The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1900-11-15
EMPLOYEES UNDER BOND
RAPID GROWTH OF THE SYSTEM
IN COMMERCIAL LIFE.

Views of Employees.
In this modern commercial age there
are very few large corporations or
firms that do not require their prin-
cipal employees to be under bond. 1t is
mistake to suppose that this bond
ing of employees embraces only those
that handle money or are in position
to make default Of trust funds The
bonding process has been extended to
embrace all classes Of employees. It is
an indirect system Of keeping a moral
espionage over every employe who has
a position where fidelity is indlspensa-
BILE.
In other words. the bonding of en-
ployes has become a great moral force
in the commercial, Industrial and
financial world. 1t is the check that
keeps many a young man in the
straight and narrow path OF duty,
when other moral influences are of no
account. 1t is the key that opens many
an avenue of promotion to the thor
oughly conscientious and faithful en-
ploye. 1t is the Gibraltar of safety
TO corporations and employees, on the
principle that a bonded employe real
ICES that he is under espionage at all
seasons. Clergymen have preached
sermons on the moral value of the
fidelity bond The great corporations
and firms that make use of the surety
bond do not do so from phianthropic
motives. Theirs is q cold business
proposition, but It is the fact of there
being no sentiment in the surety bond
that gives it its greatest moral value.
Formerly private bonds were the
rule That is to say when an en-
ploye was given position of trust he
was required to find one or more pri-
vate bondsman. If the latter were
willing to take the risk the young man
got the position, otherwise not. The
system of private bonds had it's draw
backs. Often the applicant for posi-
tion could not obtain persons of sufii-
cient financial responsibility to so upon
his bond. This was frequently true
and Is still true in some isolated cases,
where employers cling to the old
methods--even where the applicant had
n faultless record. The result was the
blasting Of his hopes for improving his
position. All this has been changed by
the modern custom of using the big
guaranty companies for the bonding Of
employees.
Private bonds are no longer used by
the banks. the big railroad companies
or other large financial or industrial
nOTnnrDtinnC in icAInfaI
In the commercial world the change
has been slower. but even here the
large wholesale firms and corporations
are turning over the bonding process
gradually to the guaranty companies.
The growth of the latter within the
last ten or fifteen years has been tre-
mendous. The first guaranty company
business to be transacted in the United
States was by a Canadian company
with headquarters in Montreal. This
original company is still doing an eX-
tensive business in the United States.
1t has been followed by ten or a dozen
similar companies, some of which have
added casualty insurance to the indem-
nifying bond business.
guaranty companies in the large COM
| mercial centres runs far into the mil
lions. The advantage claimed for the
employer is that the guaranty company
| is more responsible than the private
bondsman, and in addition that 1t ex-
| ercises a continuous moral espionage
over the bonded employe, which is not
done DV tho nriNatn hnnhcVr1on Hl,r
advantage to the employe is that IL his
record is straight, no matter how poor
and friendless he may be he can OBJ.
tain an indemnifying bond from one
or other of the guaranty companies
without trouble and thus have the way
| of preferment opened to him.
| The employe who is bonded by Q
guaranty company is never exempt
from strict supervision. His habits are
known. The company knows where he
spends his evenings and his surplus
earnings, if he has any. If he gamblei
or drinks the company knows it a
once. If he develops a tendency to.
ward extravaganza beyond his regular
income, either in dress, jewelry, liver!
bills, wine suppers or even house eX
penditures, the company knows it. l
he visits a racetrack and bets, it il
immaterial to the company whether HI
wins or loses. The fact OF his bettinl
is duly entered up against his recorc
on the company's books. If he devel
ops tendency to late hours and roy
stering companions every detail of hi
supposed sub rosa dual life is entere,
up on the official record.
All this requires a complete and com
prehensive system of espionage on tn
part Of the company that Is responsl
BILE for the employees fidelity. Fac
company maintains u most efficien
corps of private detectives, inspector
and agents. They cover the Unite
Staes like an immense secret servic
army. In the large commercial centre
like Chicago, where most of the bondin
Is done, their work is precise, incessan
and systematic. The bonded employ
whose habits may have placed him un
der suspicion. goes out OF an evening
One Of the boon companions that g
with him on his round OF pleasure ma
be an agent Of the guaranty compan
that is on his bond. The next morn
ing the company has written repor
of every place visited by the youn
man the night before, the amount {
money he spent, the number OF time
he drank, the card games he played