The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-12-25
WITT, DISCUSS SEMINOLE DEAL.

Report the Deal is Said
to Have Been
| Based.
News and Courier.
Columbia, December 2l.-"Seml-
mole" is still the topic Of talk in fln-
ancial and official circles, and bits OF
information and alleged information
are dished out every now and then.
Insurance Commissioner Young, OF
North Carolina, has Informed lnsur-
ance Commissioner McMaster, of
South Carolina, that he will be in Co.
lumbia tomorrow to talk over the
matter of the deal with the Southern
Life Insurance Company, which is a
North Carolina concern. Mr.. Young
expressed the opinion in a letter to
the South Carolina commissioner that
the Southern Life is probably not fin
aneially injured by the transaction,
since it seems to have come into a
sum of money through the deal, but
he does not think it will help this
company to be mixed up in such mat
ters.
As to the actual value Of the stock
purchased for $108 per $50 share
there is some additional information.
It was stated that this trade was made
on the report Of Mr.. H. W. Buttolph,
! of Indianapolis, an independent ac-
| tuary. that the book value of the stock
was $3.50 per $100 share. This seems
to be erroneous. since Commissioner
McMaster has received letter from
Mr.. Buttolph in reply to letter from
the commissioner inquiring as to Mr..
Buttolph's alleged report on the value
Of the Southern Life stock, which re-
port Was made to representatives OF
the Seminole Company. Mr.. But
tolph states that he did make such re-
port to Mr.. W. A. Clark on what
"purported to be a correct exhibit Of
the financial standing Of this COM
pany, and in which he drew certain
conclusions regarding the value Of the
stock" Mr.. Buttolph says that after
going over carefully the papers, he
gave it as his opinion that "the con-
dition of the company was not as
favorable as the financial statements
rendered by Mr.. Lacy would make it
appear" Mr.. Buttolph continues
"After stating very positively. that l
did not believe the report showed the
true condition of the Company, I said
that if it did the book value Of the
stock would seem to be about $ll7
per $100 Of par value, and if the con-
ditions were just as shown by Mr.
Lack $3.50 per $100 would be not an
unreasonable price to be paid the
company for such an additional IS
sue as would give the control to the
purchaser. Mr.. uttolph declares
that he never said the book value OF
this stock was $3.50, or that its actual
value was $3.50, except under condi-
tions which ''I distinctly stated I had
every reason to believe did not exist. .
Mr.. Buttolph goes on to say that he
only recently learned that the PAL
value Of the stock is $50 per share
= and not $l00, and he states very en-
phatieally, and repeats the assertion
that his report was based on a $l0(
/ per share par value.
According to the statements hereto
fore made by the officials of the com
panies' involved, the Seminole com
>pany paid $216 per $1OO share, o.
=, $108 per $50 share, for this stock
and the Southern Life received $14(
per 800 share, in round numbers
The transaction was said to be baseo
on the report of Actuary Buttolph
which Mr.. Buttolph now declare;
justified payment Of $3.50 per $1O(
share only for a controlling interest
if the condition Of the life insurance
company was what it was represented
TO be, which he did not believe to bt
the case.