Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-15
PROTEST AGAINST
CREATION OF j. S.
FIDELITY DIVISION
John F. Clark. of Newark, Says
Government Would Be Com
petitor of Private Firms.
tFrom a stan Correspondent

TFrom a stan Correspondent
WASHINGTON, Jan. 15.-At a con-
ference with Congressman Eugene F.
Kinkead, of New Jersey, today. John
F. Clark, manager of the American
Surety Company for northern New
Jersey, with offices in the Essex
Building, in Newark, presented a
memorandum of objections against a
bill creating a fidelity division in the
treasury department.
Mr.. Kinkead is a member of the
subcommittee of the committee Of
appropriations to which the bill was
referred.
Mr.. Clark said that the bill. if
passed, would affect fifteen surety
ty Company. 1t would also affect,
SO he asserted, 200 agents and at
torneys in New Jersey.
The bill permits Federal officers,
agents and employees to give bond
without surety by paying into fund
premium charge to be fixed by the
government.
Mr.. Clark's objections to the pro-
posal in part were that 1t would put
the government in the surety bust
ness in competition with private en-
terpriSe and would deprive citizens
of the right to recover from the sure
ties on the bonds of federal officers,
agents and employees in cases where
citizens have sustained losses by the
wrongful or negligent acts Of public
servants and where the government
itself is not liable. He cited as pos
sible cases the false arrest of citi-
zen by a United States marshal, en-
bezzlement by consuls and federal
court clerks and entertainments by
postmasters, letter carriers, railway
mail clerks and postal employees gem
orally.
"The right of citizens to recover
from the sureties on the bonds OF
public officials has existed since the
foundation of the government and is
a right of which the public should not
be lightly deprived" he said 1.-The
government assumes no liability for
losses of the public under the Byrnes
bill and makes no provision for SUCH
losses"
His other objections were that the
bills effect would be: =.
ITO give a subordinate official or
the treasury department the right to
decide whether an officer of the gov
eminent appointed by the President
by and with the consent of the Sen
ate is eligible for suretyship in the
government fund.
ITO transfer to the treasury depart
ment the entire official bonding bust
ness of the postoffice department (the
official bonding business of the post
Office department probably exceeds in
amount the total official business of
all the other departments combined).
ITO create an expensive division IN
the treasury department without
compensating advantages either TO
the government or it's employees.
ITO produce chaotic conditions in
the bonding business of the treasury
department, since the bill is far
reaching in effect and is full of grave
administrative difficulties; and
"'ro create an anomalous condition
in case some employees of the govern
ment should give bond in the gov
eminent fund without surety, while
other of the same rank and with the
same duties would give bond with
sureties, either personal or corporate
the bill not being mandatory, but
simply permissiye."
The members of the subcommittee
of the committee of appropriations,
which now has this bill under consid-
GRAFTON are: Joseph T. johnson, South
Carolina; Joseph w. Byrnes, Tennes-
see; Eugene f. kinkead, New Jersey;
William T. Borland, Missouri; Joseph
w. Good, Iowa, and William NJ. Cal
der, New York.