The Laurens advertiser. (Laurens, S.C.) 1885-1973, January 17, 1912, Page PAGE TWO, Image 2
SEMINOLE PUBLIC ACCOUNTANT
REPLIK TO FRANK G. TOMPKINS
Letter of Chas. M. Highley Charges That Frank G. Tom
kins Made Misleading Statements In his Letter to
Governor Blease Concerning Seminole Matter.
Tho Advertiser has been requested
by those close to Messrs. John Y. Garl
ington and J. Stobo Young to publish
the letter of Chas. H. Highly, certi
fied public accountant, in reply to the
letter of Prank G. Tompklns to Gov.
Blease some time ago. Tho Advertis
er did not publish the letter of Mr.
Tompklns when It came out for the
simplo reason that It was rather
lengthy and because It could be seen
in the dally papers by most of those
who really were interested.
Believing that those of its readers
who are interested In the case are
already familiar with the letter of
Mr. Tompklns, The Advertiser does
not take up the space of Its readers
with it as this time, feeling that an
omission of It is doing no injustice to
Mr. Tompkns.
The letter is as follows:
Columbia. S. C, Jan. 1. 1912.
To his Excellency, Hon. Cole. L.
blease, Governor of South Caro
lina, Columbia, S. C.
Sir: I have read with great care the ?
letter addressed to Your Excellency
by Mr. Krank G. Tompklns, Chairman
of the Board of Receivers of the Sem
|noio Securities Company, and feeling
that there are many statements there
in which are misleading to yourself,
the stockholders and the public, 1 feel
it my duty to lay before Your Excel
lency such facts as to my mind clear
ly show that Mr. Tompklns is mistak
en in many of his statements and con
clusions.
Mr. Tompklns confesses in bis let
ter that he has not seen the petitions
for clemency or heard any of the rea
sons advancerd to Your Kxcellency
why these young men should not re
ceive clemency at your hands; and,
therefore, his conclusion that he has
never heard of the "slightest repent
ance on the part of either of these
yoting men" for what he terms "these
?utraKoous and destructive acts which
made a precedent, in South Carolina
hi circles of high finance" must con
sequently be based upon bias and pre
judice. Your Excellency has read the
petitions and heard the reasons given
by these young men anil the appeal of
their friends and is in a bettor po i
tlon than Mr. Tompklns to determine
whether they are repentant or not.
In justice and fairness to the young
men, and as auditor of the books of
the Seminolo Securities Company and
being,therefore, perhaps more famil
iar with them than any other man, I
wish to make the following statements
in contradiction of the statements
made by Mr. Tompklns in his letter
or which may correct any misleading
statements made by htm.
I make tli030 statements from my
report of audit, which was used and
put in testimony in the case and Is
?OW a part of the records thereof and
in possession of the Court.
The total assets, as shown in said
report, exclusive of the stock of the
Carolina Agency Company, amounted
to $361,0s6.3L The liabilities, oltmi
? ating the amount shown to he due to
John Y. QarlingtOll as balance of the
$75,000 of stock of the Carolina Agen
cy Company, viz.: $2-1,397.23, was
$442,152.99. Tho book value of the
stock of the Southern Life Insurance
Company was $324,985.72, which is al
so included in the above assets. Among
the liabilities are bills payable due the
Southern Elfe Insurance Company as
balance of purchase of stock in said
company of $154,197.37. By reducing
the book value of tho stock of tho
Southern Life Insurance Company the
amount of the notes due them as of
December 22, 1908, and deducting same
from the hills payable, which appear
in the liabilities, the Seminolo Securi
ties Company would have liquidated
on December 211, 1908, and paid si 2-:'.
per cent on the par value of tho
stock. I am informed that the receiv
ers have paid .'t dividend to tho stock
holders of but 20 per cent. I am also
credibly informed that some of said
stockholders have not received said
dividend.
