John William Mackay
Encyclopedia
John William Mackay was an American
capitalist
, born in Dublin, Ireland.
, where he worked in a shipyard
.
and worked in placer gold-mines in Sierra County
. In 1859 he went to Virginia City, Nevada
, and there, after losing all he had made in California, he formed a business partnership with fellow Irishmen James Graham Fair
, James C. Flood, and William S. O'Brien
. The four dealt in mining stocks and operated silver mines on the Comstock Lode
, and in 1873 discovered the great ore body known as the "big bonanza" in the Consolidated Virginia and California mine, an orebody more than 1,200 feet deep, which yielded in March of that year as much as $3,876 per ton (America: Past & Present, Vol. II, pg. 497) , and in 1877 nearly $190,000,000 altogether. The four-way partnership, although formally called "Flood and O'Brien," was more commonly known as the Bonanza firm. Together they also established the Bank of Nevada in San Francisco.
, Mackay formed the Commercial Cable Company
— largely to fight Jay Gould
and the Western Union Telegraph Company — laid two transatlantic cable
s, and forced the toll-rate for transatlantic messages down to twenty-five cents a word. In connection with the Commercial Cable Company, he formed in 1886 the Postal Telegraph Company as a domestic wire telegraph company so that Commercial would not need to rely on Western Union to collect and distribute telegraphic messages. Until Mackay and Bennett entered the field, all submarine cable traffic between the United States and Europe
went over cables owned by the American financier Jay Gould
. A rate war followed that took almost two years to conclude. Jay Gould finally quit trying to run John Mackay out of business. He was quoted as saying, "You can't beat Mackay, all he has to do when he needs money is go to Nevada and dig up some more".
Once Mackay had conquered the Atlantic
with the Commercial Cable Company
and the vast land mass of North America with the Postal Telegraph Company he turned his sights on laying the first cable across the Pacific
. He subsequently formed the Commercial Pacific Cable Company
in secret partnership with the Great Northern Telegraph Company
and the Eastern Telegraph Company and although he died in 1902 before this part of his vision was completed, his son Clarence Mackay
, saw the project through to completion between 1904 and 1906. Commercial Pacific operated a cable line from San Francisco to Manila, Philippines, via Hawaii and Guam, with a subsequent spur that went from Manila to Shanghai, China.
The Mackay System expanded under Clarence H. Mackay's leadership, acquiring several other entities including the Federal Telegraph Company
, its radio stations and research laboratories, in 1927. In 1928, the entire system was bought out by Sosthenes Behn's International Telephone and Telegraph
. ITT organized the Postal Telegraph & Cable Corporation as a shell to acquire and control the Mackay System on May 18, 1928. Though plagued with financial troubles during the Great Depression, the Mackay System continued to be the chief rival of Western Union
until 1943. In March of that year, Congress authorized an amendment (Section 222) to the Communications Act of 1934
permitting the merger of the domestic operations of telegraph companies (clearing the way for Western Union to acquire Postal Telegraph). By May 1943 a merger plan had been put together, which the FCC approved by September, and the merger was complete by October 1943. The international communications (cable and radio) parts of the Mackay system remained with ITT.
, and endowed the Catholic orphan
asylum in Virginia City, Nevada
. In June 1908 the Mackay School of Mines was presented to the University of Nevada
, as a memorial to him, by his widow and his son, Clarence H. Mackay. A statue of John Mackay by Gutzon Borglum
stands in front of the mining building on the university campus in Reno, Nevada
.
. He was buried in Green-Wood Cemetery
. The Mackay Mountains
in Antarctica were named after him.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
, born in Dublin, Ireland.
Early years
His parents brought him in 1840 to New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, where he worked in a shipyard
Shipyard
Shipyards and dockyards are places which repair and build ships. These can be yachts, military vessels, cruise liners or other cargo or passenger ships. Dockyards are sometimes more associated with maintenance and basing activities than shipyards, which are sometimes associated more with initial...
.
Gold and silver mining
In 1851 he went to CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and worked in placer gold-mines in Sierra County
Sierra County, California
Sierra County is a county located in the Sierra Nevada of the U.S. state of California, northeast of Sacramento on the border with Nevada. As of the 2010 census the population was 3,240, down from 3,555 at the 2000 census. The county seat is Downieville....
. In 1859 he went to Virginia City, Nevada
Virginia City, Nevada
Virginia City is a census-designated place that is the county seat of Storey County, Nevada. It is part of the Reno–Sparks Metropolitan Statistical Area. The population was 855 at the 2010 Census.- History :...
