The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1899-04-08

On the fourth page Of the ADVOCATE
will be found statement showing the tiuau-
cial condition Of the Fidelity and Deposit
Company Of Maryland at the close Of bus
iuess March 30, 1899 the 3l,t being a
! legal holiday 1t is a copy Of the report
made 70 the Attorney General of the
United States in compliance with the act
Of Congress passed in 1894 authorizing the
acceptance Of surety companies upon bonds
| gwen to the National Government This
statement viii prove interesting to the
public. because 1t marx, another cPech IN
the history Of this progressive institution.
namely. the increase Of it, capital from
! 81 600, 600 10 81 500, 600.
The Fidelity aud Deposit Company at
4 MARYLAND has now larger available cash
assets than any surety company IN the
world. and as it l. the pioneer company ot
I it, line organized in the South. and hy IT.
success has attracted much attention io
Baltimore A. a financial centre, aud made
easy the organization Of two other surety
companies here, a br,ef history II ii, be-
ginning and upbuililns should prove ia
icrs~ginS
CAUSE 90 TrS ORIGIN
Przsideu, Grover Cleveland having been
defeated in the campaign Of l>eS. Nr
Edwin Warhcld. who held the position
under hi, Administrator a Surveyor q
the Pom Of Baltimore, realized the uec,--
sity of making arrangements a> ta bis iu
,urs bushes, czrcer. Bchevin. thss ihe
CITY of Baltimore offered greater oppartu-
Mite, for success in the battle ot ltc than
hi, native county Elswari1 hs oanrcivsi
the idea Of forming a campany 70 make
speciality of the surety bushes.
At iha, time there we're but two eagH.
panies dong purely surcty business 10
the Uuitei >ta;ys-one the Guarantee
Company 81 North Ameria. a Canadian
corporation. prciig.,'ed upon the Enell,h
idea Vi guaranteeing ,hs honesty ot hgu~.
hold servants. and the other the American
Surety Company Of New lork, shleh va-
organised in l~~4
The art named eamauy mnlicl lls
guarantees 10 oticrr- aud empluye- 81
banks railroads and either corporations.
The latter company. however increased
It's sphere of u~,tulus-S hy Inclu3iug IN IT,
guarantee, bonds f1r contractors aud ter
iiuciaries. aud bynis furnished in court
undertakings generally Neither oi these
companies attempted Io enter the WIDE
field of bonding public officials ot the "a
rious States and municipalities. a. we'll A.
of the National Government
PUBLIC OFFICIALS BONDS
Mr. Warteld long experience in pab
he service made him familiar with the
duties of public officials, thus giving him
an insight into aud knowledge Of the ri,ks
assumed upon such bonds lie believed
the business of surety company could be
greatly increased hy adding this line 60
it, business. and IL was the conception q
this idea which mainly ius,igated him GO
prepare. IN January, 1890 the charter
and take active steps ior the formation %
the company Not having large financial
means himself. and being comparatively
unknown in the financial world he rcal.
lied the necessity of hayiu, as,oeiaIed With
him men well known in the business COM
munitv aud of large means He therefore
called into consultation his personal iricnd
Gen Clinton +. Paine, aud untslded t.
him his plans aud purpose. zen. Pane
at once recognized the Feasibility oi the
proposed undertaking and heartily cooper
ated with him in getting other prominent
{ business men interested among whom
were Gen Robert Ober, Me~srs II
. Crawford Black. Joseph K Stonebraker
[ George Warfeld. Dir George W Bishop.
( Thomas c. Bae,hore George Gator Lloyd
I l.. ia ckson aud james Sloau. ,Ir
PROCURING THE CHARTER
/ The charter prepared by Mr. War6eld
was approved BY these gentlemen, aud
( ,hey agreed 10 cooperate with him III
/ in having it passed by the Legislature. then
( 10 session at Annapolis, The bill granting
the charter was introduced in the Senate
early in January The scope and objects
of the company were not fully understood
I by the Senators and hence sccasioncd con
siderable opposition. In fact, il was at
first defeated, the fight against II being
led BY Senator Urner Of Frederick county,
who took the position that the company
should be incorporated under the general
incorporation laws of Maryland, which
authorized the forming Of such companies
His suggestion was carried out and the
company was incorporated through the
Superior Court of Baltimore City. Febru-
ary 5. 1890, the above named gentlemen
being the original ineorporators, and a bill
was at once prepared and introduced en-
larging its powers and authorizing it to do
all lines of surety business This did away
with the opposition in the Senate, and
early in March the bill was passed by that
body.
1t did not have smooth sailing in the
House, however The country members
| linked it with certain trust companies that
were then seeking charters, notably one
that had been originated by Ex-Governor
James B. Groome. now deceased, and both
bills were defeated.
The name Of the company in the orig
inal bill was the Fidelity, Trust and De-
posit Company of Maryland. As the
word trust was misunderstood by a
number of the members of the House Of
Delegates, and as the company did not
seek to do the trust business, Mr.. War
field at once re-drafted his bill, striking
out the word trust wherever it occurred
and making the name of the company the
Fidelity and Deposit Company of Mary