New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-11
AGAINST WIRELESS MEN
Federal Court of Appeals Up
holds Conviction of Officers.
"SCHEME WAS DELIBERATE
Opinion Says G. G. Wilson Was
Master Mind Who Dominated
Butler and Tompkins.

| Christopher g Wilson. president Of the
United Wireless Telegraph Company; Fran
els y Butler, it's counsel. and ". w. Temp
kins. president Of the company's stock sell
ing agency. lost their appeal for new
trial Yesterday. when the United states
Circuit Court Of Appeals Upheld their con-
yiction for using the mails in scheme to
defraud investors
After q trial that lasted a month the three
officials we're found guilty by jury. and
Judge Martin sentenced Wilson to three
years i'm the Atlanta prison. Butler to two
years at Atlanta, and Tompkins to ono
year on Blackwelrs Island
The cost of the trial. which amounted 70
$4,000 was adjudged against the defend
ants The three men. and George II
Parker. fourth defendant in the case. who
was also convicted, Immediately appealed
for new trial and pending the decision
they were kept IN the Tombs prison. Park
er's appeal will be decided later
In sustaining the convictions, Judge
Moves. who wrote the opinion Of the higher
court. severely condemns the practices fol
lowed by the men in defrluding investors
in the United Wireless stock. Judge Moves
says.
The commission Of 50 per cent FOR the sa Is
OF United Wireless stock was most remark
able 4 court NAV almost take judicial no
tice Of the fact that the stock Of cor
poraticn selling for twice its par value
does not require the payment Of such a
commission 10 dispose Of " II II does, the
selling price must be altogether artificial
The inference must he either that the com
not excessive. or that the commission IS
fraudulent # the company IS What n pur-
ports - be
For these reasons we reached the cor
Clusion that no error was committed in the
trial Of the three defendants Moreover
after an examination OF the evidence. W
think that their conviction was right while
their original purpose NAV have been lc-
Ultimate While thew may have believed In
the future Of wireless telegraph. VIC are
satisfied that they deliberately entered into
q scheme 10 take advantage or the pubic
interest IN great and meritoriouG inven.
tion TO sell 70 the public thousands of
shares OF stock which they knew 70 be
practically worthless.
They could accomplish their obJect only
through the use Of the mails, and through
the use OF the mails has come their con
demnation under a federal statute. But the
Judgment VIII not serve the purpose II
should serve # 1t be regarded mereiy as
INJECTING punishment on these defendants
II ought to reach Tar beyond them. ana
serve as q warning 10 all those spectators
and adventUrers who pose s men or busi-
ness and affairs % carry on their opera
tons IN the borderland between legitimate
undertakings and criminal schemes.
II should bring home 70 the that mis-
auurOpridting other peoples money rs not
DISTINGUISHED from larceny by designating
II as p great corporate ente, rise, that IN
ducing hundreds Of men and women
throughout the country 20 part win nun
dreds Of dollars for worthless securities
calls for condemnation, Just as mucn as
cheating in the sale Of a single musical IN
strurnent or picture frame; that. broadly.
there Is no merit in wholesale knavery over
chean tricks. or IN fraudulent schemes IN
disguise over barefaced swindles, ana, tur
therrnore, that neither svtndlers OF Mgr
degree nor cheats # low station can en-
plov with IMMUNITY the mails OF the United
states i'm aid of their fraudulent schemes.
Reviewing the work Of each Of the de-
PENDANTS as an official Of the United Wire
less. Judge Moves said II was apparent
from the record that Christopher e. Wilson
was the master mind I'm the scheme for the
exploitation Of the company. while Butler
and Tomphns were undoubtedly under his
domino ton