Omaha daily bee., 1910-06-17
WIRELESS MEN ARE HELD
Cqmpany's New York Officers Raided
and Executives Arrested.
misuse OF MAILS Is ALLEGED
Mnny said 20 Have Placed savings
Through Misrepresen tatiOn-
Counsel Issues an Ex-
pInnRtiOn.

pIanntiOn.
NEW YORK. June 1e-Unlted States
postoffce inspectors ralded the handsome
Broadway offices of the United Wireless
Telegraph company today and caused the
arrest OF Christopher c. Wilson, presi-
dent of the company; Samuel s. Bogart,
first vice president and William w.
Tompkins, president Of the New York
selling agency which officers Of the wire
less company say was formerly their fis-
cal agent. but has ceased TO represent
them.
Chief Inspector Mayer subsequently gave
out a long formal statement, In which
he charges that, although the company
has been running at loss, the price OF
its shares has been advanced by manip-
q ulaton 10 fictitious values. and that in
dividual Officers OF the company have
sold out their stock to the general pub
lie at a profit. estimated in one instance
at between five and ten million dollars
with other instances IN proportion.
Wilson was released In $4,000 bail and
Bogart in $4,000 bail Tor appearance on
July u, when a further hearing will be
( held before federal commissioner.
TomplIlns was arrested at his farm near
Aiahopac Falls, N. Y, and brought here
for arraignment. He could not find the
$4,000 bail required and spent the night
In the Tombs.
The complaints on which the warrants
were issued is drawn under the federal
criminal code on information of Carter B.
Keene, a postoffice inspector The specific
instance Of alleged fraudulent use of the
rails is given as the mailing of a letter
on MARCH, g. 1910. to Michael o'Brien of
Waterbury, Conn.
Many Thousand Stockholders.
There are 5000 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, con-
sisting of land stations, patents. manufac-
turing plants and real estate Of all kinds
aApear to be worth at a conservative es-
Innate 100000. or actual worth of two
cents a share at par value
Two million shares have been issued Al
a par value of SO share, but the stocl
has recently been put up to $50 share
Thus argues the inspector in his state
ment "by taking the last amount quoted
($4OO,OOO Of actual assets) at $50 a share
the stock Is really worth as 100000 is t
-, $1,000, Co., 900, or eO.OO04 a share"
The inspector says the company wa
originally Incorporated as the Amalgam
ated Wireless Securities company, in 1904
In 1905 1t took over the assets and bust
ness of the defunct American DeFores
Wireless Telegraph company, which wa
then running at loss and in default II
interest on Its bonds, exchanging thereto
ats own securities on a ten for one basis
al tho -
statement, when officers of the DeFores
company were secretly conniving to aban
don it and leave the stockholders a mas
OF worthless securities, Its stock had beef
forced to alleged value OF $3.50 share
or $3.50 above the par"
Another item in the statement sent GU
20 stockholders was patents and paten
rights, $5,52O,233 The affairs of the com
pany were recently audited by firm o
licensed accountants, who placed the boo
value of all patents at $2O.2SS.
1.-The officers of the company have sol
10 the public thousands of shares, claim
ing all the while that they were holdin
their own shares and putting the none
received from the public into the plants {
tho company. one OF the officers Is bC
lieyed to have cleaned up S5OOO.O0O at s.
q share, and possibly Slo0OO,OO0 at tn
ranging prices OF $40 and $50. The othC
Officers of lesser degree have profted 1
PROPORTION"
None of the men arrested today had an
explanations to make, but a statement wa
given out by C. c. Galbraith. general maj
ager of the United. in which he says:
THE action OF the federal authoriti,
will In no way affect the commercial bu
mess of the company. The difficulties
which stock statesmen may involve an
stock company through unauthorized stat
ments, are well known to everyone who ht
ever been engaged in building up a bu
mess In which the sale OF stock Is a IA
tor"
Arthur NJ. King counsel for the Unite
said tonight that for several months Il
Postoffice department had been harrassir
the company here and elsewhere.
They attributed the present prosecution
We discomfort Of certain stockholders wi
might have been unfairly treated by 9th
stockholders, who had no connection,
said, with the management OF the compan
lIe disowned responsibility for advertis
ihents of Stock which he sald had be,
put out by the New York Selling agenc
now defunct over the protest Of the Unit
management.
Christopher Columbus Wilson. preside
OF the United. is a financier of the sci
made school. He was born in Mlssissip
in ls45, Of Irish descent. and never hi
more than three months of schooling. /
became successfully a cotton farmer,
banker. in Denver, miner and finally
promoter OF Ylrelssa securities. He lives
the Waldorf Astoria when in New York
OMAHA MEN sARE INTERESTE
Z
G. II. Parker, Fiscal Agent, Says Al
rest is scheme to InJure.
Charles II. Parker, fiscal agent for t