The Savannah morning news., 1901-01-17
BONDS AT LOW COST
noxDED EMPLOYEES OF RAILROADS
RELIEVED OF A BURDEN.
SYSTEM ON THE CENTRAL.
moan BEARS ITS PART or THE
COST OF THE BONDS.

Eo,merIy the Cost Per 800 for a
Rond Was 40 Cents-Now 1t Is 81
Cepts-CentraI Pays for All the
surety in Excess of $4,000 That Is
IpOn Agents of the Line Is Kept
bv the AuditOr-TOtal Bonds OF
Employees Amount to More Than
5000. 600.
,ailroads and other large corporations
has been brought to such fine point that
the cost of surety now is merely nominal
In some cases where the bonds are large
the total cost is considerable, but many
corporations have adopted rule of pay
ing the cost of bonds of their employees
over certain amount, say 5000.
An excellent example of the splendid
systems for bonding employees which
have been evolved, is found in that of
the Central of Georgia Railway Com
pany whose hundreds of employees are
required to pay to the surety company
now only % cents per 500 per annum for
the bonds required of them. In ad.li-
ton TO this, where there are any en-
ployees the bonds required Of whom
amount to more than 5000. the company
pays for all over that amount.
The employees of the Central furnish
bonds to a total amount Of more than
S0.0G1, running IN amounts al the way
from a few hundred dollars up to so. COO.
-.
was 40 cents per hundred, and ca h en-
ployee holding a resronsib e position was
required to pay the flu | cost of the Sc
curity So. in the case of the official
Whoie required bond was $50. 900, he had
to pay each year out of his sa airy $500
in order to furnish the security The en-
pl0yee under smaller bond of course. had
much less to pay, but it seemed Just as
big drain on his resources, because his
salary was naturally much smaller
Under the excellent system of account
ing inaugurated by Auditor H. A. Dunn
much of the burden upon the bonded Of
fetal and employee has been removed. Mr..
Dunn has succeeded in inducing the sure
ty company which handles the CentraPs
business to reduce the cost to % cents
per 500, as stated, and in addition tn
that he has had the rule adopted by
excess of security required above $1,000
A short time ago one of the officials
whose bond is $4,000, received a bill for
only 1928 the cost for $1,000 He had
not heard of the new rule and thought
there must be some mistake. His gratifi-
cation can be imagined when he learned
that the company had paid the balance.
or $ll2 So 1t came to him like a Christ
mas present.
The surety company, as is seen, re-
ceives only a little more than 1880 an
nually for furnishing security in the sum
of something more than $500, 600. And vet
the surety company finds this profitable
The losses which it has had to pay are
merely nominal, and it may be said that
with losses, expenses and everything else
there is a profit to the company of more
than $1,000 annually.
How can this be done? many will ask
4 t-does seem rather puzzling in view of
the many defelcations and embellishments
that are reported in the papers day after
day and yet on such a corporation as
the Central and many other railroads in
Georgia, ID is made possible by the excel
lent system of accounting that is en-
ployed. There are three travelling audi
tors on the Central system, and by these
the accounts of the agents are checked
up at least twice every year, and some
umes oftener. Then there is a limit to
the amount OF money which an agent is
allowed 10 keep on hand. Every agent on
the system is required to make a daily
report and return of his funds to the
treasurer. Agents at the small STATIONS
are allowed to keep on hand only $40 for
ehahge. and all in excess of that must
De RENTED daily in multiples of S., so
mat II an agent collects, say $27. 80 as the
result OF a days business, he must turn
10 $50 OF that amount by express at the
c.ose OF the day, retaining only $3.50.
allure to do this would mean investiga-
.loh ana discharge for the agent unless
ne showed good cause for his not doing
SO In the larger towns, such as Albany.
AiHerlcuS and stations of that class the
agent may retain $25 for change; at Ma
con columbus and cities of that class.
sS. and at still larger places, such as
Auanta Savannah and others, something
IKE SlV. All in excess of these amounts
must be RENTED daily. and the system
is SO perfect that it is known at once
"hether the agent or employe handling
lunds has been remiss.
VI course, the agents and EMPLOYEES
are presumed to be honest in all cases.
aL'u TINS careful system is nothing to
1"eir dlscredit. But it has come to be a
,no0esslty IN these latter days with all
,ase corporations, and they all require
their funds. .