Los Angeles herald., 1910-06-16

nave SOIQ out their STOCK TO the gem
eral public at a profit estimated in
one instance at between $5,000,000 and
$10,000,000.
Wilson was released on $4,000 bail
and Bogart in $4,000 for appearance on
July IL, when a further hearing will
be held before a federal commissioner.
Tonhpkins was arrested at his farm
near Mahopac Falls, N. Y, and brought
here for arraignment. He could not
find $4,000 bail and passed the night
in the Tombs.
CITE SPECIFIC INSTANCE
The specific instance of alleged
fraudulent use of the mail is given
as the mailing of a letter on March
8. 1870 to Michael O'Brien of Water
bury, 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.
1.-THE real assets of the company, con-
sisting of land stations, patents, manu-
| featuring plants and real estate of all
kinds appear to be worth at conserva-
| tive estimate 100000, or an actual
worth of 2 cents a share"
Two million shares have been issued
at a par value of $40, but the stock has
recently been put up to $50 a share.
Thus" argues the inspector in his
statement, "by taking the last amount
quoted (4000OO) at $50 share, the stock
is really worth as 100000 is to $1000,-
100000, or .0004 a share
The inspector says the company was
originally Incorporated as the ANAL
gamated Wireless Sureties company in
1904. In 1906 it took over the assets and
business of the defunct American de
Forest Wireless Telegraph company,
which was then running at a loss, ex-
changing therefor its own securities on
a 10 to l basis.
"At that time" says the inspector,
when officers of the de Forest COM
pany were secretly conniving to aban-
don 1t and leave the stockholders a
mass of worthless securities, it's stock
had been forced to an alleged value of
$125O a share, or $3.50 above par.
ASSETS ARE OVERYALCED
another item In the statement sent
out to stockholders was patents and
patent rights, So, ,520,233 The affairs of
the company were recently audited by a
firm of licensed accountants, who
placed the book value of all patents at
$30223.
1.-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
officer is believed to have cleaned up
$5,000000 and possibly $10,000,000 at
prices ranging from $40 to $50. Other
officers have profited in proportion"
None of the men arrested today had
| any explanation to make, but a state
ment was given out by c. c. CAL
braith general manager of the United,
in which he said:
1.-The action of the federal authorities
win in no way affect the commercial
business of the company. The diff
culties in which stock statesmen may
involve any stock company through
unauthorized statements are well
known to everyone who has ever built
up q business in which the sale OF
stock is a factor"
Arthur M. King, counsel for the
United, said tonight that for several
months the<postoffice department has
been harassing the company. He at
tributed the prosecution to the discon-
tent of certain stockholders who might
have been unfairly treated by other
stockholders who had no connection,
he said with the company.
He disowned responsibility of adver-
tisements of stocks which, he said. had
been put out by the New York Selling
agency, now defunct. over the protest
of the United management.
Christopher Columbus Wilson, presi-
dent of the United, is financier of
the salf-made school. He was born in
Mississippi in 1S45, of Irish descent,
and never had more than three months
schooling. He became successfully a
cotton farmer, a banker in Denver, a
miner and finally a promoter of wire-
less securities. He lives at the Wal
dorf- Astoria when in New York.