Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-04-17
HAVE DONE NO WRONG
+. SAYS MAYOR, OF BOND
COMPANY CONNECTION
Executive Declares He Gould
Have Concealed Position
From Public, but Did
No So Choose
ORDERS LISTS PREPARED

Mayor Smith said today speaking of
his retention OF his stock holdings in the
Thomas y. Smith Bonding Company. that
he was having his directors and depart
mental heads prepare lists of all city of
hcials bonded by the company, of which
he was president up until few months
ago
The Mayor has taken the position that.
had he chosen 10 withhold from the pub
lie his connection with the bonding com
phny. which, as agent for the National
Surety Company. does more city bonding
than any other one concern, he could not
only have resigned his $4,000 place as
president but could have transferred his
stock to an outsider to hold for him dur
ing his four-year term as Mayor. The
fact that he resigned from the active man
esement Of the concern he asserts, shows
his desire to hide nothing from the public.
FRUITS OF YEARS OF LABOR"
In discussing the bonding situation, the
Mayor said, ~ am perfectly willing that
every one should know of my business in
terests. Every one knew that was pres
ident of the Thomas B. Smith Company
when was candidate for Mayor. 1 spent
the best part of my life making that
company a success. resigned the pres
idency. but surely no sane person expected
me TO give up my holdings in the company,
the fruits of years of hard labor, simply
because l was going to take a temporary
Office in the government of the city of
Philadelphia.
II doubt very mucn whether any OF
the firms which have been bonded by
the National Surety Company since 1 have
been Mayor were Influenced by my pres
ence in office. In. fact, in the list Of con-
tractors already published, there are few.
IL any, who have not been doing business
with the Thomas B. Smith Company for
years, long before had any hopes OF be-
coming Mayor.
DO you think" continued the Mayor,
that If l supposed I was going TO be at
tackled for deliberate and wilful wrong
doing and was at the time bent on law
breaking for profit, l would not have
adopted methods to safeguard myself
from Icriticisrn? Was 1t not entirely
feasible for me to have transferred my
stock, to be held in another name, for my
interests. I did no such thing That would
have savored of turning sharp corners
and had 1t become known l could justly
have been criticised. 1 cannot see that 1
come within the law. l feel certain that
have done no wrong"
COMMISSIONS 80 PER CENT.
In explaining the bonding business, the
Mayor said that although the Thomas b.
Smith Company, OF which II is by far the
heaviest stockholder. has written bonds
for more than 100000 since last Decem-
ber the amount that actually came Into
the concern because of that business was
comparatively small. He said that the
Smith Company's commissions on premi-
ums from the National Surety Company
were 80 per cent.
Frequently. he declared, business comes |
in through surety brokers, who must be |
paid a commission of Is per cent This |
leaves 10 per cent. on such business for |
the Smith Company out of this, the |
Mayor explained. office rent salaries and |
other expenses must. be met, This ex-
PLANTATION was made by the Mayor be-
cause he felt that the public might con-
fuse the amount of the bonds written |
with the actual return to the Smith |
Company.
Select Councllmen Harry ]. Trainer
and Charles Seger at a recent meeting
of the Finance Committee, attacked the /
custom of forcing small clerks and low
salaried ofiiceholders who handle none
of the city's money, to give bonds Coun-
Gilman Trainer Is expected to introduce
in Councils. in the near future, bills re-
pealing ordinances requiring the general
bonding of small placeholders and cer-
tain classes of municipal contractors.