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

Charleston stockholders, argued ~o1
Immediate action. and said that there
had been "an absolute and wantor
disregard Of contract rights, both by
the trustees and the Seminole, and the
sales in Charleston were fraudulent
through the representations made"
The situation was fully argued pro
and con, Messrs. Muller and Weston
insisting on delay in behalf Of the
trustees, Gen. Bellinger wanting time
for the Seminole, and Mr.. Grier, Mr..
Nelson, Mr.. Lyles and Mr.. Huger
Sinkler arguing that time would do
no good, but that what they wanted
was for the court to get hold Of the
Seminole and wind up its affairs OF
all the assets would be dissipated.
The Hearing Postponed.
Judge Watts inquired if the delay
was asked in good faith, and only for
the purpose Of securing data and time
in which to make full returns, and be-
ing so assured, said that the charges
against the trustees and officers of
the Seminole were serious, and that
he would not take snap judgment and
he could not see where there: would
be any harm in a weeks delay, and
he therefore signed an order fixing
the hearing for next Monday at Che
raw. Judge Watts, in his ruling, said
that "legal fraud" had been charg-
ed, and that this is an interesting ex-
preston in connection with this en-
tire Seminole matter. The issue now
is whether there has been illegal
fraud" and that is for the courts to
decide.
Mr.. John Y. Darlington, the real
brain Of the Seminole scheme, said
they sold Gin the neighborhood of
something like ,s215,OOo to $22O,0Oo Of
Stock - or the equivalent Of about s.
900 bales Of cotton. Mr.. Darlington
is wise and clever. He told the stock
holI rs who questioned him that he
knew nothing except what was in the
official records absolutely noXh.
ing''-and these records we're in
Chattanooga. When asked if he had
authorized certain statements to buy
ers in Charleston, he said: ~ never
had an interview with Mr.. Graft. Mr..
A. D. Mckinney was manager at Co.
lumbia and gave the agents the dope. "
There are stockholders now who think
that they were properly "doped," as
Mr.. Darlington expressed it. The
plan Of the Seminole was all right,
and it is high time for South Carolina
people to organize and manage insur-
anee companies. People who took
stock saw it that way, no doubt, and
the only question is; whether their
money has been squandered or not.
The Seminole side is yet to be heard.
To begin with, when stock was
taken on par basis Of $100 per him
dred shares $3.50 was paid. Now It
appears that $50 of this went 70 pay
commissions to selling agents and eS.
penses. Out Of every $3.50 paid $50 is
dissipated for agents commi:sio
and expenses least such Is tn:
testimony. Then inst~ad of organizing
casualty company as proposed The
suggestion was made to buy stock in
the already established Southern Life
Insurance company, Of Fayetteville,
N. C. :...-.
Where the Commission Went.
Now on the purchase Of this stock
hinges the whole situation, but aside
from the legal status it is officially
reported that commissions were paid
c. J. Hebert aggregating $74,716.85.
This much the Southern Life reports.
This particular $4,000 came from the
funds Of the Seminole company, and
according to Hebert's contract he got
80 per cent commission. Therefore,
out of every $3.50 paid for stock $50
went to the field agent and for e1-
penses and $50 to Hebert, or he and
his friends. That leaves $40 for ac-
tual investment out Of each $3.50 paid,
or agreed to be paid by notes. "But,"
says Mr.. Clark in his testimony on
the matter Of commissions, II asked
Darlington one afternoon if Hebert
was to be paid anything in this trade
b. way Of commissions or otherwise.
He told me not one cent by way Of
commissions, but he had agreed to
pay $4,000 for services rendered him
in bringing about this deal with the
Co-,;~o1o ,,oan4;ono5 4bo+ to Mr.