New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-12-07
4 REPLY FOR SENATOR PLUMB
GUARANTEE BONDS AT THE sUBTREAsURY
MR.. RoBERTS'S PERSONAL AFFAIR-CANADIAN
CUT.RATE METHODS MAKING TROUBLE


The inquiry began by Senator Plumb Of Kansas. in
regard to the SubTTasury in this city, is likely 70 be
answered promptly. The resolution offered by him
was a demand on the Secretary Of the Treasury
whether employees in the Office OF the SubTroasurcr
at Ncw-York have gwen a. security for the per
Torrance Of their public duties the bond of foreign
corporation; whether such security has been taken
by the direction under the advice Of the Assistant
Treasurer and, If So wha; reasons operated
such preference OF foreign corporation The reply
from the Treasury Department will probably be
that it knows nothing about the subject
Shortly after the present Sub-Treasurer in
stalled. he suggested that his subordnates should give
bonds to him for the faithful discharge of their duties.
1t was an Innovation and for that reason perhaps, the
plan was carried into execution with great care II
happened that the bond of Ellis II. Roberts. the new
Sub-TrcasuTer was made up by people I'm Utica. with
out regard to business political utilization. II was
usual personal bond for 100000. AMI the suretes
number twenty four but the signing NJ dc local
matter and offers outside of Utica were accepted.
Mr.. Roberts insisted that as he did not handle the
money for which be responsible. his subornates
might insure him against loss. In fact every en-
ploye of the sub Treasury with tho exception of the
scrub women IS bonded officer, although MI Roberts
alone Is responsible the Secretary of thc Treasury.
The amount of the bonds given is regulated ~ the
responsibilities aud salaries Of the subordinate officers.
The cashier and the dputy assistant treasurer are
under bonds Of $4,000 each; the chief Of the re-
ceiving division gives bonds fr s25,OO0. the chief Of
the coin division for 100000, and the chief of the pay
ing division for $4,000 The smallest bond is for
II 900 and the total amount is for $500 900.
Mr. Roberts said in reply 70 inquiries about the
Congress resolution:
1.-THE system which / proposed new one
and ! unwilling TO put a burden on the faithful
men whom | found under my charge. As soon a. my
purpose was known the American surety Company
asked for the privilege of giving bonds for all the
employees | did not require corporate bonds from
those who could give personal security and far
as the surety companies were concerned made the
question a matter Of competition There some
question about the form Of the bond but after long
conferences an agreement reached. l inquired
about the safety of the principal companies and when
refused give the preference a particular one
or two. there was some bidding about rates. / gave
the mon under me the option Of submitting personal
bonds approved by the officers of any National bank
or bonds Of three surety companies. The result
THAI 20 per cent of the bonds given personal
bonds. OF the other 30 per cent the Guarantee
Company Of North America furnishes 81 per cent
the American surety Company per cent and the
Fiielity and Casually Company per cont The
first named company. | believe has il, general
oillas in Montreal. but among the NewYork direct
oIs are such well known men Logan {. Murray,
Butler Duncan Those who gave bonds free,
IN every case TO obtain security from individuals on
any one of inc lhfte competing companies.
From other sources II learned that the resol-
ton of Senator Plumb might be easily explained The
fact that the two American compare. secured only
Per cent Of the business made m" inference natural
that the Canadian company hal securl the rcmalnin,
81 per cent. II was learned also that Plumb
Is stakeholder Of the American Surety Company. IN
officer OF the Canadian company declared that whom
the plan Of subTlraSurer Roberts made known the
two American companies agreed TO make certain
rate, IN the expectation that they would have mo.
nopoly of the business They reduced 1t quickly when
they discovered that the Canadian company had agreed
70 take the risk al the lowest rate accepted by any
company.
new surety company, 10 he called the United
Stotes Guarantee Company, which has recently bean
chartered IN this Sta'c l. ahOut to BEGIN bushes
Among the men largely interested in II are j. Pier
pont Morgan, Morris x. Jesup, John Patton. Russell
sage, Calvin = Brcc and General Horace Porter The
company VIII work IN Close harmony With the Guar.
antee Company OF NOrh America but VIII be i'm every
respect United States organization