The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-06-17
WIRELESS FRAUD
CHARGES DENIED
United Company Declares Bust
ness Is on Stable Basis,
and Prosperous.
NO OFFICER "CLEANED UP"
FIVE OR TEN MILLIONS
Stock Issued for Salaries and
Cash, Always Appreciating
in Value.

NEW YORK, June 16.-Abrahan
White. former president OF the De For
est Wireless company. absorbed by tht
United Wireless. had n conference this
afternoon with the United States district
attorney and Inspector Mayer of the post
office department who are conducting the
Investigation of the United Wireless COM
pany. Mr.. White predicted new develop
ments. He thought possibly that he
might be indicted by the grand jury
At the Offices of the United Wireless
the following statement was given out
in comment upon the criticisms OF the
company issued yesterday by Inspector
Mayer:
'''The conditions which existed in the
American De Forest Wireless Telegraph
company were not brought about by the
present management OF the United com
pany. No literature issued under the
present management OF the United com
pany ever stated that II had q control
companies or that 1t had large holdings
in the Marconi company. As matter
OF fact the holdings OF the United COM
pany in the Marconi company were COM
paratlvely small.
About Stock Values,
at is true that the stock OF the De
Forest company was exchanged for that
OF the United company. but 1t was pur-
suant to the original plan of the conf
pany. AT Intervals the market value OF
the stock was advanced, but this was
justifiahle IN view OF the Increasing bus
mess OF the company. 1t is not true. as
accredited to Mr.. Mayer, that while the
inside officers OF the company were per-
mitted to sell their stock. all the out
side purchasers were required to accept
stock certificates stamped 'non-trans-
ferable.'
The fact is, that all purchasers OF
United Wireless received stock which
was transferable on the books at any
time: and a large amount of this stock
has been transferred. The stock stamped
non transferable until February /, 1911
was that issued in exchange for securl-
ties OF the American De Forest com
pany.
THE stock issued TO officers of the
United for their salaries was based upon
the selling price Of the stock at the time
IL was SO issued to them, and the stock
also was Issued for cash advanced by
the officers, reaching at one time the
amount of $l6T.l20, The officers receiv-
ing II In order to recoup themselves for
their advances were thus privileged to
sell. just as other holders were privi-
legged to sell stock for which they paid
cash.
Receipts Surpass Expenses.
THE further statement that operating
expenses have been much greater than
receipts also Is untrue. The fact is that
the receipts from operation OF the active
land and boat stations for commercial
business have exceeded the expenses OF
operation and the surplus OF receipts has
been invested in adding stations and ad-
ditional equipment.
1--WE agree with Mr Mayer that the
real assets OF the company consist OF
land stations, patents. manufacturing
plants and real estate, but observe that
either through ignorance of the facts
or with the Intention to mislead he
omitted an important asset, namely tlle
number OF ships equipped. We dany that
any one officer or all the officers togeth-
er have cleaned UP $o,000000. and pos
slbly $4,000 900"