The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1912-03-28
noted INVENTOR
IS ARRESTED ON
FRAUDCHARGES
Wireless Pioneer Indicted in
Connection With Radio Tel
ephOne Stock Sales

Lee de Forrest, pioneer and ones Of
the foremost inventors of the world in
the field of wireless telegraphy. was
arrested yesterday afternoon at his
home in Palo Alto on warrant issued
under federal indictment charging
him with misuse OF the United States
mails in connection with the sale of
stock of the Radio Telephone company,
q New Jersey corporation of which he
formerly was a director and vice presi-
dent
The Indictment under which the ar
rest was made was returned March Is
by the federal grand jury of the south
ern district of New York, and names
James Dunlop Smith. Samuel z. Darby,
Elmer E. Burlngame and the Els
worth company, all OF New fork, as CO.
defendants.
Released on Bonds
The warrant for de Forests arrest
was issued yesterday by United States
Attorney BENJAMIN Mckinley. and was
Commissioner Francis Krua at the
request of Assistant United States
served at Patio Alto by Deputy United
States Marshal Fitzgerald.
De Forrest was brought to San Fran
cisco last night by Fitzgerald. He OBJ
tained his release at once on $4,000
bail furnished by the Illinois Surety
company. The bond was executed by
Marshall B. Woodwork, attorney for
de Forrest. and was approved by Su-
perfor Judge Cabaniss last night at
his home.
De Forrest will appear this morning
before Commissioner Krull for pre-
Ifminary examination on proceedings
for his removal to New York. He
stated last night that he would not
oppose removal, but would hold HIM
self in readiness to go TO New York at
any time that he is wanter for trial
In statement made upon reaching
this city last night, de Forrest de-
clared his innocence of any connection
with the alleged fraudulent stock deals
and said that Darby also was innocent
OF any offense, but admitted that the
arrest did not come as a surprise to
him
i am not surprised" he said, be
cause have been expecting some action
ever since the investigation into the af-
fairs Of the Radio Telephone company
was begun. 1 had imagined that l
would be subpenaed as a witness sooner
or later, or that possibly an indictment
might be found. but have no fear. of
the outcome of the trial. Elmer f. Bur-
lingame. who was the directing factor
in the Ellsworth company, was indicted
last July. and James Dunlop Smith, who
was president of the Radio company.
was arrested in September
Admits Fraud in Sales
There undoubtedly was fraud in con-
nection with the sale of the stock of
the Radio company, but 1 was not in
any way involved in it. nor was Darby,
who was my patent attorney and fepre-
the company. / know it now, but did
not know it at the time. ] was the in
ventor and gave all my time to the me-
chanical and practical end of the work
ahd had nothing to do with the stock
selling arrangements"
The Ellsworth company. named as
joint defendant was the stock selling
agency OF the Radio Telephone COM
pany. An arrangement was made by
the Radio company under which the
stock was turned over for sale to the
Fiscal Agency company of New York.
which in turn made stock selling ar