MARCONI COMPANY

Evening Post, Volume CXIII, Issue 64, 17 March 1927, Page 9

MARCONI COMPANY

TURBULENT MEETING

REORGANISATION ADOPTED

(United Press Association.—Copyright.) LONDON, March. An overflowing and turbulent meeting of Marconi Company shareholders was helu to consider the reorganisation proposals.

Mr. Marconi, in moving the adoption of the report, expressed the hope that tho directors' proposals would mark the turning point. Ho admitted that there had been a trying and critical period,, partly due to past mistakes. If the proposals of Mr. Nordon's committee were carried lie would have no course but to resign and decline the presidency, also to seek the termination of his agreement as a technical adviser and sever all connection with the. company. , .

'Mr. Kellaway, managing director, in seconding the motion, in the course of a lengthy speech justified, his - policy. He emphasised the conversion of heavy losses into a working profit last year. Sir Gilbert Garnsey assured the meeting that it might safely proceed with th& directors' proposals, whicli argued ; prosperous future.

Mr. Nordoh, on behalf of the English dissentients, declared hotly that he was fighting with tied hands, as he was unwilling to damage the prestige of the company by publishing' the facts concerning tho colossal internal mismanagement, which would astound everybody. Mr. Kellaway had a salary of £10,900 per annum. "Friends who nominated me and others for the directorate imposed the condition that Mr. Kellaway must vacate his position. Wo must select capable independent people to do tho constructive work, not for tho benefit of those who battened and fastened, on shareholders.".

These statements were greeted, by a wild' 1 scene of waving hats and papers. The chairman declared the report adopted, amid a volley of protest. Mr. Nordon demanded a poll, which was granted;

Mr. Pcnnell asked: "Would Mr. Marconi undertake in future not to speculate with the company's shares?" Mr. Marconi retorted: "That is an impudent lie." Mr. Pennoll:'"Then you arc a liar."

This gave rise to considerable tiproar, and after more wrangling over the appointment of auditors it was announced that the poll had adopted tho report by 1,586,000 votes to 320,000. Motions were carried reducing the capital by 10s per share.