Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-09-30
LOCAL SURETY
TO BE ENLARGED
[Continued from First Pagc.I

ucT new COntTOl. Inc
Trust Company. present owner of the
stock. has made a contract for it's
sale to New York and Boston inter-
ests. The capital of the company
will be Immediately increased to
S500.0 and the surplus to like
amount Steps have already been
AIKEN to amend its charter so that it
may write burglary insurance. The
business of the company will be con-
fined to fidelity, surety and burglary
lines. and no additional lines are
contemplated. After the increase in
capital is completed, it is the inten-
tion of the company to apply for ad-
mission to New York and Massa-
chusetts and to open branch offices
in each state. Branch offices will
also be established at Philadelphia
and Pittsburgh,
Il. H. Manning In Charge
The new interests have already
arranged with experienced men for
the home office. The underwriting
management will be in charge OF
E II. Manning, now one of the princt-
pal bond underwriters at the home Of
flee of the Fidelity and Casualty Com
pany, of New York, noted for its con-
servative business methods. Mr. Man
ming is closely identified with the
new interests The agency director
will be man now prominently con-
nected with another company, who
has had many years of agency and
executive experience. The head of
the burglary insurance department
will be the present chief underwrit-
er in that department for one of the
leading companies. Their names are
not yet available for publication.
-. r. Henry, the present secre-
tary of the company, will be retain
ed and will probably be elected
vice president and treasurer. Ed
ward Bailey, the president, will con-
tinue as director and will
have substantial holdings of stock.
Other directors of the Harris
burg Trust Company. as individ-
uals. will be stockholders, and it is
probable, also, that other bankers in
Harrisburg will be included in the
directorate. A small amount of the
stock will probably be distributed
among some of the banks of Penn
sylvania known to the controlling in
terests.
Solid Company
The Pennsylvania Surety Company
is a very substantial institution, but
by reason of having operated in
very limited territory, is compara-
lively little known. 1t was incorpor-
ated in 1905 and commenced business
in December of that year with cap
ital of s250,0O0. 1t was organized by
the owners of the Harrisburg Trust
Company, Edward Bailey. a promi-
nent Central Pennsylvania financier.
being president. 1t was organized
to take care of local business in
Pennsylvania in which the trust
company might be Interested finan-
cially or through personal affilia-
ton. While it has never done
large business. the risks assumed
were first class, the losses and ex-
penses low and the investments prof
liable. The company has paid $780,
900 in dividends and built up a sur
plus of approximately s360,000. 1t is
member of the Towner Rating Bu-
reau. and maintains rates. IL is
qualified to execute bonds running to
the United States. 1t is a highly
esteemed member of the Surety As
scciation of America. It's officers and
directors are men of high financial
and business standing.
THE ownership of the stock by the
ducive to expansion. There is only
one other surety company in Penn
sylvania, located at Pittsburgh. The
directors of the Harrisburg Trust
Company, recognizing the opportun
tiles for a large company to operate
not only in Pennsylvania but in 9TH
er states decided to relinquish the
trust company's dominant ownership
provided the new controlling interest
| would agree that the home office
should remain in Harris burg, and
that the company should continue
primarily a Pennsylvania institution
| that in expanding it should enter
states whose business is desir-
able, that the management should
seek quality rather than quantity of
business and continue the conser-
vative underwriting policy which has
| prevailed in the past.
In Healthy Condition
EARLY in September S. H. and
Lee j. Wolfe, the New York actu-
| aries, examined the company for it's
entire period of operation. They
| found it in healthy condition, with
| adequate reserves.
| "E. II. Manning, who will have the
| underwriting management, has had
| 90 years experience in the surety
| business. He is a graduate of the
| University of Maryland and a law
yer. He became an underwater in
| the judicial department of the United
| States Fidelity and Guaranty Com
pany, of Baltimore in 1899. In 1904
| he went to the American Bonding
| Company. of Baltimore. Subsequent
| ly he was sent to Oklahoma and In
dian Territories as joint attorney for
| that company and the Fidelity and
Deposit Company to handle the
| thousands of claims which had aris-
en- under Indian guardian bonds. This
required several years. He remain
ed in the West, representing a num-
Der of casualty and surety compan-
| les as attorney and as advisory un-
derwriter, until he was called to
! New York to become connected with
the Fidelity and Casualty Company.
| For the past year ne has devoted
most of his time to developing the
| company's surety business in New
| England. He is a member of sew
eral New York clubs and is a Mason