The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-16
ARREST WIRELESS PROMOTERS


COndAusd from FiyS Paos.
boosted BY them irOm SO. the par value.
up 10 $50. Whatever market there wa
Tor Il they had a monopoly Of.
The company succeeded the American
Do Forest Wireless Telegraph Company
Mr. Mayer nys:
The oGioers Of the American proceeded
10 abandon IL az Il was sinking. being
snoumbercd with debt and running at
loss and In default in interest due on tie
bonds. A vast amount Of preferred stock
has been sold TO the public. also sub
s,Antially the entire bond issue Common
stock was Kiven largely az a bonus. and
al the very time that the officers we're
secretly oonhiving 20 abandon il ana
leavs the stockholders q mass Of worth.
lens securities lts stock had been aru.
iiciAlly forced 20 an alleged value Of
so q share. or q 50 above par. all of
which treasured the outside investors
that they were secure. The entire stan
OF ofiioers was selling their stock az Is
per cent. above par and pretending 10
the public that the company was proc
porous and az the same time were plan
ming 20 forsake Il because they knew
Il waA insolvent and worthless
He then described the formation Of
the United Wireless. which for a time
offered 10 exchange Ia stock for the
old stock. one share for ten. while the on
GERS, who held immense blocks Of pro
motion stock In the old concern. were
getting share for share. and finally refliaad
g ~. UIrsak
except at a heavy premium. The sharea
they did issue or sell 70 outsiders were
stamped mot transferable a. aforesaid
and the boosting Of the mass the insiders
had 10 sell began.
Mr. Mayer then takes up the financial
condition Of the concern and says the
stock, estimated on the real assets, 10
worth two cents a share. or SEQ, 0OO
He eAyB that the company did not make
operating expenses In 1919. but a. the end
Of the year reported a surplus Of S8sB ne "a
and entered up ~ an asset 81, OO0. 600 Of
securities OF the American. which concern
had been sold out for 81 800. OF an item Of
SSH. $50 cash In the treasury. 800. 900,
the treasurer admitted. was fictitious.
HAskins A Sells, who audited tho books
recently. put the book values Of all patents
az en-. $500. Patents and patent rights,
=, $50. 2S9.0O Il appears in the oompany's
statement 10 stockholders. The wireless
business with ships did not pay. says Mr.
Mayer hut whenever the company got
a contract with another ship the officials
with stock 20 sell boosted the price IS
share. Mr. Mayer says further:
The company has several land stations
and a number Of ships equipped with a
wireless outfit and there IL some revenue
from the business. but the operating
expenses have been much greater than
the receipts and the stock has q decreas-
money losing one.
The officers Of this company have !
sold 10 the public thousands Of shares. /
all the time that they were
holding their own shares and putting |
the money received from the public into !
the plants Of the company One Of the |
officers h believed 20 have cleaned up |
81 O0O.0OO at SO a share, and possibly |
SO. OO0.OO0, a. the prices ranging from SO |
10 $50. The other officers Of lesser degree 1
have prohted in proportion. There are |
q. 600 stockholders throughout the coun- |
Try, many o. whom have placed their /
savings In the stock Of the United Com /
pHny through false representations that /
have boon made by its officers. portion /
u the business has been done by soliciting |
agents by house 10 house canvas. but the /
greater part % the stock selling has been 4
lone by the use OF the mails. either .
through newspaper advertising or CIR
culars'
Col. Wilson. a. he is callsi In the COM
pADy's prospectus. y said by the same .
publication 10 be the president OF the .
loan and Banking Com ]
nany Of Denver. a concern which dealt .
IN United Wireless and which Mr.. MAYER .
{irl ~ operator. He came here about 4
hree years ago after having been an 4
lgent for De Forest wireless stock. He
ives az the Waldorf and II said 90 have
much valuable real estate IN Brooklyn.
iogart was formerly with the Western
Union Telegraph Company
The greater part OF the United Wire
ess stock was sold in the West George
4. Parker. VINO manages the company's
business in seattle. Wash Is said TO have
old 81 .SO.OOO worth In the first six
months Of 1910. His home i one Of the
how places Of seattle The company's
irculars say that "A large part Of the
rsdit for the phenomenal success Of the
ompAny must be given 70 this man
The penalty for the offence with which
Wilson. Bogart and Tompkins are charged
; not more than FIVE years In prison and
lot more than 81 OO0 fine for each count
lach letter sent through the mails con-
titutes a count. and IL IL estimated that
many thousands have been sent out by
he company.
&. C. GGlhraith. general manager Of
be company, gave out q statement last
ighR saying that the action Of the Federal
authorities would not stop the company
rom doing business and that -the boat
tations equipped with the United CON-
any e system 10 the number Of more thar
m and the hundred and odd land stations
Iill continue TO do business a. usual.