The watchman and southron. (Sumter, S.C.) 1881-1930, January 06, 1909, Image 7

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TIE SEMWOLE CASE. A (?RllAT MANY STOt KHOIJlKItS WKRK IX COM Mill A ON TUESDAY. Oosjipaity ?4 llcorgaoUc| \ppciH |m iMlgr Watts to Modify lila Action on Monday Appointing Hecclvera Columbia, Deo. 10.?As a result of! the meeting held hero yesterday by stockholder* of the Semlnole Secu? rities company, the following thing* were brought ?bout: A new organisation was perfected. Judge Watts is prayed to appoint the aaw board of directors to be re- i ?elvers In lieu of the three he has named. The Southern life of Fayettevill** has agreed to refund the money paid for stock In Its <orporstlon. (It waa this trade through C. I. Hebert whose commission amounted to about $80, 0?t that the scandal was started.) Steps are to be taken to prosecute any who may have violated the laws. Auditor Hlghlej made an interest lag* report after an examination of the Semlnole books in Chattanooga ?and reported that the books had bean stolen from him In transit to Colaseofta. Neither Oarllngton nor Hebert was present?although Oarllngton in fight tng for time Is sUd to have favored this meet In., The report of Auditor Hlghley show* del that Oarllngton, In disposing of his general agency of the State Mutual Ufa of Rome. Oa., had received $7aVJ la stock In tre Carolina Agency company, and that he had exchang? ed the $75.000 for an equivalent amount In the Semlnole company. ' about $60.009 of which he converted into caan. XCew directors and new officers were elected at a meeting of the stockhold? er of the Semlnole Securities com aeuty held hers yesterday. There were aaoat 100 persons present, reprexntlng ahout $11?.ooo of the stock. and there has been no gathering of re? cant years that attracted so much speculation and Interest. There was ponsldernble 111 reeling at times be? tween the friends of The trustees and the friends of those favoring a reor? ganisation, but ell of this finally drop pad and a: the end there was karmo >gff. Thos? who seemed at the end to b*ro no friend* were (Darlington and th* f<>rme; boaid ??' directors. Their reeta"!: t tons were accepted without hasatntlat.. !.? aU lilon to the reports given afterwfcere and the election of offk*ra thorn were two Important re?o'vtlon? prtsed- one to instruct the new dir- c tars to commence proceedings to dls nontinue the agreement entered Into fttHh the Southern lAfe company and the other Instructed the new directors to take steps at once to collect all evidence possible against the old agent*, officers and employee of the flamlnole Securities company. These facta, la addition to the resolution given elsewhere, may result In a mod? ification of Judge Watts' order ap? pointing receivers. The new board of directors elected gi"es representation to nearly every ?tuts In which there are stockholders. Virginia Is not Included, although Mi'. W. H. Lyles. representing Mr. Fst'.erson of Virginia, nominated him and called for a stock vote. Follow? ing are the new d I reo tors. !R. T. Oaston. Cheraw; Campbell Courtensy, Newry; T. W. Berry, Lnt ta: Wi. J. Ktherldge, Leesville; A. M. Kennedy. Wllllston; C. M. 8neillng. Oeorgla; J. B. Watklns. Florida; J. 8. Carr. North Carolins; S. N. Smith, West Virginia. Vhe officers elected are: K. J. Eth eredg?. president; J. 8. Carr, vice president; A. M. Kennedy, secretar>; T. W. Berry, treasurer. The old directors who resigned watt). J. Y. Oarllngton. W. H. Qllker son. Jr.. Laurens; J. H. Teague, Lau? ra ns; M. 8. Jeanes, Laurens; H. C. Paplneau. Chattanooga. When the meeting was called to order yeeterday morning Mr. Caston was elected chairman and Mr. Jen? nlngs K. Owens of Bennettsvllle sec? retary. The Klchland county court house was crowded with stockholders and Interested spectators and thero was considerable difficulty In securing an organisation. Everybody seemed to be angry and nearly every one had some motion to put before the house. Finally, however, those accustomed to parliamentary rules and practice ob? tained control and the meeting opened with the statement by Mr. Clark giv? en elsewhere. After this enme the following adopt? ed without debate: "Resolved, That the board of direc? tors to be elected be Instructed to dis? continue the trust entered Into by their predecessors und csll on the trus? tees for an account of the assets In their hands and take charge of all assets held by them as trustees ss goon as In their Judgment It Is expe? dient, and administer the fund In the Interests of the stockholders." At this stage there were suggestions made that the trustess be forced to resign, and the statsmsnt by Mr. W. H. Lyl ?