Mr. Tompklns states that the re
ceivers have only been able to collect
$li:>,000 up to this time, and that It
will he impossible to add to this sum
a greater amount than $35,000; ami
that the probability Is that they will
never be able to collect in addition
to what they have already collected
more than from $2.000 to $.".,000. As
suming that $;'),000 will he the maxi
mum amount Collected in addition to
the $115,000 stated, will make $120.
000. This statement must certainly
be incorrect, as the Trusteis paid lo
the Southern Life Insurance Company,
as per letter of W. A. Clark, Chair
man of the Board of Trustees of date
December 2:5. 1908, and as per pages
r>2-r?3 of my audit report, $(?7,!i2S.x7.
The officers of the Seminolo Securities
Company paid to them or their rep
resentatives $46,856.85 In cash; and in
addition made a payment on account of
a note issued to the Southern Life In
surance Company in settlement of
said purchase of stock of $20,002.63;
making a total paid to them or their
representatives by the ofllcers and
Trustees of the Seminolo Securities
Company of $170,7SN.:{f?. and for which
I delivered to the icceivers vouchers
to cover. In Mr. Tompklns' statement
he says that upon advice of counsel
and for other reasons the receivers
compromised with the Southern Life
Insurance Company for $110,000,
which means a loss to the stockhold
ers of $f.0.78S..%. which sum Is more
than the total amount with which
Garllngton and Young were charged
with misappropriating,
Mr. Tompklns also states that so far
as tho Stockholtiers were concerned
at the time of ihe receivership there
SROttld have been In the treasury near
ly ;"0O.00O In cash. I presume he
menu In actual figures $394,062r10, the
original amount collected from the
sale of the stock; but he does not
stnte that of this amount collected
there was paid into the hands of the
trustees $101,504.48. which they sub
sequently paid out to tho Southern
Life Insurance Company and tho re
ceivers. He also fails to state that
there was paid out to agents for the
selling of tho stock $137,829.34; and
paid to the Southern Life Insurance
Company $72,859.48. to say nothing of
other disbursements, a detailed state
ment of which I annex, amount to
$82,754.28. Hence, this statement of
Mr. Tompklns Is not only incorrect
but misleading.
The printed letter of Mr. Tompklns
says that "considering that that trans
action accounted for $17,000," which
I presume was evldontly intended for
$97,000, "the balance of the $394,062.10
has disappeared from the treasury of
the company, and it has been the con
tention of the State, the receivers and
the stockholders -'ally that this
money was fraudulently mis appro
Hated by Messrs. Qarlington and
Young, who were the officers of the
company charged with its custody."
Th<> statement above made by me
shows that he is absolutely incorrect
in bis statement and that It Is mis
leading to the public mind; and the
inference to be drawn from his state
ment is that the balance of the sum
collected from tbe sale of the stock
was misappropriated by Qarlington
and Young. The Court records show
that Qarlington and Young were
charged with a misappropriation of
$50,602.77, and not the amount as Im
i>li. d by Mr. Tompklns.
The amount it Is alleged they mis
appropriated is made up as follows:
Actual cash.$ 2,981 75
Stock. 7.059 00
Directors and gratuitous stock
. 510 00
Making a total of .. ..$10,553 75
In addition to this there
were disbursements made
at sundry times for pur
posses unknown to me, for
which no vouchers were
submitted, and consequent
ly 1 was obliged to Charge
same to Mr. aCrllngton,
amounting to.14,549 02
In addition to this they paid
to A. I?. McKlnnoy and
Wilkte Edwards, In stock
of the company.25,"0^ 00
Which was in accordance
with a resolution of tho
Hoard of Directors to can
eel a contract which
these parties had with the
company for the sale of
the stock.
The total of which amounts
to.$50,602 77
The amount alleged to have been
misappropriated by Garlington and
Young.
The stock Issued to MeKinney and
Kdwards was charged to Mr. Qarling
ton, but Qarlington and Young did not
receive any benefit whatever from tho
issue of this stock.
