New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-17
I[GAUTY OF MARC0N|
POOL TO Be TESTED
ID If British Courts To Be Ap-
~, nIipd For in Favor of SIN
noCent Investors"
4. S. OPERATORS BLAMED
s,;,or of Financial Paper Out
to Form Association of
stockholders to Take
Concerted Action.
rBy Gable to The Tribune. ]

random. May ia suit is about to
5. brought in the English courts to
...t the legality of the pool which OPP
.,.d in American Marconis a year
THAT is to say, at the time Sir
pstus Isaacs, David Lloyd George and
:. Master Of Elibank bought the
.s.,ss-which led to the famous Mar
.,ri scandal" Another object Of the
II, is 10 attempt TO recover for the in
...snt investors their losses in the
,,oes which dropped from the high
,,ice Of $50 share, at which. many OF
mem bought. to -.
The charge is made that the Ameri-
,sn members of the pool threw the
,0cOO shares they held on TO the Lon
A, market after the English members
,.srsof had rushed the price to $50.
and that this action broke the market.
,bieb thereafter never recovered. hav-
,g fallen steadily since the American
Members Of the pool unloaded.
An advertisement is inserted to-day
!, The Morning Post" by Raymond
Radcliffe. editor of The Stockbroker."
With the object Of forming an associa-
ton Of stockholders for concerted ac-
ton. Mr. Radcliffe says.
"A large number Of the people who
hs, money in the gamble now have a
hjr chance of getting their money
tsek. | propose TO put the case before
counsel at my own expense. and if the
opujon given is satisfactory ] will call
meeting of American Marconi share
holders with a view to taking concerted
action. A very strong feeling exists on
The subject, and numbers Of people
have written me asking whether some
hing cannot be done TO obtain restitu-
ton Of the money lost, and in the opin-
ion Of a well known firm of city law
ysrs there is a prima facie case for
Questioning the legality Of the pool.
Here is the position as we know it;
Godfrey lsaacs. William Marconi
and others went 10 America and made
a deal with the defunct United Wire
less Company, which then combined
with the hitherto unsuccessful Ameri-
can Marconi Company. whose capital
vas increased to $1O,0O0,0OO. The Eng
Esh Marconi Company guaranteed 81
e10O0 Of which Godfrey Isaacs made
himself personally responsible for 300
~ shares. OF these 10000 were sold
70 Heybourn & Croft al 4 per cent
premium, $1,000 at IL per cent pre-
mum and $1,000 at 7-16 per cent
premium
Harry Isaacs took 5000 shares. Sir
Rufus lsaacs 10000 William Marconi
WeO and the Marconi directors and
employees 1900, while the American
group took 10000. so that about COO
10 shares were tied up among those
'ssponslble for the coup. When the
market opened the quotation was SIC
he price was rushed 10 80. but by
he time the quotation arrived at this
ngare II was 1 o'clock. and the Ameri-
cans were able TO come in and sell.
his broke thu market and the price
steadily declined. until it is now 81.
Two questions are 10 be decided
INST does the combination set forth
constitute legal pool. and. second, as
many brokers obtained shares much
Vnoer the coming out price. cannot
nose who pr chased shares through
usse brokers' secure a return OF their
money!"