The suburban citizen., 1900-11-17
EMPLOYEES UNDER BOND
RAPID GROWTH OF THE SYSTEM
IN COMMERCIAL LIFE.

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 It Is
a mistake to suppose that this bond
ing Of employees embraces only those
that handle money or are in a position
TO make default ot 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 indispensa-
BILE.
In other words, the bonding Of em-
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 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 phllanthropic
motives. Theirs is a cold business
proposition, but it is the fact of there
being no sentiment in the surety bond
that gives 1t it's greatest moral value.
Formerly private bonds were the
rule. That is to say, when an en-
ploye was given a position Of trust he
was required to find one or more pri-
yate bondsmen If the latter were
willing to take the risk the young man
got the position, otherwise not The
system of private bonds had its draw
backs. Often the applicant for posi-
tion could not obtain persons Of suti-
cient financial responsibility to go 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
a 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
corporations, except in isolated cases.
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.
II has been followed by ten or a dozen
similar companies, some Of which have
added casualty insurance to the indem-
nifying bond business.
The annual business written by these
guaranty companies in the large com
mercial centres runs far into the mill
lions. The advantage claimed for the
employer is that the guaranty company
is more responsible than the private
londsman, and in addition that it ex-
ercises a continuous moral espionage
over the bonded employe, which is not
done by the private bondsman. The
advantage to the employe is that if his
record is straight, no matter now 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 a
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 CANDLES
or drinks the company knows it at
once. If he develops a tendency to-
ward extravaganza beyond his regular
income, either in dress, jewelry, livery
bills, wine suppers or even house ex-
penditures, the company knows it. III
he visits a racetrack and bets it is
immaterial to the company whether he
wins or loses. The fact Of his betting
is duly entered up against his record
on the company's books. If he deyel-
ops a tendency to late hours and roy
stering companions every detail OF his
supposed sub rosa dual life is entered
up on the official record.
All this requires complete and com
prehensive system of espionage ON the
part of the company that is response |
BILE for the employees fidelity. Each !
company maintains a most efficient !
corps of private detectives, inspectors
and agents. They cover the United
Staes like an immense secret service
army. In the large commercial centres
like Chicago. where most Of the bonding |
Is done, their work is precise incessant |
and systematic. The bonded employe, |
whose habits may have placed him un-
der suspicion, goes out OF an evening |
One Of the boon companions that 80 |