Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1920-05-05
Insurance Commissioner Issues
Warning to People of South
Carolina.

w dFNluS IO SOPAS "a
Carolina.
South Carolina is being overrun
with "wild cat" financial schemes,
especially oil well stock projects, ac-
cording to Insurance Commissioner
McSwain of Columbia who Saturday
issued a warning to the people of the
state, through the press, not to IN
vest in any stock proposition unless
thew were sure that these concerns
had been licensed by the insurance
commissioner.
Mr.. Mcswain is sending to all
sheriffs of the state and to all chief
of police a letter, asking them to be
on the lookout for agents of "blue
sky" stock projects who are selling
stock without a current license from
the insurance department.
Mr.. McSwain states that every
mail brings some inquiry regarding
the requirements under the states
@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
ton, D. c., who wanted a license TO
sell stock in an oil we'll development
Thev told him that the first state
thew had visited for the sale OF their
stock was South Carolina, and, asked
why this was, they told the insurance
commissioner that their section OF
the country had been thoroughly
worked on such propositions and
they heardof the unusual prosperity
of this state and thought it a good
field in which to begin the sale of the
stock. Their financial showing, how
ever, did not warrant the insurance
commissioner in issuing them IL
cense.
Recently Mr.. McSwain was in the
hospital for an operation and in his
weakened condition he was visited
one day by three persistent agents
for an oil well proposition, who
wanted license to sell their stock
in the state. Mr.. McSwain told them
that his voice was too weak for him
to talk much. but that he could lis
ten. They 'fired away" and MIR. Nc
Swain listened, but he hasn't yet is
sued their license. Mr.. McSwain says
the state is being flooded with people
who want to sell. stock in concerns
that propose all sorts of returns.
The insurance commissioner states
that he is confident there are num-
ber of concerns selling stock IN the
state without license in violation OF
the laws, and it is with view to
catching these agents that he is no.
tifving 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 1
of each year. No license is good un-
less it has been issued subsequent to
that date.
The insurance commissioner re-
Gently investigated an oil well
scheme which was applying for Ii
,cense to sell its stock in South Caro-
lima. and he wrote to a prominent
South Carolinian now practicing law
in Texas. The lawyers report on the
company showed that it was not well
7,nown and was without strong tinan-
.cial foundations. The lawyer ADVISED
Mr.. McSwair. not to license it, and
he stated that if the concern were
good it would have no trouble selling
20 come to South Carolina for CAPT.
IFS stock in Texas and would not have
tal. He stated that only one out OF
every IT'S of the small oil we'll de-
velopments succeed.
Insurance Commissioner Mcswain
has reports to show that the south
is being overridden with "blue sky"
financial propositions and ne says ne
is doing all he can to warn the. peo-
ple of the state against such invest
ments.-Columbia Record.