The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1886-01-07
Insuring the Honesty of Employees.
In an account of the arrest of Wilial

In an account of the arrest of William
Kennedy, a defaulting clerk Of Wilson
Colston & Co., brokers, the Baltimore
4tmcriccn says: The bank was insured
by the Guarantee Company, which will
have to make good the entire sum taken
by Kennedy, provided it does not exceed
$4,000 the amount for which the bank
was insured. Since the organization of
the insurance companies, Of which there
are but few, fleeing bank clerks and
others employed by money corporations
have had to be very careful. No parent
watches with more solictude over his
childret, than DO these companies over
the men for whose behavior they are re-
sponsible. Should any of these men go
astray despite their watchfulness, retri-
button follows surely and quickly. AN
appeal for mercy is out Of the question.
The company, unlike the employer, is
relentless in its prosecution of the often
der. AS warning to others the law is
usually allowed TO take its course, a set
tlement as rule, being refused. The
firm or corporation from whom the money
has been stolen has nothing to say in the
matter. The loss is reported to the CON-
pany, which, after an investigation,
makes good the amount, and then pro.
ceeds to punish the offender Few peo.
pie have an idea of the immense business
these companies are now doing. They
began to be organized about five years
ago, and were instituted by the heads of
leading corporations. Personal security
has so often proven worthless that the
banks and others grew tired of making a
fight with the sureties of absconding
cashiers and tellers, and adopted this
system Of protecting themselves against
possible loss. To attempt the capture
and conviction of a fugitive single hand.
ed vas entirely too expensive, so, as a
last resort, they formed a company in
which leading bank presidents and heads
of corporations we're made directors.
The success of the first, led to the organ.
ization of second company, until now
there are number, and all do thriving
business. They are Differed and gov
erned like life and fire insurance ccmpa.
nies, premiums being paid and losses di.
vided. Instead of appraisers and adjust
ers, the surety companies employ detect
ives, and their system is as complete as
that of the United States Secret Service
Force. In every city special officers are
engaged, whose duty it is to watch over
the charges of the company. Should
any trusted employee for whom the COM
pany is responsible turn out to be man
of bad habits, keeping late hours, drink
ing, spending much money, &C., that fact
is at once reported to the agency and a
demand follows for the mans instant dis.
charge. So popular has this method Of
insuring become, that with few excep'
tions every bank and moneyed corpora.
tion employing men who occupy respon'
sible positions, requires them to give
bond with one of the companies as sure
ty. Only few days ago all the clerks
in the employ of the Baltimore and
Ohio railroad Company were marched tc
one of these agencies in body and in
sured for future good behavior and faith
fulness. In some instances clerks ap
pointed to positions of trust are required
to give surety, pay the company a stated
sum, like the premium on policy.