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

Columbia. December 14.-Insurance
Commissioner McMaster today gave
out the following statment, covering
fully the recent transactions in which
tho Seminole Securities Company and
tho Southern Life Insurance Compa-
NY are concerned:
III the full page advertisement in
the State yesterday morning conveys
the impression that the Southern Life
Insurance Company, Of Fayetteville,
N. c.. is licensed to do a health. acci.
dent and liability business In this state
a. we'll as life insurance, a wrong i'm
preston ID. created. This company Is
licensed In South Caroline to do only
life Insurance business. II never
made application to do accident and
liability. business until December ..
isVS. In view Of the DEVELOPMENTS
concerning tho Seminole Securities
Company. the commissioner returned
the rendered license fee and declined
to Issue the license to the company
10 90 an accident and liability bua-
ness until he was satisfied of the con-
nection of the Southern Life or any
OF Its officers with the Seminole se-
curities Company. He immediately 80
advised the company. and. therefore,
until tho license to do an accident and
liability business Is issued, the South
ern Life Insurance Company IL not
licensed to do such business In South
Carolina.
The commissioner has been advised
by telegraph and by letter from the
southern Life Insurance Companv.
that It will forward a complete and
detailed statement Of its connection
with the sale OF its stock to the Semi
nole Securities Company. He has NOT
Yet. received this detailed statement.
but In q letter received from Mr.. ]. C.
Cooper. manager Of the Southern Life
insurance Company. the following
statement 10 made: We state en-
phatically that no ofYicer CHARGED with
the transaction between the two com.
panies or any other officer connected
with the Southern Life Insurance
Company. has participated, directly
or indirectly. either near or remote. in
any part Of the commission paid. and
we have no evidence at our command
10 lead US to believe. or justify us IN
charging that any officer OF the ssm,.
mole Securities Company participated
In the same
In this connection. 1t may be Well
enough to review for the public the
whole situation 80 far as the depart-
mens OF insurance Is concerned. saws
Mr.. McMaster.
shortly after the organisation OF
the Insurance department. when the
commissioner was seeking to require
all companies within the Jurisdiction
or tie department to take license and
TO make statements of condition 10
the department. he set afoot an inves-
tisation to learn whether or not he
should require the Seminole Securities
Company so to do. He cannot give
the exact date. but his recollection
- that II was In April or MAY, he
called upon Mr.. w. A. Clark, and in
quired as to the business that sthe
Seminole Securities was doing. He
was informed by Mr.. Clark that he.
Mr.. Clark. Mr.. T. 8. Bryan and Gen.
Willie Jones were the trustees OF the
Seminole Securities Company. which
mad been organised as a holding COM
pany. That at the present time, the
Seminole Securities Company had no
interest In any insurance company or
any insurance agency. That IL was
not then. nor did II expect to do an
insurance business. such not being
within Its charter rights. But that IL
did expect. when II had $l50,0o0 In
the treasury. to organize the Sterling
Accident Company. II was proposeJ
10 capitalize the Sterling Accident
Company at 100000. and in order
that this capital should not be i'm
paired. the Seminole Company would
pear the expense and care for the los
ses under contract with the Sterling
accident Company. until the Sterling
Accident Company could show a profit
ana there would be no danger of i'm
pairment of Its capital. That when
the sterling Accident Company was or
sahized. II would apply to the insur-
ance department for license. and that
the Insurance department would have
tuii notice OF its organization. That
In the meantime the Seminole Securi-