The New York herald., 1921-01-07
MAKES PLUMBER SAFE
Facts Disclosed at Bond In
quiry Shows Way to Find
Stolen Goods.
AGENTS'WORK EXPLAINED
Witness Says No Attention Is
Paid to Amount of Premium
System Attacked.

The spotlight was turned upon the
chronic indemnifier" yesterday in the
bail bond inquiry before Magistrate
Simpson. and he was held UP by AS
sistant District Attorney Ferdinand
Pecora as the keystone of the system
which Mayor Hylan has charged oper-
ates almost entirely for the benefit of
the criminal and furnishes him place
to deposit safely stolen jewelry and
other yaluables.
Through the testimony of Louis
Espresso of Espresso & O'Leary, 366
Broadway, special agents for the FL
deity and Casualty Company of New
York. brought out through persistent
questioning by Mr.. Pecora, it de-
veloped that the indemnifier stands
behind about so per cent of the bail
bonds executed with "a surety COM
pany's power of attorney, and that the
irdemnifier may even become surety
to the company for the repeated bail
ing of the Same habitual criminals.
1t appeared from the testimony of
Mr.. Espresso that the indemnifier.
through his connection with the agent
holding the power of attorney insures
his own immunity against loss by ex-
acting from the defendant collateral
sufficient to cover the amount OF the
risk involved. This collateral may be
ash. jewelry bonds. bankbooks or
other tangible personal property. The
hnI u
indemnity bond and does not concern
itself either with the amount Of profit
exacted from the baied defendant or
with the character of the collateral
PIunder May BE Collateral.
So far as MIR. Pecora could learn from
Mr.. Espresso. the surety companies
make no attempt to determine II the
collateral is etolen property; the COM
panies appear to have nothing to do
with the collateral whatever That part
OF the transaction Is entirely In the
hands of the indemnifier. So far as the
surety company Is concerned the Jew
eIry cash or securities surrendered 10
the indemnifiar ny the criminal he balls
ont may be the result of his latest
robbery
II satisfactory collateral is offered py
the bailed defendant Mr.. Espresso testi-
fed ''the indemnifer then collects as
generous a premium as he can exact
pays 2is per cent of 1t over 10 the
agent or runner who supplies the surety
company's power of attorney, which
must be attached to each bail bond. and
nockets the difference himself. The coll
lateral securities he holds in his own ex-
elusive custody. The agent or runner
turns in the legal 2 per cent premium
to his company. keeping the one-half OF
/ per cent. for his part in the transac-
ton.
From this evidence" said the Assist
ant District Attorney during the nearing
yesterday, 'it has developed that the
present system of bail bond writing oy
the big surety companies has wholly
commercialized and utterly subverted the
original theory OF the law. That theory
was that ball should be furnished by
some person who had sufficient faith In
the integrity or the good intention Of an
accused man to appear for trial when
summoned. that he or she stood ready to
risk his or her own property as guar
antee thereof"
Mr.. Pecora condemned this as worse
in its potentiaiitles than the old sys-
tenn or professional bondsmen. The pro-
fessional bondsman. he said, at least had
to appear In court with his client. He
was a known quantity and not one
cloaked under the protecting aegis OF a
casualty or bonding company. which Is
sponsored by the statutes of the State.
Explains BaiI Procedure.
on taking the stand Mr.. Espresso said
he had been bail bond writer for the
Fidelity and Casualty Company about
three years. At nrst he had been a
salaried agent employed by Joe" Top
per. but when Toppofs relations with
this particular company ended in De-
cember. 1918, the witnesses firm took
Toppor's place In the criminal bail bond
ing business Espresso a. OLeary deal
directly with Hughes & Bates OF 30
william street, who are the Fidelity
and Casualty's metropolitan agents.
The witness and his partner employ
ono outside agent on "A salary basis ana
four other business getters who receive
NJ salary. They are stationed in the
various busy police courts---EsseN mar :
ket. jefferson Market and the like--and
are respectively Morris Lang. jacob
Greenspan, Jack Wolf and Michael Elm
stein. Frank Barberi Is the one salaried
man. and Espresso and O'Neil look AFTER
much of the business I'm the Criminal
Courts building. These helpers pay Es-
prcsso and O'Neil 2h per cent on all
bonds executed by them. and OF that
amount he and his partner have to turn
over to the company the manual pre-
nriums OF per cent. They do not con-
Germ themselves with the charges ex-
acted by their subordinates.
'I think they usually charge to 31s
per cent, and they may at times get as
high as s per cent" said the witness.
",rhe company places no limitation upon
US in the amount Of our charges. but l
never have had a kick or complaint OF