Fort Mill times. [volume] (Fort Mill, S.C.) 1892-current, 1909-01-07
RECEIVER FOR SEMINOLE.
Judge Watts Hears Argument and
Sees no Other Way to Protect the
Stockholders.

Sees no Other Way to Protec. the
Stockholders.
Cheraw, Special. = Judge Watts
Tuesday night, after hearing the ar
guments, announced that he would
appoint receivers for the Seminole
Securities company in accordance with
the request of j. G.. Klugh. He, stated
that on the allegations made he was
satisfied that there should be an in
vestigation of the affairs that could
only be done by a receiver "If it
be true" said Judge Watts. "that
these commissions were paid, it shocks
my conscience. Of course, it is n
bad blow, but l see no other remedv.n
The bond was fixed at $4,000 for
the receivers and $150,000 for the
value of the property. Messrs Huger
Sinkler and Frank G. Tompkins were
suggested by the attorneys for the
plaintiffs and others may be suggested
by the attorneys for the defendants
Wednesday. The case was long one,
but very interesting. The passengers
between the attorneys, the allegations
made an danswers returned, the argu-
ments, were all listened to closely.
The argument of attorneys for Klugh
was that the Seminole company was
mere shell and for the protection of
the stockholders the receivers should
take charge. The argument of attor-
neys for the trustees was that the
trustees were not responsible for the
action of some of the agents and that
no case had been made out: also that
there was protection inside the COM
pany that had never been asked. The
argument of Mr.. Bellinger for the
Seminole company was that the ale
cations were irrelevant and there was
protection inside the company for the
stockholders.
Judge Watts said in part: az am
of the opinion that justice impera-
lively demands that receiver should
be appointed. think that under the
showing made that it is an exception
to all cases that have been before our
supreme court and tie allegation here
is that the stock was purchased from
the Southern Life at an extravagant
price, the price doubly more than it
was worth, and [ think that matter
should be looked into and / unhesi-
tatingly say that the commissions
paid shocks my conscience. If they
are true it is a shock to any business
man in the world. AS to whether or
not it is true | do not know. ! am
not saying that it is so or not. 1t is
an allegation made here before me
and / realize the fact that whenever
you put a corporation in the hands of
receiver you strike bad blow but
the directors and president brought
this state of affairs on themselves,
and it is high time that the strong
hand of the court should interfere
and allow the matters to be invcsti-
gated by receiver and let whatever
assets that can be recovered be put
in the hands of the court for the
stockholders.
''I will hear nominations for the
receiver"
Judge Watts Wednesday announc-
ed the appointment Of three trustees
for the Seminole Company: F. G..
Tompkins, E. J. Etheridge and Huger
Linker.
The stockholders on Wednesday
met in Columbia and accepted the
resignation Of the old directors. The
meeting adopted the following:
Resolved, That the board of direc-
tors to be elected today proceed at
once to collect all evidence of criminal
action on the part Of any agent. Of
ficers or employees of the Seminole
Caouritiac COnpapv ond low tba cop,a
before the States Attorney General
and request that wherever the evi-
dence justifes, criminal proceedings