* stopped further disorder. Mr. Lylee said ho had no doubt bot that Iht trustees had not exercised care In endorsing the scheme, but no one would for a moment doubt their hon? esty and their Integrity. The trustees, therefore, were not Included In the motion made that the former board of directors resign and that matter Is left with the present board. Following this almost Immediately came the resolution that criminal pro? ceeding be started against the agents, officers and employes of the company by the new board. It wan adopted af? ter several present said a few things about the condition of the company, the stock and several other matters. Several remarks were made about Former President J. Y. Garlington. This resolution was as follows: "Resolver, That the board of di? rectors to be elected do proceed at once to collect all evidence of crlml i nal action on the part of the agents, officers or employes of the Semlnole Securities company, and lay the same before the attorney general and re? quest that, wherever the evidence jus? tifies, criminal proceedings be Insti? tuted and that the directors do give careful atentlon to Justify the prose? cution." At the afternoon session the very Interesting report of Mr. Highley. the expert accountant, was read. Highley brought out a great many facts. For instance, Mr. J. Y. Gar? lington now owns two shores of the stock of the company. Mr. Garlington was given ITS.000 of stock by the Carolina agency company for his ser? vices. It being agreed that when a semi-annual dividend of 10 per cent, be paid he would begin to receive some of the benefits. Garllngton's Carolina agency stock was exchanged for ?75,000 of stock in the Semlnole company. Garlington disposed of e greater part of this, although of the $25,447 due agents, In the statement, about $34,000 is still due him, accord? ing to the books. The directors, how? ever?that is the new directors?do not think that this will be claimed. In the statement Is an item of $275 given agents for prizes in solicting stock. It waa also brought out that Mr. J. Stobo Young, another director, has left only two shares of stock In the company. Incidentally Mr. High lev remarked that he could not find any records of the commission said to have passed between* the officers of the two companies. He aserted that Mr. W. A. Clark never had any stock In the Semlnole company. The furniture and fixtures in the statement were estimated at $745.70. Mr. Tlmmerman asked for a state? ment about this furniture; did it in? clude any household furniture Mr. Highley said It consisted of some desks and the usual office fixtures. The estimate is thought rather low by some. Semlnole Books Stolen. Columbia, Dec. 80.?In connection with the development! In the Semlnole case aired yesterday at the meeting of stockholjrs. Mr. Chas. H. Highley. a well known accountant, would like to know what became of the stock books and minute books which he obtained in Chattanooga from the of? fices of the company and intended to bring to Columbia with his report. The story Highley told yesterday at the meeting was decidedly Interest? ing and will result In a thorough In? vestigation, 'through railroad officials who will aid the directors In their search for the thief or for the person who unintentionally took the records ?few as they were. After Mr. Highley had completed his examination of the records ob? tainable at the Chattanooga office, he asked for the minute books and the look book that he might show them to the stockholders. These were giv? en him, and after a rather hasty ex? amination, one of the clerks In the office, a Mr. Shaw, offered him a dress suit case In which to carry them. Mr. Highley very thoughtfully placed his other records In his own suit case. Boarding tho train at Chattanooga he took the sleeper, and when he woke up at Asnevllle yesterday morn? ing the valuable piece of luggage was missing and along with it went the stock book and minute book. A hur? ried search was made of the other coaches, but Mr. Highley could not Identify any of the passengers that might possibly be Interested In the disappearance of the books. His reports read yesterday, howev? er, were sufficiently Interesting to cause the stockholders to "sit up and fake notice." Mr. Stevenson asked Mr. Highley If Mr. Garlington was not In Ashevllle. Mr. Highley said he did not know. Mr. Stevenson said he thought he could produce proof that Garlington was in Ashevllle. (It had been stated that Mr. Dunn, attorney