The herald and news. [volume] (Newberry S.C.) 1903-1937, 1908-12-18
THE SOUTHERN LIFE EXPLAINS
More Light is Shed on the Seminole
Deal.
News and Courier.

OSd1.
News and Courier.
Columbia, December l5.-Insur-
ance Commissioner McA1aster this af-
ternoon received the report Of the
Southern Life Insurance Company, of
Fayetteville, n. c., in regard to the
recently discussed transaction by
which stock Of the Southern Life
Company was sold to the Seminole
Securities Company, Of Columbia,
through c.. j. Hebert. The report
covers several typewriter pages, and
number Of exhibits are enclosed re-
lating to different phases Of the
transaction, but nothing new is devel-
oped except the particulars Of how
the cash. certificates of deposit and
notes received by the insurance COM
pany, were distributed.
The report gives copy Of an agree
ment entered into on July Is, 1908,
between the Southern Life Insurance
Company, and c. J. Hebert, by which
Hebert was to sell stock Of the COM
pany up to $5OO,000, less the capitali-
zation at that time Of $165,O00, at the
rate Of not less than $100 for each
$50 share, and Hebert was to pay the
company $40 per $50 share. In addi-
ton he was to receive bonus Of ST.
500 in stock on every 100000 sold.
The report goes on to relate how Heb
ert made efforts to sell this stock IN
different States, and sets forth that
he went to the expense Of employing
sales agents, ETC., his letters and tele-
grams in regard to all these matters
being given.
In September, it is stated, Hebert
opened negotiations with the Semin-
ole Company, and at first made a pro-
position to the terms of which the
Southern Life did not fully agree.
But on September 10, an agreement
was made by the Southern Life,
through Hebert, with the Seminole
Company, by which the Southern Life
agreed to sell the Seminole Company
$15O,0OO worth Of stocks as follows
One hundred thuosand dollars worth
of stock for 100000, half in cash and
the balance on notes Of the Seminole
Company, with interest at 6 per cent,
due one year from date, and secured
by the stock Of the Southern Life ;
$4,000 Of stock for $l25,OOO, half IN
cash and balance on same terms as
the above. The Southern Life also
agreed to give the exclusive sale OF its
stock in the remaining amount OF
100000, to the Seminole, said stock
to be sold in two years at a price to
Weld the Southern Life not less than
$3.50 per $50 share.
In the report it is set forth that the
Seminole Company, in closing this
transaction, paid to c. j. Cooper, gen
eral manager Of the Southern Life,
the following: Cash, $l6,4 ,464; time de-
posts, s123, ,321.72, notes Of the Semi
mole Company, 162,500, due in one
year and secured by the stock Of the
Southern Life. It is then stated that
Cooper, as general manager, paid to
Herbert $7,416,85 in certificates Of
deposit. and notes Of the Seminole
Company amounting to 1900, said
notes not being endorsed by the Sou
thern Life. It is not stated, however,
whether these notes are secured by
the stock Of the Southern Life,
though that might be understood from
the above.
The report gves on to state that
there went into the treasury OF the
Southern Life the following: Cash,
Sl6.464; certificates Of deposit, $llo,-
904.87: Seminole notes, $95, 200; a
total Of 1927, ,568.87. Out Of this to-
tai was paid s42,295.87 for individual
stock purchased for the Seminole
Company. leaving a net balance OF
s185,173. representing an increase in
capital of $4,000, and $70,273 in
surplus.
It is stated very positively that no
offices Of the Southern Life particl-
pated in any commission in the trans
action and that no such thing was ev-
er contemplated.