The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-27
CELEBRATED CASE GOES INTO
THE FEDERAL COURTS.
Receivers for the Seminole Ask That
The Southern Life Insurance Conn
pany be Required to Return to the
Seminole the Amount Paid TO He
bert i'm the Purchase Of Stock and
The Contract CanceIled-Fraud
Freely Alleged.


ing the status of the case and reciting
the history Of it, goes on to say:
3. That the value of the said stock
OF the Southern Life Insurance Com
pany at the time Of the said sale and
prior thereto was worth less than par
(and the par value thereof per share
wa% fifty dollars,) and your orator
Is informed and believes that its value
was $40, or less, and some of its stock
had sold in the markets for $35 per
share. just prior to the contract with
the Securities company aforesaid, all
Of which was we'll known to the Off
GERS and agents of the said the South.
ern Life Insurance Company and to
the officers and agents Of the said
Seminole Securities Company prior to
the said sale and at the time thereof.
10. That c. ]. Hebert was agent in
the employ of the said life insurance
company ard represented it in nego-
tiating the said sale of the stock to
the Seminole Securities Company. and
also at the same time was in the en-
ploy of the Seminole Securities Com
pa;.y and represented it in the pur-
chase thereof, and the officers and di-
rectors of both of the said companies
knew that he was acting for both
companies in this matter.
IL. That the Southern Life Insur-
ance Company employed the said He
bert to act in connection with it's gen.
eral manager, c. J. Cooper, to induce
the officers and agents of the Semi
mole Securities Company to enter into
and carry out the said purchase and
sale, and therefor agreed to pay 10
the said Hebert and allow him to re-
tain from the funds received. for him
self and associates Ito wit: the officers
Of the Seminole Securities Company,
g. large proportion of the purchase
price of the said stock, to wit: about
$4,000, designated as commissions.
IL. That the conduct and actions
of the officers and directors of the
said Seminole Securities Company and
the agent, Hebert, as hereinabove al
legged, was without authority of the
stockholders of the said Securities
Company and without any notice to
the said stockholders thereof, and
was never authorized nor ratified by
the said stockholders, and was fraud
on their rights and a fraud upon the
said Securities Company, and we'll
known to the said Life Insurance
Company so to be, and was induced
and brought about by the officers of
the said Life Insurance Company and
their agent, the said Hebert, and par
ticipated in by the officers of the said
Life Insurance Company, who COM
bineu and conspired, together with
the said officers and agents Of the
said Securities Company, to consum-
mate the said fraudulent transaction
as herein alleged.
13. That the said transaction was
conceived and consummated in fraud
Of the rights of the stockholders and
creditors of the Securities Company
and the Southern Life Insurance Com
pany, it's officers and agents, had
knowledge Of the fraud and partici-
pated therein and profited thereby,
and conspired and colluded with the
officers and agents OF the Seminole
Securities to defraud the said Securi-
ties Company by means of the said
contract, and did thereby fraud the
said Securities Company and damage
1t to it's great and irreparable hurt
and injury
IA. That as a result Of the collusive
and fraudulent transactions herein
above alleged the Seminole Securities
Company has been entirely wrecked
and ruined, its credit destroyed, its
assets wasted and dissipated, and it
has thereby suffered loss and injury
Of not less than three hundred and
twenty-five thousand dollars $685.
0O0.)
15. That your orator has no ade-
quate remedy in a Court of law, be-
cause it is necessary that the fraudu-
lent transactions hereinabove describ
ed be rescinded and set aside and
status quo restored as far as may be,
and an accounting had as to the loss
and injury suffered AMI sustained by
your orator on account thereof, and
unless the aid of this honorable court
is given, your orator is without any
adequate remedy.
Wherefore your orator prays: