Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-05-22
SAFETY OF SECURITIES.

Men OF wealth, possessing Donas anu
other negotiable securities, have long
sought safe place of deposit for THESE
evidences of indebtedness. The prime
necessity was full and absolute security.
At home, in their own immediate pos
session, they were at the mercy OF an
incendiary fire, or, when SO kept in large
amounts, to the still greater danger OF
burglarious inroads. Private residences
are, necessarily, exposed to fire, and af-
ford an easy prey for the skilled thief.
With the increase of travelling facilities,
the more compact building up of towns
and cities, and the accumulation of pri-
vate wealth, this class of securities be-
came more and more common, favor
tie means of investment, and the danger
of loss, from either or both causes, be-
came still more imminent. 1t was an
easy matter, during the excitement OF
fire kindled for that purpose, or, even,
without such friendly aid, for burglar
to make raid, escape with his plumber
and dispose of the same without detec-
ton, and many times leaving the owner
with no means for the Identification of
his property, should a suspected person
be found with the same class OF Sc
curities on his person.
Banks then became place of deposit.
1t was soon found, however, that their
''safes" were not safe, were readily en-
tered by burglars, and were, sometimes
even, robbed by their custodians. There
were other difficulties in the way, and 8
conflict in the law of the different States,
in reference to the liability of the bank
for loss under such circumstances
most courts holding, however, that there
was no responsibility except in cases of
gross carelessness or objectionable ne
elect. The question of the want of care
being one Of fact to be decided by a
Jury, and there being, in some communi-
ties, an unreasonable prejudice against
moneyed institutions, most of the banks
came very soon to the determination not
to receive such deposits without an eX-
press guaranty against loss, and, finally
refused to take them at all. In addition
to their Liability to be compelled to pay
for such losses, there existed, with coun-
try banks, another reason for such re-
fusal. The reason and propriety of such
a course was demonstrated in the recent
Waterford bank robbery; for bank in
a quiet, but easily accessible, town would
become attractive to safe breakers in
proportion as the value of the negotiable
securities was increased. So, at the
present time, banks in both city and
country, generally refuse TO receive, for
safe keeping, the securities of another.
Anticipating this action on the part of
bankers, ''Union Safe Deposit compa-
MES were organized in the principal
cities of the country, which, by their
methods Of transacting business and dis
posing of securities, seemed to have
placed the safety of deposits of all kinds
beyond question. Fire-proof buildings
were erected in localities, which, from
their surroundings and the stationing of
q proper number of watchmen, were
nearly, if not entirely, free from all APP
prehension or danger from burglarious
incursions. Within these buildings,
were placed vaults or safes, which were
also fire-proof, secured by combination
locks. The manager and custodians of
these vaults or safes had no means of
access thereto, and no more authority to
tamper with the lock than an outsider.
The Waterman and police were, of
course, similarly situated, so that while
these repositories were fully guarded
against professional burglars, it seemed
as if nothing but the most improbable,
if not impossible, combination and con-
spiracy on the part of and between man.
ayers, custodians, watchmen, police and
thieves could endanger the safety of
these deposits. The rules were very
stringent in reference to the approach of
parties who had rented vaults and safes,
and they even, were not permitted ac-
cess thereto, without being identified and
registered. Notwithstanding all these
guards and precautions, the develop
ments of the Coe forgeries, in Boston,
within the past few days, have proved
that these safes are not sovery safe after
all. Some thirty-two thousand dollars
in city and railroad bonds are discovered
to be missing, and to have been stolen
from one of these vaults, and the admis-
sion is reluctantly made, that "the man.
ner in which the theft was committed is
perfectly unknown" What has been
done once can be again, and so the vaunt-
ed absolute safety and security of these
"safe deposit vaults" is delusion.
The failure of all attempts to provide
for the safe keeping of negotiable secur-
tiles, and to guard them against the raw
ages of fire, the raid of burglars and
other thieves, and the dishonesty of Gus
todians, must lead, in the eud, to their
disuse as means of investment for
large sums of money. For years, it has
been the practice of the general govern
ment to issue two classes of bond-regis-
tered and coupon, the latter being ne
gotiable by mere delivery, and the in
terest payable on presentation of cou-
pom or interest warrant attached to the
bond, and easily removable therefrom.
A registered bond, on the contrary, is
not negotiable, would be useless in the
possession of any one except the real
owner, and can only be transferred by an
actual surrender of the original and the
issue of new bond in the place thereof.
These bonds are registered in the name
of the owner, and with the number and
description thereof, and the principal
and interest being payable at only GER
tain place, prompt notice of their
loss with due proof, would lead to
cancelling of the register and issuing of
a new bond, registered in the same man.
ner. Absolute security against fire,
burglars and all kinds of dishonesty is
placed beyond contingency or question.
Railroads and other corporations, as
well as States and municipalities, have,
also within n few wears iSsued the Same