Omaha daily bee., 1912-04-28


While the bonding business belongs in
the field Of insurance business, 1t differs
from all other insurance in this par
tcslar:
Ipsursnce-firs. life, accident, etc-ac-
crues TO the benefit of the principal or
hts heirs, executors and administrators.
A bond does not accrue to the benefit
Of the principal. his heirs. executors or
administrators. but is given for the par
,ieulsr benefit of a third party toward
whom he has assumed certain obliga-
tons.
while in ordinary insurance there are
only two parties In interest, the insurer"
Insurance company and the insured"
bis heirs. executors, etc, in a bond tran
santion there are three:
!. the "obliger" or principal (the per-
son who binds himself or gives his bond
to another.
q The ''obiiges' (the person 10 whom
another is bound or the person 10 whom
the bond is givenl.
5. The surety" Tor the one who is
bound or gives security for another.
The instrument fixing the status of the
surety is called bond" A bond is an
obligation by which a person binds him
self. his heirs, executors and admins.
traitors TO pay . certain sum OF money
on or before a future day, appointed,
under condition, however. that II the
obligor shall do a certain act or pay
certain amount OF money on or before
time specified. the obligation shall be
nun and void" Bonds are required by
persons and corporations in all walks Of
life, from the peddler of garden truck to
the millionaire distiller. Wherever per-
init or license Is necessary bond Is re-
dutred. Any contractor having dealings
with the government, whether 1t is Job
for 800 or for a 100000 battleship.
has to furnish bond. Fhs constable needs
II % wall as the judge. the NAH carrier
% we'll IS the postmaster: the statutes
prescribe bonds for deposits in banks OF
state, county and municipal funds: build
Int contractors a. q rule are required TO
give bonds and banking and commercial
ifistItutions have long since made 1t
rule TO bond their officers and employees.
In times past these bonds were fur
nishsd by Individual persons for accom-
nicdsfion. Unpleasant experiences by
sure4fss tlike Damon Of old had with his
friend Pythias. for whom he had become
bendsmsnl, and losses sustained by ohli-
gees ss much as the largely increased
demand created by modern business con-
dftfons, have TO great extent eliminated
ta1
for financial concerns which, for the
consideration Of certain fee fpremium)
could relieve the personal sursty from
very dangerous obiisstions and at the
same fine offer adequate security to the
insured or obllgee.
Concerns exercising these functions are
called bonding or surety companies. They
are under state and federal supervision
and subject TO periodical Investigation as
TO their capital. surplus, reserves, loans
and Investments in much the same man
nss o. our banks srs.
A hceBse N necessary in each state
where such company trsnsacts business.
and In most states q paid up capital Of
az least ssesOoo is required.
AEDrAEhA u one oA Inc ieW slhteS west
OF The Missouri river which has taken
hand In this line of modern activity,
heretofore entirely monopoiized In the
east
The Lion Bonding and Surety company,
whose financial statement is published
in this issue OF The Bee in accordance
with the provision of Law. 10 advertising
Omaha as an insurance center, and Is
also entered in Iowa and Kansas. and Is
now contemplating branching out into
several additional states.
The accident department Of this com
pany was organized about one year ago.
II has been conducted along lines Of con-
servatism and with the object in view Of
establishing reputation which would
stand the test Of time and make a reputa-
tion upon its own merits. The officers
believe that this can be done best by