Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-30
AVERAGE BONDIN6 RATE FIXED!
GOVERNMENT WILL PAY NOT
MORE THAN $1.8e.
Treasury Department Announces
Basis for Computing Maximum
Premium It Will Spend.

A circular formulated by Acting Secre'
tary Hills today represents the first o..
fetal action taken by the Treasury De-
partment to enforce the provisions In the
emergency deficiency bill passed at the
recent extra session of Congress for the
protection of bonded officials Of the gov.
eminent, on whose bonds the bonding com
panies authorized to do business with the
United States had combined, It is alleged
to increase the tariff 300 or 400 per cen,
in some instances The circular follows
THE following table of the average
rates per thousand charged by the sew
eral bonding companies during the yea
1908 for bonds Of superintendent of con
struction of public buildings is published
for the information and guidance of su
perintendents of construction and admin
istrative officers of the department.: Ktns
Indemnity Company, New York, n. y
80; American Bonding Company, Balti
more. Md. Sis; American Surety Com
pany. New York. N. Y, S2.14: Bankers
Surety Company, Cleveland, Ohio. 81. 20
Citizens Trust and Guaranty Company
Petersburg, w. Va, 81; Federal Unior
Surety Company, Indianapolis, Ind, 80
Fidelity and Deposit Company, Balti
Chicago, ILL.,, So: Massachusetts, Bonding
and Insurance Company, Boston. Mass.
So: National Surety Company, New
York, N. Y. $2.13; Pacific Surety Com
pany, San Francisco. Cal, 81; Title Guar
anty and Surety Company. Scranton, Pa.
$40; United states Fidelity and Guar.
anty Company. Baltimore. Md. $1.55. and
United Surety Company, Baltimore, Md.
S2.25. General average, $1.S2.
"The average rate charged by the re-
above table. will be used as the base
for computing the maximum rate which
may be paid to any such company by
a superintendent of construction. under
the act approved August ). 1909. Ap-
proving officers are not authorized to ac-
cept bond from any of said COM
panies IL the rate charged is more than
IS per cent in excess of its rate for 1908,
as shown by the above table.
I'm case bond of superintendent of
construction should be executed by a
company which wrote no such bond in
1908 the average of the rate charged by
all OF the above-named companies (viz,
81 81 per thousand), shall be used as the
base for computing the maximum pre-
MUM which may be paid for such bond
under the act above referred to.
The average rate of the several surety
companies Is used as the base. for COM
putting the premium which may be paid
under the act Of August ). 1909. on the
bonds, of superintendent Of construction
inspectors of public buildings and chief
engineer and superintendent of construc-
ton. repairs and maintenance are in
cluded under this classification. for the
reason that these officers are appointed
for indefinite terms. and the position
terminates with the term of service of
the individual incumbent, so that they
do not have successors in Office 1t
is therefore not possible to. follow the
practice of the department in other cases
of using as the base for computing the
premium which may be paid on any par
ticular bond the premium paid by the
incumbent of the same Office for like
bond during the year 1905