The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-06
SIlIN0LE SCANDAL.
SPECIAL COMMITTEE MAKES
FULL REPORT.
Mr. W. A. Clark for Trustees and
Others Tells of Examination of
Books-ImpOrtant Recommends.
tiOns--Mr. Clark's Statement.

From the State, Dec. 81.
An interesting report was made at
the meeting OF tie stockholders vf the
Seminole Securities company yester-
day by the trustees, Messrs. w. A.
Clark, Willie Jones and T. S. Bryan.
Inc trustees as members of a special
committee were requested to secure
the services of an accountant to ex-
anime the books of the corporation.
The services Of Mr.. Chas. H. Highley
were secured. The latter is we'll
known In Columbia, having been en-
ployed by the City Of Columbia sever
al months ago to work on new sys-
tenn of bookkeeping. Mr.. Clark said
that the committee was divided on
the proper course to pursue and on
behalf of the trustees he submitted
the following report with recommen-
dations:
ITO the Stockholders of the Seminole
Securities Company:
| N"Pursuant to q resolution adopted
at a meeting Of the stockholders i'm
the city Of Columbia on December 12.
at once. interviewed Mr.. Charles H.
| Highley of the firm Of Chas. H. High
ley & Co., public accountants, and
entered into contract with them for
the purpose of examining the books
and assets of the Seminole Securities
company and make his report to the
| stockholders at their meeting ir this
city on the 29th instant.
Our committee is informed that
they (the accountants) commenced
their work on the 14th instant; thei,
| work required time and the report
has been delayed. A telegram re-
ceived last night from Mr.. Highley in
| forms us that he will reach Columbia
Via Asheville, today at 2.30. We re-
| gret that the accountants have been
Unable to furnish the result OF their
irvt stigation at an earlier date and
we have not seen their report, and are
unable to make any recommendations
Our committee would recommend
that the board of directors Of the
Seminole Securities company be re-
organized by adding thereto not less
than nine new members, and the
board as then constituted be then
authorized at once to confer with the
board of directors of the Southern
Life Insurance company for the pur-
pose of reaching, If possible, an
equitable adjustment and settlement
of the recent purchase of 100000
shares Of the capital stock Of that
| company by the Seminole Securities
company, and our committee would
recommend that the board be author
| lied to examine the books and as
sets Of the Southern Life Insurance
company through some recognized
public accountant Of recognized stand
ing and ability and on the coming in
of the report, that the purchase OF
stock be readjusted on the basis OF
the value Of the stock as designated
in the report Of the accountant.
1--WE further recommend that in
the event that the board Of directors
of this corporation should fail to get
satisfactory settlement with the
Southern Life Insurance company
that they then be authorized to confer
with counsel and If they then see it is
| advisable. that they be authorized to
| institute proceedings against the
Southern Life Insurance company FOR
the purpose of resembling and setting
aside said purchase and recover from
Southern Life Insurance company the
money or assets paid upon the said
purchase, and all notes in settlement
be cancelled and surrendered. Our
committee, however, feels sure that
the best methods of securing the in
terests Of the stockholders will be on
the basis Of some settlement as
above referred to and thus avoid Iiti-
| cation in the courts.
"A few days after the meeting OF
the stockholders in the city of Co.
lunib!a on the 9th, suit was irst.-
tufed by j. S. Klugh and o.he,s
against the Seminole Securities COM
pany. snd application was made BE-
fore his honor Judge r. c. Watts for
the appointment Of a receiver. The
hearing upon this application was
held at Cheraw on yesterday AID
Judge Watts has declared his purpose
10 appoint a receiver in the case.
Our committee would, therefor,
| recommend that a committe of stock
holders be appointed by this meeting