The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-12-23

The commissioner consulted Attor-
ney General Lyon and Assistant Attor-
ney General DeBruhl at this time, and
from time to time after, and these
gentlemen informed him promptly
that the Seminole Securities Company
did not come within his jurisdiction.
Later in the summer, Mr.. Clark,
Mr.. Darlington and Mr.. A. c. Todd, OF
Laurens, the latter as attorney for the
Seminole Securities Company, called
upon the commissioner and informed
him that they were about ready to or
ganize the Sterling Casualty Company
but were undecided whether to or
ganize under the laws of this Stat, or
some other State. They were in doubt
as to whether the laws of South Caro-
line were ample enough to permit
them to do business in other States, il
they should take charter from South
Carolina. The commissioner attempt
ed to show them that the organization
under the laws Of this State would per-
NIT their qualification to do business
In any State in the Union. They left
the commissioner being under the i'm.
preston that In few days the Ster-
ling Casualty Company would be or.
ganixed and license applied for. Moth
ing further was heard Of the matter.
however. until advertisements appear
ed. the latter part Of october. stating
that the Seminole Securities Company
had purchased q controlling interest
In the Southern Life Insurance Com
pany of Fayetteville. N. c. Z
"On October the seth the commits
sioner called upon Mr.. ]. Y. CARING
ton, president OF tho Seminole Securi-
ties Company. and made inquiries Of
him as to the business that the Semi
mole Securities Company was doing.
Mr.. Darlington stated that the Semi
mole Securities Company was then do
ing. az It has always done. simply SELL
Ing Its own stock. but that 1t had de-
termined to purchase a controlling in
terest In the Southern Life Insurance
Company. Of Fayetteville, instead Of
organising the Sterling Casualty Com
pany. That the charter rights Of the
Southern Life permitted II to do the
very things for which 1t was intended
to organise the Sterling Casualty Com
pany. and that an agreement had been
entered into with the Southern Life.
whereby this company would develop
the accident and liability business per-
mitted under its charter, and
that 1t would open headquarters
for this business In Columbia. Mr..
Darlington stated that Mr.. A. w. But
toaph. a consulting actuary Of Indiana.
had expressed the opinion that on the
showing made to him. the stock Of the
Southern Life was worth on Its books
$1Ss. but that other consideration en-
tering, the Seminole Securities com.
pany had paid $21S therefor, Mr.. Car
lington stated that the stock purchas-
ed was treasury stock and being asked
what treasury stock was, stated that Il
was stock purchased directly from the
company and that the money paid
therefor went into the treasury of the
company.
"Mr. Darlington stated. according
to the recollection Of the commission
er. that $162.000 In cash or securities
had been paid over to the Southern
Life Insurance Company. and that
obligations had been made for the bal
ance due the Southern Lite of the
other $4,000. which would be paid
from time to time. as the Seminole
Securities Company sold its own stock.
MT. Darlington stated that the insur-
ance commissioner OF North Carolina
had passed upon this deal, and that
the securities given the Southern Life
were acceptable to him.
Commissioners McMaster immedi-
ately reported the substance of this
conversation to Commissioner Young
OF North Carolina. Under date OF Oc-
tober %, Commissioner Young wrote
that he had not passed upon any deal
between the Securities and the South
ern Life. nor had he been called upon
so to do. and that ne would look into
the matter and advise later.
subsequent to this number "
communications passed between the
commissioners and Commissioner
Young, and Commissioner Young fl
nally advised that investigation into
the affairs Of the Southern Life be
delayed until December 20, as he was
advised by the Southern Life that the
I.n