The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-12-23

Jop In organizing and eSta bliShing
an accident insurance business and
that they wished to purchase stock in
the Southern Life and have this COM
pany develop this feature Of the busi-
ness; that on or about September 20,
deal had been closed between the
two companies whereby the Seminole
Securities Company had purchased
and paid for $16O,0OO worth Of stock
in the Southern Life, and had paid
therefor $15O.000, $4,000 in cash,
$4,000 in certificates Of deposit, due
between December 1 and December
20. and $4,000 in notes. That the
Seminole had also contracted and
agreed to pay for $4,000 more Of
stock at the same price as the $10S,-
600, Or about $141; that $4,000 more
Of stock had been purchased from
parties at prices ranging from $11s
to $140.
"Mr. Cooper disclaimed most em.
phatically to have any connection with
the Seminole Securities Company or
to have more than general informa-
ton OF its affairs. When called to his
attention that Mr.. Darlington had
stated that $21e has been paid by the
Seminole for the Southern Life stock,
he stated that he knew that to be the
fact, and when asked as to the differ
ence between what had been paid in
to the treasury Of the Southern Life
and the amount actually paid by the
Seminole. he stated in a general way
that whole lot Of commissions would
account for that.
"Mr. Cooper stated most emphati-
cally that the Southern Life had de-
clined to issue the stock in the name
Of the Seminole Company. but had in
sisted upon its being issued in the
name of w. A. Clark. T. s. Bryan and
Willie Jones, trustees, with power Of
voting the same for 10 years, in and
for the best interests Of the Southern
Life.
commissioner McMaster immedi-
ately reported to Commissioner Young
his conversation with Mt. Cooper, and
Commissioner Young wrote on Novem-
Der 30 stating that he had sent his
actuary to Fayetteville to get inform
alton.
+"Commissioner Young has gone to
Chicago on important business, and
the understanding between himself
and Commissioner McMaster is that
upon his return such examination as
will be necessary will be made into the
Southern Life. There are no doubts
In the minds Of either commissioner
as to the complete solvency OF the
Southern Life. But Commissioner Nc
Master desires to have full and COM
plete information as to the deal made
between the Seminole Securities Com
pany and the Southern Life Insurance
Company.
1T may be stated in closing that the
authority Of the insurance commits
sionar OF North Carolina and Of other
States extends to investment compa-
MES. building and loans and such like
companies. but no such power has
been conferred upon the insurance
commissioner Of South Carolina. Com
missioner McMaster states that during
the past summer he discussed the mat
ter with Hon. w. l. Smith Of Camden
and Hon. NJ. w. Coker Of Columbia.
both Of whom expressed their purpose
to confer such power upon the COM
missioner by act Of the general as
sembly.
However, Commissioner Young
under date Of October 2S, in reply to
the first communication from Commits
sioner McMaster stated that applica-
ton has been made to him by the
manager Of the Southrn Life to allow
the Seminole Securities company to
go into the State Of North Carolina to
sell stock, but that he had refused to
allow this unless the Seminole would
qualify under the law, which requires
complete showing Of all Of their
transactions. He stated that he sup
posed that the Seminole Securities
company was not willing to do this, as
they had not yet done so.
"All of the above information has
been on file in Commissioner McMas-
'er's Office, and he has placed 1t at the
disposal Of all interested inquirers
who have called upon him for infor-
nation. He has absolutely no more
authority over the Seminole or any
other investment companies chartered
under the laws Of this State than a
l.