for Mr. Garling? ton, had declared that the latter was In Ashevllle.) Mr. Highley previously stated that he had met Garlington In Chattanooga and that the latter was present when an examination of the affairs of the company was made. The accountant alao remarked incidentally that the company "had kept no books;** at least they kept no regular set and most of tht information waa obtained from the stock accounts and the min? utes of the various meetings. His re? port wag a very thorough one, and <U spite the tension of the meeting, th< rv were many ripples of laughter OOOaStonad by some unintentional wit. The first audible smile was produced win n Mr. Highley described the "book? keeping" of the Semlnole company, and later when he told of getting the books Into a dress suit case, there was a roar of laughter. When in a matter of fact way he related the loss of the books a disgusted <ock holder exclaimed, "Shucks, that was a little bit, of a sieal." BATTLE FLEET PASSES PEHIM. Due to Arrive at Suez on January 3, Christmas Fittingly Observed. Suez, Dec. 29.?The American bat? tle ship fleet, under Rear Admiral Sperry passed Perlm, at the entrance the Red Sea, at noon today. All on board the fleet are well. The ves 1s are due here the morning of January 3. The warships enjoyed perfect weath on the Indian Ocean, after sailing from Colombo nine days ago. It It expected that they will make a quick passage through the Canal, and then ill disperse to the various Mediter? ranean ports, according to their Itin? erary, wdth the least possible delay. Christmas was fittingly observed by he fleet. There wag various athletic sports among the crews and each V*e d gave a vaudeville show, had box? ing matches, dancing and cake walks. The run from Colombo has b*en the pleasantest ^>f the entire cruise. The supply ship Culgoa is two days ahead f the fleet and the repair ship Pan? ther two days behind. RUEF SENTENCE FOURTEEN YEARS. Former Political Boss of San Fran? cisco, Convicted of Bribery, Gets a Long Term. San Francisco, Dec. 29.?Abraham Ruef, formerly political boss of San Francisco, today was sentenced to 14 years In the State penitentiary at San Quentln. Sentence was pronounced by Judje Wm. P. Lawlor, who presided over / Ruef's trial on the charge of bribing a member of the Schmitz board of supervisors in the award of overhead trolley franchises to the United railroads. The trial ended in the conviction of Ruef on December 10 after a trial lasting many weeks. ?There is no case on record of a cough, cold or lagrippe developing Into pneumonia after Foley's Honey and Tar has been taken, as it cures the most obstinate deep seated coughs and colds. Why take anything else. W. W. Sibert. WRIGHT MAKES NEW RECORD. _ f Aeroplanl8t Taken Flight Lasting Two Hours and Nine Minutes. Le Mans, France, Dec. 31.?Wilbur Wright, the American aeroplantst, beat all previous aeroplane records here this afternoon with a magnifi? cent flight that lasted for two hours and nine minutes. He covered offi? cially a distance of 73 miles, but as a matter of fact, counting the wide curves, he made over ninety miles. Mr. Wright's feat was the more re? markable because of the intense cold. After breaking the record, Mr. Wright went aloft again with M. Barthou as a passenger. Homicide Near Dillon. Little Rock, Dec. 29.?Hayes Cousar was shot and killed by John Emman? uel In a drunken row on the planta? tion of L C. Braddy, eight miles from Dillon, last Thursday night. The in? quest was held by Magistrate John N. Hargrove, Dr. W. B. Smith holding the autopsy. The fight was caused by Joalousy over a woman, Causar accus? ing Emmanuel of having improper dealings with his wife. Particulars are unknown. ?If you will take Foley's Orlno laxative until tho bowels become reg? ular you will not have to take purga? tives constantly, as Foley's Orlno I>axatlve positively cures chronic con? stipation and sluggish liver. Pleas? ant to take. W. W. Sibert. Ed Huff, colored, has been arrest? ed on the charge of asaultlng and robbing R. R. West in Greenville last Thursday night. Tills Is Worth Reading. ?Leo F. Zellnski, of 68 Gibson St.. Buffalo, N. Y., says: "I cured the most annoying cold sore I ever had, with Bucklen's Arnica Salve. I applied this ?alve once a day for two days, when every trace of the sore was gone." Heals all sores. Sold under guarantee at Slberfs Drug Store. 