New-York tribune., 1896-04-01
GOOD FOR SONS OF BOSSES.
YOUNG PLATT AND YOUNG RAINES MAY
GAIN BY THE LIQUOR LAW.
THEY ARE CONNECTED WITH SURETY COMPANY
WHICH WILL FURNISH BONDS FOR SALOON
KEEPERS UNDER THE NEW LAW
PURELY A NATTER OF BUSINESS"

PURELY MATTER OF BUSINESS"
SAYS YOUNG MIR. PLATT.
suspicions OF sharp practice In the prepa ration
OF the Raines Liquor Tax law have been created
by the announcement that son Of T. c. Platt
and son OF John Ranes are prepared 10 go
into the business OF supplying bonds to the
hquor-dealers who arc going to do business in
this city under the new law Henry b. PIatt is
the managing director In this city Of the Fidelity
and Deposit Company. Of Maryland with an Of
flee on the fourth floor OF the Mills Building. and
CHARLES Ranes son Of Senator Ranes ia con-
nected with the same company. Under the old
Excise law no surety companies were allowed to
furnish bonds FOR liquor-dealers, but the Raines
law makes provision for allowing companies like
the Fidelity and Deposit Company, OF Maryland
to supply bonds
Liquor-dealers in the city and other New-York-
ers were asking each other yesterday II somebody
had an eye to business when there were intro
| duced into the Raines law such provisions
to the sureties OF liquor-dealers as cor, instead
or such sureties by corporation, duly
! authorized 10 Issue surety bonds by the
! laws Of this State" and such bond shall
be executed by each such applicant and II given
| by corporation or association. by some person
or persons duly authorized to do as principal"
| The new law does not prevent liquor-deaer
from getting holders OF real estate outside OF the
surety companies to act as his bondsmen. but
there will be more difficulty in securing such
bondsmen under the new law. account OF the
larger bonds required In each case and on ac-
count OF the loss to the bondsman II the liquor
dealer violates the law and forfeits the bond.
BONDS WITH POLITICAL BACKING
One reason why liquor-dealers might prefer to
I
which the sons Of T. c. Platt and Senator John
Raines Interested Ia f)nrd in the provision for
the forfeiture Of the bonds II pull" under the
new law is OF any value. It should protect that
company from loss by such forfeiture OF bonds
and the llquor-dealers. who think that wink is
as good as n kick In such matters. may decide that
II will be for their advantage 20 get their bonds
from the company with the strongest political
backing. As the forfeiture OF bond Of the COM
pany would mean loss OF ST. 500 in this city. and
n lose OF 81 200 In Brooklyn. the company may try
to see that the liquor-dealers who are It's
toners are not hurt FOR violating the law.
II Is reported that the Fidelity and Deposit
Company. ~ Maryland. will not demand collateral
security from the liquor-dealers when bonds are
supplied but that rate o. about per cent may
be charged by the company. II the company
should secure n monopoly az the business. It
might reap an enormous profit every year 1t
would be easy for u putty Commissioner 10
throw business In the way os the company. One
provision of the law Is that "the blank bonds
shall be uniform throughout the State. and shall
be prepared and distributed throughout by the
State Commissioner Deputy Commissioners and
county treasures. who snail furnish them upon
application therefor to applicants for llquor-tax
certificates" When the blank certificates are
frii im aI biuff fho hat
Mr.. Patts company Will furnish the bonds with
out collateral doubtless would not pass unheedei |
ANOTHER WAY TO HELP THE COMPANY.
There IS another way in which me Deputy |
Commissioner could assist the companr. He can |
eXcrcisc his discretion. in cases In which liquor
dealers violate the law. TO begin proceedings to
collect the penalty from the sureties the bond |
or T. begin proceedings against the liquor dealer |
He can prosecute the cases In which the sureties |
are private bondsmen. and allow the cases in |
which the company is Interested to lie In pigeon
holes. There may in fact, be one Of the biggest |
political scandals Of the day hidden In the pro
visions ~ the fRaincs law.
Henry II. piatt when seen at his office yestor- !
day 10y Tribune reporter. said I'VE consid- |
ering the question Of getting husinc under the |
new law by furnishing bonds for liquor dealers
AMI understand that other surety companies |
are also considering tho subject. There Is some |
doubt as to the advisahility Of taking the risks.
as we have had nothing to do with furnishing
bonds for liquor-dealers before
ut has been suggested" said the reporter.
that some OF the provisions Of the new law We're
intended to aid your company in getting bust
from the liquor-dealers.'
There is nothing In that" said Mr.. Plat.
because We are on the same footing with other
surety companies. My father has no interest
In the corr and neither has Senator Raines.
When became the manager Of the company in
this city. more than year ago. before tho new
liquor law thought Of | was green in the
business. and looked about for somebody
knew TO assist me. Charles Raines was then
connected with another surety company In this
city. and took him In with He does his
work at the courts"
Would the llqnor-dealers be likely to con
slider the political backing Of 'he company IL
you solicited business from them"
PURELY MATTER OF BUSINESS"
"Why should they? It is purely n matter Of
business. / don't know that shall care to
furnish bonds for lquor-dealers on accoun, OF
the risk. but bound to get as much busI-
ness for the company as possible In competition
with the other surety companies and we may
decide 10 take some of the risks"
What rate would be charged"
THAT cannot say now. II IL usual 70
charge a low per cent, something like per cent
IN ordinary cases. but on account Of the loss
which might result from forfeiture OF bonds. IL
no collateral security IL taken. We might have
To charge per cent. or more
LIQUOR dealers and politicians In the city
Yesterday were talking about the announcement
that young Mr.. Platts company might supply
bonds for the liuuor men under the law.
and the more they talked the more suspicious
they became thai certain provisions were placed
in the law 10 enable n son of T. c. Platt and
son OF Senator John Ralnes to make money.
II was declared that II the new law was found
in practice To be beneficial 10 the business In
forests OF the Of Two bosses OF the Rapubll-
can state machine. the people OF the city and
of the state would believe thai the bosses had
brought about great scandal by forcing the
Roines bill through the Legislature. Ii was
IA i'd that Mr. Plat had shown a willingness in |
certain affairs TO use his influence to advance
the interests Of his sons and that OF his sons
is n member OF law firm whose fees In connec-
tion with Rapid Transit affairs and other mat !
n ~ are likely tn be extremely large. Several
public officials look with much favor on this
0rm member OF the firm Is now counsel
for Sheriff Tamsen.