The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-06-17
CASH is ROLLING IN.
Bonding Companies for First Time
Paying License.


Under the new law passed last win
ter the bonding and surety companies
which do business in the state of Kan
sas are beginning to send in to the
state superintendent of insurance their
fees, which amount to $156 for each
company. Seven companies were
heard from yesterday. their contribu-
tons amounting to $1,O92.
What is of still more Importance to
the agents doing business for the
bonding companies here in the state
is the provision of the law that every
agent must take out a license, for
which fee of 50 is charged. There
are about 500 agents for such com
panies in the state, and from this
source alone the state viii get an adj
ditiona1 revenue of $1,000.
The total additional receipts from
the bonding and surety companies viii
amount to enough 20 pay the surety
and bond clerk a new Office created
by the legislature, his salary of $500
a year and leave a balance in favor
of the state of several thousand dol
lars. The insurance department is
already the biggest money maker the
state has, and the new law will still
further increase its receipts.
In all respects the surety companies
Will in the future be under the same
rules and regulations which now gov
EN- the life insurance companies.
They will have to contribute their per
cent. to the various funds to which
the insurance companies contribute.
The law also provides that every cor
poraton having for its business the
bonding of officials or the supplying of
guarantee bonds of all descriptions
shall on January 1 of each year, or
within so days thereafter, file with the
superintendent of insurance their
statments in the same manner as pro-
Fided for the life insurance COM
panies.
Heretofore the bonding and surety
companies have had an easy time of
il. They have had no fees to pay, and
have not been required to comply
with the insurance laws. To attend to
the additional work which will be
caused by the new law, the legislature
provided for a special clerk in the in
surance superintendent Office who
will attend to all this work. 1t is I'M
derstOod that superintendent Luling
has selected the man for this place.
but he has not yet announced the
name. The appointment will be
made as soon as Mr.. Luling returns
FRI m his western trip, and the new
man will begin work on July l.
superintendent Luling will also
! have to appoint someone to take the
place of Harry Trovillo, who has held
the position of bookkeeper at a salary
of $500. Mr.. Trovillo has resigned to
/ accept the plac eof deputy bank COM
missioner at an increase of 800 Il
year in pay. This change will also
| take place on July I.
Of late years the business of the
bonding and surety companies has
/ been increasing at a rapid rate. Pub
&c officials who formerly called upon
their friends to sign a personal bond
now prefer to pay a bonding company
the stipulated fees, and be relieved Of
obligation to their friends. Provision
I Is Hy,-- A.
to some of the state officers the
amount which they are required TO
pay out to secure a bond. The bond
1 ing cf1cials get fat fees for going on
the bond of an official. and there is a
minimum of risk. Consequently their
/ profits are enormous