MARCONI FRAUD CHARGE

Sun (Auckland), Volume I, Issue 198, 10 November 1927, Page 1

MARCONI FRAUD CHARGE

BUSINESS SENSATION REDUCTION OF CAPITAL Jy Cable. — Press Association. — Copyright. LONDON, Tuesday. A heated scene occurred in the High Court, when a section of the shareholders in the Marconi Company opposed a petition to reduce the capital of the concern by £1,625,000. Incidentally they accused Signor Marconi of having speculated in the company’s shares to the extent of 150,000 of the ordinary issue and 38,000 of the preference issue. Counsel for the company said Signor Marconi was seriously ill, and it was impossible for him to appear to answer the charge of fraud. However, counsel filed an affidavit denying the charge, ind said other directors would give evidence fully on the matter. The case was adjourned.—A. and X.Z. After heated meetings of shareholders in the Marconi Company a plan of reconstruction was adopted in March. This involved a reduction in the capital from £4,000,000 to £2,375,000. An examination °f the position of the company had been made by an emninent accountant. Sir Gilbert Garnsley, and it was on his report hat the directors, of whom Signor Maroniwas then chairman, recommended the scheme to the shareholders. Sir Gilbert sported. Inter alia, that the deficiency T** necessary- One of the opponents of ■cheme accused Signor Marconi of ■’avmg speculated with the company’s nares. To that he hotly retorted: Tnat is an impudent lie.”