The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-06
HlsTl8f OF TIE SEMINOLE.
SUMMAIl OF THODS EMPLOY.
ED IN ORGANIZING THE COM.
PANY.
Genius of the Concern Was John
Aouhg Gariington-An Expert in
Seiecting Experts-A Specially
Made OF Prominent Citizens-NIod.
crn Methods Of High Finance In
troduced Into South Carolina.


respondent discovered and published
| that there had been "commission of
$76 per share, par value 800. in the
| transaction in which the Seminole So
curities Company purchased 1900
shares of the Southern Life Insurance
Company stock, it was thought that
big graft had been uncovered. But
IT now turns out that while this story
is true, 1t was only small piece Of
high financing compared to what had
been accomplished previously inside
the Seminole Securities Company.
TO summarize the developments at
yesterdays meeting Of stockholders.
and to state the muddled matter as
clearly as possible, the following was
brought out:
Tho Genius.
|. John Young Darlington, a native of
Laurens, who has lived in Atlanta and
Columbia, and is now in Chattanooga
was the genius behind the Seminole
Securities Company He was its
originator and its guiding star, and he
secuted the consent of three promi-
nent citizens of Columbia to lend the
use of their names as trustees. nomi-
nally, but under the agreement they
were trustees not Of the stockholders,
but Of the company, and merely did
what the board Of directors instruct
ed them to do. This board of direc-
tors was composed originally of Lau-
rens men, friends. and some of them
relatives of Darlington.
= Darlington had been State agent
for the State Mutual Life Insurance
Company, of Rome, Ca, and he form
ed a company called the Carolina
Agency Company, of which he was
first president, and then Mr.. w. A.
Clark, to take over this State agency
in the Rome Company A number of
prominent citizens We're put on the
board Of directors, and other promi-
nent citizens were induced to take
stock. 1t was a good proposition--all
of Garlington's propositions are good
the company getting the renewals
on all policies in the Rome company
written in this State; just like sitting
down and having candy handed 30
you, it appeared. For his agency Gar
lingon was paid $4,000 of stock In
the Agency Company, capital s125.-
600, the same to be issued To him
when the company should pay 20
per cent, annual dividend. It has
paid one annual dividend Of 10 per
cent. and the stock has, of course
never been issued to Darlington. But
Darlington retired from the Agency
Company actively. and Mr.. Clark was
elected president.
The Securities Company.
Darlington then proceeded to organ
ize--in Laurens, not in Columbia-thc
Seminole Securities Company, with a
capital stock of 100000. the primary
purpose of the company as set forth
being to organize and hold the stock
or a casualty company, the like Of
which there was none in this part OF
the country--a Southern Accident
Company. which should keep the
Southern peoples money at home.
When the company wass organized it
moved to Columbia and the three
aforesaid prominent citizens were Sc
lected as trustees.
GarllngtOn's Purchase.
Darlington took $4,000 stock in the
Securities Company, for which he paid
the $4,000 stock standing in his name
in the Carolina Agency Company.
The small detail that the agency
stock was not yet issued to him, and
was not in reality his. seems to have
been overlooked in the certifying to
the Secretary Of State that the neces-
sary proportion Of stock had been sub
scribed and paid for. All Of which
oversight may result in criminal ac-
ton If the stockholders demand ls
fulfilled.
Then to dispose of the stock Gar
lington employed expert" sales
agents. These agents justified the
Judgment Of experts" all right. The
head office Of the company was the
most CONSPICUOUS office in the City Of
Columbia-the corner office, ground
floor of the Carolina National Bank
building. at the heart Of the business
section Of the city. Around this cor
ner the tribe Of Seminole gathered on
Saturday evenings, when they came 70
make reports Of the weeks work In
this and other States. They wore the
most expensive and fashy clothes
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