|UNITED WIRELESS STOCKHOLDERS|
I, A. Staiger, of 292 Washington St., Portland, Or., being duly sworn, depose and say that I am the owner and holder of ten shares of preferred stock of the United Wireless Telegraph Company;
| STATE OF OREGON,||}|
|COUNTY OF MULTNOMAH || ss.|
That on or about the 18th day of October, 1909, noticing an advertisement in The Portland Morning Oregonian, headed "United Wireless," requesting United Wireless stockholders to call at 702 Oregonian Bldg., Portland, Or., for valuable information, called at the above office number and was met by Mr. John L. Schuyleman, general agent of the Clark Wireless Telegraph-Telephone Co.
That in the course of our conversation Mr. John L. Schuyleman personally offered to exchange stock in the Clark Wireless Telegraph-Telephone Co. for my stock in the United Wireless Telegraph Co., on the basis of fifteen (15) shares of Clark stock for one (1) share of United Stock, this offer of exchange being made to me voluntarily by Mr. John L. Schuyleman, general agent of the Clark Wireless Telegraph-Telephone Co., in the offices of said company.
||Subscribed and sworn to before me this 23d day of October, 1909.
||(Signed) A. STAIGER,
(Signed, J. H. DEVLIN,
Notary Public for Oregon.
This office has recent information that agents of the "Clark Wireless Co.," in an effort to sell their stock, OR INDUCE HOLDERS OF UNITED WIRELESS STOCK TO SELL THEIRS, have been circulating the most absurd reports about the said UNITED CO. and its management.
It seems hardly necessary to note these derogatory statements, in view of actual conditions, and our only reason for doing so is to protect our stockholders.
They state that the UNITED CO. is nearly bankrupt, and cannot last long. The provable fact is that the UNITED CO. was never so prosperous as at present. We are building more stations and earning more money than ever before ($70,000 per month). Our three factories are running to full capacity. We have recently started in ENGLAND, have a large force of men at work, with a number of contracts already secured. The Company has plenty of money in the treasury, bills are paid monthly, and we have NO DEBTS. Both R. G. DUN & CO. and BRADSTREET verify this statement.
The Clark Co. has been in business for about six years having been reorganized several times. During five years they had a clear field, on the Great Lakes, with no competition; yet the Government report gives them only six stations and as many boats. The Clark Co. states in their pamphlet that $150,000 has been expended on the work--which is certainly a huge cost. They also state that "about 700,000 shares" have been issued. They state that they have no promotion stock so that these 700,000 shares must have been SOLD. This amount of stock at the par value of $1 per share, amounts to $700,000. They have spent $150,000--where is the other $550,000?
Last March the UNITED CO. opened up business on the Great Lakes. In 60 days we built more stations and equipped more boats than the had built or equipped in six years. Up to date, we have 17 stations and 30 ship equipments on the Great Lakes, and we are still building and equipping. So much for the Great Lakes field.
They have no stations on the Atlantic, Pacific or Gulf Coasts. The UNITED CO. has over 100, nearly 50 of which are on the Pacific Coast, and we have put both the "Pacific" and the "Massie" wireless companies (who were both doing business on this Coast 2½ years ago) out of existence. Our UNITED stations on the Pacific Coast handled over 22,400 commercial messages during August, 1909. Against this splendid record of WORK ACTUALLY DONE, you are asked to accept the unsupported statements and airy promises of the Clark Co. and their agents.
At the last reorganization of the Clark Co., their charter was taken out under the laws (?) of ARIZONA, instead of MICHIGAN, as before. We do not know why--or care; yet it is impossible to overlook the fact that ARIZONA (and until very recently, NEVADA), is notoriously favorable in its laws (or absence of laws) to the incorporation of wildcat or questionable enterprises; as the attached copy of an advertisement of the "Stoddard Incorporating Co.," of Phoenix, Arizona, taken from the "Pacific Monthly" for August, 1909, on page 214s, clearly shows. As a comparison, the UNITED CO. is organized under the laws of MAINE, which is known as one of the strictest states in the Union, with regard to the formation and operation of corporations.
Much is made by out enemies of a certain so-called financial paper--the "Financial World," which for two years has been publishing the most vicious and scurrilous slanders about the UNITED CO. and its management. Upon request, will mail you a copy of the "MINING AND ENGINEERING REVIEW," of San Francisco, Cal., issue of April 3, 1909, which will give you the character of the "Financial World" and its editor much better than we could. We will also send, if you wish, copies of R. G. DUN & CO. and BRADSTREET MERCANTILE REPORTS on both the UNITED and the Clark Companies, and other authoritative data.
