The Washington times., 1911-03-03
LOBBY Is OPPOSED
TO SURETY BUREAU
Officials of Big Guaranty
Companies Visit the
= Capitol.
CLAIM THEY WERE
TAKEN UNAWARES
Senators Urged to Defeat Appro-
priation for Proposed New
Bonding Plan.

While a determined effort is being
made by the representatives of the big
surety companies of the country to de-
| feat the provision in the general de-
| fciency bill appropriating 81, 900 for a
| Government surety bureau, friends Of
| the measure declare that it will pass
] Just as certainly as the deficiency bill
itself passes.
| For three days or more a vigorous
lobby against the Federal bureau, de-
| signed to furnish cheaper surety for
| Government employees only, has been
operating in the Senate. This lobby
came hurriedIy to Washington when it
was found that the House had passed
the deficiency bill containing the apprO-
priation for the bureau in the hope Of
arresting 1t in the Senate.
| Officials Given Hearing.
| Yesterday the officials of the surety
companies were given a hearing by the
Joint Commission on Fidelity, composed
Of members of the House and Senate,
and said at that time that they were
opposed to the proposed bureau for the
reason that they had been taken un-
awares by the House, and had not
been given the opportunity to present
their case to Congress.
1t was contended by Senator Gal
linger, chairman, and Representative
Tawney, vice chairman, of the commits
sion, on the CONTRARY, that the move
ment to give the Federal employees the
benefit Of cheaper bonds was not a new
one. They said it had been agitated for
two or three years, and that all the
time was given the opposition to the
proposed system which it needed to
make its views clear.
Will Urge Appropriation.
There was no indication whatever
that the commission would change its
report in favor of the new bureau. but
the impression was that the members,
all of whom are either Senators or
Representatives, would continue to urge
the appropriation until IT passed the
Senate.
When this became apparent the Of
ficials of the surety companies here re-
newed their efforts to have the appro-
priation defeated by buttonholing mem
bers of the Senate. Friends of cOmpa-
nies in the Senate brought out member
after member of that body asking them
to give the representatives of the surety
companies a hearing.
OF the American Surety Company of
New York: President George Gator, of
the American Bonding Compay of Baltl-
more; Vice President Thomas Whelan.
of the Fidelity and Deposit Company of
Baltimore: ]. Frank Supplee, of the
United States Fidelity and Guaranty
Company Of Baltimore, and Samuel s.
Perry, of the Massachusetts Bonding
Company of Boston.
Opposed to Report.
These visitors also complained of the
report made by the Joint Commission,
which, they said, reflected seriously
upon the integrity of the surety compa-
nies of the country. This, they said,
accused them of eXtortiOn with regard
to the premiums charged Federal en-
ployes, and with a combination to main
tain higher premiums for bonds to Gov
ernment people.
A. large part of this report was pre-
pared by r. r. Brown, an aCtuary, Of
Chicago. It was fully approved, how
ever, by the Senators and Representa-
tives on the commission, and represents
their findings in the investigation pre-
ceding the presentation of the appro-
priation in the House.