Omaha daily bee., 1895-11-24
as TO OFFICIAL BONDs.
Advantages of the, surety oo""p"'
nond Over the Personal bond.

Advantages of the, surety COMPANY
nopd over the Personal Bond.
OMAHA. Nov. 20.-To the Editor OF The
Zee: Most questions of public concern have
their day OF discussion and settlement. Owing
to the increasing number of defalcations and
financial failures in all parts of the country
the problem of reliable security is now peins
considered In come states even the law
makers have taken notice of this matter.
II is perhaps not generally known that
law was enacted at the last session OF the
Nebraska legislature authorizing guarantee
companies to become sole surety In this state
ION any bond recognlzance or other writing
in the nature of bond, in the same manner
as natural persons may The question OF IN
demnity for loss sustained by reason OF acts
of commission or of omission is an important
one The fact that security Is required at
all implies that the sureties, II approved, are,
or at least ought to be, possessed OF suf-
ncient means to meet any possible loss dur
ing the life of the obligation. III this be not
so then the whole transaction becomes a
mere matter Of form and would better be
abolished.
How to determine the character OF Sc
curity and to decide upon its adequacy in
wolves considerations OF more than ordinary
moment. first point OF inquiry should De-
are the sure.ies whose names appear on the
document possessed OF enough property to
constitute good security? II not, the action
TO be taken is obvious. II, on the other
hand, 1t appears that sufficient property Is
held II must be ascertained that the valua-
ton placed upon 1t is reasonable; that 1t is
free from incumbrance; that the owners are
not burdened with personal debts and liablli-
ties and that they are not endorsers on notes
nor signers, to any considerable extent, on
other obligations involving liability to loss.
Guarantee companies offer known security.
They relieve the official whose important
duty II is to approve bonds OF the RESPONSE
bility incident to personal suretyship, OF the
necessity OF inqu!ring into the affairs OF his
neighbor, and of the embarrassment OF re-
jectng seemingly good security. On the
other hand, the standing Of guarantee com
panies may be ascertained at any time, as
they are required to make public full and
complete statements showing their nnanciai
condition. These companies expect losses and
collect premium with which to pay them.
Prompt adjustment is thus assured and since
the company never rests until the onender
Is apprehended, society Is rendered invaiu-
able service. The reverse is true OF personal
bondsmen. They regard the signing OF
bond as a mere matter OF form, do not cal
culate upon losses, are not prepared to pay
them and usually try to eyade payment.
In addition to giving security, guarantee
companies insist upon the adoption of correct
business methods, and of rigid system OF
auditing in all public and private institutions
where the officers and employees are
guaranteed by them. II follows that there is
less opportunity for fraud.
While corporate bonds are highly salts
factory to those exactirg security, the sys-
tenn commends itself particularly TO those