The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-06-22


spector Mayer gave out long formal
statement in which he charges that
although the company has been run
ming at a loss the price OF its shares
has been advanced by manipulation
TO fictitious values. and that individu-
al officers of the company have sold
out their stock TO the general public
at profit estimated in one instance
at between five and ten millions. with
other instances in proportion.
The complaint on which the war
rants were issued is drawn under the
Federal Criminal Code. on informa-
tion OF Carter b. Keene. a postoffice
Inspector. who deposes that "the
grounds OF his belief are official in
vestigations made by him. informa-
tion obtained by him from the books
Of the said United Wireless Telegraph
Company and the inspection of letters
and envelopes sent by the postofice
establishment of the United States
through the United States mails"
Aht ShttlNN INSTANCE Oh dlIeBeu
fraudulent use of the mails Is given
in which the mailing of letter on
March 3. 1901. to Michael O'Brien, of
Waterbury. Conn.
$4,000 Shareholders.
There are $4,000 shareholders of
the company throughout the country"
said Inspector Mayer in his statement.
many of whom have placed their
savings in the stock OF the company
through false representations made by
its officers.
The real assets OF the company,
consist Of land stations, patents, man.
ufacturing plants and real estate Of
ell kinds. appear to be worth at a
conservative estimate s40O, 900, or an
actual worth Of two cents a share at
par value"
Two million shares have been is
sued at a par value OF $40 a share.
but the stock has recently been put
mp TO $50 a share. Thus argues the
inspector in his statement, "by TAX
ing the last amount quoted (s4O0, 900
OF actual assets) at $50 a share, the
stock is really worth as s400. 900 is to
$1,000. 900. 900. or s.OOO4 a share"
The inspector says the company
was originally incorporated under the
laws OF Maine in 1904 as the Amalga-
mated Wireless Securities Company,
nj Nk.k 49,
tstence until 1t changed its name in
1905 TO Its present title and took over
the assets and business Of the de-
funct American De Forest Wireless
Telegraph Company. which was then
running at a loss and In default in
interest on It's bonds. exchanging
therefor its own securities on a To-
for-1 basis.
Forced Up Stock of Defunct Firm.
At this time says the statement,
when officers OF the De Forest COM
pany were secretly conniving to aban-
don II and leave the stockholders
mass OF worthless securities. its stock
had leon forced To an alleged value
Of S12.50 share. or $3.50 above par.
In the statement issued TO the stock
holders (Of the United) there APP
pear as an asset stocks anl bonds In
other companies S14,1iS.G1O. This
refers to the defunct American De
Forest Wireless stock. Yet To those
persons who ask for exchange OF Dc
Forest for United Wireless the ans
wer Is sent out that the De Forest Is
absolutely worthless
Another item In the statement sent
out TO stockholders was patents and
patent rights S5.52O.233. The affairs
Of the company were recently audited
by a nrm Of licensed accountants. who
placed the book value of all patents
az S2O.233.
Millions OF Profits Alleged.
The officers of the company have
sold to the public thousands If shares.
claiming all that while they were
holding their own shares and putting
the money received from the public
into the plants OF the company. one
Ct the officers IS believed 10 have
cleaned up $5.OOO.OO0 AT $40
shar, anil possibly S1O.OOO.OOO. at the
ranging prices Of $40 and $50. The
other officers ct lesser degree have
prof..l in proportions"
Statement bl Manager of Company.
Nou" OF tnc men arrested TODAY
had Jrr explanation o. make. but 90
statement was given out hy &. g.
Galhuith. general manager of tho
United in which ne says: