MARCONI COMPANY.

Press, Volume LXIII, Issue 19156, 12 November 1927, Page 17

MARCONI COMPANY.

CAPITAL TO BE REDUCED. . (BY CABLK-PRESS ASSOCIATION—COPIRIOHT.) (AUSTRALIAN - AND N.I. CABLE ASSOCIATION./ LONDON, November 10. Mr Justice Eve, in the Chancery Court, granted the petition to reduce the capital of Marconi's and subsidiary companies. The chief opposing shareholder, Mr Cross, examining Mr Frederick Kclleway (managing director of the company) suggested that with proper management the company could make a profit of £480,000 a year. Mr Kelleway replied: "It is most unfortunate that such a question has been put, due to its effect on the Stock Exchange, but as lam obliged to answer I must say that, in my opinion, there is no chance of earning such profits for a. considerable number of years." Mr Justice Eve said that when the company had lost £6,000,000 it was evident that there had been expenditure which it would be difficult to justify, but the resolution of the shareholders had not been suceessfullv impeached. [A section of the Marconi Wireless Company shareholders opposed a petition to reduce the capital to £1,625,000. Incidentally, they accused Signor Marconi of speculating in the company's shares to the extent of 150,000 ordinary and 38,000 preference. Signor Marconi's counsel pointed out that Signor Marconi was seriously ill, and that it was imposisblc for him to appear to answer the charge of fraud, but he had filed an affidavit denying the charge.]