Fort Mill times. [volume] (Fort Mill, S.C.) 1892-current, 1908-12-24
; LICENSE MAY BE REVOKED.
Southern Life Insurance Company
Mixed up With the Seminole to its
Hurt.

On account of being dissatisfied
with the statement made by C. j.
Cooper, general manager of the
Southern Life Insurance Company,
to Commissioner McMaster, the latter
has ordered the cials of that COM
pany to show cause on January 1S,
1909, why its license to do life
insurance business in South Carolina
should not be revoked.
The commissioner in his letter to
Mr.. Cooper reviews his statements as
published last week which statement
goes into the history of the deal be-
tween the Seminole Securities COM
pRny and the life insurance concern
when the former bought the stock of
the company. This statement, it will
be recalled, shows that the par value
of the stock was $50 per share and
$500 of these shares were sold at an
average price Of $10S.33 1-3 and that
other shares at not less than $50 per
share.
Mr.. McMasters declares that he
considers the company's affairs so
hopelessly tangled with the affairs of
the Seminole company that lie has
decided on this step.
- The Southern Life company was Ii
censed to do life insurance bust
ness in this State several months ago
and at that time complied with all of
the conditions required. The law
governing the conduct of life in
surance companies under the super
vision of the commissioner requires
that 20 days. notice be. given when n
revocation of license is contemplate
ed.
Commissioner McMaster, in ad-
dressing the said Cooper says:
"a careful consideration of the
statements contained therein (Coopcrs
report) seems to me to show that on
July Is, 1908, the Southern Life In
suranc company, through Yourself as
general manager. entered into an
agreement with Mr.. c. ]. Hebert 10
sell the capital stock of the company
to the amount of the difference be-
tween $500.000, the authorized cap
7ftal and $1e5,000 already placed at n
price far in excess of the market and
@ctual known value of the stock to
4 yourself and the other officers and
] directors of the. company.
The excessive commissions ngreed
to be allowed Mr.. Bcbert, the gem
j erA tenor of the contract OF July
Is. and of the letters and telegrams
(which passed between the company
and Mr.. Hebert convince me that
this stock could not have been sold
at tie prices agreed upon between
1.-THE company and Mr.. Hebert if true
and honset representation of the con-
dltion of the company were made to
the public-the prospective fellow
stockholders of the present officers
and directors Of the COMPANY
'1t seems to me that the facts
shown in this agreement with Mr..
Hebert, TO which all of the officers
and directors Of the company were,
or should have been, cognizant, pre-
suppose and are based upon inten-
tional deception OF the public as to
the actual value Of the stock.
ri find that while tho contract of
July 10, between the Southern Life
and Mr.. Hebert. was an exclusive
contract (and one very profitable to
both Mr.. Hebcrt and the company,
yet it is surpassed and supplnnted.
In measure, bv the contract made
on September % with the Seminole
Securities company, whereby the un-
sold portion Of the capital stock Of
the Southern Life Insurance company
par value 500 per share, was to be
sold by the Seminole Securities COM
pany so as to yield the Southern
Life not less than $3.50 share. and
herein the interest Of the Southern
Life, the Seminole Securities COM
pnny and G.. J. Hebert became so
inextricably mixed as to make each
practically share in the methods as
we'll as IN the profits TO be gained
from the public.
The Commissioner sets forth at
length that. which forces him to sus-
pect that the officers of the Southern
Life Insurance Co. were guilty OF
participation in scheme to impose
upon those who would become stock
holders.
He closes with the following para
graphs:
R this be true, I am of the
1Qplplon that so long as the company
&>4ains in the eonerol Of its present
oflfefs and directors it is not q safe
an4 faIable concern.
fbis, therefore. is to summon you
TO show cause before me at my Of
6ce In Columbia, on January 1S, 1909,
Mt noon, why your license to do bus
mess IN South Carolina should not be
! revoked on the ground that the South
ern Life Insurance company is not
safe and reliable concern, for the
reasons above stated This is done
I'D accordance with the act creating
South Carolina Items.
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