The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-05
EXCISE BONDS TO COST MORE.
PLATT COMPANY RETIREs FROM
BONDING BUSINESS.

Several Others Expected 10 Follow the
Example, but Not the Croker Co.
sliding Scale Of Higher Rates-Prom.
isc TO BE Heavy At COney Island.
The Platt bonding company. the Fidelity
and Deposit Company Of Maryland. Is
going out Of the business OF guaranteeing
bonds for liquor dealers. This was an
nounced at a meeting Of representatives
Of surety companies last Friday. 1t was
also decided at the meeting TO raise the
premium for furnishing bonds. The
premium will not be as large up the State
as II will be this borough or inConeyIsland.
In fact, a sliding scale has been adopted.
A representative of the Fidelity and
Deposit Company. whose president Is
Harry B. Plat, the Senator's son. said
yesterday that the Croker company would
do about all Of the bonding that is to be
done.
Excise bonding Is not very desirable.
he said, 'and it is too hazardous. Up the
State we have been getting but $40 on a
q, 600 bond. The Fidelity and Deposit
Company practically decided. by the way.
to give up the excise bonding department
before Gov. Odell's increased license bill
was announced
Last year a frst-class license cost $500
and the suretics required we're 81 600 1t
cost therefore, 500 to be convicted OF
May I, under the new law, a license will
cost 81 200, a bond OF q, 400 will be required
and the estimated cost OF violating the
Excise law will be % 600, and In this city
the police are becoming moro vigilant
Outside of the Platt company, the bond
ing business has been done by five con-
Germs; the American Surety Company.
the Empire State Surety Company, the
United States Fidelity and Guaranty Com
pany (Andrew Freedman's). the Fidelity
and Casualty Company. and the 6tna
All OF these except the Freedman con-
Germ. THE Suns informant said' will prob
ably quit
for bonds began to reach liquor dealers
that he understood that II would cost 10
per cent or S24o to get bond for a New
| York saloon
He believed that the increased rates
and the increased license fee would result
! in great increase in the number OF speak
| eases." or unlicensed places.
George Ehret, the brewer. said last nj ght
! that he had not been notified that the bond
! ing ompanies intended to raise the pre-
| miumns bonds
| lie II Tine lDCTtdbc 10 W
! liquor dealers would learn OF 1t when they
/ ma de application for new licenses. which
| must be done bs fore My I.
The PIT MUM in Brooklyn last year wat
| s9.75. and will b. SIS after May /. Al Coney
Island, owing to the iron rule Police Com
! missioner Greene has inaugurated the
bonding companies. 1t is said. may demand
| 500 premium, and the 10 per cent. rurnor
| also reached Brooklyn.
| Pc GHKEEPsIE, April 3.-Liquor DEALER
in Poughkeepeie and Duchess county
| who have relied on surety companies "a
/ pro vide the bonds enacted by the state
| under the Raines law. have been notified b.
| a number OF the largest corporations thai
they have decided to withdraw from ths
excise business in this State because OF
| the prospect Of increased penalties Of bonds
combined with unsatisfactory results o
| the business In recent years. Repre-
| sentatives of the companies say that not
wthstanding their best endeavors TO write
| only first-class risks, the losses multiply.
| Among the companies that will not writ
bonds this year are the Fidelity and Deposi
Company OF Maryland. the Empire Stats
! Surety Company of Brooklyn, and the
| American Surety Company Of New York
| Out Of sixteen surety companies whose
! bonds are acceptable to the State Excise
Department not over three will do excis'
business here.
| County Treasurer Haubennestel said to
day that it viii be wise for liquor dealer
| in Duchess county. as well as ELSEWHERE
in the State, to file their applications TO
tax certificates early. TO give plenty o
| time to get the bonds required, otherwis.
troublesome complications may follow.