Show I I I I I I UTAH NATIONAL UNDERWRITERS CO SUED HERE Le Roy Young Brigham Stockholder Makes Startling Startling Star- Star ding Charges Suit was filed In the Third district court yesterday by I Le e Roy B B. B Young of or Brigham Cit City for tor the tho appointment of ot a n. receiver for tor the Utah National Underwriters Un Un- corporation and an accounting accounting accounting ac ac- ac- ac counting as to certain notes nc negotiated b by Georgo E. E Sanders as president of ot tho the company over the company's compans In in- in Defendants named In the tho complaint In addition to Sanders and the Utah corporation are Ernest R. R Woolley W W. S. S McCornick and arid McCornick Co Young Toung represents In tho the complaint that ho brings the action as a stockholder stockholder stockholder stock stock- holder and asks that other stockholders era ers bo be allowed to Join I He asks that the tho company's Indorsements on tho the notes In question bo be declared void beI beyond be be- yond ond nn any amount due from the company company com corn pany parry on a note executed In favor layor of Lorenzo N. N Stohl for tOr Ac Acts Without Authority Tho The complaint alleges that Sanders cau caused ed the Indorsement of ot tho the corporation corporation corpora corpora- tion to bo be affixed to notes aggregating ing to liquidate the Stohl note and certain personal liabilities of ot his own both held by McCornick Co Sanders is alleged to havo have acted without without without with with- out consulting the stockholders of the company compan under authority of a 0 resolution resolution resolution tion which ho he Induced In tho the directors of or Ithe the tho company compan to pass giving him power of ot Indorsement Tho complaint recites that In pursuance pur pur- of a plan to get control of oC the Continental Life Lite Insurance company It purchased shares of or the life Insurance insurance insurance ance company's st stock ck and that the note noto executed to Lorenzo N. N Stohl was mado made necessary through exhaustion of or orthe the compans resources to make pay pay- ment mont According to the complaint shares of or the life liCe Insurance company's compans stock was pledged as collateral of or the note executed execute to Stohl for Cor 17 which later Ilter came Into the hands of or orIc McCornick McCornick Mc Mc- Cornick Co u r Sued SUel Some timo ago o suit was brought in inthe tho the Third district court by the Continental Continental Conti Conti- Life Lire Insurance company compan a against Brothers Ernest R. R and the Utah National Underwriters Underwriters' corporation to determine the title to the 93 shares of or the tho capital stock that figure figure in the present suit The Utah National Underwriters' Underwriters corporation filed riled a disclaimer and the court en entered entered en- en a 0 decree In favor tavor of ot Woolley es establishing establishing es- es his title titto to the stock Young now asks that the stock be declared the property of or tho the Utah National Underwriters Underwriters' Underwriters Underwriters' Under Under- writers' writers corporation Discussing the suit last nl night ht Mr Ir Woolley said The Tho West Cacho Cache Sugar company's suit against J. J A. A Hendrickson Hendrick- Hendrick son and Lorenzo N N. Stohl to recover which they fraudulently abstracted abstracted abstracted ab ab- ab- ab from the company's compans assets said Mr Ir Woolley is set for tor Monday an and will be bo tried On behalf behal of or tho tIme Utah National Underwriters Underwriters' Underwriters Underwriters' Un Un- corporation Mr Sanders its president said Tho suit of oC Le LeRo LeRoy LeRoy Ro Roy B. B Young YounS- is a kick back of the tho suit of or tho the company filed tiled a a. few fow days das n ago o In tho the United States court against L L. N. N Stohl and his hla law brother E E. T. T Ralph to recover about In mone money secured notes and securities that Stohl obtained In the month of or October from from John James and M. M L. L Scott then president and secretary of the company compan Mr Ralph Is only a dummy for tor Stohl and not a n party at nt Interest Object The suit Is Intended to embarrass the company compan and scare Its stockholders em ers and will have havo no such effects when tho facts acts aro are brought out It is also probably intended to stop certain suits an and prosecutions that I have havo Instituted to get back company's compans money and p pro property ro pe pert r To be he Informed of oC present conditions conditions condi condi- one must recite somo some things that havo have happened the last six months Last August tho the company owned over OO shares of ot Continental Life Ufe stock and had bad arranged to buy enough more to give ghe It The Tho com company pan was wa living living liv liv- ing up to all its agreements its credit wa was excellent and it hall had full confidence of practically all of oC Its stockholders On the first of or August George E. E Sanders was chairman of the board of or directors John James president and M. M L. L Scott an secreta secretary Quorum Officer The rhe latter part of Au August I went vent ont to Chicago an and New York to clo close up somo some business that company's compans eastern representative representative hall had started from the tho Compans company's com corn pany's pans Chicago office Splendid headway head hend- wa way vay was being made and all tho the money mon mon- ey CF f to complete the tIme financing of or Utah National Underwriters and its purchase of ot Continental stock wa was being made available whom whon things began to happen happen happen hap hap- pen In Utah Without notice less lees than thana a quorum of directors sent mo me a letter stating I was e removed on October 4 of as asa asa asa a director and chairman The Tho Chicago office manager malinger was by telo- telo graph Tho The office wa was closed without paying tho the bills bilis Tho The pretended board of directors elected S. S J. J Fell and c c. P P. Fell a Buffalo l lawyer ot as ns directors and and anel S. S J. J Fell pretended chairman of ot the directors with authority over Mr MI tho the president The first thing the tho new Fell management did W was WS S to take tako my personal securities and notes out of n my private box in tho the sate and sell what tIle the they could and had others attach what nhat the they could not sell The rho hIXt thing was to go o to my ray rr residence l ence and h by connivance con con- nl anC and fraud Induced Mrs San Sanders Sanders' ers ers' laughter to let them take Mrs frs banders' banders automobile and It was thus wrongfully sold and mone money mostly turned over Or to Stohl and amI most of balance was used foe COt office salaries About this time th Fell management manage manago- ment had made malIc a o Pretended deal with L. L N N. Stohl to bu buy Stohl's stock In Underwriters Underwriters Un Un- In iii which be lie grabbed oft off about belonging to tho Underwriters Underwriters' Under liner writers writers' company compan After Artel paying out all of ot compan company's 8 cash money tho they be began an to look for a n ngoat goat The They started l this b by stirring up strife strite with Continental Life Lite officials so that for protection thc they filed a suit Bult since dl dismissed Next was to abuse Woolley and McCornick and md myself On my return I demanded that all officers and directors resign and In desperation the they did I so 80 on January 9 9 1919 and turned over tho the company compan The cash receipts of company compan from sale salo of ot stock to pay for tho the Continental stock has been grabbed b by the Fells Falls Stott Scott Harmon and others selling stock All of or the tho Fell FeU management seemed scanned to havo got a n. cut of tho the mone money except John James The They Just made a n fool Cool out of James In this way about 30 to of or company's company money went Into private pockets and all the time while tho company Compan paid all the salaries and expenses which between August 1 and January 1 amounted to over Out of ot the tIne to from roan stock sales between the dates tho the com company pan was allowed to receive only 40 HO which was as probably a mistake Vigorous steps are no now being taken to recover cr the company's money and property While I J was In tho the east the Fell management did not riot pa pay ono one cent of or Interest or principal on notes note but gave a a. lar largo large o sum to Stohl when company did not owe Stohl ono one cent and put In their own pockets thousands of dollars and let Continental deal go b by default I do not feel uneas uneasy about the tho real Investors being beinS' taken care of or after aCtor ve we get back tho the loot of oC Stohl and Fell |