The Parma herald. (Parma, Idaho) 1903-1917, 1910-06-23
EXPOSE BIG GRAFT
United Wireless Officers Arrested
for Huge Frauds.
Postal Inspector Says Officials OF
Company Sold Stock for Thous-
and Times Its Value.

New York, N. Y.-United States
postoffice inspectors raided the hand
some Broadway offices of the United
Wireless Telegraph company today and
caused the arrest of Christopher C.
Wilson, president of the company;
Samuel S. Bogart, first vice-president,
and William w. Tompkins, president
of the New York selling agency,
which, officers of the wireless company
say, was formerly their fiscal agent,
but has ceased to represent them.
Chief Inspector Mayer subsequently
gave out a statement, in which he
charges that, although the company
has been running at loss, the price of
its shares have advanced by manipula-
tion to fictitious values and that indi-
vidual officers of the company have sold
out their stock to the general public at
a profit estimated in one instance at
between IS, 900, 900 and $40, 900, 900.
Wilson was released on $25, 900 bail
and Bogart on $40, 900 bail for appear
ance on July IL, when further hear
ing will be held before Federal COM
missioner.
Tompkins was arrested at his farm
near Mahop Falls, Pa, and brought
here. He could not find $40, 900 and
spent the night in the Tombs.
The specified instance of alleged
fraudulent use of the mails is given al
the mailing of letter on March g.
1910, to Michael O'Brien, of Water
burg. Conn.
"There are $4,000 shareholders Of
the company throughout the country,
said Inspector Mayer, in his statement
"many of whom have placed their saw
ings in the stock of the company
through false representations made by
its officers.
"The real assets of the company
consisting of land stations, patents
manufacturing plants and real estat,
of all kinds, appear to be worth, at /,
conservative estimate, s400, 900, or al
actual worth of cents a share"
Two million shares have been issuet
at par value of $l0,' but the stool
has recently been put up to $50
share.
"Thus," argues the inspector in hi
statement, "by taking the last amount
quoted 100000 of actual assets) a
$50 share, the stock is really wort
as $4,000, 900 is to $1,000, 900, 900, o
100000 share"
The inspector says the company wa
originally incorporated as the Amalgs
mated Wireless Sureties company i
1904. In 1906 it took over the asset
and business of the defunct Amer
can De Forest Wireless Telegrap
company, which was then running at
loss, exchanging therefor its own Sc
curities on ten for one basis.e
cat this time, says the inspector
statement, "when officers of the d
Forest company were secretly conniy
ing to abandon it and leave the stool
holders a mass of worthless securities
> its stock had been forced to an allege
value of $12.5 so share, or s2.50 aboy
a par.
= Another item in the statement ser
out to stockholders was patents ar
. patent rights, SIS, $40, 233. The attain
of the company were recently audite
by firm of licensed accountants, WI
placed the book value of all patents
1920, 233.
"The officers of the company hay
sold to the public thousands of share
> claiming all the while that they wei
holding their own shares and putin
the money received from the publ
into the plants of the company. Or
of the officers is believed to ha,
4 cleaned up $4,000, 900 and possib
II $40, 900, 900 at prices ranging from s.
to $50.