It will be seen from tho above that
the statement made by Mr. Tompklns
Is misleading, as it implies that they
misappropriated a much larger sum.
Mr. Tompklns further states that In
July, 1908, aCrllngton and Young Is
sued stock to Qariington in the sum
of 34,500 shares; but he fails to state
that at a subsequent time be cancelled
27,441 shares, leaving a net amount
of stock 7,059 shares, as stated above.
Mr. Tompklns states that Mr. Carl
Ington has filed a claim against tbe
estate of the Seminole Securities Com
pany for some $24,000, balance due
him on account of this transaction.
The actual amount for which Mr. Oarl
ington has filed his claim is $21,397.
23. which is the difference between the
amount charued to Mr. Qarlington
namely. $50,602.77 and the $75,000 of
the Carolina Agency stock, which was
exhibited to me and In my possession
for several days, properly signed by
the officers of tho Carolina Agency
Company in the name of John Y. Qarl
ington.
I will not attempt to make any
statement In reply to Mr. Tompklns
in regard to tho suit of be Carolina
Agency Company against John Y.
Qarlington for $2r?,000, as I know
nothing about it: but I do know that
It was not a matter considered in the
trial of Garlington and Young, and,
therefore, a matter not before Your
Excellency In tho consideration of this
case.
In reply to tho remarks of Mr.
Tompklns in reference to the books
shipped from Laurons, for which tho
express company paid a claim of $"?0
for the loss of same, f would strife
that at the stockholders' meeting of
the Seminole Securities Company,
held In Columbia, S. C, on December
29. 1908 it was thought that I bad
something to do with tho loss of tho
books of that company on route from
Chattanooga, Tenn., to Columbia, S.
C. to tho said mooting. I could not
explain to the stockholders how the
books wore taken out of my posses
sion, and it was intimated by some
that I had a knowledge of same,
whereas I was perfectly Innocent and
It was afterwards discovered that the
books wcro taken off tho train at
Knoxvllle, Tenn., by a party living in
Knoxvllle, who after discovering It
was not his grip tun ed them over to
the ticket agent ni. 'ne union station
at Knoxvllle, where I subsequently
recovered thorn. So you can see that
I was falsely accused- and It reason
able to suppose that If the books from
Laurens were shipped to Columbia
and tho express company subsequent
ly pnld a claim for the loss of same,
that they were responsible for said
loss and that they could not have dis
appeared by any act of Carllngton
and Young; and. therefore, I cannot
see why Mr. Tompklns should have
mentioned this as bearing upon the
matter before Your Excellency. I
make this statement because tho
statement of Mr. Tompklns would nat
urally prejudice your mind and the
mind of the public against Garlington
and Young, which seems to mo to be
an Ulliust irr.
in regard to tho minutes which Mr.
Tompklns says mystorlously disap
peared, it was testified in the case
that those minutes, or what purport
ed to be the minutes, were at the
stockholders' meeting in Columbia.
S. on December 29, 1908, at which
time I read extracts from snmo, of my
audit, and compared at said meeting
by attorneys and others while I read
same. It was alBO testified to before a
Special Master, on December 5, 1911,
by an attorney present at tho meeting,
that the extracts from tho minutes,
which appeared In my roport of audit
and which are a matter of record in
tho Court, were exactly the same as
appeared in the mlnuto book of the
Seminole Securities Company which
was present at the stockholders' meet
ing of December 29, 1908.
It Is not necessary to reply In re
gard to no testimony oelng offered In
evidence by Garlington and Young.
This matter has already been discuss
ed befoio Your Excellency at a recent
hearing given to tho defendants and
Your Excellency is familiar with tho
reasons why they did not testify.
