The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-17
UNITED WIRELESS
STILL IN TANGLE
Federal Grand Jury Is Exam
lining Into Charges
OFFICIAL GIVES BOND
Statement Is Issued BY the Company
Explaining Absorption of De For
est Wireless and Other Com
Pany Matters

New York, June 16.-While the fedora
grand jury was today taking up an in.
vestigation into the alleged ,00i
swindle charged in connection with the
arrests of United Wireless company Of
ficials yesterday, William Tompllins. pres
ident of the New York selling agency
appeared before United States Commits
sioner Shields and furnished $4,000 bail
fer his appearance.
Abraham White, former president of the
American DeForest Wireless Telegraph
company, absorbed by the United Wire
less, had a conference this afternoon with
the United States district attorneys of
fee and Inspector Mayer of the post
office department, who are conducting the
investigation. Mr.. White admitted that
the troubles of the United are under
discussion and predicted interesting de-
velopments. He thought it possible he
might be called before the grand jury,
At the offices of the United Wireless to-
night the following statement was given
out in comment on the criticisms of the
company, issued yesterday by Inspector
Mayer:
lie COllulllOHs Wnlcu t&ioitu III th0
American DeForest Wireless Telegraph
company before it's acquisition by the
United Wireless company were no.
brought about by the present manage
ment of the United company. No litera-
ture issued under the present manage
ment of the United company ever stated
that it had a controlling interest in other
companies, or that it had large holdings
in the Marconi company. As matter
oc fact the holdings of the Marconi COM
pany in the hands of the United were
ccmpara lively small. 1t is true that the
stock of the DeForest company was ex-
changed for that of the United company,
but that was pursuant to the original plan
of the company
AT intervals the market value of
the stock was advanced but this was
thoroughly justihable In view of the
increasing business of the company.
1t is not true as accredited to Mr..
Mayer, that while the inside officers
their stock all the outside purchasers
were required to accept stock certifi-
Gates stamped non-transferable.
THE stock stamped transfera BILE
until February, 1911, was that issued
In exchange for securities of the Amer
lean DeForest company.
THE stock issued to officers of the
United for their salaries was based
upon the selling price of the stock at
the time it was so issued to tn EN- and
the stock was also issued for cash adj
vanced by the officers receiving it in
order to recoup themselves for their
advances. They were thus privileged
to sell stock for which they paid cash
The further statement that operat-
ing expenses have been much greater
than receipts Is also untrue.
I'VE agree with Mr.. Mayer that the
real assets of the company consist OF
land stations, patents, manufacturing
plants and real estate, but observe tina
either through ignorance of the facts
or with the intention to mjsload, he
omitted very important asset, namely,
the number OF ships equipped We de-
ny that any one officer. or ell officers
put together. have cleaned up $4,000. 0oe
and possibly 100000"