26c. William Brltton. who shot and killed Jim Burgiss in Greenville coun? ty Thursday night, has surrendered to Sheriff Gllreath. ?You would not delay taking Fo? ley's Kidney Remedy at the first sign of kidney or bladder trouble If you realized that neglect might result In Brlght's disease or diabetes. Foley's Kidney Remedy corrects Irregularities and cures* all kidney and bladder die orders. W. W. Sibert. ?NOLE SCANDAL ?LII SPECIAL COMMITTEE MAKES FULL REPORT. Mr; \V. A. Chirk for Trustees and Others Tells of Examination of Books?Import a nt, lttxommenda tions-r-Mr. Clark's Statement. From the State, Dec. 31. An interesting report was made at the meeting of t'.ie stockholders of the Semlnole Securities company yestcr day by the trustees, Messrs. W. A. Clark, Willie Jones and T. S. Eryan. The trustees aa members of a special committee were requested to secure the services of an accountant to ex? amine the books of the corporation. The services of Mr. Chas. H. Highley were secured. The latter is well known In Columbia, having been em? ployed by the City of Columbia sever? al months ago to work on a new sys? tem of bookkeejiing. Mr. Clark said that the committee was divided o:n the proper course to pursue and on behalf of the trustees he submitted the following report with recommen? dations: "To the Stockholders of the Semlnole i . . Securities Company: \ '.'Pursuant to a resolution adopted at a meeting of the stockholders in the city of Columbia on December 12, I at once. Interviewed Mr. Charles H. Highley of the firm of Chas. H. High ley & Co., public accountants, and entered Into a contract with them for the purpose of examining the books and assets of the Semlnole Securities company and make his report to the stockholders at their meeting in thl.v city on the 23th Instant. "Our committee is informed that: they (the accountants) commenced their work on the 14th Instant; theh ^ork required time and the repori has been delayed. A telegram re? ceived last night from Mr. Highley in? forms us that he will reach Columbia, via Ashevllle* today at 2.30*. We re? gret that the accountants have been unable to furnish the result of their inv< frtigatlon at an earlier date and we have not seen their report, and are unable to make any recommendations. "Our committee would recommond that the board of directors of the Semlnole Securities company be re? organized by adding thereto not less than nine new members, and the board as then constituted be then authorized at once to confer with the board of directors of the Southern Life Insurance company for the pur? pose of reaching, if possible, an equitable adjustment and settlement of the recent purchase of 300,000 shares of the capital stock of that company by the Semlnole Securities company, and our committee would recommend that the board be author? ized to examine the books and as? sets of the Southern Life Insurance company through some recognized public accountant of recognized stand? ing and ability and on the coming in of the report, that the purchase of stock be readjusted on the basis of the value of the stock as designated In the report of the accountant. "We further recommend that in the event that the board of directors of this corporation should fail to get satisfactory settlement with the Southern Life Insurance company, that they then be authorized to confer with counsel and If they then see it is advisable, that they be authorized to institute proceedings against the .Southern Life Insurance company for the purpose of rescinding and setting a-dde said purchase and recover from Southern Life Insurance company the money or assets paid upon the said purchase, and all notes in settlement be cancelled and surrendered. Our committee, however, feels sure that the best methods of securing the In terests of the stockholders will be on the basis of some settlement as above referred to and thus avoid liti? gation in the courts. "A few days after the meeting of the stockholders In the city of Co? lumbia on the I2th, a suit was ir.st'. tttfud by J. S. Klugh and o lios against the Semlnole Securities com? pany, and application was made be? fore his honor Judge R. C. Watts for the appointment of a receiver. Tbc hearing upon ibis application was held at Cheraw on yesterday a :d Judge Watts has declared his purpose to appoint a receiver in the case. "Our committee would, thereforr, recommend that a eommltte of stock? holders be appointed by this meetmg to file a petition In said case, appear? ing on behalf of all the stockholders, that ihe order be rescinded and the stockholders of the Semlnole Secun tle* company, through their board ?