[Special Dispatch to "The Examiner."]

PALO ALTO, August 29. — Cyril Elwell, a graduate of Stanford University and last year instructor there in electricity, to-day demonstrated to a small number of friends that he has perfected the McCarthy wireless telephone system until he is able to to carry on conversations a distance of almost a mile without wires or ground connections.

A little square house with an aerial string of wires similar to those used in wireless telegraphy was the only external evidence of a telephone plant. The schedule was made out to talk upon and two assistants took a couple of coils, three or four Leyden jars and the transmitter under their arms and went to the transmission depot, three-quarters of a mile away. There another aerial was hung and it was declared that everything was ready for the test.

The test was made for space of five minutes each and five minutes rest between each. During the second period the man who was sending apparently got tired of talking and commenced to sing. The songs were heard as clearly as if they had been sung in the next room.

Every once in a while the government wireless telegraph messages would be caught, but at one time both the wireless telegraph and the wireless telephone were in operation at the same moment and they did not interfere with each other.