The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1909-10-13
LOOKS FISHY
A Chicago Insurance Company is Trying
to Sell Stock Here.
BETTER LET IT ALONE

Insurance Commissioner McMaster
Gives Out Some Information About
a Big Concern Working This State
for Cash That Should Cause Our
People to Think Before Biting.
A Columbia dispatch says inquiry
has been made to Insurance Com
missioner McMaster concering the
United Insurance Company Of Chica-
go, with q claimed capital of $780,
100000 and surplus of $40,000,000.
The circular OF the company states
that 1t proposes to handle ffty-one
kinds Of insurance. The company
has not been licensed to do bust
ness in South Carolina. 1t is stated
that the company has an agent in
this State at the present time SELL
Ing stock. Mr.. McMaster stated that
he had no jurisdiction over an agent
selling stock for an insurance COM
pay and would not have any au-
thority over the company until it
had been organized and licensed to
do business in South Carolina.
On the circulars which, 1t Is said,
are being sent over the State, is
the name of MI. James A. Cathcart,
the well-known Columbia insurance
man, as a member of the advisory
board. Mr.. Cathcart, when een
gave the reason for the name be-
ing in the advisory board list.
He stated that through In old
friend Of his, an insurance man well
known and trusted, he had learned
Of the United Insurance Company,
he proposed to write ifty-one diff
ferent kinds Of insurance. The CAPT.
tai was to be $10,000,000 and sur
plus 100000 600. In many Of the
States the laws forbid an insurance
company from writing more than
one kind of insurance. This COM
pany proposed to be made up Of a
number Of subsidiary companies, like
the United Fire Insurance Company.
the United Life Insurance Compa-
ny. etc., the head company to be
the United Insurance Company.
A man by the name of Mr.. Shaw,
who Is well known to Mr.. Cathcart,
vas to have charge Of the United
Fire Insurance Company. Mr.. Shaw
had considerable correspondence with
Mr.. Cathcart in reference to his be-
coming a member Of the advisory
board, and that he would not be
required to subscribe to any of the
capital stock. He gave his consent
to the proposed company, in good
faith, thinking that 1t might be a
success. =
Several days ago a man, of bust
ness like appearances, called on Mr..
Cathcart at his Office. The agent
had a large number Of circulars tell
ing Of the United Insurance Com
pany and Its subsidiary companies.
In fact. explaining everything per-
tanning to, the United Insurance Com
pany. He had a long conversation
with Mr.. Cathcart and then stated
to him that before anyone could
become q. member Of the advisory
board that they would have to SUBJ
scribe to a certain amount of the
capital stock.
Mr.. Cathcart stated to the agent
that he was willing to subscribe to
a certain amount and asked him
to name the lowest amount that one
could subscribe to become q men,
her OF the board. The agent named
q very large amount and also stated
that a prominent insurance mar OF
the Piedmont section had subscrib-
ed to the same amount and was q
men Der CT the advisory board.
At the time Mr.. Cathcart told the
agent that he was not willing to In
vest the amount named and he might
consider the incident at an end.
The agent informed Mr.. Cathcar:
that he was going 70 make Colu -
bia his headquarters and would visit
the various towns of the State, In
order to sell stock in the company.
When the agent left Mr.. Cathcart
addressed a letter to the well known
insurance nan in the up-country and
asked him If he had subscribed TO
the amount of stock In the United
Insurance Company, as named by
the agent. The reply came that no
such amount had been subscribed,
and that the agent had "lied" when
he made the statement. 1t was also
stated by the up-country man that
he had no interest in the company.
The agent has not returned to Mr..
Cathcart.
In the last issue Of one Of the best
known and most substantial insur-
nee papers, mention Is made Of the
United Insurance Company. saying
that 1t was flooding the country with
attractive circulars. telling of how
they were able to write ffty-ons
kinds of insurance.
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