The New York herald., 1922-02-15
MOVE TO WIPE OUT
SINISTER BOND MEN
Leading Companies Favor
Drive of Insurance Superin-
tendent Against Crooks. :.

A concerted drive on unscrupulous
bondsmen. whose pernicious activities
were revealed in a John Doe inquiry
conducted a year ago by Magistrate
Simpson, was predicted yesterday as the
probable outcome of a conference in the
Office of Francis r. Stoddard state Su-
perintendent of Insurance, at which the
leading bonding companies OF the city
gave their tacit approval to a bill de-
signed to drive the "shyster bailer" out
of business.
While the insurance companies with
held complete approval, indicating that
many of the remedies would be effected
by themselves" they told Mr.. Stoddard
To push the bill through the Legislature
| III he thought the State Insurance De-
partment would need the power 1t grant
ed to cope with present evils. Only one
objection was offered TO the bill as
drafted by the department and that was
against a possible necessity of a COM
pany obtaining two licenses before en-
gaging in both the casualty and bonding
business. The proposed act deals solely
with the bonding business. Some Of
the companies felt an amendment to the
present act. known as Section 142 OF the
| The new bill, which is in the hands
of State Senator Cotilo and probably
will be introduced In a few days. would
give to the State Insurance Department
| the widest powers possible in prevent
ing bonding companies from unwittingly
| employing former criminals as agents.
The real punch" of the new legisla-
ton. however. would be in an amend
ment to the penal law empowering the
bailing judge or magistrate to inquire
into the nature of the collateral pro-
duced by the ndemnitor.
Magistrate Simpsons inquiry revealed
that the indemnitor was the go-between
for the criminal and the banding COM
pany's agent. 1t was to this mysterious
person the thief would turn, and to obtain
his release he often would surrender the
greater part of his booty to the indemni-
| tor. The latter in turn, produced jew
elry or cash for the bonding company's
agent as security for the bail asked by
the committing magistrate. Ofttimes
the security given to the indemnitor was
twice the value Of the ball asked. so
that If there were default the in
demnitor's profit was assured.
The Penal Code amendment suggested
by the State Insurance Department
would permit the magistrate to ascer-
tain just where and how the collateral
was obtained and would allow him to
refuse the offer If it developed that the
indemnitor had gone the bail of two
persons during the previous month.
Heretofore the indemnitor was the silent
party in the transaction. but this amend
ment would bring him out into the open
and. in the opinion of Mr.. Stoddard.
would make it virtually impossible for
a professional indemnitor to exist
I,on a,,ia ta1 nj t1no
ference were the New Amsterdam Cas-
ualty, Fidelity and Deposit Indemnity
Insurance Of North America, United
States Fidelity and Guaranty, American
and Aetna Casualty Company. Mr..
Stoddard said the companies. collective
ly expressed a desire to get out Of the
bonding business entirely and asserted
they would cooperate with the State In
surance Department in correcting the
evils.
Mr. Stoddard said he gained the i'm
preston during the conference that the
companies felt they could "clean house"
themselves. but were willing to let the
Insurance Department pass its bill IL 1t
would drive the professional thief bailer
out of business. To Mr.. Stoddard now
falls the task OF deciding whether these
ends can be obtained best by enactment
of the measure in Senator Cotillo's
hands. which would be known as Sec
tion 142 A. or by an amendment OF the
original section.
Frank Hart, bond broker, and Henry
Morris pleaded guilty yesterday before
Judge John c. Knox in the Federal
District Court to an indictment charg-
ing them with Illegally possessing Lib
erty Bonds stolen from the General
Post Office last July IS. Judge Knox
postponed sentence until completion of
the trial of Mark Won Eschen. charged
with completely in the theft OF Govern
ment securities valued at 81. 100000