The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-06-16
WIRELESS GRAFT
OF MANY MILLIONS
United Wireless Tele-
graph c o, Charged
With Gigantic Steal.
ITS OFFICERS
UNDER ARREST
Complaint Made by Post-office
Department on Ground That
Mails Were Used to De-
fraud-President and Vice
President Bailed in Sums
Of $4,000 and $4,000.

!. |
New York, June 1J.-United States
post-officc inspectors rni,Icd the hand
Some Broadway offices Of the United
Wireless Telegraph Company to-day
and caused the nrrest of Christopher G. |
Wilson, president of the company;
Samuel s. BoEnrt, first yIcc-preSident,
nnd William W. TompSins, president
of the New York Selling Agency, which
officers of the wireless company sny
was formerly their finance nSent, but
has ceased to represent them
Chief Inspector Mayer subsequently,
gave out a formal statement, in which
he charged that although the company
has been running at loss. the price
OF its shares has been advanced bS
manipulation 10 fictitious values, and
that Individual officers OF the COM
pany have sold out their stock to the
general public at profit estimated
in one instance at between s5,00o,0o0
and $1o,0oO,0oo, with other instances
in proportion.
Spends Night in Tombs.
Wilson WAS released in $4,000 bail
and Bogart in $4,000 bail for appear
ance on July IL. when a further hear
ing will be had before 4 Federal COM
missioner. Tornpkms was arrested at
his farm near Mahopac Falls, n ",
and brought here for ariaignment. He
could not find the $4,000 bail requir-
ed and spent the night in the Tombs.
The complaint on which the war
rants were issued is drawn under the
Federal criminal code. on information
OF Carter B. keene a post-oftice in
spector, who deposcs that the grounos
OF his belief are official Investigations
MADE by him, information obtained by
him from the books ot the said United
wireless Telegraph Company and the
inspection of letters and envelopes
sent by the company through the
limited states mails,
/ The specific insrauce OF alleged
| fraudulent use OF tlls mails is given uti
/ the mailing Of letter on March b
I 1910. TO Michael o'Brien, of Wates-
bury Conn
There are $4,000 shareholders OF
the company throughout the country,
said Inspector Mayer in his statement,
savings in the stock OF the compans
Through false representations made by
its officers.
Two Cents share.
.'The real assets of the COMPANY
consisting OF land stations, patents,
manufacturing plants and real estate
of all kinds, appear to be worth al u
conservative estimate 100000, or an
actual worth of cents a share at
par value
/ Two million shares have been issuea
lat a par value OF $40 u share. but the
stock has recently been put up 10 $50
a share Thus argues the Inspector
I'm his statement. "by taking the last
amount quoted Cs4Oo.oOO Of actual as
sets), at $50 share, the stock is real
.Ily worth as 100000 is to 100000, 600,
or 5000 a share
The inspector says the company was
originally incorporated under the laws
/ of Maine in 1904 as the Amalsamated
4 Wireless Securities Company, and that
i it had been merely legal existence
4 until 1T changed its name in 1906 to
its present title and took over the
assets and business of the defunct
American DeForest Wireless Telegraph
Company, which was then running at
a loss, and in default of interest on
its bonds, was exchanging therefor its
i own securities on ten for one basis.
Stock Forced Up.
'.At this time says the statement
when officers OF the DeForest Com
!. pany were secretly connfYing TO aban-
; don 1t and leave the stockholders G
mass of worthless securities. It's stock
had been forced TO an alleged value OF
i $3.50 a share or $3.50 above par, Ir
the statement issued to the stockhold-
ers COT the United) there appear as ar
/ asset stocks and bonds in other com.
panies, $l4l4S.610. This refers TO the
defunct American DeForest Wireless
:; stock. Yet to those persons
: who ask for an exchange of DeForest
: for United Wireless the answer Is sent
out that the DelNorest is absolutely
II worthless
Another item in the statement SEM
out to stockholders was patents ant
t tI.patent rights, S5,52o,2SS The affairs
n of the company We're recently audited
,i by a firm of licensed accountants. who
II placed the book value of all patents
$ at s20,233,
+ 'tThe officers of the company have
s. sold TO the public thousands of shares
!, claiming all the while that they Were
holding their own shares and putting
n the money received from the public int
!, Iihe plants of the company One of tn,
y officers is believed to have cleaned VI
!. .S6,o00,00O, al $40 share. and possihl,
i $4,000 400, at the ranging prices of 81
and S50. The other officers of lease
degree have proited in proportions"
/ ( ~ StultilleUI bINtlls OIl ", l-.5 stT9l
!. braith, general manager of the United
q says that the action of the Fedora
! authorities will in no way affect tn
y commercial business of the company
Had Hnrnsscd Company.
n Arthur M King. counsel for tn
E United, said tonight that for severa
months the post-ottice Department ha,
: been harassng the company here an,
$ elsewhere, He attributed the presen
= prosecution to the discomfort of Ger
u tain stockholders who might have bee
]. unfairly treated by other stockholders
II The latter stockholders had, howeye,
q no connection, he said With the man
agement OF the company. Hefdsowne
i Responsibilities for advertisements q
!, stock which, he said, had been pu
- aut by tile New York selling agency
z tcontinued on Second PaEa,A