Heppner gazette. [volume] (Heppner, Morrow County, Or.) 1892-1912, 1910-06-23
EXPOSE BIG CRAFT
United Wireless Officers Arrested
for Huge Frauds.
Postal Inspector Says Officials OF
Company Sold Stock for Thous-
and Times Its Value.

New York, N. Y United States
postoffice inspectors raided the hand
some Broadway offices of the United
Wireless Telegraph company today and
caused the arrest of Christopher 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 wireless company
say, was formerly their fiscal agent,
but has ceased to represent them.
Chief Inspector Mayer subsequently
gave out a statement, in which he
charges that, although the company
has been running at a loss, the price Of
its shares have advanced by manipula-
tion to fictitious values and that indi-
vidual officers of the company have sold
out their stock to the general public at
a profit estimated in one instance at
between SIS, 200, 900 and $40, 600, 900.
Wilson was released on $25, 900 bail
and Bogart on $4,000 bail for appear
ance on July IL, when further hear
ing will be held before Federal COM
missioner.
Tompkins was arrested at his farm
near.Mahop Falls, Pa, and brought
here. He could not find 500 and
spent the night in the Tombs.
The specified instance of alleged
fraudulent use of the mails is given as
the mailing of a letter on March 8,
1910, to Michael O'Brien, of Water
burg, Conn.
"There are %, 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 the company,
consisting of land stations, patents,
manufacturing plants and real estate
of all kinds, appear to be worth, at a
conservative estimate, S400, 900, or an
actual worth of 2 cents a share. ;"
Two million shares have been issued
at a par value of $40, but the stock
has recently been put up to $50 a
share.
"Thus," argues the inspector in his
statement, "by taking the last amount
quoted ($4OO, 600 of actual assets) at
$50 a share, the stock is really worth
as $4,000, 900 is to $1,000, 900, 900, or
so. O004 a share"
The inspector says the company was
originally incorporated as the Amalga-
mated Wireless Sureties company in
1904. In 1906 it took over the assets
and business of the defunct Ameri-
can De Forest Wireless Telegraph
company, which was then running at
loss, exchanging therefor its own Sc
curities on a ten for one basis.
"At this time" says the inspectors
statement. "when officers of the De
Forest company were secretly conniv-
ing to abandon it and leave the stock
holders a mass of worthless securities,
its stock had been forced to an alleged
value of $3.50 share, or 81 so above
par.
"Another item in the statement sent |
out to stockholders was patents and
patent rights, $5, $40, 233. The affairs
of the company were recently audited
by firm of licensed accountants, who
placed the book value of all patents at
1920, 233.
1.-THE 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, 900 and possibly
SIC, 900, 600 at prices ranging from $40
to $50.