Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1909-01-01
THE SEMINOLE INQUIRY.
What Was Done In the Stockholders
Meeting Last TuesoaL.

| lCOHNSHllOH lOudy VI lilS SlOShIloiuSi1 :
Of the famous Seminole Securities
company, held in the court house, to-
ward the three local trustees, Messrs
Wllie Jones, w. A. Clark and L. s.
Bryan and President Darlington and
ms officers and the directors Of the
the company, and the meeting, which
| was attended by about three hundred
prominent men representing five
nelshooring states, took action looking
not only to legal proceedings against
| the wealthy trustees to recover the
losses Of the company, but to criminal
prosecution of the directors and Off
GERS Of the company.
President Darlington. who promoted
and carried the scneme to completion
through the assistance of the trustees,
was called for; but nobody volunteered
to say where he might be found. An
attempt was made to include the trus-
tees in the criminal proceedings, but
lnis failed after a heated discussion.
Three and halt hours Of hot debate
ended with adjournment for dinner af-
ter a committee of five had been ap-
pointed to nominate nine new directors
TO take the place of the present direc-
tors, whose designations were accepted
along with those Of the trustees ana
officers.
The final action Of the morning ses-
lion Va. tho olr,oSt ma pipoouS adm
don Of the following resolution offer
ed by ex-Speaker of the House w. F.
Stevenson: Resolved, That the board
Of directors to be elected today pro-
ceed at once to collect all evidence OF
criminal action on the part of any
agent, officers or employees Of the Sem
| mole Securities company and lay the
same before the states attorney gener-
al and request that wherever the evil
dence justifes, criminal proceedings be
instituted; and that the directors do
give careful attention to pushing the
prosecution"
The afternoon was still more pro-
| life of sensations. After the election
Of nine new directors, who were en-
powered to negotiate with a committee
of the Southern Life Insurance COM
pany to effect the best settlement pos
sible with that concern and wind up
the affairs of the company If they
deemed best, the convention listened
closely to the reading Of the financial
statement, hurriedly prepared by
Charles H. Kelley of Heiley & Co.,
public accountants Of Augusta, Ga,
whom the trustees employed to go to
Chattanooga and investigate the books
Of the Seminole company.
The new directors are: R. T. CASTOR
Cheraw; Campbell Courteney, Newry;
T. w. Berry, Latta; E. ]. Etheridge
Leesville; A. M. Kennedy, Williston;
]. B. Watkins Of Florida; Julian S.
Carr of North Carolina; S. M. Smith
OF West Virginia; c. M. Smelling OF
Athens, Ga. These were the names
suggested by the nominating commit
tee
During the reading Of Mr.. Heiley's
report inquiry was made for the books
carried to Chattanooga. Mr.. Heiley
laid that as he was about to leave
Chattanooga, Mr.. Darlington told him
he was sending in his resignation as
president and asked Mr.. Kelley tc car
ry the books along and turn them over
to the proper authorities at Columbia.
On arrival at Asheville Mr.. Kelley said
BOOKS, which he had placed by the side
IF his berth in the Pullman, and the
most dilgent search through the train
failed to recover it.
Voice: WAS Darlington on the
train?'
Mr. Kelley: mo; 1 recognized no
me knew on the train. Fortunately,
had my report in another travelling
bag. 1 Immediately wired Darlington
to institute search at his end"
Voice: Il understand Darlington was
n Asheville today"
Mr.. Kelley said the officers made
check stubs, in different records CT
money laid out and records Of stock
issued, the records at Chattanooga and
elsewhere showed 270,672 shares OF
stock. OF the money received over
$4,000 went to agents for commits
sicns on sale Of stock. Among the as
sets, totaling s436,O76.31, the company
holds 1900 shares Of Southern Life
stock, S324,9S5.75. The next largest
item is $4,000 worth Of stock in the
Carolina Agency company, which holds
the general agency for this state of the
Rome, Ca, Mutual Life. Mr.. Clark is
president of the agency company.
Statement From Mr.. Clark.
Called on for a statement, he said
the company was organized with cap
ital of $125,OOO, Darlington being given
$4,000 stock for his general agency.
But Darlington was to get nothing un-
I'll the company earned enough to pay
/ dividend of 20 per cent for a period
Cf years. He admitted that he had not
this and that the market value of the
stock was hardly more than 80 cents
IN the cellar. He said he knew moth
ing, as trustee, Of this deal with the
Seminole. The agency still held this
stock and he would refuse to turn it
Jver till the dividend conditions were
met.
Mr.. Heiley's report showed the Sem
nCle was still due Mr. Darlington $24,-
600. 1t seems Darlington assigned this
agency stock to the Seminole for an
.qual number of shares in the Semi
mole and got busy selling this Semi
mole stock, failing by $4,000 to finish
when the crash arrived.
The books revealed a curious trans
action between Sales Agent Mckinney
md the Seminole directors. He enter
ed into a contract to sell stock at per
cent commission. Later he sold at a
premium and the company bought up
his contract for $4,000 and all hands
began selling at a premium
In answer to questions Mr.. Clark ad-
mitted he was paid $1,000 and the 9TH