The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-05-05
WILD CAT SCHEMES
State Insurance Commissions
Issues Warning AS to Oil
- Well Schemes

Columbia. May 3-SOuth CaTOl1na
rs being overrun with wild cat'- fl
nancial schemes, especially oil well
stock projects. according to Insurance
Commissioner McSwa;a, OF Columbia
who today issued warning to the
people of the State, through the press,
unless they were sure that those con-
Germs had been licensed by the insur-
ance commi isSioner.
Mr.. McSwain is sending to al sher-
ifs of the State and to all chiefs OF
police a letter asking them to be on
the lookout for agents of blue sky
stock projects who1are selling stock
without current license from the in
surance department.
l. Mr.. aIcSwair states that every mali
FSbrings some inquiry regarding tae re-
lcuirements under the sta.e's blue
SKY" laws for such concerns to sell
their stock in this State.
A few days ago Mr.. McSwain was
visited by three men from Washing
1.ton. D. c., who wanted license to
Iscu stock in an oil welk development.
They told him that the first State they
had visited for ne sale of their stock
E.yas South. Carolina and asked why
Ithis was they told the insurance COM
missioner that their section Of the
3country had been thoroughly worked
/ on such propositions and they heard
/ of the. unusual prosperity of this
state and tn, ,sht it a good field in
which to begi.. :tll. sale Of their stock.
I.Their financial showing, however, did
! not warrant the insurance commls-
! sioner in issuing them q license.
| Recently Mr.. McSwain was in the
hospital for an operation and IN his
weakened condition he was visited
lone day by three persistent agents for
( some oil. vel! proposition, who wanted
! a license to sell their stock in the
State Mr.. McSwai2 told them that
his voice was too weak for him to talk
much, but that he could listen. They
fired away" and MIR. McSwain lis
tened, but he hasn't yet issued their
license. Mr. 'McSwain says the S,ate
is being flooded with people who
want to sell stock in concerns that
propose all sorts of moncJ-maHnG
schemes.
The insurance commissioner state:
that he is confident there are num-
j Der of concerns selling their stock in
! the State without license. III violation
Of the laws, and it is with q view to
catching these agents that he is mott
/ fying the sheriffs and police chiefs.
If the agents are caught they will be
prosecuted. Licenses for the sale OF
such stocks must be issued April ]
! of each year. No license IS good M
/ less it. has beel issued subsequent to
! that date.
! The insurance commissioner recent
/ Iy investigated an oil we'll scheme
which was applying for license to sell
liz; stock in South Carolina, and he
wrote to a prominent South Carolin-
ian now practicing law in Texas. The
lawyers report on the company show
ed that it was not well known and
was without strong financial founda-
] tions. The lawyer advised Mr.. Nc
Swain not to License it, and he stated
! that il the concern were good it would
have no trouble in selling its stock
in Texas and would not have to come
to South Carolina for capital. He
stated that one out of every 718 of
j the small oil we'll Developments sue
ceed
Insurance Comm missioner Mcswain
/ has reports to show that the South is
! being overridlen with "biue sky
! financial propositions and he says he
! is doing all he can to warn the people
of the State against such investments.