The Robesonian., 1908-12-14
THE SEMINOLE MIDDLE.
Much Stock of the Seminole
Securities Company Placed in
Robeson-Deal With Southern

Life Denounced as a Fraud.
Much interest is felt here and
throughout the county concern
ing the revelations made during
the last few days about the Sem
mole Securities Co. Many peo-
pie throughout the county pur-
chased stock from the smothO
agents that visited this section
last spring, and now they are
wondering where they are ''at. "
Additional interest is felt on ae-
count of the connection of the
Southern Life ms. Co., Of Fay
etteville, with the revelations.
The Seminole Securities Co.,
organized at Columbia, S. c.,
last spring, was formed to fl
nance the Sterling Casualty Co.,
and for this purpose the stock
Of the securities company was
sold at $3.50 a share, par value
800, the casualty company to
be started with a surplus equal
to half the capital stock. Re-
Gently, however, the securities
company advertised a change in
its plans and announced that it
had purchased an interest in the
Southern Life Insurance Com
pany, of Fayetteville and that
Pthis company would open head
quarters in Columbia and do a
life and accident business. Short
| ly after this announcement the
life insurance company did open
offices in Columbia and the head
quarters of the Seminole Securi-
ties Company was moved to
Chattanooga, Tenn.
Three trusted and distinguish
ed men of South Carolina A.
Clark, president of the Carolina
National Bank; Gen. Willie Jones,
president of the Palmetto Nat
ional Bank; and T. S. Bryan,
president Of the R. T. Bryan Co. -
were named as trustees of the
company.
The Seminole Securities Co.
purchased $3.50, 900 Of the stock
of the Southern Life Insurance
Co. and it is charged that J. Y.
Darlington, the president of the
securities company, and those
associated with him, received
from the Southern Life ms. Co.
a very large commission, report.
ed to be about $40, 1000, for carry.
ing through the deal. This dea
has been characterized as ar
outrageous fraud on both com
panies and the stockholders Of
the Seminole have been advised
to get together and protect theil
interests. In a communication
of the 5th to President CARING
ton the trustees named above
state that they regard the dea
as a fraud upon the stockholderl
of both companies and a f1agran
breach Ct trust on the part of the
officers of each company connect
ed with the transaction. The,
state further that they are un
willing longer to be associated
E in any way with the affairs O.
the Seminole Securities Co. ant
that they withdraw from an,
+ further participation in it's affairs
! President Darlington says ther
r is nothing the matter with tn
, company; that it has alread
> earned large profits and if lie
! alone would pay a handsome div
+ idend next spring.
! The Columbia correspondent
: of The Charlotte Observer state
t that it is regarded as praticall
+ certain that the Legislature wi
appoint a commission to thorough
ly sift the whole transaction
!. Large quantities of stock wer
S sold in several States, and
), numbers of cases investment
u this stock represented the har
J. savings of many years of peopl
: of limited means. It is said ths
q some men and women investe
n their all in the stock on the pr
e mise of 20 and 40 per cent. di'
3 idends. It's also stated that tt
a people of Columbia generally he
e no faith in the proposition fro
the beginning and have been pol
o ing fun at the gaily dresse
n agents all along.
Ie Not a great deal of stock VIZ
IS placed in Lumberton, but it
IS understood that in other parts
l. the county a great deal of sto'
il was sold.
n Mr.. C. J. Cooper. of the Sout
r, ern Life, has announced that
K full statement of his company
If part in the transaction is bel
Id prepared which will be a reput
:. tion of the charges.
at Since the above was put
n, type it has been learned that t
a trustees have withdrawn tn
l., resignation.