New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-06-16

4 fEhlbE u IL i1OoN
nlent's case. After giving history OK
the company from when it was known
as the Amalgamated Wireless Securities
Company to the failure Of the American
De Forest Wireless Telegrap phi Company
he says:
About that time active arrangements
were instituted to put the company into
operation for the purpose OF making III
the successor of the defunct American
De Forest Wireless Telegraph Company.
the persons interested having in mind a
gigantic stock manipulation plan One
Of the instruments used was the Greater
New York Security Company, COM
pany without any financial stability and
merely a trade name.
What the Government Charges.
All Of the assets Of the De Forest COM
paDy were placed in the care Of the
Greater New York Security Company in
1906. This company undertook to carry
out as trustees the conditions Of the
bonds of the De Fores: company, and
1ttHBlSN q very 6S blONh vi SoiathcA
stock styled promotion stock" which.
il is said cost the officers of the COM
Dany nothing The international Loan
and Investment Company, of Denver.
laid also to be without financial stand
ing. was brought into the game. The
statement says:
The United Wireless Telegraph Company
p7ofessed TO have for its sole object the
combining of all wireless telegraph COM
psnies. Including the Marconi company,
and in its early literature and letters the
statement was made that it had procured
practically controlling interest in all such
companies and that it had large holdings
IN the Marconl company statement that
was absolutely untrue The officers of the
De Forest company had been severely
;ngS OF promotion stock, and q new scheme
was devised TO secure large holdings in the
Jnited company without exposure TO the
same criticism.
The complicated story Of manfpula-
lion Is then told. and the statement con-
Iains the assertion that the stock had
absolutely no market value for outsid-
ers because il was not exchanged bic on
the stock books OF the company. The
valuations were determined by an exec
utive committee which met often and
arbitrarily increased the price of the
securities until the $50 limit was
reached.
According to Mr.. Mayer the real as
sets Of the company were worth about
100000. 1t was capitalized at $40
100000. with a par value Of SO share
of its stock. The value placed on the
assets by Mr.. Mayer would make the
stock worth about cents a share The
statement ends:
The officers Of this company have sold to
The public thousands Of shares, claiming all
the time that they We're holding their
shares and putting the money received from
the public into the plants CT the company
One of the officers Is believed to have
cleaned M So.9ee.6e0 at $40 q share, and pos
sibly SIC, $4,000 at the ranging prices of SO
10 $50 The other officers Of lesser degree
have profited in proportion.
There ere twenty-eight thousand stock
when have placed their savings in the
stock Of the United company through false
representations that have been made by its
officers A portion Of the business has been
done by soliciting agents by house to house
canvass. but the greater portion of the
stock selling has been done by the use Of
the mails either through newspaper adver-
fising or circulars
Investigation Starts.
The investigation was begun three
the publication of an advertisement by
the United Wireless. but sent out by
the New York selling agency, the fiscal
agents for the company, and of which
AIr. TompIlins was the head. Mr.. King
said last night that the advertisement
had been submitted to the executive
committee of the company and had been
completely revised, but that the original
was used The agency was thereupon
discontinued, but the investigation could
not be checked.
One Of the acts OF the president Of the
company. Mr. Wilson, which was praised
literally was the voluntary return to the
treasury OF about four hundred thousand
shares Of stock This was done at
meeting of the board Of directors, and
one of the directors, the Rev. d. J. Starr,
Of Columbus. Ohio. offered resolutions of
praise and thanks, which We're adopted.
The investigation following Mr.. Cru
hers complaint showed that Mr. Wilson
and Abraham White got together soon
after the failure of the De Forest COM
pany. and that AR. White turned over TO
Mi Wilson ali of the securities OF the
defunct company. and the United Wire
less was organized sir. Whites con-
nection with the company ceased when
he transferred the De Forest stock to
Mr. Wilson for a consideration il was
said yesterday that the S14 100000 of
stocks and bonds Of other companies
mentioned in the United Wireless list of
assets was the De Forest stock
II was found that there was branch