Formation United Wireless Telegraph Company

1906 photograph of abraham white, founder , first president of united wireless.

united wireless establishment announced great fanfare in november 1906 founder , first president, stock promoter abraham white. legally, company reorganization of amalgamated wireless securities company, had been organized under laws of maine on december 6, 1904. united capitalized 1,000,000 shares of stock @ $10 share, par value. in february, 1907 capitalization increased 2,000,000 shares @ par value, divided between 1,000,000 preferred , 1,000,000 common shares.

beginning in 1902, white, promoting work of inventor lee de forest, had headed series of radio companies dubious reputations, culminating in american deforest wireless telegraph company. part of reorganization, united leased american deforest s assets $1, maneuver that, not coincidentally, blocked american deforest s creditors, prominently reginald fessenden, collecting on legal judgments. united s head office located @ old american deforest headquarters @ 42 broadway, in new york city, , company continued publication of house organ aerogram.

american deforest stockholders offered chance exchange worthless holdings united stock, in series of complicated , confusing financial transactions advantage of company insiders @ expense of regular shareholders. 1 unusual feature of stock transfer offers number of shares received based on amount of money paid stock, , not on number of shares held. designed penalize persons purchased stock on open market @ pennies-on-the-dollar, instead of paying full price charged purchases made through regular sales staff.

the newly formed united initially, , falsely, promoted being consolidation of prominent u.s. , british radio firms, combining american deforest worldwide holding of london-based marconi s wireless telegraph company, limited. however, grand claims gaining control of marconi companies , vigorously denounced marconi officials repugnant , , abraham white s overture form international company under control , repulsed.

absent new company lee de forest, had been american deforest s scientific director, forced out in summer of 1906. de forest later stated had resigned in protest on improper actions of company management. however, alternate explanation no longer welcome, due inability develop effective , non-infringing radio receiver — american deforest s employment of electrolytic detectors had led fessenden lawsuits, resulting in adverse , expensive legal judgments on company s use. moreover, general h. h. c. dunwoody, american deforest vice president, had invented non-infringing carborundum detector, made services of de forest appear unneeded.

1908 photograph of christopher columbus wilson, gained control of united wireless in 1907.