The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-01-06

Coming with letters of recommends
ton and endorsement from the promi
nent, citizens Of the Capital CITY. the
sales agents found easy marks in all
parts Of the State and in other States.
and ii develops that there were in all
270,672 shares, par value one dollar
each. At first the stock was placed at
par, but later it was disposed of at
premium of so cents on the dollar
the thing was SO easy. 1t was repre-
sented that the premium was to be
used for surplus for the casualty
company that was to be organized,
but it developed at yesterdays meet
ing that at first the agents were paid
a commission of 25 per cent. out Of
every hundred dollars, but that later
they were paid 25 per cent commits
sion out Of the premium, and in addi-
tion bonus for sales for cash or
certificates of deposit, which, of
course, meant that if they sold stock
at $50 they got The fifty. For tn
reason the agents became anxious 20
secure certificates Of deposit, and IN
would take prominent citizens NJ
to the bank. offer to discount it a.,
leave the money on deposit, taking a
certificate of Deposit
Plans Changed.
In October it was announced that
the plan Of organizing casualty COM
pany had been abandoned, and that
in stead, to save the expense of or
ganizing (Which evidently would
have been considerably the Seminole
Company had decided to purchase
control Of we'll established life in
surance company, and that control of
the Southern Life Insurance Company,
of Fayetteville. n. c., had been
bought The headquarters of the
Seminole were then moved to Chatta-
nooga, and Darlington went with
thm, but the Southern Life opened a
branch office in Columbia, on the third
floor Of the Natioral Loan and Ex-
change Bank building.
Big Commissions Paid.
Pretty soon it began to be whisper
ed that there was big rake off of large
proportions in this deal with the
Southern Life, and it was developed
that, while the Seminole Company
paid at the rate Of s216 for 500
for $4,000 shares of the Southern Life.
the Southern Life actually received on
ly $140 per 500 share. 1t was ex-
planned that the difference went to c.
j. Herbert as commissions for pulling
off the deal. This knowledge led TO
an investigation, publication resulted
and actions in the Court were begun,
with the results familiar to ALL
Developments.
At yesterdays melting it, was de-
veloped:
That Darlington had received s75,-
600 in Seminole stock for the SIS, 900
Of Carolina agency stock, (Which he
did not have,) and that he sold the
Seminole stock, now holding only two
shares. If he sold at fifty cents pre-
MUM he realized $112,500, and the
records show that, in addition, the
Seminole Company still owes him
$23.397.23. Probably he will not push
this claim. however.
That the company kept no books.
except the stock book, on which can
cellations were recorded. There were
no account books at all. The stock
books and the minute books mysteri-
ously disappeared from the train
while in the possession OF Mr.. High
ley, expert accountant, who was
bringing them from Chattanooga to
Columbia.
That w. A. Clark, trustee, who
wrote letters endorsing the Seminole
Company, and subscribing for one
thousand shares, had never owned
one share. and that he received one
thousand dollars for his services Of
trustee.
That Gen. Willie Jones, trustee, who