New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-03

Henry Gardner a stockholder In the Marconi
Wireless Telegraph Company of America, has
, begun suit in the Supreme Court against that
corporation and it's directors, e. Rollins Morse
John ". Griggs John D. Oppe. William H.
Bentley, WHY'S r. Belts, Cyrus S. Sedgwick,
Loyal L. Smith, Henry II. Mcclure, Gugllelmo
Marconi James W. Pyle and James P Cotton,
in which he demands an accounting as to the
affairs of the company an injunction restraining
the directors from dsposing of its assets or
from interfering in any way with its manage
ment; the appointment Of a receiver for the
company, and for sucn other relief as the court
MAJ deem he Is entitled to.
The company Incorporated under the
laws Of New-Jersey with capital of S6.6oO,OOO
1t is declared by the company that of this
amount S6,190OOO of stock has been issued and
is outstanding. The next annual meeting OF the
stockholders will be held on April II, 1903. The
plaintiff alleges that the defendants caused to
be iseued March 81 last statement or ball
ance sheet which set forth that on January L.
1904. the company the owner of certain
rights, privileges and contracts of the alleged
value of IS 31S 494, which, together with other
items, made an equalization between the assets
and liabilities
The plaintiff alleges that the patent rights
and patents and contracts referred to in the
financial statement not worth January
! last anything like S5,21S.494. and that the
capital stock OF cash given in payment of those
rights, patents and contracts manipulated
by the defendant. E. Rollins Morse. who Gard
ner says he believes had been the chief pro-
moter of the company.
Cadner asserts that the directors of the cor
poration have mismanaged its affairs and
wasted its assets. He asks that they be re-
moved and replaced.
The accounting is especially asked for as to
the sale of all stock and to the other acts OF
the defendants in the management of the cor
poration. and it is demanded that if any of the
contracts were obtained from them that they be
set aside. The salaries paid alleged to be
grossly excessive, amounting to $65,1S3. and
the defendants requested to explain for
what services this expended.
The stock is said TO be now considerably be-
low par and. should the present management
be allowed to continue, the plaintiff declares the
company will be utterly ruined. as the directors
have been using the assets of the corporation
for their own purposes. 1t is now. he alleges.
hopelessly insolvent.
The treasury stock was January L last.
the complaint sets forth S6,19OO0O. less cash.
received on account OF the sale or stock S107.-
240 according to the directors statement. but
there no information to show what DISPOSE
ton made of this stock. The payment or
over 100000 for the good will. rights TO
patents and contracts is alleged TO have been
grossly eXJrdNaBdnt ana WASleIul, anu MORSE
and his brother directors charged with hav
ing, for their own benefit and in fraud of the
rights Of the plaintiff and other stockholders
similarly situation. used the resources of the
company. An item of $lIoo00 stated to have
been paid for stations and experimenting with
the wireless system, is also said TO have been
grossly excessive
Franklin Bien appears as counsel for the plain
tiff. II Is said that within few days applt-
cation will be made to the Supreme Court for
the appointment of temporary receiver and for
a preliminary injunction.
Mr.. Mcclure last night made a general denial
of all the charges made in the suit. He de-
clared that Of the directors had been
served with papers IN the case. He said that
he believed those back of the suit had brought
It on the eve of n holiday when the Offices of
the company would be closed for two days.
that their side of the could be circulated
first
This stakeholder has never asked informa-
ton concerning the affairs OF the company TO
my knowledge" he said. IF he had done so It
would have been cheerfully given him In the
fullest particulars. Every stakeholder has the
right Of securing information about the affairs
of the company"