>f directors, be allowed to manage the affairs of said company without tin intervention of the courts, which the\ pre able to 1>, and so save tee ex? pense necessarl'y Incident to anv sucn proceeding, belling that by so doing the assets of this corporation will be best preserved and the Interests of the stockholders best protected. "W. A. Clark, "T. S. Bryan, "Wills Jones." Following the statement by the trustees, a number of questions were asked Mr. Clark, the following being a stenograph the proceed? ings: Mr. Grier?If the chairman will per? mit, and Mr. Clark will allow me. 1 would like to ask him a question. The Chairman (Mr. Caston)?That is left with Mr. Clark. Mr. Clark?I will be glad to answer. Mr. Grier?Mr. Clark, how many shares of the capital stock of the Semlnole Securities company has been sold? Mr. Clark?I do not know. Mr. Grier?Approximately, about what? Mr. Clark?I heard Garllngton say on the 12th that about 1,100 shares? no, he didn't say that, he said there was 1,100 stockholders. Mr. Grier?He didn't say how many shares had been sold? Mr. Clark?No, sir. Mr. Lyles?Can you tell us, Mr. Claik, if there are any other assets of the Semlnole Securities company besides the stock of the Southern Life Insurance Company. Mr. Clark?I can not. Q?Do you know of any money or certificates of deposit in any bank whatever to the credit of the com? pany? A?I can not tell you. q?I believe that it is a fact that the stock of the Southern Life Insur? ance that was bought by the Seminole Securities company has been endorsed back, or in blank, by the trustees as collateral for the note or notes of the Semlnole Securities company held by I the Southern Life Insurance com pi .y? A ?Yes, sir, that is correct and was so stated In the report of the trustees I that appeared in the morning paper. q?Xow, Mr. Clark, in the return of. the Seminole Securities company, read before the honor Judge WatUs on yesterday, in answer to the ru'e to sl.ow cause, it was stated that when the company was organized, whon it wis organized, there was $1B0,0C0 of the stock subscribed, and that $7i'?,000 was put in good securities bearing 10 per cent, dividends on the par value of $75,000. Can you now inform this meeting of what those securities con? sisted? A?I can not. q?Do you know what became of them? i A?No. Q?We just want the information, j A?No, sir, I do not know anything about it. Q?So you don't know of what the i securities consisted? j A?No, sir. I By a stockholder?What do you consider to be you duties as trustee of the Seminole Securities company? A?To receive such assets as they would place in our hands and hold them until we were ready to organize a security company. Q?What did you receive as trustee? A?Some notes given In payment for stock, and a large number of cer? tificates of deposit in various banks in the State of North Carolina. That Is all fully set forth in our return which is in the morning paper. Questions by Judge Carr of North Carolina. Q?Was it or not with the knowl? edge and consent of the trustees that the books of thi9 corporation were re? moved from Columbia? I ,A?No, sir. q?was it without thfir approba? tion and consent? A?Yes, sir, entirely so. Mr. Jennings K. Owens of Bennetts ville then stated that he had the resignation of Mr. Garllngton and the other managers and board of di? rectors. Mr. Lyles then said: "I would move that the resignations be accepted and that the attention of the attorney gen? eral of this State be called to the condition of this company and the atrocious crimes that we all believe have been committed by these very men who are now tendering their resignations, and if sufficient evi? dence can be established of the crimes that we believe have been committed Is brought to his attention, that crim? inal prosecution be instituted against them." Mr. E. D. Blakeney then moved that the trustees be requested to re? sign, and a warm colloquy ensued, which finally resulted in this matter being lefL to the newly elected direc? tors. Allan Culpepper, a young white man of Florence, had his face badly burned while firing a home-made can? non. He may lose the sight of one Ol his eyes. Capt. Joseph C. Minus will remain as commandant of cadets at Clemson, although retired from active service in the army. For Eczema, Tetter and Salt Klicum ?The Intense itching characteristic of these ailments Is almost instantia allayed by Chamberlain's Salve. Many severe cases have been cured by It. For sale by all Druggists. H. H. Ransford has been arrested In Chester on the charge of assault? ing his father-in-law. John M. Gaffney was found dead In bed SALVAGE FROH SEMINOLE. IHK SOUTHERN LIFE WILL RE? FUND MONEY. Considerable Sum Iuvohed?All Note? W ill be Canceled and the Purchase l?ri<v