The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1910-06-21
GOVERNMENT RAIDS
UNITED WIRELESS
Officers Arrested For Using Malls
to Defraud.
THIRD MAN is LOCKED UP
Head of Stock-SelIing Agency Also
Involved in the Charges--Heavy
Losses For Stockholders Called
Attention to Frauds.


New York City. On a charge OF
sending Misrepresentation through
the United States mails for the pur-
pose of selling stock in the United
Wireless Telegraph Company Chris
TOPPER g. Wilson, president of that
corporation, and Seth s. Bogart, vice.
president, were arrested by United
States Postofice inspectors and dep
uty marshals. The arrests were made
at the magnifcently furnished Of
fees of the company at No. AZ Broad
way, and large quantities of books
and documents we're seized by the
inspectors.
1t, is alleged that the United States
Wireless Telegraph Company has
sold close to $20,000,00O worth of
stock throughout the country by
means Of fraudulent misrepresenta-
tions.
Wilson anu Bogart, who was at
one time General Superintendent OF
the Western Union Telegraph Com
pany, were hustled out of the build
Ing at No. AZ Broadway and up to
the Federal Building several hours
after the raid. They were taken first
to the Office OF United States Marshal
Henkel and were later arraigned be-
fore United States Commissioner
Shields.
Commissioner Shields fixed bail in
the case of Wilson at $4,000 and
$4,000 in the case of Bogart. The
prisoners were represented by Fran
els x. Butler and William S. Bogard.
who promised to secure bonds within
short time. The Government au-
thorities wanted the bail for Wilson
fixed at $4,000 and for Bogart at
$4,000, but the Commissioner cut
these amounts in half
A Deputy Marshal went to Mahopac
Falls, Putnam County, N ", and ar
rested William w. Tompkins, presi-
dent Of the New York Selling Agency.
OF Is Broadway, which handles the
stock and advertisements of United
Wireless.
Tompkins was found on his farm
at Mahopac Falls by Deputy United
States Marshal Grum Commission
er Shields fixed his bail at $4,000,
and Tompkins Immediately called up
his lawyer, e. B. Wilson, by tele-
phone. He was taken to the Tomhs.
Chief Inspector Mayer, after she
arrests, gave out an extended state
ment, telling of the operations of the
United Wireless concern. Among
other charges made by Inspector
Mayer is this:
The officers of this company have
sold to the public thousands of
shares, claiming all the time that
they were holding their shares and
putting the money received from the
public into the plants of the COM
pany. One of the officers is believed
to have cleaned up $4,000 at $40
a share, and possibly $4,000, 900 at
the ranging prices of $40 to $50. The
other officers of lesser degree have
profited in proportion.
There are $4,000 stockholders
throughout the country, many of
whom have placed their savings in
the stock of the United Company
through false representations that
have been made by its officers A por-
ton of the business has been done by
soliciting agents by house to house
canvass, but the greater portion Of
the stock selling has been done by use
OF the mails, either through newspa-
per advertising or circulars.
The sales of the stock have been
made through fiscal" or selling
agencies in which certain officers of
the company are said to have had
commanding interests.
The United Wireless is the out
growth of the old DeForest Wireless,
which was founded by Abraham
White, who gained fame by risking
a postage stamp on bid for Govern
ment bonds and cleaning up for
tune. The company claims to have
500 operators at work on hundreds
of ships and at 102 land stations TAX
ing and sending wireless messages.