The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-15
BANKERS LIVELY SESSION.
FIDELITY INSURANCE REPORT
STIRS THEIR MEETING.

Reject the Plan TO Establish Their Own
Guaranty Fund-'The Mayor on the
Need OF Currency Laws-Mr. Stillman
and A. II. Hepburn Among the Speakers
The opening session OF the American
Bankers Association, In the big state ball
room Of the Waldorf Astoria yesterday
morning. was large as to attendance and
warm as to temperature. Every chair
du the main floor had an occupant,
while all the chairs and sofas in the foyer
. ,iu6 er tho gallery were filed and even a
large part Of the standing room was pre-
empted.
+. @. Bigelow, the president Of the asso-
ciation, who IL also president OF the First
National Bank OF Milwaukee, Wis, occupied
the chair Near him were seated Mayor
Mcclellan, Lyman J. Gage, United States
Comptroller William Barrett Ridgely, des-
tined few minutes later on to figure con-
spicuously in the debate which made this
opening session remarkable for its initial
high temperature James Stillman, presi-
dent OF the National City Bank. who, as
president of the New York Clearing House,
was to make formal speech of greeting on
the part Of the bankers Of New York; Joseph
c. Hendrix, Alva Trowbridge and num-
Der OF others well known in the financial
world.
Bishop Potter was down on the programme
TO begin the proceedings Of the day with
prayer, but he was not there, and Arch
deacon Nelson offered the prayer in his
place.
FIDELITY INSURANCE FIoHT.
The event of the session-afterward
referred to by the bankers as 1.-THE scrap
was sprung by the report OF the committee
on fidelity insurance. For several years
back bankers throughout the country
havc been more or less dissatisfied with
.ie rates Of insurance charged by those
fidelity companies which undertake to
make good the losses from the delinquency
OF employees.
There was dissatisfaction also with the
form Of policies, which, it has been charged
are so drawn as to leave ways by which
the fidelity companies often evade the
responsibility
Since 1898 the association has had this
matter under consideration. One result
Of this action on the part OF the association
was the drawing up OF an American Bankers
Association form Of bond, which the fidelity
companies with more or less bad grace
yesterday said in private conversation
that in many cases that had come to his
knowledge the fidelity companies charged
a higher rate when they made contracts
under this so-called @hreproof' bond.
Another result OF the interest taken in
this subject by the association was the
appointment OF committee on fidelity
insurance to report particularly on the ad-
visibility of the association forming some
sort OF an insurance company of its own.
This last proposition has met with good
deal Of opposition. A number OF the bank
ers are reputed to be shareholders In various
fidelity. companies; 90 at every conven-
up for consideration 1t has been regularly
suppressed In convention, the arguments
against 1t being that 1t is not within tho
scope Of the association.
COMMITTEES REPORT STARTS DISCUSSION.
The report Of the fidelity insurance
committee was rejected yesterday, as 10
has been several times before, the DIFF
II this time provoked was more heated
than on previous occasions. The COM
nittee that reported Yesterday was COM
posed of John L. Hamilton, Caldwell Hardy,
r n. Fries, W. P. Marley and A. Q. ,Ander-
son. They made this recommendation:
sideIed the question OF fidelity insurance
IN all it's VARIOUS forms rn an. and Is hrmly con:
easbe p Witch covers the GROUND snd
recommended at the New Orleans and San
atom Of guaranty fund FOR tie beneft Of
the members contributing to the same Under
the manaFeme ,t Of trustee !. The ides con
suifieient rate 2 cover The risk and to create
Solvns e'f no abty to any ons otheT than
the premium paid.
mendstion Of this committee, we have, as a
part Of the plan reported. prepared rules and
for hs ,sai OF such
used by the guarantee funds Of England
changing them sufficiently to meet the con-
di.ons in this country
When a motion to adopt this report was
made half a dozen members were on the
floor at once. Accompanying the COM
mittee's report was q letter from United
States Comptroller Ridgely in which the
much difficulty in collecting from insurance
companies in the case Of an insolvent ma
tional bank, recommending the standard
Bankers Association form of bond.
COMPTROLLER RIDaRLY DRAWN IN.
This dragged Mr. Ridgely into the con-
tTONeTSy. banker from baltimore In
sinuated pretty pointedly that the Comp
troller was getting beyond his, duty when
he entered into this con troversy. Mr.. Ridgely
replied that he had intended merely to get
the National banks to adopt form Of
bond which would properly protect them.
], Frank Supplee, OF the United States
Fidelity and Guaranty Company. was par
ticularly animated in his opposition to the
adoption Of the committees report He
said, among other things, that last year
had been the most disastrous in the history
Of the security business, although most
prosperous in general business and that
the principal losses had come from bond
ing bank clerks.
Col. j. d. Powers. OF Kentucky, spoke
heatedly in defense OF the executive COM
mittee's action in turning down tho fidelity
committees report. There had been dark
hints and insinuations from various parts
OF the room on this subject.
1Do you believe" shouted Col. Powers
shat the executive committee composed OF
thirty five members, Is tainted2 Go on
Keep up this variety show OF yours. III
buy ticket, but not an employee Of mine
shall ever be bonded in your company"
The debate ran on for over an hour and
half amid much excitement, and now and
then a little confusion. Finally the re-
port Of the. fidelity insurance committee
was rejected by a standing vote.
80 L.