New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-28
MARCON| STOCK IN SUIT
Action in Brooklyn to Impress
Trust Upon 10000 Shares.
VALUE PUT AT S1,500,000
Plaintiff Alleges Court Was Not
Told United Co Assets
Were To Be Resold.

Joseph Y. Witherbee began action before
Justice Scudder. in the Supreme Court.
Brooklyn. Yesterday 10 impress trust
upon 1000 shares OF the stock Of the
Marconi Wireless Telegraph Company OF
America, valued at $4,000 The defend
ants are the members OF the reorganiza-
tion committee OF the United Wireless
Telegraph Company and the Wireless
Liquidating Company The United Wire
less Telegraph Company was declared
bankrupt I'm the fall Of 1911 Mr.. Wither-
bee owns fifty shares Of the capital stock
OF the United Wireless Company. but
acts in the suit I'm behalf Of himself and
many OF the other shareholders.
Mr. Wthcrbee declares in his complaint
that the company is not now and for some
time past has not been iusolvent lie says
that there are about 1.2J9pO shares out
standing. valued AZ N200oW lie also
declares that the company's assets are
worth upward OF 10000. while its debts
are not more than $4,000.
The reorganization coWmittee decided
on plan OF REORGANIZATION. according 10
the complaint. made a preliminary agree
mcnt concerning the assets Of the bank
rupt with the trustees and sent a circu-
lar letter TO each OF the stockholders in
closing proposed subscription form.
dated February ]. 1912 owing 10 litga-
ton concerning apparatus I'm use by the
bankrupt the proposed agreement for the
distribution OF the assets was changed
and in It's new form was presented 10 the
Il IN
bankruptcy I'm March. 1912 The creditors
were notified and held a meeting to pass
upon the plan.
The trustees in April. 1912. got an order
from the court 10 allow the sale OF the
assets Of the bankrupt TO the Marconi
Wireless Telegraph Company, Limited. an
English corporation. and to the defend
ants. The plaintiff declares that the sale
was unnecessary. as the assets OF the
bankrupt I'm the hands Of the trustees
were sufficient to pay all outstanding
claims proved against the company
amounting q $4,000.
The plaintiff alleges that the trustees
received a bid OF from 10000 10 $4,000.
which they did not accept. FOR the rea-
son that the defendants persuaded them
not to do so. but requested said trustees
TO allow them TO buy the property and
make a resale to the Marconi Company
Of America. In acting upon the de-
PENDANTS representations the trustees be-
lieyed that the defendants represented the
entire body Of stockholders"
The plaintiff says that II was not told
10 the court that the reorganization com
mittoe was to make a resale Of the
assets to the Marconi Wireless Teleg-
raphy Company OF America "for stock
having an immediate market value OF
approximately $4,000" In April, 1912.
according 10 the plaintiff. the committee
notified the stockholders Of the bank
rupt that they had 10 make a deposit Of
80 cents a share n they expected 20 par
ticipate i'm the advantages OF the Mar
conf contract. In consequence, stock
holders turned I'm about $4,000 shares OF
stock and paid to the committee about
s32j. CO.. Many OF the stockholders could
not be found. or were without funds. and
so could not comply with the conditions.
Mr. Witherbee says that he thinks that
Il would be Just to distribute the shares
Of Marconi stock turned I'm to the re-
organization committee in payment for
the assets pro rata among the stockhod-
ers Of the bankrupt. He saws the COM
mitteomen are now likely to keep all the
benefits themselves.
The defendants say in their answer that
Mr. Witherbee and the stockholders he
represents are entitled to no considera-
ton. since they did not comply with the
conditions laid down by the reorganiza-
ton committee