The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-01-30
A Proposed Law.
There is pending in the Legislature
bill that provides

There is pending in the Legislature a
bill that provides
THAT whenever any officer who may be
required to give bond to the State OF Mary
land. shall execute such bond, and give as
the surety thereon any corporation authorizes
by the laws of this State TO become such
surety, he may charge the reasonable cost oil
such bond among the expenses OF his oinee
and the company becoming surety upon any
such bond shall have the right, az any time;
to examine all books, accounts, vouchers ana
securities of any such officer
This is the whole act except the title
and enacting clause, and the meaning Is
that any state officer, from whom bond
is required, may have his bond guaranteed
by some corporation that is authorized to
become surety on bonds, and charge the
cost among the expenses of his office, and
such company shall have the right to ex-
anime his books, accounts, &c.
1t appears to us that the bill should pass,
provided that it be amended so as to per-
nit the Treasurer of the State to examine
at any time the books, accounts, securities,
and manner of doing business of any COM
pany which is surety on the bond OF state
officer, and require him to make such ex-
animation in the months of January and
July of each year, and as much oftener as
he may deem necessary; and that 1t be fur
Their amended so as to give the State Treas
urer power to annul any bond and require
other security whenever he may deem the
public interests demand it. A still further
amendment should impose fine OF five
hundred dollars upon the State Treasurer
if he fail to make the stated examinations.
Individual guarantees are not always a
safeguard against loss The citizen worth
$50, 900 when he goes upon Il bond, may
not be worth $4,000 a year later, and the
suficiency of the bond cannot be ascertained
unless loss occurs and the sureties are
called upon to make it good. If the sure
ties are unable to pay, the people must
stand the loss
By the proposed bill the corporation
guaranteeing bond will have right to
examine the books, accounts, vouchers and
securities in the office of the bonded officer,
and its financial interest in the proper adj
ministration of his Office by the officer so
bonded would prompt it to exercise close
scrutiny If the amendments suggested
above be incorporated in the bill, state
official would have power to examine into
the standing Of guaranteeing companies.
Corporations deal and are dealt with upon
different business methods than pertains
always between individuals Business meth
DDS. of the Strictest sort, are enforced.
There are no considerations of personal
friendship and nothing taken on faith. A
corporation, with SlO0,000 at stake, would
not take the word of any officer, upon
whose bond it was surety, that everything
is all right 1t would like to examine
into his public affairs and determine the
question itself 4 state officer, whose du
ties would include. under penalty, an ex
animation Of the sufficiency of security on
state bonds. would not take corporations
affirmative answer as conclusive, but would
investigate for himself.
Under such safeguards about as near
absolute security would be obtained as pos
sible, and the cost Of these guarantees would
be insignificant to the state