, and there, after losing all he had made in California, he formed a business partnership with fellow Irishmen James Graham Fair
James Graham Fair
James Graham Fair was the overnight millionaire part-owner of the Comstock Lode, a United States Senator and a colorful real estate and railroad speculator.-Early life:...
, James C. Flood, and William S. O'Brien
William S. O'Brien
William S. O'Brien was an American businessman who formed a business partnership with fellow Irishmen James Graham Fair, James C. Flood, and John William Mackay, the Consolidated Virginia Mining Company...
. The four dealt in mining stocks and operated silver mines on the Comstock Lode
Comstock Lode
The Comstock Lode was the first major U.S. discovery of silver ore, located under what is now Virginia City, Nevada, on the eastern slope of Mount Davidson, a peak in the Virginia Range. After the discovery was made public in 1859, prospectors rushed to the area and scrambled to stake their claims...
, and in 1873 discovered the great ore body known as the "big bonanza" in the Consolidated Virginia and California mine, an orebody more than 1,200 feet deep, which yielded in March of that year as much as $3,876 per ton (America: Past & Present, Vol. II, pg. 497) , and in 1877 nearly $190,000,000 altogether. The four-way partnership, although formally called "Flood and O'Brien," was more commonly known as the Bonanza firm. Together they also established the Bank of Nevada in San Francisco.
Marriage
In 1866, he married Marie Louise Hungerford, a native New Yorker. Snubbed by New York society, Louise moved to Paris where Mackay purchased a large mansion for her where his wealth enabled her to became a noted society hostess, entertaining royalty and throwing lavish parties for two decades.Communications Companies
In 1884, with James Gordon Bennett, Jr.James Gordon Bennett, Jr.
James Gordon Bennett, Jr. was publisher of the New York Herald, founded by his father, James Gordon Bennett, Sr., who emigrated from Scotland. He was generally known as Gordon Bennett to distinguish him from his father....
, Mackay formed the Commercial Cable Company
Commercial Cable Company
The Commercial Cable Company was founded in the United States in 1884 by John William Mackay and James Gordon Bennett, Jr. Their motivation was to break the then virtual monopoly of Jay Gould on transatlantic telegraphy and bring down prices .The technology was well established by this time, and...
— largely to fight Jay Gould
Jay Gould
Jason "Jay" Gould was a leading American railroad developer and speculator. He has long been vilified as an archetypal robber baron, whose successes made him the ninth richest American in history. Condé Nast Portfolio ranked Gould as the 8th worst American CEO of all time...
and the Western Union Telegraph Company — laid two transatlantic cable
Transatlantic cable
Transatlantic cable may refer to:* Transatlantic telegraph cable* Transatlantic telephone cable* Other transatlantic submarine communications cable...
s, and forced the toll-rate for transatlantic messages down to twenty-five cents a word. In connection with the Commercial Cable Company, he formed in 1886 the Postal Telegraph Company as a domestic wire telegraph company so that Commercial would not need to rely on Western Union to collect and distribute telegraphic messages. Until Mackay and Bennett entered the field, all submarine cable traffic between the United States and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
went over cables owned by the American financier Jay Gould
Jay Gould
Jason "Jay" Gould was a leading American railroad developer and speculator. He has long been vilified as an archetypal robber baron, whose successes made him the ninth richest American in history. Condé Nast Portfolio ranked Gould as the 8th worst American CEO of all time...
. A rate war followed that took almost two years to conclude. Jay Gould finally quit trying to run John Mackay out of business. He was quoted as saying, "You can't beat Mackay, all he has to do when he needs money is go to Nevada and dig up some more".
Once Mackay had conquered the Atlantic
Atlantic Ocean
The Atlantic Ocean is the second-largest of the world's oceanic divisions. With a total area of about , it covers approximately 20% of the Earth's surface and about 26% of its water surface area...
with the Commercial Cable Company
Commercial Cable Company
The Commercial Cable Company was founded in the United States in 1884 by John William Mackay and James Gordon Bennett, Jr. Their motivation was to break the then virtual monopoly of Jay Gould on transatlantic telegraphy and bring down prices .The technology was well established by this time, and...
and the vast land mass of North America with the Postal Telegraph Company he turned his sights on laying the first cable across the Pacific
Pacific Ocean
The Pacific Ocean is the largest of the Earth's oceanic divisions. It extends from the Arctic in the north to the Southern Ocean in the south, bounded by Asia and Australia in the west, and the Americas in the east.At 165.2 million square kilometres in area, this largest division of the World...
