The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1910-06-16
WIRELESS COMPANY
OFFICERS ARRESTED

NEW YORK, y. Y. June l5.-United
States postotloe inspectors raidcd the
handsome Broadway Offices OF the
United Wireless Telegraph company
today and caused the arrest OF Chris
tophcr c. Wilson, president 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
fiscal agent but ceased TO represent
them.
Chief Inspector Meyer subsequently
gave out a statement in which he
charges that although the company
has been running al loss the price
of It's shares have been advanced by
manipulation 10 fictitious values. and
that individual officers OF the company
have sold out their stock to the gem
eral public at a profit estimated in
one instance at between five and ten
million. Wilson was released on S25..
900 bail and Bogart I'm $4,000 bail
for appearance on July IL, when
further hearing viii be held before a
federal commissioner Tompklns
could not find $4,000 bail and spent
the night in the Tombs
Fraudulent Use Of Mails.
The specific instance Of alleged
fraudulent use OF the mails Is given
as the mailing of 4 letter on March
2. 1910. 10 Michael o Brien OF Water
bury. Conn.
There are $4,000 shareholders OF
the company throughout the country"
said Inspector Mayer in his state
ment many OF whom have placed
their savings in the stock through
false representations made by lts ON
GERS
The real assets Of the company.
consisting of land stations. patents.
manufacturing plants and real estate
OF all kinds. appear TO be worth al
conservative estimate $4,000 or an
actual worth OF two cents a share
Two million shares have been is
sued at a par value OF $40. but the
stock has recently been put up TO
$50 a share. Thus. argues the lnspoc-
tor. In his statement "by taking the
last amount quoted $4,000 actual
assets. at $50 share. the stock Is
worth really IA 100000 is TO $1,000
100000 or 0.00oi share
The Inspector says the company
was originally Incorporated as tho
Amalgamated Wireless Securities
company In 1904. In 1906 II took over
the assets and business OF the defunct
American DeF'oreet Wireless Tele-
graph company. which was then run
ming a At loss. exchanging therefor
Its own securities on ten for one
basis. Al this time. saws the inspec-
tors statement when officers OF the
DeForest company were secretly con-
nlyiqg TO abandon II and leave tho
stockholders a mass Of worthless re
curitles. It's stock had been forced to
an alleged value OF $3.50 a share. Or
$3.50 above par.
Patent Rights VslueIess.
Another item In the statement
sent out to stockholders was patents
and patent rights, $500 .333 Tho
Dffeirs of the company were recently
audited by firm OF accountants who
place the book value OF all patents at
s20,23G.
Tho officers OF the company have
sold to the public thousands of shares.
claiming all the while that they were
holding their own shares and putting
the money received from the public
into the plants of the company. One
OF the officers is believed to have
cleaned UP $4,000 600 and possibly
s10.0o0.00o at prices ranging from $40
to 500. The other officers have prof
tied In proportion"
I VIII Not Affect 6uslness.
None OF the men arrested today had
any explanation TO make. but a state
ment was given out by c. C. Galbraith.
general manager Of the United. in
which he soys'
THE action OF the federal autbotl-
ties will In no way affect the cont
mercial business Of the company. The
diflcultles into which the stock sales
men may Involve any stock company
through unauthorized statements are
we'll known TO every one who has ever
built UP business in which the sale
OF stock is IA factor
Arthur Fl. King. counsel for the
United, said tonight that for several
months the postoflce department has
been harrassing the company He at
tri6uted the prosecution TO the dis
content OF certain stockholders who
might have been unfairly treated by
other stockholders who had no con.
nection with the company. He dis.
owned responsibility Of advertise.
ments of stocks which he said had
been put out by the New York selling
agency. now defunct. over the protest
OF the United management