New-York Daily Tribune, April 6, 1902, page 6:
MORGAN IN THE WIRELESS
AMERICAN RIGHTS TO MARCONI SYSTEM SECURED BY HIS INTERESTS.
E. ROLLINS MORSE REPRESENTS THEM--MARCONI INVENTIONS TO BE OPERATED BY NEW COMPANY.
Morgan interests, represented by E. Rollins Morse, have secured the American patent rights of the Marconi Wireless Company of London. The parent company retains majority of the outstanding stock, and so has a controlling vote in the corporation's affairs. Mr. Morse and the capitalists he represents will put into operation all Marconi's inventions and rights.
The new company, to be known as the Wireless Telegraph Company of America, will be capitalized at $6,150,000. The first important step which the new concern will take will be to connect immediately Key West and Havana by wireless telegraph. Subsequently, if Marconi's wonderful invention fulfils his reasonable hopes, the American company will at once install a wireless telegraph system, so that conversation between America and the remote islands in the Philippine group can be carried on.
NOT PARTED WITH ALL RIGHTS.
Mr. Marconi, who was a guest of his lawyer, E. H. Moeran, at the British schools and university dinner at the New-York Athletic Club last night, said:
"The Marconi company has not parted with all its rights to any company in this country. The new company will simply take over the rights of the old company in the United States. The original company will carry the controlling interest and co-operate with the American company in all matter affecting the working of wireless telegraphy."
Willard R. Green, promoter, of this city, according to Mr. Marconi, planned and carried into effect the organization of the American subsidiary company. The capital of $6,000,000 has already been financed. Collateral funds are not lacking with which to meet emergencies that may arise during the infancy of the company's life. Mr. Green's patent rights, or rather the patent rights of E. Rollins Morse and "others of the Morgan group"--to quote Mr. Marconi--secures to the company a monopoly of setting the Marconi system in operation in the United States, Cuba, Porto Rico, Danish West Indies, Alaska, Philippines, Hawaii and the waters belonging thereto.
Mr. Marconi declined to say for what consideration he had parted with the rights, or if the sale meant that he would in the future make his home in London. Neither would he discuss the personnel of the financiers whose millions had made the organization a fact. Mr. Marconi admitted simply that Mr. Morse was the moving factor in the transfer of property, and that Mr. Morse had the support of "the Morgan group, which, of course, includes the foremost financiers of the United States." Further than that Mr. Marconi would not discuss the deal.
Mr. Morgan said last night that the deal had not been closed, but would be very soon. The new company, he said, was evolving out of the concern which not long ago was formed for the purpose of securing the American rights in the Marconi patents, and which was capitalized at $10,000,000.
EXPECT TO BE AT WORK IN A YEAR.
Willard R. Green, the promoter, was at the Waldorf-Astoria last night. He said that the deal was consummated on March 30, and that the new company would spend at least $1,000,000 building new stations and extending the operations of the system.
Mr. Green thought that the system would be in operation by June of the present year. He said that stations were being constructed at Cape Cod, Cape Breton and Tampa and that stations would be built on the Pacific Coast. The company would at once begin the work of putting the Marconi system in working order and in the current year the company would be ready to do a regular business.
"Mr. Marconi is the first man to get a practical result from wireless telegraphy and to invent the instrument," continued Mr. Green. "We do not fear any German claim. There has been an aimless attempt to exploit the German system, which now has one land station and one ship equipped, and can neither communicate with themselves nor with any one else. There was no intent on the part of any one to show discourtesy to the German Prince, but the Germans overstepped contract rights in an attempt to communicate with the Deutschland. It was impossible, owing to the defects in the equipment on the Deutschland."
"The new company is entirely new. About a year and a half ago a company was formed and partly incorporated. It got as far as paying State taxes, but issued no stock. We are using part of their papers, and are filing them to get the benefit of the taxes paid. That company had no capital, and was never completed."