Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1885-11-04
WE'LL WATCHED.
How Guarantee Companies Keep Track |
of Their Clients-A Defaulter Ar
rested Within Four Hours.

How Guarantee Companies Keep Track
of Their Clients-A Defaulter Ar
rested Within Four Hours.
from a New York Letter.
Clason Graham drew the money on
q check for $4,000 signed by his en-
ployers, Spencer, Trask & Co., oil
brokers, and took q train for Canada,
but was stopped on the way only four
hours later, both man and money be-
ing back in town the next day. The
quickness of Suspicion and action in.
the case of a man whose reputation
had been good, was due to thefact that
he had given bonds to the company
for honesty, and his bondsmen were
one OF the several guaranty and fdeli-
ty companies that have lately come
into use in New York. These concerns
insure employers against loss through
the thefts of employees, and relieve the
latter of the often difficult task of find
ing available friends to take the risk.
Not less than 5000 men are already
bonded in this way by the companies,
among whom brisk rivalry has already
arisen. Visits to their offices show
large premises and numerous clerks,
indicating far more work than would
be requisite for merely making out the
papers and dealing with the customers
up to the point of completing the
bonds. The explanation is that the
most elaborate systems of watching
the insured men and registering their
habits is in operation, and already the
extent and thoroughness of theespion-
age has become an acute nuisance to
its subjects. To feel that his every
action may be under surveillance by
spy is annoying in many cases where
in the man is well-behaved, and much
dislike to the new order of things has
developed; but there is no escape, be.
cause the existence of the companies
provides SO reasonable an excuse for
individuals to decline to be bondsmen
that there is no escape. ..
Railway employees, bank clerks,
court officers and all sorts of finan-
cial officials are chiefly the men in
volve1. Before making the bonds the
persons characters areinvestigated as
fully as possible; but that is no COM
plete protection, for one company has
already lost $4,000 through Paying
Teller Charles A. Hinckley, of the
West Side Bank, and Teller E. J. Die
terichs, OF the Laclede Bank, St.
Louis, both of whom were above re-
proach and one seemingly pious. The
preference is for employees of institu-
tions subject to state investigation
annually rather than the handlers of
money for private firms. Nearly all
the men in the New York post-office,
and over MALT those in municipal
offices of finance are now included in
the risks. The charges range from
X to l per cent. on the amount of in
surance. The principle business is de-
tective. Every insured person is
watched, and very closely, too, if the
slightest looseness of conduct is OBJ
served. In the instance of Clason
Graham, a detective reported that he
was becoming a Younger about town
at night, and apparently was spend
ing more income than his salary could
provide. At the moment when he
cashed the big check q spy had him in
sight and did not quit him until he
took the cars. Then the detective tel
egraphed to the company that he was
going to go, too, and would look for
orders at Springfield, where the train
would make it's first stop. Hasty in
quiry of Spencer, Trask & Co., brought
out the fact that Graham was alb
sconding with $4,000, and word was
wired to Springfield to arrest him.
A feature of the new business is
registry, called the list of unreliables,
in which the particulars of every OBJ
tainable case OF probable or actual
misdoing of an insured man are noted.
The books of one establishment con-
tain about 10000 names, another
$4,000, and there are not less than
$4,000 altogether thus recorded, COM
prising railroaders, bankers, public
officials and other fduciaries. The
amount of money stolen by trusted
employees is not dreamed of by the
public, as proved by the aggregate of
nearly 100000 paid from one office.
But the bonded men are aware of their
positions, and consciousness of being
under scrutiny has become one of the
common sensations of their lives.