The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-26
FRAUD ALLEGED
IN MINING CASE
Continued from Page One

and many other shares belonging to said
Splro's close friends, as plaintiffs are
informed and . believe, which have
escaped the payment in cash OF all as
sessments, but all OF which assessments
nave Deen charged against various pre-
TENDED and fictitious accounts and form
a part OF the S35. .144.so hereinafter men
Iioned. which, with Spiro's assessments
ana the amounts paid In cash make up
me asgreeate OF assessment receipts as
SHOWN by the books of defendant cor
Poratlon. as set forth In paragraph S
hereof
Plaintiffs further show that said
oeiendant corporation was organized un-
der the laws OF Utah on the 24th day OF
February, 1908. and as so organized II
ms an authorized capital Of s5o0.ooo di-
Nided into 500. 900 shares of the face or
par value OF 81 per share, and that at
the time Of the incorporation OF said de-
iencant corporation Its capital stock was
subscribed as follows: Said defendant.
Harry :. Clark. as trustee for the pur-
poses set forth In article S OF the articles
OF Incorporation OF said defendant cor
poration. subscribed for and took as such
trustee ss9993. shares. and said defend
ant, Solon Spiro. and the said defend
ants: g. Wesley Browning Oscar K
Lewis. William Pischel and Harry p
Clark: together with Lafayette Hanchett
and John c, Daily. each subscribed for
one share OF said stock. 10 wit, seven
shares in all.
Regarding Reorganization.
That by article of said articles of in
corporation it was provided. among other
1hinSs. that OF the stock subscribed for
by said Clark the purposes OF said trust
were as follows:
!. That l64654 2-3 shares thereof were
subscribed as trustee for the corporation
and for the benefit OF its treasury. and
the same were by the same article as
signed and transferred to said defendant
ury the same. added TO the seven other
shares subscribed by the incorpora tors.
oeing the exact equivalent OF the num-
King Consolidated Mining Company OF
wyoming. being a corporation thereto
Iore existing under the laws OF Wyom
ing, and the predecessor in interest OF
said defendant corporation. and which
VIII be hereafter referred to In this COM
plant as the Wyoming corporation; and
that Of said 164.645.2S shares, $4,000
served 20 he allotted 10 holders OF the
bonds of said wyoming corporation then
o"s5standing Th or to be issged, sue and
so subscribed by said Clark were
by said article claimed TO be subscribed
by. him for the following purposes. as
set forth in said article:
AT the option of any stockholder
OF SAID wyoming corporation, eXcr-
cised on or before March 26 1903.
said trustee and this corporation will
allot a and transfer to said stockholder
shares for and In lieu of shares of
said Wyoming corporation share for
share. upon the transfer and assign
ment by such stockholder to this cor
poration OF his shares OF the stock
OF said Wyoming corporation. which
assignment shall be by virtue there
sof and Without express terms OF as
signment carry with 1t all the
rights OF such stockholder to par
ticipate In the division OF the cash
sum of $34,7l7 paid on account OF
the purchase price for the mining
property assets. chooses In action and
effects hereinafter described as ac-
quired by this corporation. and that
any OF said 335.347 13 shares not so
allotted and transferred TO the stock
on or before March IS. 1905. shall be
by said trustee assigned. trans
ferred and delivered to this corpora
tion TO be held by II in Its treasury
subject TO sale to the underwriters Of
the stock OF this corporation or to
other sale or disposition thereof by
the board Of directors Of this corpo-
ration for the benefit of the treas
ury OF this corporation"
Inspection Refused.
That the said defendant refused TO per-
NIT Plaintiff Brandt TO inspect the stock
In the possession OF defendant corpora
ton, and for that reason plaintiffs are
unfamiliar with and unable to state the
personnel of said stockholders as they
unable to trace out and ascertain what
number ayailed themselves OF the provl-
sion of said article last above set forth
but upon information and belief plain
tins allege that more than so per cent OF
said stockholders. including these plain
tins. have exchanged their stock for
stock OF defendant corpora tion under the
terms OF said article. and become stock
certificates No. eo7 for 100 shares issued
TO plaintiff CORPORA tIon and oertIfcafe