. He subsequently formed the Commercial Pacific Cable Company
Commercial Pacific Cable Company
Commercial Pacific Cable Company was founded in 1901, and ceased operations in October, 1951. It provided the first direct telegraph route from America to the Philippines, China, and Japan....
in secret partnership with the Great Northern Telegraph Company
Great Northern Telegraph Company
The Great Northern Telegraph Company was a Danish telegraph company founded in June 1869...
and the Eastern Telegraph Company and although he died in 1902 before this part of his vision was completed, his son Clarence Mackay
Clarence Mackay
Clarence Hungerford Mackay was an American financier, believed to inherit most of a $500 million estate in 1902. In 1926, his daughter Ellin married Irving Berlin against her father's wishes and he disinherited her....
, saw the project through to completion between 1904 and 1906. Commercial Pacific operated a cable line from San Francisco to Manila, Philippines, via Hawaii and Guam, with a subsequent spur that went from Manila to Shanghai, China.
The Mackay System expanded under Clarence H. Mackay's leadership, acquiring several other entities including the Federal Telegraph Company
Federal Telegraph Company
The Federal Telegraph Company was a United States communications company that played a pivotal role in the 20th century in the development of radio communications. Founded in Palo Alto, California in 1909, it would eventually merge in August 1927 with the Mackay Companies...
, its radio stations and research laboratories, in 1927. In 1928, the entire system was bought out by Sosthenes Behn's International Telephone and Telegraph
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
. ITT organized the Postal Telegraph & Cable Corporation as a shell to acquire and control the Mackay System on May 18, 1928. Though plagued with financial troubles during the Great Depression, the Mackay System continued to be the chief rival of Western Union
Western Union
The Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
until 1943. In March of that year, Congress authorized an amendment (Section 222) to the Communications Act of 1934
Communications Act of 1934
The Communications Act of 1934 is a United States federal law, enacted as Public Law Number 416, Act of June 19, 1934, ch. 652, 48 Stat. 1064, by the 73rd Congress, signed by President Franklin D. Roosevelt, codified as Chapter 5 of Title 47 of the United States Code, et seq. The Act replaced the...
permitting the merger of the domestic operations of telegraph companies (clearing the way for Western Union to acquire Postal Telegraph). By May 1943 a merger plan had been put together, which the FCC approved by September, and the merger was complete by October 1943. The international communications (cable and radio) parts of the Mackay system remained with ITT.
Philanthropy
Mackay was famous for fair dealings with his employees, and gave generously, especially to the charities of the Roman Catholic ChurchRoman Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the world's largest Christian church, with over a billion members. Led by the Pope, it defines its mission as spreading the gospel of Jesus Christ, administering the sacraments and exercising charity...
, and endowed the Catholic orphan
Orphan
An orphan is a child permanently bereaved of or abandoned by his or her parents. In common usage, only a child who has lost both parents is called an orphan...
asylum in Virginia City, Nevada
Virginia City, Nevada
Virginia City is a census-designated place that is the county seat of Storey County, Nevada. It is part of the Reno–Sparks Metropolitan Statistical Area. The population was 855 at the 2010 Census.- History :...
. In June 1908 the Mackay School of Mines was presented to the University of Nevada
University of Nevada, Reno
The University of Nevada, Reno , is a teaching and research university established in 1874 and located in Reno, Nevada, USA...
, as a memorial to him, by his widow and his son, Clarence H. Mackay. A statue of John Mackay by Gutzon Borglum
Gutzon Borglum
Gutzon de la Mothe Borglum was an American artist and sculptor famous for creating the monumental presidents' heads at Mount Rushmore, South Dakota, the famous carving on Stone Mountain near Atlanta, as well as other public works of art.- Background :The son of Mormon Danish immigrants, Gutzon...
stands in front of the mining building on the university campus in Reno, Nevada
Reno, Nevada
Reno is the county seat of Washoe County, Nevada, United States. The city has a population of about 220,500 and is the most populous Nevada city outside of the Las Vegas metropolitan area...
.
Death
Mackay died on July 20, 1902 in LondonLondon
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. He was buried in Green-Wood Cemetery
Green-Wood Cemetery
Green-Wood Cemetery was founded in 1838 as a rural cemetery in Brooklyn, Kings County , New York. It was granted National Historic Landmark status in 2006 by the U.S. Department of the Interior.-History:...
. The Mackay Mountains
Mackay Mountains
Mackay Mountains is a prominent group of peaks 10 miles south of the Allegheny Mountains in the Ford Ranges, Marie Byrd Land. They were discovered by the Byrd Antarctic Expedition in 1934, and named for Clarence Mackay of the Postal Telegraph and Mackay Radio Companies, who was a benefactor of the...
in Antarctica were named after him.