Finally JOHN L. SCHUYLEMAN, the general agent of the Clark Co., for Portland and vicinity, has been with that company for only a few months. Previous to his connection with them, AND DURING MOST OF HIS TIME SINCE, he has been engaged as a curbstone broker, in persuading holders of UNITED WIRELESS stock (through misrepresentations) to sell or turn over to him, OR TO BROKERS WORKING WITH HIM,
their stock certificates, at about the same figure that same had cost them. Having secured the stock by running down the UNITED CO., their tune was changed, and the stock was RESOLD to other persons, AT A PROFIT, WHICH WAS DIVIDED BETWEEN HE AND THE BROKER. The sale of "Clark Wireless" stock has been a side issue with him. His main object has been the getting hold of UNITED WIRELESS stock as cheaply as possible, to resell it at a profit.
He has recently advertised in the Portland, papers, asking UNITED WIRELESS stockholders to call at his office in the OREGONIAN building, for important information. Persons who have gone to see him, inform us that after a lengthy abuse of the UNITED CO. and its management, and his assurance that Clark Wireless stock "is very much more valuable than UNITED stock," he ends his argument with AN OFFER TO EXCHANGE 15 SHARES OF CLARK STOCK FOR ONE SHARE OF UNITED. At the Clark Company's price of $1.00 per share, this would be equal to buying UNITED stock at $15 per share, which he could readily resell at $30 per share, since the UNITED company's price is now $35. This clearly shows his brokerage scheme to make money by dealing in our stock.
He has advertised that the Clark Company will at once build ten 25-K. W. stations on the Pacific Coast, which will operate for from 500 to 1000 miles at any hour of the day or night. Just how a company which the mercantile agencies describe as having judgments for $67.95 and $59.35 rendered against them is going to erect such a string of stations is not quite clear. The instruments for the Portland station are supposed to be on the way; and Clark was to have been here on October 15th, to superintend the construction. We will deposit with any bank or newspaper in Portland, $1000, Mr. Schuyleman to deposit $500. If the Clark Company has in commercial operation, by January 1, 1910, on the Pacific Coast, a wireless station capable of sending messages from 500 to 1000 miles at any hour of the day or night, we will forfeit our $1000. If the Clark Company does not have such a station by that date, he is to forfeit his $500.
Also, as soon as our Perkins Hotel station is completed and turned over to the operators, we will give Mr. Schuyleman an opportunity to pay that $100 for a 100-word message transmitted direct to Astoria--but we will insist that the $100 be put up before the demonstration is made. Meantime, the interested public is invited to test the service of the UNITED WIRELESS Pacific Coast stations, day or night.
We trust these facts will clear the air somewhat. DO NOT BE LED TO DISPOSE OF YOUR UNITED STOCK. MAKE THEM PROVE THEIR STATEMENTS AND CLAIMS, and if any further information is desired, write or call at this office.
Fiscal Agent, Oregon, Eastern Washington and Idaho, 410 Corbett Building, Portland, Oregon.
| Yours Very Truly,||F. S. STEWART. |
The following is a copy of the advertisement appearing in the August, 1909, issue of the "PACIFIC MONTHLY," on page 214s, which is referred to in the above letter:
"No tax in Arizona. No stock subscription's required before incorporating. Any kind of stock may be issued and paid up in property, services or leases. Transact business anywhere. Stockholders exempt from company liability. NO PUBLIC STATEMENT AND NO BOOKS NEED BE KEPT FOR PUBLIC INSPECTION ANYWHERE, IF INCORPORATED IN ARIZONA. President Stoddard, FORMERLY SECRETARY OF ARIZONA, was for years officially, in charge of incorporating business and is resident agent for many thousand companies. All blanks, law, by-laws and particulars free. Companies incorporated on receipt of reasonable deposit on account, and telegram stating name, capital, shares, time annual meeting and authorized debt.
|INCORPORATE IN ARIZONA.||Costs less than elsewhere. |
|Advantages are worth thousands. |
References--any bank in Arizona."
STODDARD INCORPORATING COMPANY,
Box 8E, PHOENIX, ARIZONA.