The sun., 1909-01-28
POST OFFICE SURETIES.
A Detailed Statement From Ono Bond
Ing Corporation.

To THR EDIToR OF THg SuN-Sr: Per
| nit me to comment on some or the state
ments made In the article which appesrec
In TIE SUN OF January 20 relative to pre-
MUM rates for bonds on behalf OF postmss
ters and postal clerks. The rate for thes'
bonds Is q and not $3.50 thousand, witt
the exception Of superintendents and clerk
Of subst ions. this rate being $3.50. but tht
aggregate Of these bonds Is Comparatively
small.
No surety company Is permitted under
tho rules and regulati ions OF the Post ONCE
Depart ment tunless they have been changes
quite recently to act as sole surety on the
bond OF a post master. and only ss one oil
the sureties when the company 10 organized
under the laws Of the State In which the post
ONCE Ia located. think bonds on behalf
Of third and fourth class postmasters must
be signed exclusively by personal suret les.
Practically all postrnast ers furnish bonds
signed by personal sureties. and therefore
are not Ia xed With any premium. Compare
lively few postmasters furnish indemnity
bonds signed by surety companies In favor
of the personal sureties, and when such
bonds are executed they are. generally
speaking, in amounts far below those men
toned In the official bonds. generally about
~ per cent, less.
All employees in the postal service are
permitted to give bonds signed by personal
sureties II they prefer TO do so, and there
are very few who are unable TO give such
sureties In preference TO corporate suret y.
ship for which they pay small premium)
II they feel so inclined.
WhIlc the aggregate Of these bonds NAY may
,sco. s % .ooo, 900, am satisfied that the record.
Of the Post once Department " III show that
tho aggregate liability assumed by surety y
companies dSss pSt s bu much
Sio6 900. 900 the annual premium charge at
the rate Of q q thousand would be 500 ;oOo
instead Of 100000, as stated oy me @ @rlTsl
ability the surety companies would not re-
ceive at the rate Of q thousand more than
While the statement that the average
annual collections from surety companies
and ind vidual bondsmen amounted 70 less
than sSo OOC may he correct seriously doubt
for the annual dsisics,,ons ns,, must bsrdIr pe
the last four years the claims made under
our bonds on behalf Of railway postal clerks
alone land these number only about 10000
aggregated s2s,i32. u is well known fact
that surety companies are pursued more
relentlessly by the executive departments
than are personal sureties when losses are
s,Isi aimed by reason OF the dishonest or
negligent acts OF those bonded and as cor
poratc suretyship has extended. particu.
larly In the direction ol bond,ng poss,s, psas
Department on the sureties have become
more and more numerous. not TO say wholly
unreasonable in some inst ances. this being
a potent cause OF the increase in the pre-
MUM charge.
surety companies have at last come TO
realize after aCtusl experience that these
bonds on behalf OF postal employees cannot
I've written for less than 81 thousand
II a fair return for their suretyship u exp
pectcd due 10 the fact that he bonds do not
cover the honesty alone of those bonded
hut also losses sustained by the Government,
or the dear public" in consequence OF
negligence on the part OF these employees
in the performs nee Of their duties.
II also occurs 70 me TO point out that the
rate is sra thousand for all city letter car
rierS and rural free delivery carriers. These
ca arriers constitute a very large percentage
Of the EMPLOYEES IN the postal scrvirc, and
the First Assistant postmaster-General
probably thinks they are also subject 10
rate of s.. 80 a thousand
H. u. IEvELy. Secretary
American Surety Company.
NRw lSRK, January 20.