New-York tribune., 1910-02-13


| son said buntly that there were too many
| chances for crookedness In that state.
Ohio would have to reform her bookkeep~
ing and make it harder for tempted treas
urers to abscond with the cash before the
companies would oblige with their iudis-
pensable bonds. The boycott against Ohio
did not last very long. for the state did
reform her bookkeeping system and the
companies re-entered the field. Just now
the companies are trying to have amended
the bad accounting system prevalent in
the rural treasurers' offices n New York
State and in Pennsylvania and California.
The Western States generally have more
up-to-date accounting methods than the
East. AS for corporations and individuals
seeking fidelity bonds, the first inquiry is
into the system of accounting. whether
an employe can draw cash on his single
signature, how well the books are kept
and how often they are audited.
Honesty is a matter of opportunitv."
said an official Of a New York company.
whose opinion, indeed, was held to be
rather extreme by other authorities II
figure the risk in official bond cases on the
comparative cnance a man has to get away
with the cash without detection The more
checks and counterchecks the less hazard.
Good physical conditions-fn other words.
correct accountancy--are the principal fac
tors when you estimate on thousands of
ases. The exceptions don't count
Some county treasurers. as in the case
Of the Treasurer of Cook County. In are
bonded high s20.000o09. This insur
ance may be carried collectively by the
banks which the treasurer designates as
his repositories.
an q
honesty given by the official quoted, which
taken largely has a strong scientific basis.
the companies employ surprising detail in
the way OF individual investigation. When
insuring the fidelity OF thousands of en-
ployes of a corporation. the premium be-
ing Jumped for the whole number, each
individual is required to fill out an elab-
crate biographical blank Of some forty
questions, his references are looked up and
his employer must Furthermore supply in
formation regarding his character, duties
and on. Besides all this, thousands of
agents of the surety companies In all parts
of the country make personal investigation
of the desirabIity of the risks taken in
their neigh hhorhocd. The agents often dis
cover facts which prompt the insurers to
decline bonds on certain individuals, and
in that case the employers generally dis
charge the men involved and engage more
trustworthy workers In fact, the single
feature of investigation without regard to
insurance is said to compensate employers
for their premium investment. The vast
records of employees though stored away
by the ton. are scientifically arranged and
easy to consult One surety company has
three million individual records on file.
Armour 7tS Co, the Chicago packers. are
said TO carry the largest fidelity bond for
their employees in the United States. their
drivers. agents cashiers. collectors and
other workers in all parts Of the country
being bonded for S10,0o0,Oo0. The annual
premium on this amount is between $4,000
and $4,000. Many railroads bond all their
ticket agents, conductors and other en-
ployes who handle cash.
IN THE INDUSTRIAL FIELD.
AS a detail OF unintentional morality the
surety company hesitates or refuses to
bond cashier with five children and s12
a week salary. Such attitude the
part of the insurers has prompted not
few employers to raise the wages Of their
trusted men TO a living scale or to take
extra precautions against defacation.
Larger moral results have been obtained
in the general industrial field by the is-
government figures, it is said, two million
wage earners are injured and 32,50o killed
every year in the United States. Employ
ers insure themselves against damage suits
brought on account Of such casualties, and
in many cases also insure their employees
collectively against accident, sickness and
death, paying either all or part of the pre-
rnums Naturally the insurance companies
are interested in having the fewest casual
ties possible and therefore they demand
sanitary conditions, machinery safeguards
and full compliance with the factory laws
before they will write a policy. Their
motive differs from that of the humani-
tartan or social reformer, but the general
result is the same They use the same ar
guments s to the inevtabilty of indus
trial casualties and the justice of compen-
sation for all injured workmen. regardless
of theories of individual responsibility that
are employed by advocates of the European
systems of universal compensation. Work.
mems collective rates, so called, for half
weekly wages for period of twenty-six
weeks of sickness or incapacity, and one
years wages at death are about 81 IS for
ca Oh 800 of insurance annually carried. The
policy may cover risks only during working
hours or throughout the day.
The close inspection Of elevators in con-
nection with their insurance tends to de-
crease elevator casualties among workmen
and the general public. The liability rates
for limits of 5000 and $4,000 range from
So 80 a year fo- factory elevators to s35 for
passenger lifts. The moving staircase pre-
MUM ascends to $50. A policy of general
public liability for factories. stores. thea
tres and Office buildings is based on floor
area, street frontage, payroll and number
OF elevators. The premium for a $4,000
policy on an average twelve story Office
building is about 500.
Livestock insurance supplements tie work
of the humane society by the inspection OF
the animal risks undertaken a racehorse,
of course, is bound to be well cared for and
needs no outside protection. 1t is different
with workhorses, ard many underfed.
overworked and badly stabbed beast owes
a debt to the insurance veterinarian who
demanded better conditions before approx
ing q policy. a firm of horse underwriters,
for an additional fee. supplies expert veter-
mary care during the contract. There is
frequent, and often daily, inspection of the
animals, regardless of veterinary service.
The premium on q workhorse is S to 10
per cent of the value, estimated to aver
age $3.50 While the fnsuring of work ami
mails is rather new in the East. Western
ma MES have for some time beer