Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1910-06-18
ACCUSED OF
HUGE FRAUDS
Postal inspectors Arrest United
Wireless Officers.
STOCK JUGGLlNG ALLEGED
Accused Of Using the Malls to De-
fraud--Held In Heavy 1ail-sald to
Have Made Millions.

fraud--Held In Heavy 5ail-sald to
Have Made Millions.
C. G.. Wilson. president. and s. S.
Bogart, vice president of the United
Wireless Telegraph company. were
taken into custody by United States
Marshal Henkel at the company's Of
flee. az Broadway. New York city. and
taken before United States Commits
sioner Shields to answer charge OF
misuse OF the mails.
The summonses we're issued. II Is
understood. on information furnished
by Walter l.. Meyer. chief postolIlce
inspector: Frank A. o'Brlen and other
postofice inspectors.
The United Wireless Telegraph com
pany was incorporated In Maine to
unity wireless interests. II has au-
thorized siO.00O.00O in common stock
and sl0.000O.000 In per cent pre-
ferred and participating stock.
When they were arraigncd before
Commissioner Shields the men gave
their names as Christopher G. Wilson.
president. and Samuel 8. Bogart. vice
president. Using the United States
mails for furiherance of a scheme TO
defraud was the charge lodged against
them.
Assistant United States District At
torney Stevenson requested that VIII
son be placed under a bond Of $4,000.
but the amount finally settled upon
was $25.0000. a bond for $4,000 was
required of Bogart. Their hearing was
set for July ~.
Chief Postofilce Inspector Meyer in
a statement charges the officers of the
company with gigantic stock ma
nipulation plan. declaring that the
stock capital OF the company. whose
assets were about 100000. had been
increased by an interchange of securi-
ties and that the price of these shares
had been arbitrarily raised to such
large amounts that the company at
this time had an apparent stock mar
ket value of $1,000. 100000.
Cleaned Up 100000.
Mr.. Meyer states that one of the
officers has cleaned up s5.O0O000. He
says there are $4,000 stockholders
throughout the country who have
placed their money with the company
on the representations Of Its officers
that II had 81 plus of nearly $1,000
900, when as matter of fact the COM
pany was falling to make operating
expenses.
Mr.. Meyer further states that the
inside officers of the company were
privileged To sell their stock. while
outsiders were required to accept
stock certificates stamped not trans.
ferable until Feb. II. 1911" In add.
ton to arresting Wilson and Bogart.
Postofice Inspector O'Brien seized the
books and papers OF the wireless com
pany as evidence in the case.
The complainant named in the
charge on which the arrests were
made is Michael c. O'Brien. of Water
bury. Conn. The complaint alleges
that the accused men entered into a
scheme to defraud o'Brien and others
by representing TO them that the com
pany had assets and patent rights
worth s5.520.233; stocks and bonds in
other companies worth TO the amount
of $fs.14S.Gi0; real estate worth $3i.-
292: cash to the amount OF s3i7.i4S.
and surplus over assets of S6.52s.
1923. All these representations. the
complaint says. were false and fraud
ulent.
II is charged also that they repre-
sented to the complainant that the
value of the stock had been advancing
for the last three years. whereas II
had not advanced In the intention to
defraud O'I3rien. II Is charged that Mr..
Wilson and Mr.. Bogart caused 10 be
placed In the mails March letter
to O'Brien.
William Tompkins. president of the
New York Selling Agents. and local
selling agent of the United Wireless
Telegraph company. was arrested In
Mahopac. Putnam county. N. Y. He
will be brought here and araigned be
fore Commissioner Shields.