Evening star., 1901-10-18
FEDERAL OFFICIALS, BONDS
IMMENSE AGGHESiATE OF sURETlEs
FURNISHED lNsPasr THREE YEARS.
Exceedingly Rsre That a Company /.
Called Don by the Government
to Pay Penalties.

The Treasury Department, which has the
custody of the great majority of the bonds
furnished by government officials for the
performance of their duties, has prepared
some interesting figures on the subject OF
ponds, individual and corporate, and the
premiums paid by those who secure bonds
from corporate institutions The figures
show that in the fiscal year 1899 9I0 bonds
were given by officials of the various de-
partments. with aggregate penalties of SIS
164. 4oO. In 1900 the number of bonds given
was 436 and the aggregate penalties SS,
10000; in 1901, 664 bonds, with penalties
OF ~, I4s, $50. The bonds having individual
sureties in 1899 amounted to 2Is, with 6S2
corporate sureties: 1900, 1873 individual ard
oo3 corporate; 1901, 149 individual and 515
corporate Divided among the five depart
ments that have bonds on file at the treas
ury, the aggregate penalties for the three
years We're as follows: Treasury. 2,s5s,
600; Interior. IS, 743 500; War. S7iIa. 600;
Navy, s.. 600; State, $1,5sS, 600, total
Tor the three years of S33 766.700
Sixty Thousand Bonds ON File.
1t Is estimated by the officials who have
charge of filing and preserving the bonds
that there are also on file In the treasury
10000 bonds, with penalties aggregating ap-
proximately $S4O.O00.OOO. A good many of
these bonds are still in force
The figures show that the average pre-
MUM OF the surety companies was S197
per $I,00o OF insurance each year. In the
treasury Department the average was only
*l65. running up to $4.1S in the State De-
partment. The large premiums In the
State Department are due, 1t is said. to
the fact that the risks are among consular
and diplomatic officials who are abroad
Ihe minimum rate of most of the surety
companies is $40 for single 81. 900 a year,
with reduced premium for other thou
sands after tbs first, or, rather, for more
than 81 900.
Twenty-Five Surety Companies.
There are about twenty-five companies
authorized by the Attorney General to 90
business in Washington or in the furnish
ings of bonds to government officials
throughout the country. OF these seven
teen do the bulk of the business. In fact,
two large companies do one-half Of the
business of government bonds and the rest
or the business is divided among he others
On the $27, ,655, 100 of corporate su,eties
furnished during the three years it is esti-
mated that the total premiums were $54,-
"oI The figures were obtained from state
ments attached to the bonds by the various
companies. and as indicated by the revenue
stamps attached to the bonds, in t,ccord-
ance with the war revenue act.
1t is stated that the tendency is toward
corporate sureties rather than Individual.
Inc law provides for two individual sure
ties IN each case, but in the case of corpo-
rate sureties is satisfied with only one
The figures indicate that the large com
panies doing business in Washington have
liabilities sometimes ten times Il, great as
their assets. but in official circles It is de-
clared that there is comparatively little
risk, and the profits in the business are
looked upon as large. 1t is exceedingly
rare in the government service that a
surety company is called upon to pay pen
aftiaS. -'-sE-saf