The evening world., 1911-04-27
TRACES $1,75O,OOO
WIRELESS PROFITS
!. TO COL. WILSON
Company Took in 100000
for $4,000 Shares, Says
Prosecutor.
SPENT ONLY $500, 900.
Many Women Investors in
Company Present as Trial
Gets Under Way.

made by the United States Government
Won a big stock promoter company. o.
II. Dorr. Assistant United State. Dis
tr1et-Attorney, to-day stated to Judge
Martin and q jury IN the United States
Dfytrict Court the facts upon which the
Government relies TO prove that G. c.
Wilson and his six assistants sold stock
to 5000 persons IN all parts OF the
country under false ~pretenses.
Briefly. the Government charged To-
day that the ompany maintained It's
plant for three years n n loss OF tl'b...J.
during which time It sold thousands OF
shares upon the p~retsnss that II was
a-money-mahine concern.
Wizard Of Figures There.
Before the attorneys got under way a
small young man dropped into n seat
a the legal airing line. He will do to
watch. for he was John p. Fernsler.
expert accountant for the Department
OF Justice. He delved into the mysteries
Of Morse. the Heinzs banks and the
Chicago bank books OF John X. Walsh.
Leading officials regard him as the
successor to Edward =. Maxey. noted
for a quarter Of a century as the Fed
erAl wizard OF figures.
Several hundred other interested per-
sons. among them many girls and
women who had bought stock In the
company. nlled the courtroom. Fol-
lowing the opening statement. In which
II was charged that tho public put
100000 into the company. Of which
all except 100000 was taken for the
personal use of the defendants. the
actual taking of testimony began.
Henry A.. Wise. United States DIS
trict-Attorney. was In court to start the
fight. O.. II. d r. Atci l. Smith and
Robert II. Stephenson were his ..si.
marshals. John b. Stanchneld. for the
defense. began the proceedings by
moving TO quash the Indictment on six
teen grounds.
Judge Martin overruled the motion to
quash upon all OF the grounds stated
after n legal fight into which Bourke
Cochran Injected the remark:
III a man gives you 500 change for
$50 he Is not defrauding you"
Mr.. Dorr then stated the case for the
Government to the jury.
THE cardinal point In this case said
Mr.. Dorr, is that the defendants
stated that the only stock that wes be-
ing sold was stock issued By the com.
pany, and that tho money paid for II
was 10 DO used for the purposes OF the
company"
In the face OF this, he added. they
sold the stock and put the none in
their pockets. lie charged that the Of
g.-.. ,R. ,.nE.a az u...l ,..A D..
operating at "a loss 10 sugges the idea
OF earnings. .
Charges Betrayal Of Trust.
I'VE are not prosecuting n corpora
ton" he remarked. but our quarrel is
with officers OF a corporation who be-
trayed the'r trust"
The officers OF the mpan formed.
he went on. tho New York Selling
Agency. which got a contract TO r ",
20 per cent. for stock sold. the profit,
- which went 20 the officers. In ~;
West George II. Parker, as agent Of th'
company, sold the stock.
The Government will show the course
OF 5000 out of l5l.oO shares OF preferred
stock. or II. said MIR. Dorr, the once,
BDl lloll nv phHs4A So'hI's'bh VI EEL
they nut 500, 900, In the business ant
the rest In their pockets.
The attorney related tho individual
relationships of the defendants and de
clared that G. c, Wilson. president o
the was chiefly re1pons.sl
for the stock sales and was the chile
beneficiary OF the sales. The colonel go
g.. 900 OF the proceeds. said Mr.. .Jori
The lawyer said that from time I
time Wilson returned TO the compan
n portion OF his profits for which h
took stock at half its market price. rt
turning only 30 much US would koe
alive tho goose that laid the golde
eggs.
Arthur e. Fyke, Of Jersey City. WI
called as the opening witness OF N
trial. He was transfer clerk for Il
United Wireless Company during II
period covered by the Indictment.
Eighteen Elusive Books.
Mr.. Fyke identified the various bool
OF the company which contained recor,
of all stock Issues and transfers ma
during the period covered by the Go
ernment's charge. lie said he had pr
duced all Of the stock books Of n
American DE Forest Wireless Teleglai
Company he had for the Grand Jur
They did not include eighteen books,
Had you kept these eighteen boo
at your office in Jersey CITY ?" he ~
asked by Robert W. Stephenson, 4
sistant Dlstrict-Attorney.
Yes: ! had them there up TO a We
before the Grand Jury met"
q. Where did YOU find the books?
In two barrels; one at the Grand q
tral station and another at the Lo
Island station.
q. Was that your usual place
keeping the books? A. No. sir.
He testified thar he had In court
OF the stock books,he possessed. showi
the stock Issues ana transfers OF
DE Forest Company. There were 81
enty OF them, All OF the stock !ssu
by him for the use Of Western Ag'
Parker. he said, was sent IN blank
Lucien l.. Wallace az the New W
once.
The witness did not recall havl
ISSUED any United siock IN eNcnange
De Forest stock. but he thought n
such exchanges had been made In
New York office,
There was an intimatlon that
letter press books which held the cop
Of letters written by PYsident VIII