New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-18
LIQUOR TAX BOND TRUST.
REPORT THAT THE SURETY COMPANIES
WILL CHARGE $50 IN THIS COUNTY.

RON time TO time during the last year there
have been runors that a combination would soon
be effected to stop cutting bonds for liquor
tax certificates II was reported yesterday that
such combination had already been practically
accomplished If the scheme goes through it will
severely affect the brewers and IT been anticf-
pated that Il they squeezed too hard they
might form surety company Of their own The
law requires six weeks advertising before such a
company start IN business. however, and a
company would therefore have to be formed prior
TO March 10 in order TO do business in bonds for
the next excise year. AS the greater part Of the
liquor tax certificates are issued on May / a new
company must be ready for business before that
date else wait a year.
For time after the Raines law into
effect, on March o. 1896. the greater part Of the
bond business was done by the Fidelity and De-
post Company Of Maryland, which is known in
excise circles as the Platt company" Since then
however, This company has dropped q minor po-
sition, so IA as regards excise business in New
York County. The United States Fidelity and
Guaranty Company, also Maryland CORPORATE
is known as the Croker company Andrew Freed
being its resident vice-president. These two
companies have each charged so for excise bonds
in this county the last year. When the Raines law
went into effect the $l5 2 bond. The Ma
Conal Surety Company, New-York corporation.
has also received SO the year. The other
panies said TO have issued bonds lower rates
one company going low g. Under the
agreement, II is said $50 will charged for bonds
in New-TOrk County. and under conditions which
viii practically relieve the companies OF all chance
OF loss.
The other companies engaged in the bond bust
ness include the American Surety Company Of
New-York, the Fidelity and Casualty Company Of
New-York the American Bonding and Trust Com
pany Of Maryland. the United States Guarantee
Company of New-York. and the City Trust, Safe
Deposit and Surety Company of Philadelphia One
Of these companies charges from s. to s. the others
from g s.. II is said that company has
written & few bonds g 90 In explaining these
varying prices subordinate official Of Of these
companies said yesterday:
That is due to the course Of the brewers repre-
sentatives. Thus, one company charges - II II Is
known that me brewsrT regresentatiye Is one tRat
n rake Of the rate is 90
There was much uneasiness among the repre-
sentatives who have branch Offices at No. !
Madison-ave., as most OF them expected 10 lose
their places after March Is But, Of course they
would not talk about the matter for publication.
The man previously quoted said yesterday:
IF this scheme goes through Il will ruin one-thtrd
OF the liquor dealers in New-York The terms; as
written without satisfactory indemnity by the april
cant or his brewer, unless the applicant has a
went into effect. The last clause viii bar OUT
large proportion OF poorer oea5ecs ana CONSEQUENT
company in order TO get BOND That Val put a
exception 10 the rule above stated wiz be when
actual inspection shows that me consents g, OF
adjacent property owners nave reaty pesn H4ea-
That is likely 70 imply a qsgIee 81 hnanclaL re-
liquor dealers Dc not possess
The new arrangement IS also said 70 provide that
not one cent shall be paid commissions 10 brew
ers representatives. Only office is 70 be main
tanned al No / Madson-ave. and business is 10 be
divided among the companies in the pool in the
nrectse uroportions Of the business which they
nave done the last year. There are six thousand
outstanding certificates under Subdivision that is,
for regular liquor stores IN this county. These at
go each would yield a revenue 10 the bonding
NAMES of $4,000 a year for New-York County
alone Whether the. arrangement is 10 extend
throughout the state not could not be learned
one Of the Companies representatives at No Mad
ison-ave. said yesterday:
have told several brewers about TINS scheme
and they were simply thunderstrucA
Al No 40 Broadway the Office OF the United
states Fidelity and Guaranty Company. II was said
that Mr.. Freedman IS out OF town anu Is nov eA-
cta4 N return TIL Monday. No one else in the
Office is authorized 10 speak for me company.
u z Keyes secretary Of the American Surety
Company at No 100 Broadway safd ne khe" moth
to n any proposed combination
.syEiu you deny that such combination Is in
contemplation? ?" he asked
II know nothing about H. ne answered. This
company Is IN no combination.
" Il Lee OF the Fidelity ana casualty Com
many az Cedar and Church SIS pu1 d different
complexion the report. he said;
THAT is an old story There was plan 70 effect
such com instion. but il fela l'i'us 4He Fldei-