It seems to me that Mr. Tompklns'
charge that this BCheme was founded
for the sole purposo of loot Is wholly
gratuitous, as he admits in his letter
that the larger portion of the stock
was sold to bankers and tho richer
class of people: and, as a matter of
fact, the stock was sold In large
blocks to their own relatives and
friends, which would not be indicative
of loot.
Tho information given to Your Ex
cellency, that Mr. Garlington is under
indictment in the courts of this coun
ty jointly with others on another
charge. I would suggest is irrelevant
to this issue and has nothing to do
with the consideration of the matter
before Your Excellency.
Mr. Tompklns also ?tates In hls
letter to Your Excellency that a largo |
proportion of the stock was sold in
South Carolina. For your Information I
I will state that the stock was sold as I
follows:
States. Shares.
North Carolina.53,534
Georgia.12,275
Virginia. 7,421
West Virginia. 6,167
Florida. 5,167
Alabama. 5.046
Mississippi. 400
Tennessee . 4
90,014
South Carolina.180,658 I
Total.270,672]
Od two-thirds sold in the state of
South Carolina and one-third in oth
er states.
Below I give you the statement of
receipts and disbursements as taken
from the books and data of the Sem
inolo Securities Company, which in
formation Your Excellency, the stock
holders and the public are not In the
possession of, and which shows con
clusively that the enormous sum for
ever lost to the stockholders, as charg
ed by Mr. Tompklns as being misap
propriated by Messrs. Garlington and
Young is incorrect.
I respectfully submit that this reply
to Mr. Tompklns* letter bears me out
In the contention that the statements
In said letter are misleading both to
Your Excellency and the public. They
are made from my own personal
knowledge and most of them are tak
en from the records In the case, and,
In my judgment, are not susceptible
of contradiction. I am sure that Your
Excellency will give them the credit
that they bear upon their face nnd
will not be controlled in your decision
by the statements in said letter, which,
coming as they do from a source nat
urally opposed to Messrs. Garlington
and Young, should not be given the
s;.ine weigbl as coming from an un
biased source and the actual reoirls
in the trial of the case.
Respectfully yours.
OHAS. H. HIQHLBV,
Certified Public Accountant.
Statement of Cash Received nml Dis
bursed by J, S. Young, Treasurer,
to December 22, 190^
Receipts.
Sales of stock.$391.062 10
Cash, loans from banks . . 12,000 00
Interest. 17 93
Rills receivable, collected 3.865 00
Total receipts.$409,045 03
Disbursements.
Paid to Trustees.$101.504 48
Paid to Agents, commissions 137,829 34
Southern Lifo Insurance
Co., cash. 46.85G 85
Southern Life Insuranco
Co.. account note .. .. 26.002 63
$312,193 30
John Y. Garlington, ac
count contract.$ 55,596 77
Traveling expenses .. .. 1,325 00
Office salaries. 1,557 85
Printing and stationery .. 769 22
Furniture and fixtures .... 745 70
Interest. 547 32
Attorneys' fees. 1,035 00
Telegraph and telephone . . 613 3S
Brokerage (certificates of
deposit sold). 6,146 15
Olllce rent. 479 88
Postage. 200 00
Prizes to Agents. 260 00
Office expense. 55 44
Painting sign. 35 H>
Express and drayage .... 41 111
Taxes and license. 55 00
Exchange. 48 02
Typewriter rental. 0 00
Light and water. 2 20
Fuel. 1 99
Advertising. 472 23
Actuary expense. 41"! 95
Trustees' fees. '?.000 00
Commercial Agency .. .. 17 r. 2.".
Auditing expense. S72 20
R. M. Marshall, account
cancellation certificate No.
848 . 700 00
Organization expenses .. 1 17
\V. S. Rogburn, loan
Stock retired .....
Moving office.
$' 82,754 28
Balance.% 14,907 45
('nah and certificates of
deposit.$ 14,997 45
M(tu Itcward, $100.
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REMEMBER
Every ncrotmt or note duo the tirin
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I
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