Returned?A Statement Is? sued. Columbia, Dec. 31.?The Southern Life Insurance company will pay back to the Seminole Securities company all of the money and certificates of de? posit received for the purchase of the controlling interest In the insurance company. This was the settlement arrived at yesterday morning after a conference between committees from each concern. There were present at the meeting, representing tiae Semi? nole company, President E. J. Eth eredge, J. B. Watkins, A. M. Kennedy and T. W. Berry, who were accom? panied by their attorney, Mr. W. (F. Stevenson, who had been summoned from Cheraw. The Southern Life In? surance? company was represented by Mr. J. W. McLauchlin, Locke Shaw, Dr. Lilly, B. W. Lacy, W. S. Cogburn and their attorney, John Shaw. From the figures produced it Is evi? dent that the Seminole company will have about $200,000 with which to continue business. This is made up of $170,000 paid to the Southern Life company and about $30,000 of col? lectible assets, which will be ( aced to the credit of the company. The members of the trustees and the Semlnole board and of the Southern Life board are entirely satisfied with this settlement and after the confer? ence Issued the following statement: "After a continued meeting between the new directors of the Seminole Se* curities company and committee and officers of the Southern Life Insur? ance company, they arrived at a set? tlement as follows: "That the Southern Life Insurance company would return to the Seml? nole Securities company all monies and deposits received by them, said funds to be returned in four equal annual installments. "One of the greatest difficulties in arriving at a settlement between the two companies was due to the fact that the Southern Life Insurance company had made large Investments with the greater part of the funds that thy had received from the Semi? nole Securities company, and it was. therefore, impracticable for them to attempt to make at once a final set? tlement with the Seminole Securities company, and it was deemed advisa? ble' by the two committees to arrange the settlement along the above lines, or, In other words, to return to tha Seminole Securities company their funds as these Investments matured. "The officers and the committee from the directors of the Southern Life Insurance company feel that they have acted wisely and for the Interest of the stockholders of the Seminole? Securities company. They have not only agreed to turn back all funds re? ceived, but also to cancel notes given them by the Seminole Securities com? pany, amounting to $162,500. The new directors of the seminole Securi? ties company feel that this settlement is a good one for their stockholders, and that the Southern Life Insurance company has been exceedingly liberal to the interests oif the stockholders of the Seminole company." The committee left yesterday after? noon for ? Fayetteville, where the> agreement will be ratified. Stevenson Makes Statement. Mr. W. F. Stevenson last night be? fore leaving for Cheraw, whence ha had been called by 'phone yesterday morning, summed up the situation aa follows: "The board perfected an agreement with the Southern Life Insurance company whereby it returns the notes of the Seminole company held by it and repays all the money paid to it by the Seminole for stocks and there? for gets its htock back from the Sem? inole company. "This leaves the Semlnole company without debt and with about $150,000 to $170,000 cash and assets. "This action, of course, must hava the approval of the court, if Judgn Watts does not modify his order ap? pointing receivers, or if the bond provided by statute is not given; but this is a matter of deail. ? "The directors hope to get into po? sition to wind up the concern rapidly and carry out the desire of the stock? holders expressed yesterday in reao lutions to prosecute all the persons guilty of crimnal conduct In the mat? ter, but until they can get mattera fully in their hands they car not ba too precipitate in this action. "They rescinded the trust agree-* ment and called on the trustees for the assets, but the receivers had preceded them and of course were entitled to the assets, if any. Tha trustees gave them all the Information? however, for whiich they asked, and acquiesced gladly In the rescinding of the trust." The band of Mr. T. W. Berry, the> treasurer, was fixed at $25.000. MaJ. R. M. Peguee of Cheraw wan elected to fill the vacancy on tha board occasioned by the resignation} of Mr. Jennings K. Owens, whe hart been elected to take Mr. R. T. Caan? ton a blaee