New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-04
INDICTMENT IN WIRELESS
Officers. Directors AND Leading
Stockholders Grouped in Writ.
VIOLATION OF POSTAL LAW
Allegations Against Company In.
clude Specifications Of Fraud
and Conspiracy.

The long expected indictment of the OFF,
GERS. directors and leading stockholders OF
the United Wireless Telegraph Company
was handed Gown yesterday in the United
States Circuit Court, Judge Hough sitting
Six Of the indicted men were accounted
for-the president. Christopher {. WILSON,
s s Rogart vice president: William w
Toupkins. former head of the New York
Selling Agency; Francis Y. Butler general
counsel who resigned as director seNerai
DAYS ago: William A. Diboll. the treasurer
and Charles c. Galbraith, a manager me
seventh and last man charged with VIOLA
ton of the federal statutes George IL
Parker, a director, is in Seattle. out on ball
Messrs. Wilson. BogaTt ana 1onphlhs
were arrested in this city and Parker at
Seattle at the time of the first proceedings
brought bv the Postoffice Department in
spec,ors They were released on bail. and
this hail will hold good for q week, when
they VII have 10 provide new bonds, Viii
son for se5oc0 Bogart S15.o00 Tompkins
& OF and Parker Sl0,ooo Mr.. Butler gave
hond for s., 800 yesterday soon after the
r.spers were handed down. Mr.. Dboll and
Mr. Galbraith have forty-eight hours in
which to provide $500 bail. The men
pleaded not guilty and the hearing was set
down fer Septemb Der 60.
The charges allege schemes TO defraud
the mails and a conspiracy to commit the
same act. Specific overt acts are alleged.
and among the persons said to have been
induced 20 purchase stock of the company
in violation OF the law were DR.. Asa S.
Couch. of Fredonia, y. Y: c. T. Williams,
OF Mansfield, Ohio, and the Rev. ". Elmer
Bailey, Of Findlay, Ohio.
There are three counts in the main in
6ictnent charging attempts TO tiefraud: and
Q separate indictment with one count
charging conspiracy. the latter containing
the same material embraced in the former.
Every promise made by the company in
it's stock literature is taken up and
charged as false and this literature
Was mailed to prospective buyers each
such use Of the mails is alleged to have
been a violation of law. The Indictment
declares that the company pretended that
its purpose was TO consolidate all the wire
less companies in the country. and alleges
that this was untrue. In that way the
denial OF the compeny's promises proceeds
through the many pages of the papers The
promises denounced as false were:
That the company was free from debt;
that the officers were not disposing of their
personal stock; that the company was pay
Ing z per cent dividends: that its stock
was worth A2,o0o0o0. and that the net
profits of the company in one year Were
s5.M09n. The Indictment says:
1t was part of the scheme OF the said
defendants to sell their personal stock in
said company, as well as the treasury stock
thereof, pretending the same to be treasury
stock. and the reason the stock sold TO in
vestors was made non-transferable for two
years was TO keep the stock off the mar
ket.''
The indicted men present made a general
denial of all the charges contained in the
Indictment and their counsel said that
they would have little difficulty in proving
the fslsity of the accusations