The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-12-16

Nortn SorOhna insurance CO--SCan-
dial Too Rank to be Longer Sup
pressed by Columbia Newspapers.
For several weeks there have been
rumors that the Seminole Securieties
Company. Of Columbia, an Insurance
holding corporation. was on the verge
OF developing high finance scandal
of considerable magnitude and that
when the facts could no longer be
suppressed there would be revela-
tions that would smirch not a few
names that had heretofore escaped
unfavorable criticism. The expected
has happened and the Columbia news
papers. being unable longer to sup
press the story, newspapers In other
towns having got hold OF the facts. a
little light is turned on and the first
chapter In the scandal appeared In
The State this morning. The story
was sad reading to not few Sum-
ter people. for large amount OF the
Seminole stock is held by Sumter peo-
pie. every one OF whom subscribed and
paid for the stock largely on account
Of the flct that Messrs. w. A. Clark,
Willie Jones. and T. s. Bryan were
trustees Of the company and endorsed
1t In the highest possible terms as a
safe. sound and extremely profitable
Investment
The States story Is as follows:
Interesting facts with reference to
the Seminole Securities company are
being made public. For some time this
company has been engaged In business
in this State and adjoining territory.
with Columbia as headquarters. The
object Of the company was to sell
stocks until there should be collected
an amount sufficient for financing a
casualty insurance company.
The shares were of the par value of
81 each. but the actual selling price
was $3.50. In this way a large sur
plus was raised In the outset. The
boldness Of the proposition OF selling
for $3.50 an untried, security Of face
value Of 81. coupled with the breezy
Western manners and fiashy dress OF
the young men employed to sell the
stock. caused a lot Of discussion in the
State. There were complaints made
to the Insurance department. but Com
missioner McMaster was without law
to authorize investigation, even had
such a step been deemed necessary.
In July 1t was stated that practical
ly enough stock had been sold to war;
rant the starting Of a company to en-
gage In the insurance business. Not
much was heard from the Seminoles
then until fair week. the latter part
of October. when II was announced
that the Seminole Securities company
had taken over the majority Of the
stock OF the Southern Life Insurance
company OF Fayetteville. n. c., and
that the headquarters Of this company
would be at Columbia I'm the future.
The next phase In the history OF
this company was rumor, which
reached Columbia fortnight ago, to
the effect that the sale of the Southern
Life had been framed up" and that
some Of the purchasing agents had
been well paid therefor, in effect get
ting commissions out Of their own
stockholders.
In the outset the Seminole Securi-
ties company had as trustees Messrs
w. A. Clark. Willie Jones and L. s
| Bryan. Friends Of these gentlemen
few days ago apprised them of the
disagreeable rumors recently set afoot
Mr.. Clark at once signified his in
tention to go to Fayetteville, N. c..
last Thursday and have. the matter in
vestigated. But Mr.. Williamson, pres
ident OF the Southern Life. was not in
Fayetteville and Mr.. Clark's visit was
deferred until Monday OF this week.
Mr.. Clark's soicitude. he says, was
not due to any direct responsibility
but to his moral responsibility. The
trustees had nothing but ministerial
power and duties. They were mere
iy acting as a depository for the
funds. However. their names might
or might not have been used i'm rails
ing the stock. the extent of the sane
ton which they gave was merely to
have II said that they would supervise
the paying I'm of the money.
When the trustees were apprsed
mat there were stories anoat which
came dangerously near connecting
their names with questionable trans
actions. Mr.. Clark Immediately inves-
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