value vaNe of the th preferred or common shares Ac Accordingly Accordingly cordingly tho the investments include stocks in submarine cable companies In Inthe Inthe inthe the Atlantic and Pacific oceans and in inthe Inthe inthe the Postal Telegraph land line system and in stocks in the best telephone t companies The Mackay Jack y company Is Js by far the largest stock stockholder stockholder stockholder holder in the American AmerIc n Telephone 8 Telegraph company commonly known as the Bell Telephone company its holdings being more than four times Imes those of ot any other stockholder In IT that company The report adds that the friendly relations should be cemented in the inters interest St t of the shareholders of both companies and also of the public I at large lar e I eNo No Outstanding Outstanding Debts The trustees state that notwithstanding ing these the e days das of ot money borrowing and mortgage giving they are again able to announce that the Mackay company has no debts The outstanding shares are aro preferred and common During the past year preferred shares have been issued in exchange for tor stocks of corporations which in addition to strengthening th position of the Mackay companies pay payas payas paya as a much or more dividends than the corresponding dividends paid in Mac Mackay Mackay Mackay kay companies preferred shares The entire authorized preferred shares of the Mackay company have ha now been Issued and no further preferred shares may be bo issued excepting pUng on a vote ote of the shareholders The outstanding common shares have not been In ln increased creased during the past two years Regular Dividends The Tho Mackay companies In Its invest investments investments investments ments confines Itself to ca cable cable cabie ble bie telephone and telegraph stock tock The shares of the Mackay companies were listed on the New York Tork stock exchange on Jan Jau 3 1907 Regular 4 per cent div dividends divIdends dividends are being paid ald on both pre preferred preferred and common shares The Income In ome of the subordinate companies of the Mackay companies is largely in excess of amount required to pay the tho divi dividends dividends but its policy Is to obtain from its subordinate companies only enough moneys money mone for the payment of or dividends which are being paid on both the pre preferred preferred and common shares The Increase of the subordinate companies of the Mackay companies Is largely in excess of the amount requited required to pay the divi dividends but its policy Is lg to obtain from its subordinate companies only enough money to meet the dividends on the Mackay companies c shares Large Surplus Earnings If It the entire entin profits of the thc Commer Commercial Com mer cial Cable company compan and its land line system m for 1306 1906 were paid to the Mac Mackay M c kay hay companies as g might bo be legally done don and if Mackay companies used all the tho profits together with 1 Its tIt income from other Investments for the tho pay payment payment payment ment of dividends the amount would be b sufficient to Increase very ery largely the present pr nt dividend on the common shares share after paying the full dividend on the preferred shares All surplus earnings af in IKe treasuries tr ri rif r din ate companies lor for extensions ana and me the developments of the business and the increase of reserves During the year 1906 the earnings of the Commercial COf lal Cable company which has paid regular Quarterly dividends for over seventeen years have h C shown substantial gains g ins in cross cross receipts re elp Of net profits on n both the ocean and land systems After paying the dividend on its stock a large amount remaining was carried to re reserve reserve reserve serve in accordance with Its long established fished policy polity The Commercial Pacific Cable company com an during the year car 1906 laid submarine cables caMes to China Ch a and andJa Ja Japan Japan pan and those l cables are arC now in com complete complete complete working order Postal Telegraph Tel graph The line system the Postal Tel Telegraph Telegraph Is being constantly extended and also shows substantial Increased gross receipts and net profit over pre previous prevIous previous years On Dec 6 1906 the forty year monopoly of all telegraphic and cable business between Cuba and the United States granted by the Spanish government in 1866 1566 to the Telegraph and later acquired by the Western Union Telegraph com corn company compan pang pany pan came to an end by the expiration of the forty years The report states that the trustees deeming It Important that that part of the world should also be reached by b the cable and an telegraph system applied to the American gov governor go governor emor in charge of the provisional gov government government mt of ot Cuba for the usual permit for for the landing and operation of a sub submarine submarine marine cable between the two to coun court countries tries trl R and such permit has just been granted I Direct Cable to Cuba The first plan was wa to pursue the same route as that of ot the Western Union Telegraph company namely a land line system from New York Tork City to Florida and a submarine cable system from I I Florida to o Havana In order however to make mke this Cuban service equal to the service of the Ute Commercial Cable com company comI com company pany pan In the Atlantic ocean ocean and the Ul i Commercial Pacific company In the Pa Pacific p i ocean oc n and the Postal Telegraph I company throughout the United States the trustees trust s haw hava decided to lay tay a sub submarine submarine i marine cable direct from New York Tork to Havana Hanna thereby giving a I ute service I as against an average thir service The entire cost costo of this Important extension to Cuba will wUl willbe willbe be 00 paid out of ot current profits Atten Attention Attention Attention tion Is called to the fact that on Jan 1 1907 all free passes were ere abolished on the Postal Telegraph h system and that during the past year there has been Inaugurated and put into success successful ful operation a plan whereby the em em of the organization m are given ghen an opportunity to purchase preferred shares snares in the Mackay companies and andt to t make payments by installments install installments Installments ments A large number of ot the em have availed themselves e of this Opportunity and nd the plan has hu been so 80 successful that arrangements have been baen made to continue It In order that I the relations between the and the companies c may be that of or cordial I cooperation and mutual benefit and support According to the profit and loss ac I i count the income from romines investments men in other companies for the year eat Feb 1 1906 to Feb Rob 1 1907 was was as of ot which was testis paid out Ut In dividends divi dividends tends for various expenses and was vas as carried curled forward as asa asa asa l a balance The balance sheet Is as fol follows to i lows Investments in other companies cash U total 92 I Preferred shares issued common shares issued 41 I surplus total 92 The books b ks of ot the Mackay companies are audited by chartered public accountant I i I I |
