The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1908-11-28
Action Is Brought Against
kaola Fuel Manufactur
ing Company.
PROMINENT CITIZENS
NAMED AS DEFENDl
Plaintiff Is DR.. John 7. WI
Who Says He Got Wors,
of Deal.

1. White fled a sensational r.,
against the Koala Fuel MapufachKti1
company and the directors, Col
A. and n. W. Clayton, W. s
! Cornick, George W. Holmberp. p
6adler and Joseph Il. Tracy, and /
W. Wilson, the alleged abscondipo
rotary, in the Third District courf
day.
DR.. White, in allegations IN A
! says that the defendants consn;rs
gether in the promotion and nrcs =
ton of the company for the osteS
purpose OF producing and marketi
| fuel 10 be known as "koala,D n
reality 10 cheat and defraud suchl &c
persons as might become mernbeY w
the corporation or subscribe for AZ
in it. AT
Through false representations
White further alleges. he was ;nd .
TO part with $500, $500 in cash
the remainder in promis5ory notaa
that many shares OF stock in the
Germ that are virtually worthless.
cash was paid into Wilson g haudEDI II
one OF the notes, for $500, was ind Nsr,
over to the Mccormick bank for 7u.-,s
by Wilson. the physician says. He A4'''
for Judgment for $500, with cost bio =
IN the. meantime, to protect hijeiom
from innocent purchasers, DR..
asks that the bank be enioined
transferring either the smaller faos
cashed note for $500 or the largely h'
for $500 TO anyone else Ioliby
Allegations of Complaint. Issit
The defendants represented ID the
White, he says, that they had a
chased secret process for manufe Da
ing koala y from Wilson, andI The
organized corporation to this,o ex
with q capital stock fully paid ug z,;sl
of the actual and substantial val,
81 q share, particularly l75,000 d Iuml
which had been issued TO Wilsoysl u
his secret process, and had beeu, . !
apart as treasury stock. The SOD II
secret process, DIR. White alleges. H u
represented TO him as being pat some
and superior TO any other process
world. 1t further was representefT bel
him, he alleges. that the ingredlen. sme
the new fuel existed in large gu "a.
ties in this state, and that "koH
could be manufactured az red oplg
ably low figure, giving the "a
holders wide margin of net i-,s
ranging from 20 to 100 per CD, :
year. 81
1t was further represented to Eerc
by the defendants DR.. White cha AVA,
that the stock for sale would SOD. :;
exhausted, and that after thai u !,
would be materially advanced in r. d
and he would better ''get in ontssett
ground hoor" by buying then. u a;
the defendants represented that ~. ~
tory for the manufacture. OF NY
. 81 Spo1 20 "a a tirrt
; lished here, and that some OF the ar
chinery was on the way TO Salt a
City. he bought 2500 shares OF
IL the concern. ne
Under cloak and cover of der
character as officers and director, lam
the corporation, DR.. White alleges
defendants printed and spread bii"ef
east a circular extolling in exfizTer
CANT terms the virtues of the new Co
product TO further the sehcme -.
, defraudiRg the public, Wilson ba3 at;
secured their cooperation in
scheme under promise of issulnes.,
them large blocks OF stock. IN -
! corporation. DR.. White, IN this ave
graph, classes the defendants as n a;
full, keen, aggressive and succe {.
business men. -
Wilson Is Attacked. ch
Coming down TO more specific
' CATIONS, Dr.. White charges tnat finor
Son never had or transferred tojhss
; corporatiou any secret process ror I, :
mannfacture of "koala," and thai y
; DEFENDANTS have no patented yighf1sln
, mannfacture and sell this prQhppe
throughout Utah and Nevada. irs .
$50 600 shares OF stock are noSI
never have been OF the cash vsiu--s
$3.50 900. be alleges. and no steps Fsru
ever taken 10 establish 2 taetg'n ni
the manufacture. OF 'koala HI,
The defendants. he alleges laVe
invested any real money. IN tae Pses'n
with the possible exception OF
Cornick. who. he has nea1q' uyr spl
10000 shares Of stock lof = sss !
share. ;..l o,Li...
of ~ tSe % cempanv we're simulated { an,
coIorable ONLY, 1t is further, SET OUT gar
Ing fictitious and fraadulen1 ~
none ,rG Of the defendants owned tNs z
o+oir none " onTtb,nr resembling ses5nd
TN tGhiUJa;,, L. " Tor fhe maruiacture trou
uttnaia J.t =, The so.called rights TO rsr
rsn of such q process and the = kof age
;tsoIf Il Is asserted never hsa E.ah
oyistcnce e.,,r in fact and substance. !: nj
were ,Le children of the mag glnu.io- II.
some of the defendants ana ss
optimistic and con6dlng n0pe' !
trusts of others. su
Regarding Process :, l.mh
me. w. SSosI known or TO be 81.
sneeeS Y, ,lG are within the reaea o. ~ -
of The defendants. it IS dec.Ss,' IN s0S =
., cnmmnn en usc throughout tne h, y =
and m are available to the pubic ~ e m+
witbout expense or cha!gs' ,hs iH1. Il \
pietnresoue tSnus language in when tue 4 Sa1l -
PAM Pnp Wbite S7I was stirred to l}gS SrlgpSssy y
action bv the fling by Mr: -Mtc ~ sSp M
fbe Other day of .slit agaias;i ior ~ ~ ),
cnIlect cn on the promissory nose e hi S;nT 3. :,
GOd,e ;NdoreeS over to the bank oy M ts,,.al ~
casS easSi Dr. White says. be has psy pau III a, =
cfSI Ga tha notes. AID will not pn, S..!ss .
Tbs Tn ;s the second time tne assd nuvd e. s;e :
nspy,s anS 3 name has been dFagsflSus fSs| e'
court, psTS the frst time beng nn2 ID To 10 sn,
of"tt 81 Hsrrv B. Scott, an attornse55o s5oO ~ lug lug
oa, o. & tSe delivery to him OF Snt 9uvV he s0al
par5eTed 1a Ss legal services 3aa iG1 sa,s';s %s
se4 set ont. This suit was dlIeelSep dlIS rss IA
tbres rt,o", or four days after he me tSs q q,