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


educated as to the advantage of corporate
suretyship over that of individuals
The two companies referred to as having
been doing the surety business before the
founding of the Fidelity and Deposit Com
pauy of Maryland, had not done much of
this work, because the line of business they
did required only the education of the pres
ident of the various corporations the en-
ployes Of which were bonded by them.
The American Surety Company, of course,
did some educational work with the courts
of several of the States, but as it did not
guarantee the honesty Of public officials,
its enlightening and educational work was
not known by the people, as they did not
care what kind Of bonds the banks took
for their clerks or railroads for their EN-
ployes.
1t was the calling of the people atten-
ton to the character of bonds given by
their public officials that created the great
interest in the matter Of corporate surety
ship aud the Fidelity and Deposit Com
pany of Maryland being the first in this
line of business. has done more to convert
the public to the advantages Of corporate
suretvship than any other surety company
doing business in this country 1t has
blazed the way and made it easy for all Of
the companies that have since been organ
lied. The companies recently organized
have had none of this expense, worry or
work They have been enabled TO start
in fertile field and reap the results Of this
initiatory work
The first States taken up were the lead
ing States of the South. such as Kentucky,
Tennessee. Georgia, North and South
Carolina and Virginia These States were
entered and satisfactory laws were enacted.
The business became popular, and the
volume done in each State has been large,
After the company had become well
established in the South it turned its atten-
tion to the leading States in the North,
notably Massachusetts After great deal
of difficulty all of these States We're entered
except New York In December, 1894,
application was made for authority 20 do
business in that State The application
was duly considered, and a deposit Of
Sl00, 00O Baltimore City stock was made.
and the company granted it, license 1t
made arrangements to open offices IN the
City Of New York, and was about to begin
business when il was discovered that in the
revision of the insurance laws of the State
the surety law had been so revised as TO
coufne the approval Of corporations as sole
surety to those organized under the laws
Of the State Of New York, thus shutting
ont all foreign companies.
The Fidelity and Deposit Company at
once took steps to have this law modified
This brought on hotly contested fight
between it and the New York companies.
The latter were anxious to keep out com
petitor,. and brought to bear all the power
and influence possible upon the Governor
to have him veto the bill which remedied
the defect in the old law This fight Is
well remembered Mr. Wartield made
frequent visits to Albany, aud finally sue
ceeded in having the Governor approve the
measure. which opened up the New York
field to all companies desIrous Of doing
business there. The legislation procured
was not special. but for the benefit of all
surety companies
This Is simply given as an Instance OF
the character Of work which it was nece>-
sAry to do in order to open the doors Of the
various States to surety companies
A. is well known BY all insurance peo-
pie. surety companies are classed with ln-
,urance companies and are placed under
the control of the various insurance com
missioners. The application Of rules for
insurance companies formulated by the
different insurance commissioners to surety
companies was not always in keeping with
the business done BY the latter companies;
therefore il was necessary to haze the IN
Surance departments modify their rulings
in order 70 adopt them TO surety companies
This also entalled great deal Of work
Happily. all this has been accomplished,
and today there i not an insurance de
partment that Is not in hearty accord with
the principles of the surety business and
that has not adopted rules accordingly.
GROWTH or THE BUSINESS
70 show the growth of the surety bust
ness since the organization Of the Fidelity
aud Deposit Company Of Maryland, the
following comparison Is given In 1889
the aggregate cash premiums received by
the American Surety Company and the
Guarantee Company Of North America,
the only companies then doing a purely
surety business, were SOLO, ,672 In 1894,
four years after the Fidelity and Deposit
Company Of Maryland had begun opera
tioBs the aggregate premiums OF the ten
companies then doing 4 purely surety bus
iness were 81, $40, ,0S2, In 1898 they
were S3.ll1 ,645 OF this amount the
Fidelity and Deposit Company received
SSl9.124 While the Fidelity and De
po,it Company of Maryland does not claim
all the credit for this great showing, it does
claim to have done more than any other
company toward educating the people to
the advantages of corporate suretyship, and
thus causing them to patronize the com
panies doing that line of business 10 the
extent Just mentioned.
ITS GREAT SCOPE.
Few people have any idea Of the magni
tude of the business done by the Fidelity
and Deposit Company of Maryland and
the number of officers and employees in its
Home Office Nine years ago it began
business at No. : n. Calvert street with
but one employe other than the General
Manager, Treasurer and Secretary. To
day it has one of the handsomest buildings
in the country, thoroughly equipped with
all modern improvements, and gives en-
ployment to ninety-six people 1t has an
Office in every leading city in the country,
presided over by general manager or
agent. and a local Board of Directors. In
minor towns and county seats 1t has agents
and attorneys, so that every point in the
United States, of importance enough to
Justify it, has representative of the Com
pany. The total number of persons con
nected with and representing the Company
outside of Maryland is over ,, 600. Thus
it can be readily seen what an immense
force is employed by the Company for the
dissemination of the advantages of corpor-
ate suretyship, securing the business and
the protection of the interests Of the Com