American De Forest Wireless Telegraph Company

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    In January 1902 Lee de Forest met a promoter, Abraham White, who would become de Forest's main sponsor for the next five years. White envisioned bold and expansive plans that enticed the inventor — however, he was also dishonest and much of the new enterprise would be built on wild exaggeration and stock fraud. To back de Forest's efforts, White incorporated the American De Forest Wireless Telegraph Company, with himself as the company's president, and de Forest the Scientific Director. The company claimed as its goal the development of "world-wide wireless".

    The original "responder" receiver (also known as the "goo anti-coherer") proved to be too crude to be commercialized, and de Forest struggled to develop a non-infringing device for receiving radio signals. In 1903, Reginald Fessenden demonstrated an electrolytic detector, and de Forest developed a variation, which he called the "spade detector", claiming it did not infringe on Fessenden's patents. Fessenden, and the U.S. courts, did not agree, and court injunctions enjoined American De Forest from using the device.

    Meanwhile, White set in motion a series of highly visible promotions for American DeForest: "Wireless Auto No.1" was positioned on Wall Street to "send stock quotes" using an unmuffled spark transmitter to loudly draw the attention of potential investors, in early 1904 two stations were established at Wei-hai-Wei on the Chinese mainland and aboard the Chinese steamer SS Haimun, which allowed war correspondent Captain Lionel James of The Times of London to report on the brewing Russo-Japanese War, and later that year a tower, with "DEFOREST" arrayed in lights, was erected on the grounds of the Louisiana Purchase Exposition in St. Louis, Missouri, where the company won a gold medal for its radiotelegraph demonstrations. (Marconi withdrew from the Exposition when he learned de Forest would be there).

    The company's most important early contract was the construction, in 1905–1906, of five high-powered radiotelegraph stations for the U.S. Navy, located in Panama, Pensacola and Key West, Florida, Guantanamo, Cuba, and Puerto Rico. It also installed shore stations along the Atlantic Coast and Great Lakes, and equipped shipboard stations. But the main focus was selling stock at ever more inflated prices, spurred by the construction of promotional inland stations. Most of these inland stations had no practical use and were abandoned once the local stock sales slowed.

    de Forest eventually came into conflict with his company's management. His main complaint was the limited support he got for conducting research, while company officials were upset with de Forest's inability to develop a practical receiver free of patent infringement. (This problem was finally resolved with the invention of the carborundum crystal detector by another company employee, General Henry Harrison Chase Dunwoody). On November 28, 1906, in exchange for $1000 (half of which was claimed by an attorney) and the rights to some early Audion detector patents, de Forest turned in his stock and resigned from the company that bore his name. American DeForest was then reorganized as the United Wireless Telegraph Company, and would be the dominant U.S. radio communications firm, albeit propped up by massive stock fraud, until its bankruptcy in 1912.

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    American De Forest Wireless Telegraph Company Stock Certificate
    American De Forest Wireless Telegraph Company Stock Certificate
    American De Forest Wireless Telegraph Company
    $150.00
    American De Forest Wireless Telegraph Company
    American De Forest Wireless Telegraph Company
    American De Forest Wireless Telegraph Company
    $125.00
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