St. Johns review. (Saint Johns, Or.) 1904-current, 1910-06-24
WIRELESS GRAFT
UP IN MILLIONS
Leaders Of United Concern Ar.
rested by Federal Officers.
Postal inspector Says Officlals 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 statement, in which he
charges that, although the company
has been running at loss, the price Of
its shares have advanced by msnipula-
tion 70 fictitious values and that indi-
vidusl officers Of the company have sold
out their stock TO the general public at
. profit estimated In one instance at
between IS, 900, 900 and $40, ,00O,00O
Wilson was released on $25. 900 bail
and Bogsrt on SIC, 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 SO, 900 and
spent the night in the Tombs.
The specified instance Of alleged
fraudulent use Of the mails 10 given a.
the mailing Of . letter on March 8,
1910. to Michael O'Brien, Of Water
burg, Conn.
"There are 20, 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 estate
Of all kinds, appear TO be worth, at a
conservative estimate, $500, 900. or an
actual worth Of 2 cents share"
Two million shares have been issued
at a par value Of $40, but the stock
has recently been put up to $50 q
share.
"Thus." argues the inspector In his
statement, "by taking the last amount
quoted (3<00.0 900 Of actual assets) at
$50 q share, the stock 10 really worth
~ $4,000. 900 10 10 $1,000, 900, 900. or
$0.000l q share"
The inspector says the company was
originally incorporated - the Amalga-
mated Wireless Sureties company In
1904. In 1906 II took over tho assets
and business Of the defunct Ameri-
can De Forest Wireless Telegraph
company, which was then running at .
loss, exchanging therefor its own &C.
curities on ten for one basis.
"At this time. says the inspectors
statement, "when officers Of the De
Forest company were secretly conniv-
ing TO abandon Il and leave the stock
holders a mas Of worthless securities.
its stock had been forced TO an alleged
value Of si2.50 share. or $3.50 above
par.
"Another item In the statement sent
out TO stockholders was patents and
patent rights, So. $40. .233. The affairs
Of the company were recently audited
by a firm Of licensed accountants. who
placed the book value Of all patents at
$220. .23S. Z
"The officers Of the company have
sold TO the public thousands Of shares.
claiming all the while that they were
holding their own shares and putting
the money received from the public
into the plants Of the company. One
Of the officers 10 believed to have
cleaned up $1,000. 900 and possibly
$40. 900. 900 at prices ranging from $40
70 $50.