The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1910-06-16
GOVERNMENT IS [
llAKINGGHARGE.
OF Biz. !. J FRAUDS R |.
ALLEeE GREAT QUANTITIES OF
WIRELESS STOCK is BEING
SOLD AT FICTITIOUS

NEW YORK, June 1s.-rtnltet
States postpfice inspectors raidet
the handsome Broadway ofices Of tbs
United States wireless Telegraph
Company yesterday and caused Thea
rest Of Christopher c. Wilson, presl
dent Of the company samueis. Bran:
first vice president, and William W
Tompklns president Of the New Yorh
selling agency. which officers of The
Wireless Company say was formerly
their financial agent but has ceased
to represent them.
Chief Inspector Mayer gave out
long statement in which he charger
that, although the company has beer
running at a loss, the price of ltt
shares has been advanced by maulpu
lation to fictitious values and that in
dividual officers have sold out theil
stock to the general public at prof!
estimated In one instance at between
IS 100000 and $1O,OOO,OO6, with othel
interests in proportion. Wilson was
released in S25.0oo and Hogart in $40,
600 bail for appearance on July 70
when a further hearing will be held
before federal commissioner. Tomp
kins was arrested at his farm neal
Mahopac Falls, MY, and brought
here for arrangement. He could moi
find the $1,000 bail required ant
spent the night in the tombs.
The complaint on which the war
rants were issued is drawn under the
federal criminal code, on information
of Carter B. Keene, a postoffice in
spector who deposes that "the grounds
of his belief are official investlga
tions made by him, information oh
tained by him from the books Of the
said United Wireless Telegraph Com
pany and thet inspection of letters and
envelopes sent by the postotfce esab
Iishmontof the United States through
the United States nails.f
The specific instance OF alleged
fraudulent use Of the mails Is glver
as the mailing Of a letter on March
8, 1910, to Michael o'Brien, of Water
bury, Conn.
Thousands Of Stockholders
, "There are $4,000 shareholders Of
the company throughout the country
said Inspector Mayerin his statement
"many Of whom have placed thelr
savings in the stock of the company
through false representations.
"The real assets, consisting of land
stations, patents manufacturing
plants and real estate of all kinds
appear to be worth at conservative
estimate $4,000, or an actual worth
of 2 cents 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 pull
up to $50 a share. Thus argues the
inspector in his statement. "by taking
the last amount quoted 100000 o.
actual assets) at $50 a share, The
stock is really worth as 100000 is to
81 1,OOO,OOO,OOO, or s.OOOl a share"
The United Wireless Telegraph
Company was incorporated in Maine
to unity wireless interests. It has
authorI(d $1O,OOO,OOO in corcnon
stock and $1O,OOO,OOO in z per cent
preefred and participating stock.
The Inspector says Il wasoriginally
incorporated in 1904 as the Am9lga
mated Wireless Securities COMPANY
and that It had merely a legal exist
ence until It changed It's name In
1906 to it's present title, and took
over the defunct American Deforest
Wireless Telegraph Company, OK
changing therfore Its own security
on ten for one basis,
None OF the men arrested yesterday
had any explanation to make, but q
statement was given out by Q. Q. Gal
braith, general manager Of the United
in which he says:
"Tho action of the federal author
tiles will in no way affect the com
mercial business Of tho company