The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-06-16
OFFICIALS OF TELEGRAPH COM
PANv ARRESTED FOR MIS-.
USE OF MAILS.
OF STOCK
Postoffiee Inspector Mayer Claims in
Statement That One Of the Officials
Cleaned Up. Five Millions in the Deal
Michael O'Brien Of Waterbury is
Compl claimant.

New YORK, June l5.-lfeSidcHt VIII
son and Vice President Bogart of the
United Wireless Telegraph company
were taken into custody by Cnited
States Marshal Henkel at the com
pany's offices. No ~ Broadway, this |
afternoon and taken before United
States Commissioner Shields on u
charge Of misuse of the mails.
The summonses were issued. IT Is
understood. on information furnished
by Walter l.. Meyer. chief postoffice
inspector. and Frank A. O'Brien ana
other postoffice inspectors The ma
ture of the charges against the men
was not made public prior To- the
hearing.
The United Wireless Telegraph com
pany was incorporated in Maine tn
unity wireless interests. II has
authorized $4,000. 900 In common stock
and $l0.000000 In per cent preferred
and participating stock.
Chief Postofiice Inspector Mayer. In
"A statement. charges the officials of
the company with a gigantic stock
manipulation plan, declaring that the
stock capital Of the company. whose
assets were about $4,000. had been in
creased by an interchange of securities
and that the price of the shares had
been arbitrarily raised tn such large
amounts that the company at this time
has an apparent stock market value Of
81 600, 900.
Mr. Mayer declares one Of the Of
ficials cleaned up $4,000. .000. lie says
there are $4,000 stockholders through
nnt IA. ,.sh hu ..r
money with the company on the repre-
sentation of its officers that 1t had .
surplus of nearly $1,000, 900. when as
IA matter OF fact the company was fail
ing to make It's operating expenses.
Mr.. Mayer further states that the
inside officers of the company were
privileged To sell their stock. while ouo
sders were required to accept stock
certificates stamped mon transferable
until February IL, 1911" In addition
to arresting President Wilson and Vice
President Bogard. Postoffice Inspector
OBrien seized the books and papers
Of tho wireless company as evidence.
The complainant named In the
charge on which the arrests were made
IL Michael C. O'Brien of Waterbury.
! Conn. The complaint alleges that the
accused men entered into "a scheme 10
defraud O'Brien and others by repre-
senting To them that the company had
assets and patent rights worth $5,52O.-
233: stocks and bonds In other com
panies worth $4,14S.Gl0 real estate
valued at $34.292 cash to the amount
of s3l7,4sS and surplus of $6,o2S,329.
All these representations. the com
plalnt says. were fraudulent.
William Tompkins. president Of the
New York Selling agents, who are
local. agents for the United Wireless
company. was arrested this afternoon
at Mahopac. Putnam county. New
| York. He viii he brought here and
arraigned before Commissioner
! Shields
Wilson was released on $4,000 bail
and Bogart In $4,000 bail for appear
ance on July II. when further hearing
will be held before a federal commits
sioner. Tompkins could not find si0.-
900 bail and spent the night In the
Tombs
The specific instance of alleged
fraudulent use of the mails IL given as
the mailing of letter on March 3,
1910, to Michael O'Brien of Waterbury
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. The real assets of thu
company, consisting of land stations.
patents, manufacturing plants and real
estate of all kinds. appear to be worth
at a conservative estimate 100000. or
/ an actual worth Of two cents share"