The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1909-03-31
SCORES Them
McMaster Takes Cooper and
Lacy Severely To Task For
SOME OF THEIR ACTS

some OF THEIR ACT
In Connection With the Sonthel
Life and the Seminole Companie
He Revokes the License Of tn
Former and Shuts 1t Out Fro1
Doing Business Here.
! Colum bia, March 25.-Commis
sioner McMaster this afternoon in
letter to the Southern Life Insu1
ance Company, Of Fayetteville, \
c., revoked the license of this com
pany to do business in this State
The time for the renewal of thi
company's license was fixed for Apri
|, but the commissioner felt that b
should take immediate action in th,
matter.
The facts IN the case are general,
| familiar. The controlling interes
in the Southern Life Insurance Com
pany was purchased by the Seminole
Securities Company, of this city, the
price paid for the stock being in ex.
cess of its par value and alleged
to be far in excess of its marke:
value.
The transactions Of the sale were
conducted through General Manager
G. J. Cooper, of the insurance com
pany, and B. W. Lacy, the actuary
and C. J. Herbert, one Of the princi-
pal stock promoters of the Seminole
Securities Company. 1t was charg-
that enormous commissions were
paid in the transfer. When these
matters came out in the proceedings
brought against the Seminole Secu-
rites Company, Mr.. Mc.Iaster order
ed the insurance company to show
cause why It's license should not be
revoked. Two or three hearings
were held.
Mr.. McMaster states in his letter
that he has no desire to alarm the
policyholders, but the evidence shows
that enormuos commissions were
paid those directly interested in the
deal, the other officers and directors
Of the Southern Life Company being
in ignorance of the details.
The deal, he said: Was per-
neated with evidence of stock job
bing and high finance and both
Lacy and Cooper are condemned as
men unworthy Of the management
Of such concern. Commissioner
McMaster says in his Letter to the
Southern Life:
The Commissioners Letter.
due to the fact that from the evi-
ience before me, and from the best
obtainabie information, the policy
holders in the Southern Life 1nsur-
.nce Company are protected by the
deposits in the hands of the insur-
ance commissioner of North Carolina
and other assets Of the company, I
to take more prompt action in this
matter, nor did I desire to alarm
the minds of the policyholders un-
duly, which would have been done If
positive action had been taken dur
ing the time of uneasiness caused
by revelations Of the dealings with
the Seminole Securities Company and
the legal proceedings incident there
to. But 7 do feel that 1t is duty
this department owes to the public
to make a declaration on the sub
ject.
Il make no criticism Of the several
general officers, the executive COM
mittee or the board Of directors of
the company, who were in ignorance
Of the dealings between Mr.. c. j.
Cooper. treasurer and general man
ager of the company, and Mr.. c. J.
Hebert, appointed by him as sales
agent of the stock of the company
and Mr.. B. ". Lacy, vice president
and actuary of the company, with
the officers Of the Seminole Securi-
ties Comapny, these four parties be-
ing apparently privy to the transac-
ton Of each other and more or less
concerned therein. Indeed there IS
no conclusive evidence of the fact
that the other officers of the com.
nany had any means Of knowing }:
the dealings of C. J. Cooper and p.
W. Lacy, Jr., with the other parties
named. The evidence goes to prove
that the executive committee anu
directors of the Southern Life Iu'
surance Company were Intentionally
kept in ignorance of the purpose and
extent of the dealings of c. J. Cooper
and B. W. Lacy with c. J. Heber'
and the officers of the Seminole
Securities Company.
without going into the detail:
Of the matter other than to say thai
the offering to make C. ]. Cooper
general manager of the Southern
Life Insurance Company; contrac
with C. ]. Hebert for the sale o.
stock in the Southern Life lnsur
ance Company before the same wa:
authorized by the stockholders of tht
Southern Life Insurance Company
and of the making of this contrac
with C. ]. Hebert. and not reporting
the same to the executive commltte
and directors of the company; tn
dealings between Messrs. Cooper ant
Lacy on IRE one side and Hebert AM
the Seminole Securities Company Of
the other. whereby enormous com
missions were to be paid and stocl
to be sold to the public at enormou
prices, indicate an utter dlsregar
of the principles of fair dealing an
were so far permeated with the es