The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-26
FRAUD ALLEGED
IN MINING CASE
Receiver Is Asked for the Silver
King Consolidated Mining
Company.
SUIT FOLLOWS CLOSE
ON AUDIT OF BOOKS
Peculiar Methods, Including Off,
setting of Assessment With
Illegal Items, Charged.

Alleging fraud on the part OF Solon
Spiro, the president of the company In
its affairs. Joseph Brandt and
the Park City Meat company filed an ac-
tion in the district court Friday against
the Silver King Consolidated Mining com
pany and all It's officers and directors
asking that A receiver be appointed to
take charge OF the company's business
and also that jSpiro be compelled TO ac
count TO the company for the sum OF
SS'. 2o5.26. which. It is alleged. he wrong
fully and fraudulently withheld from as
sessments due on his personal stock in
the company.
Brandt SAYS that he is n stockhoder OF
the company and alleges that he was
compelled 10 secure a writ OF mandamus
from the courts in order TO examine the
OF its books disclosed. it is claimed. that
Spiro holds -, 06l shares OF stock In his
own name, and also holds 1888 pa
shares as agent and that his wife holds
%. 400 shares.
Spiro's Overcharge.
When the company absorbed the old
Silver King Consolidated company OF
Wyoming and assumed its debts, it is
alleged the actual Indebtedness OF the
wyoming company was sl0,9l3.39, but
Spiro swelled this amount 10 Slli, ,1i2. is.
and among the obligations OF that con-
Germ Spiro claimed credit OF S30S0 II
and also claimed that there was due him
on notes the sum OF sl9.072 % and inter-
est amounting TO $3055.4 40. II is claimed
that there was an overcbarge in favor of
Splro amounting to S60.0i1.29. which was
credited on assessments on his stock.
The plaintiffs further allege that on the
nine assessments on the stock OF the
company there should have been the sum
Of ..1i hut In, for Ia
company only received Sl29. I12.Sl. while
the remainder Sl17,2507S was credited
on the assessments on the stock OF Splro
the members OF his family and his
"henchmen." 1t is also claimed that
Spiro wrongfully and fraudulently credit
ed himself with SS7,205.25 on assessments
on his stock.
Conspiracy Charged.
The books also show. It is alleged. 4
debit OF Si9540,99 as legal expenses. and
among these is a credit of 500 TO Johr
T. Hodson. who is not a lawyer and moi
entitled to fees for legal services. 1t Is
alleged that the defendants are fraudu'
lently carrying on the business of tho
company and that Spiro Is conspiring tC
keep himself and friends in office and IL
control Mt the expense OF the minority
stockholders.
1t therefore is asked that receiver be
appointed; that Spiro account TO thC
court for the $751; 2O5a6 withheld by hin
on his personal stock for the payment OF
the same: that the defendants produce
all the books, vouchers and papers OF the
company and deposit them with the clerk
of the court until the motion for a re-
ceiver Is heard.
An order to show cause why a receiver
should not be appointed in accordance
with the prayer OF the complaint was
issued by Judge Morse Friday afternoon
The complaint in full follows;
Comnlaint In Case
In the third judicial district court o'
the state OF Utah, In and for the county
OF Salt Lake.
Joseph Brandt and Park City Mea
company corporation, plaintiffs, VS.
pany OF Utah. a corporation; Solor
Spiro as president and director. william
Pischel as vice president and director
G. Wesley Browning as secretary and di-
rector, Harry r. Clark as treasurer anc
director and Henry Cohn. ID. J.
Werthheimer and o. X. Lewis as direc'
tors OF said corporation. defendants
Complaint.
entitled action and complaining OF the
above named defendants. allege and sho"
TO the court.
/. That at all times herein stated Tho
plaintiff Park City Meat company anC
the defendant Silver King Consolidated
Mining company were corporations or
ganizcd and existing under the laws oI
the state OF Jlan.
, That the said plaintiffs are stock
holders OF the defendant silver King
Consolidated Mining company OF Utah
and as such bring this suit for them
selves and on behalf of all other stock
holders OF said corporation who may
hereafter come in and join In this acton
and contribute to the expense thereof,
That these plaintiffs prosecute this ae-
ton because the said defendant. Solon
Splro. individually and as trustee. and
as representing his wife and father-iu-
law. as hereinafter mentioned, together
with a few OF their friends as herein
after set forth. controls a majority OF
the capital stock Issued and outstanding
of said defendant corporation and doml-
mates and controls all elections and
meetings of stockholders. and dominates
and controls all meetings Of the board OF
directors thereof. and has elected, and
does elect from time 10 time. and only
permits his friends and those whom he
can dominate and control 10 act as al
rectors OF said corporation
That the said Solon Spiro has done
and caused TO be done all the wrongful
acts hereinafter alleged as tho gravamen
OF this action. and for the reasons atore-
snid IL would be utterly useless TO re-
Quest the said board Of directors 20
bring this action. and would be equally
futile TO demand that the stockholders
vote upon and bring the same,
Audit Is Resisted.
2. And plaintiffs further show. that
gust 1905. the plaintiff Brandt sought TO
obtain an audit and make examination OF
the books OF defendant corporation. but
that the same was wrongfully refused. and
said plaintiff was compelled TO prosecute
an action In the law side OF this court
and by appeal 10 the supreme court OF
this state before his rights In the prem
ises could be indicated and an audit
obtained: tina, said suit was stubbornly
and wrongfully contested and opposed by
the defendant Spiro. and that the plain
IN jhereupon had said books. vouchers
and papers examined by an expert ac-
couptapt and the result of such cxami-
nation affords much OF the information
from which the allegations OF this com.
plant are made
That II appears from said examination
that Solon Spiro. agent. has 35.593 2"3
shares, Solon Spiro 20 061 shares. and
Mrs Solon spIro. $500 shares, which
amounts aggregate NO.054. being about
the average witch soSd Spiro has pre-
tended to pay assessments on In the
manner herein alleged. That besides
said items OF stock last above described.
there are 10000 shares standing in the
name of NJ II, Marks. who, as plaintiffs
are informed and believe. Is The father
OF Mrs Spiro; $500 in the name of VIII