Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-06-16
FEDERAL RAID
ON UNITED
WIRELESS
COMPANY ACCUSED or
POSTAL LAW VIOLATION
President and High Officials
Held Under Heavy Ball. One
Spends Night Prisoner in
Gloomy Tombs,

\
New York, June la.--rnited states
postoffIce inspectors raided the hand
some Broadway offices of the United
wireless Telegraph company today
and caused the arrest of Christopher
g. Wilson. president cf the COMPANY
| samuel 5. Bogart. first vice. president
and William w, Tompkins, president
OF the New York selling agency
which officers OF the wireless com
pany say was formerly their fiscal
agent, but has since ceased TO repre-
sent them.
Chief Inspector MAYER subsequently
gave out statement in which he
charges that although the company
has been running at a loss, the price Of
its shares have been advanced by
manipulation to fictitious values, and
that individual officers Of the COM
pany have sold ont their stock to the
general public ut a profit estimated
in one instance at between five and
ton millions
Wilson was released on $4,000 bail
ana Bogart IN $4,000 hail for appear
anee ON July -, when a further hear
ing viii be held before federal com
missioner Tomnklns was arrested at
his farm near New York ana brought
here for arraignmenf He could not
find $40, GOO bail ana spent the night
in the Tombs.
The specific instance of alleged
fraudulent use Of the mails is given
as the mailing OF a LITTER on March 3,
1910. to Michael @ Brien Of Water
bury Conn.
There are $4,000 shareholders OF
the company throughout the country, -
said Inspector Mayer in his statement, |
many OF whom have placed their say
ings in the stock OF the company |
Through false representations by its |
officers.
The real estate of the company, |
consisting Of land stations, patents |
manufacturing plants and real estate |
OF all Kinds appear to be worth, AZ u
conservative estimate. 100000, or an 7
actual worth of two cents share
Two million shares have been issued /
at a par value of $40 a share. bur the
stock has recently been put up 10 $50
a share
The inspector SAYS the company was
originally Incorporated as the Amalga-
mated Wireless Securities company
In 1904. In 1906 il took over the
assets ana business of the defunet
American De Forest Wireless Tele-
graph company. which was then rum
ming at loss and behind on the in
crest on its bonds, exchanging there
FOR its own securities on a ten for
)ne basis
At this time. says the inspectors
statement, when officers OF the be
Forest company were connving to
lbandon II and leave the stockholders
mass of worthless securities its
tock had been forced to an alleged
'alue Of $12.50 a share, or $3.50 above
lar.
Another item In the statement sent
nut to stockholders was patents and
,atent rights, s5.520,233 The affairs
If the company were recently audited
" firm Of licensed accountants who
'laced the book value Of all patents at
20,233
The officers of the company have
old to the public thousands Of shares
laiming all the while that they were
Olding their own shares and putting
he money received from the public
nto the plants Of the company. one
+ the officers Is believed TO have
leaned up $4,000 600, and possibly
1O.000.0O0 at prices between $40 and
80. The other officers have profited
q proportion
None Of the men arrested today had I
ny explanation to make, but n state
lent was given out by G. G. Galbraith,
cneral manager OF the United, In
'hich he says.
The action of the federal autnori-
es will in no way affect the com
iercial business of the company, The
ifficulties in which stock salesrnen
lay involve any stock company :,
rough unauthorized statements are
ell known to everyone who has built
p a business in which the sale Of b
oclS is factor" n
Arthur NJ. King, counsel for the a.
nited, said tonight that for several =
lonths the postoffce department has
cen harrassng the company, He at Il
ibuted the prosecution to the dis ri,
jntent of certain stockholders who
light have been unfairly treated 10y !"
her stockholders who had no 81
,nnection, ne said. with the m
,mpany. He discwned responsi- 49,
Iity OF advertisements Of stock ~.
hich he said had been put out by the -,
ew York selling agency, now defunct, "a.
.er the protest of the United man n
;cment. ~
Christopher Wilson president Of the ~
nited, is a financier OF the self-madc y,
hool He was born in Mississippi In ~
as. of Irish descent, and never had
ore than three months schooling.
q became successfully a cotton ~
rmcr a banker in Denver, miner, !,
I'd finally q promoter Of wireless se- w
ritics He lives at the Waldorf As ~
ria when i'm New York. 80