The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-09-19
Unusual Activity of Statesmen
in Every Conceivable Sort
of Enterprise
STATEMENT BY McSWAIN
Urges People to Exercise Due
Care in Buying Stock and
ask Salesman to Show His
Permit.

The following is from the Column
bia State of yesterday.
Statesmen of stock in every conceiv-
| able sort of enterprise have been un.
usually active in the South in recent
months, and in South Carolina hardly
a day passes that w. A. McSwain in
surance commissioner, does not turn
| down an application for a permit to
peddle stock in South Carolina in
| some concern.
Oil stock seems a prime favorite
with the get-rich-quick men, though
zinc mine men, fishery spielers are
| not wanting and an occasional well
groomed citizen OF some far distant
State drops in and enlarges on the
possibilities of the silver mine which
he is promoting and urges the advis-
ability of permitting the citizens Of
this state to invest few sheckels in
MS scheme, said sheckles to be re.
turned some ten or one hundredfold
within few short months. Unincor-
porated joint stock concerns receive
short shrift from the fire insurance
commissioner and the eloquence of the
oil stock statesmen from distant
states is wasted on the unresponsiyc
atmosphere unless the statesmen can
show to the satisfaction OF the COM
missioner that the scheme is not OF
the wild cat order. All of the men
applying for permits to sell stock to
South Carolina citizens are not mis-
leading in their statements, hut il W., {
almost inevitable that the tide of
prosperity that has swept over the
South should encourage some crooks
to ply their t. = among gullible
citizens
Mr. McSwain in speaking of stock
companies yesterday, said: Il would
urge that the people of the State ex-
ercise due care in buying stock in
various concerns. Unless the sales.
man can show permit from this Of
fee TO sell stock in his concern. his
statements might well be taken with
grain OF salt.
The law requires that foreign cor
, porations selling stock in South Caro-
INA secure a permit from this Office.
Iftven when the permit is granted. it is
not to be considered as an indorse.
ment OF the security. 1t merely bears
a statement TO the effect that the
company has been given permission
to sell stock in South Carolina. The
permit bears the words. THE COM
missioner does not recommend this
security
Some companies" continued NJ.
McSwain, ARE exempt form this re.
gulation, the department being gov
erned by Moody's Manual in certain
cases"
The law with regard to foreign
stock concerns. Mr.. McSwain said.
was passed with the intention of pro-
tecting the people of the State from
swindlers who make promises when
are hardly capable OF being realized.
Mr.. hcSwain pointed out that
many fraternal and regular life in .
surance companies print at intervals
bulletins showing the amount Of
death claims paid, the names and adj
dresses of the beneficiaries and the
amount paid in each instance. This
information gives the concern selling
necessary to swamp such beneficiaries
with leaflets extolling the virtues OF
the particular mine or oil well which
~ deals in. and often results in losses
to those who put the life insurance
money in the schemes Mr.. McSwain
said yesterday that If the postofFce
addresses OF such beneficiaries were
omitted from the statements of claim,
paid, the statements would lose little
OF their value and at the same time
would not subject beneficiaries to OK
pioitation by heartIess concerns in
tent on securing a firm grip on per.
fectly good greenbacks.
While there is very probably con
siderable speculation over the State in
various kinds OF stocks, land deals oc-
cupy first place perhaps in the favor
OF South Carolina and some hand
some profits have been realized by
transfers OF real estate.