Omaha daily bee., 1909-10-17
Nebraska
IN SURETY BOND CASE
State Seeks to Show Its Rates More
4 Equitable Than Companies.
WOULD ALSO BE PROFITABLE
Chairman Hayward Calls . Meeting
of the Republican state Conn
mittee for Next wednes-
day Night.
CFrom a staff correspondent.)

LINCOLN, Oct. 16.-(Special.)1Attorney
General Thompson filed an affidavit in
the federal court this afternoon. signed by
John M. Gnchrist, resisting the application
Of the American Surety company Of New
York for a temporary injunction to pre-
vent the newly-created state Bonding board
from regulating the rates charged by
surety companies in Nebraska. Mr.. Gil
christ is a certified public accountant and
during the last eight years has spent con-
siderable time auditing and adjusting ac-
counts Of surety companies. After the
legislature created the board he was en-
ployed by the board to assist in making
up a schedule of rates to be charged in
Nebraska.
In his affidavit he says that prior to
1908 surety companies had been indis-
criminateiy cutting rates to such an ex-
tent that the standing of some OF the
companies was financially imperiled. and
for the purpose OF securing adequate rates.
two associations were formed by surety
companies throughout the country. One
Of these associations is termed the execu-
tive association, Of which the head officers
Of the companies are members and the
business Of this association is to discuss
the general policies Of the companies. The
other association consists Of the under
writer's Of the various companies and their
business is to discuss and agree upon
rates. Through the efforts OF these two
associations a schedule OF rates was agreed
upon and put In general use. These rates
have been generally maintained by the
companies who were parties to the agree
ment The state board met June Is, 1909,
apd made up temporary maximum rates.
$50 various classes of bonds executed
~ surety companies, consisting Of judicial.
fidelity. contract, internal revenue, license,
indemnifying and other miscellaneous bonds
the rates named by the board are prac-
tically identical with the rates agreed
upon by the Upderwriters' association.
On two classes Of bonds, county. public
official and bank depository bonds, the
state board in its schedule named the
1907 rates.
Attached to the affidavit is a state
ment showing the experience of the
American Bonding company from 1895 to
1908 inclusive. These figures show that
on all business written by this COM
pany after paying losses and management
expenses, II made a profit of $3.50. 564.22.
Taking the same business and applying
the rate as named by the state board, the
gain would be sSs3, s46.5S. showing that
the rates named by the board average
higher and would be more profitable to
Nnt companies tlndn the rates tneY tneIn-
selves have charged during the period
mentioned.
BY examining records in New York, Mr..
Gilchrist ascertained that during the
year 1901 and 1908, inclusive. the Ameri-
can Surety company had written.a large
amount of depository bonds on which IL
IAN average rate of ls% cents
and upon which 1t made a net gain of
sti0,eoQ. On business written by this
company at a rate less Than that OF the
state board 1t has made a profit.
spinal Disease in LincoIn.
Lincoln has several cases of cerebro
spinal meningitis, the disease which caused
so much trouble in York and Polk counties
and over which the physicians disagreed.
Some commended that the disease was polio
myelitis, which, though a longer name, is
said not to be as serious as the first named
disease.
Only few deaths resulted In the counties
where the disease was most prevalent, but
precautions are being taken to prevent its
spread In this city. The cases have all
been quarantinod.
City Must Prosecute.
County Attorney Tyrrell has put II up to
the city law department to prosecute mis-
demeanor cases against the city which
heretofore has been done by the county
legal department. This is all due to the
ruction between the county law department
and the police. Mr.. Tyrrell wrote to the
mayor that in the future he would permit
Anae city prosecutor to do this work and
Incidentally save the taxpayers some
money. as good fees were charged when
ever there was an arrest.
Ledwith Quits the Ticket.
John Ledwith, democratic candidate for
county Judge, this afternoon filed his de-
clination with the proper authorities. Mr..
Ledwith- is tired Of being tho goat all the
time.
Republican Ommitt Meeting.
Chairman WIN Hayward OF the republican
state committee has called a meeting OF
the committee for next Wednesday night
at the headquarters. Lincoln hotel. Reports
win be made by the committeemen OF the
Sentiment out in their districts and plans
will be perfected for the closing work OF
the campaign.
SO far as reports to the headquarters are
an indication. there is no dissatisfaction
with the candidates nominated by the re-
publican party. and the rank and file OF
the party is standing by the nominees.