The Cairo bulletin., 1910-10-28
beginning OF the surety business and
the nature Of the business undertaken
by surety companies.

e. ~
by surety companies.
A surety company regards charac.
ter and reputation as Il valuable as.
set-inore valuable than q financial
STANDING, because a good character
and reputat on is a prerequisite to
the obtaining OF a surety bond OF any
character, whereas, a man with a
large financial standing aud with d
bad character and reputation may
not, in most instances, be able to
secure a bond at all. 1t is not neces.
sary t. have a large financial stand.
ing IN order to obtain a fidelity bond.
those who have lived a correct life
and are known among their friends
as me- Of probitv have no a'Tfa,t ~
In procuring these obligations. ri is
the man who Is known to be one who
ar INKS to excess. CANDLES IN ans form
.ar associates. with undesirables. VITO
aas aifaculty II finding q surety con-
4allN which ia willing to stand as
lis sTonsor The experience of s,,re.
" compan es has taught them taa.
men of this character are not 10 no
trusted 1t is not claimed that II Is
a certainty that such a person e'll
steal, but the likelihood of their m g.
applying funds IS great. A resne 81.
Bile surety company will not knowir g.
ly bond a person whose past record
is not clear and without blemiss.
Out of a given number of fidelity
bonds issued each wear, IN each par,
ticulat classifcat on, We know thar \
certain percentage OF those rarst,ls
bonded are going 70 steal and stFai
this year. Our losses age uot III.
Cured on people woo have been a's,
honest up to the time orr bonds gre
issued. It Is only upon those who
have passed the rigid test ami ed.
and when you consider that fact.
think you will see clearly that we must
ascertain verr clcselY the perao-'s
standing as to his c~haracter ana In.
tegrity. A surety company, in max
Ing this examination of the anpli.
cant, for its bond, is not over. i1oui.
sitive. moi Is the company ~unnecess r
lily concerned in the private affe'rs
OF the applicant. The relation of prin
cipal and surety. however, is so close
that the company is entitled to Ger.
tain information before 1t will see
hit to become his sponsor.
When an employer q include banks
In the use OF this term desires a
bond on his employees, 1t is for at
least three reasons
LIST. That in the event OF mis-,
placed confidence, he nav be REIN.
nrsed for the money loss.
md That he may have the irdg.
vent of a company which Is sIsi,ad
asces tain ng the character ani
'enntation of persons, In determining
whether the past life of such e
IONS Is such that he is entitled to
confidence: and
3Hl For the moral effect such
'ond has on the bonded emplove.
TIE hanker knows tnat buildings,
arAn of so-called frenroof construc.
: on burn. He takes out fire insur.
7nce to protect himself against a loss
ION fire. He knows that his safe. al.
NoUgH Of the latest ard most I'D.
vowed construction. can and NAV be
rogen into, hence, he insures against
2 loss from that source. He knows
toat men In the employ of banks have
-tnlen. He insures against q loss
I'M that s~oprce-ar least many Of
'on do. Protection against loss is
what the whole world is striving
FOR. Conservation of is the
great cry of today.
The banker Is not satisfied to pro-
tect himself alone against the losses
mentioned, but he is now insisting
hat his borrowers do likewise. The
banker Is the leader in his particu-
ar community. He is not content to
sit by and let things drift. He IL an
educator in all commercial lines and
his customers have made much pro-
gress and advancement with greater
security to themselves by following
his advice. The banker is ready to
extend a larger credit and more &C.
commodat'on to his customer who
has the most up.to-date ideas and
adopts the most modern methods in
the conduct of his business. Banks
nave readily fallen In with the itlea
and know the value of surety bonds.
md have availed themselves of the
opportunity to secure them. Banks,
IN many cases, are not content to
a few of the subordinate en-
ployes, but make rules requiring
bonds from every man in the bank,
thus placing them all on a par in
this respect, and 1t seems to NE that
Is not unfair, where a matter of
character And reputation are concern
ed, to place the subordinate employe
upon the same basis with an officer.
1t was but a few years ago that
many persons resented the request
that they be placed under bond. They
thought that II was an imputat.on
that they were not to be trusted,
which is far from the truth. This
theory has disappeared In thin mir.
49, NM ~. q a. NJ. L -" M.