The Washington herald., 1908-06-22
sc o." ENGINE INVOLVED
Investors Aligned Against Inventor
of Wonderful Device.
Ask Receiver for Company, Wants
Make Many Charges.

Philadelphia, May 21.-J0hn z. Carroll.
who until recently was treasurer OF the
c OF Development Company and inventor
OF the wonderful c O2 engine. viii have
20 answer some allegations in the courts
Of this city before the investors In the
stock Of the concern will feel satisfied
they ever viii get returns for the money
they specu.ated
In the bill In equity filed by three stock
holders and former officers Of the COM
pany before Judge Bregy last week Car
ron is alleged 10 have defrauded the con-
cern in a number Of ways.
A temporary receiver has been asked
for the company both in this city and in
Kittery. Ne, where the Development
Company was organized
The petitioners are Charles E. Oelschla-
fer. who was president OF the company.
and an architect. William Spencer. who
is said TO have been the largest stockhold-
CT. from a money point or viaw, In the
concern. and Frank Kegrize. former sec
retary OF the company. who Is connected
with the Union National Bank.
The petitioners want the court 70 de-
eide. first Of all. II the inventor OF tho
machine was justified in Usurping control
Of The company. as he is alleged 10 have
done, by fraudulent methods. Then The
petitioners will try 10 determine through
an expert, II the engine IS as wonderful as
il seems 10 be when operated by Carroll
Elton J. Buckley, lawyer, who repre-
sents the petitioners. said to-day he
learned from good authority that action
was begun in Maine 10 have a receiver
appointed for the company. so that 4
temporary receiver could he appointed in
L Nsr- s-r-s d. .
affairs Of the Development Company until
the bill IN equity IS heard in open court
! here.
There are a number OF serious allega-
tions lodged against. Carroll To begin
with. It is alleged he received the entire
authorized capitalization Of stock Of the
company. amounting 70 S10000C0l. IN con-
sideration that he would assign all rights
/ that he has in the engine and machinery
/ to the company. 1t is further charged
/ against him that he. as treasurer Of the
| company. issued or conveyed 1851 shares
/ OF stock each 70 three alleged fictitious
| persons by the names Of ?. o. Nevins. z.
/ II. Stearns, and Z ?. North
! Another allegation against him IS that
/ he Improperly dominated the business and
| policies of the company by refusing TO
/ make a report as treasurer Of the busi-
! ness transacted by the company.
| So far as can be learned. not one OF the
many stockholders has received a certih-
cate Of stock 10 show that they are inter
ested IN the company. This is also charged
up 10 Carroll
Carroll was requested to rent a safe de-
| pcsit box so that he could place all books
and papers IN Il for the benefit OF the
stockholders. He Is alleged to have de-
Clned 10 do so. and it is further stated
/ that all the books Of the company are
now in possession Of him or HIS assistants
/ In the offices Of the Development Com
/ pany. When the other officers and direc-
tors OF the company tried TO get the books
I at a meeting some time ago. Carroll was
| requested 10 produce them. the date being
| set for Thursday, May Z OF this year. On
that date Carroll. OF one OF his assistants.
/ Is alleged 70 have told the officers and
! stockholders that the c O2 Development
| Company did not exist any longer so far
/ as Carroll was concerned.
| Although the public generally did not
/ know that there ives a remarkable engine
/ IN this city that was predicted 10 accom-
/ plish wonderful results as a generator OF
/ motive power. the fact remains neverthe-
! less that the &C O2' engine Of the c o.
! Development Company has been on exhi-
! bition more or less frequently for months
for the benefit of persons who wanted 10
invest in the unique mechanical contrlv-
ance.
Persons who have invested IN stock OF
the company and have seen the engine
work said It was something like the Keely
motor. of much fame some years ago.
only the generating power in the c O2
engine was carbonic acid gas. Carroll.
who demonstrated the engine. said all
along that he was not another perpetual
motor crank. and he stoutly denied that
he was anything like Keely.