Evening star., 1925-02-09
SURETY BUSINESS
GROWS BY LEAPS
Companies Assume Risks
Which Make Many Huge
Projects Possible.
BY J. G. RoYLE.
Special pisnatch to The star.


NEW YORK, February 9.-Out OF
the peculations of dishonest men has
grown up one of the most important
and influential businesses in America.
| The surety business which was start
ed to furnish protection against dis
honesty and breach of faith. in late
years has grown by leaps and bounds.
This was emphasized today by Albert
H. Wiggin, president OF the Chase Ma
tional Bank, in speaking at the cele-
bration Of the thirtieth anniversary
of the starting OF the Fidelity e. De-
posit Co.
When the company started, there
were only one or two concerns en-
gagged in the business, and tho Ffdel-
ity Deposit had only two employees.
Today 1t has a big stan here, with
representatives in hundreds or otner
cities, and has just been compelled 10
seek larger quarters. owing to the IN
crease In the amount Of surety busi-
ness being placed. There are many
other outstanding copcerns doing a
strictly surety business In the United
States.
Pooling Of Risks.
Surety companies have done much
to increase the safety OF modern
business" Mr.. wiggin said. I'm
| known risks which individual hrms
could not safely assume are pooled
| by these companies in such way az
to make them definitely available ano
| safely bearable."
The surety companies Of the United
States now have a capital OF $lls,-
SS9694 and assets OF Sl.304,l33. 100
| In the last year their net premiums
totaled $46s,709,335. The companies
really began by Offering guarantee
a a nf
! Now, bonds issued by surety compa'
nies include fidelity bonds for en-
ployes Of mercantile and manufactur-
| ing concerns, for fraternal orders and
| for public officials. bankers ano
brokers' blanket bonds, contract
bonds for supplies. paving, snip
| building, dredging and constructor
| work. judicial bonds for admins
traitors, executors, trustees and guar
! dians and bonds filed In connection
with litigation and depository bonds
In addition. some companies do
large burglary business, issuing man
residence and mercantile policies. and
also handle large bankers and
commercial check forgery protection
! business.
business Covers World.
Many of the companies are repre-
sented in practically every business
center In the United States. Cuba and
Porto Rico and also have arrange
ments for executing bonds in every
part Of the world. Clarence Axman
publisher Of the Eastern Underwater
and regarded as q leading authority
in insurance, said today billions OF
dollars of construction an engineer
ing work each year is made possible
in America through the operation OF
surety companies. Their bonds have
enabled the builders of America to
prosecute their work with vigor and
security.
Moreover, there have been many
instances where contractors have
failed and the surety companies have
taken charge OF the work and COM
pleted the contracts. Corporate surety
in America is growing by leaps and
bounds and the individual surety by
which one man stands sponsor foi
another in the carrying out of con-
tract or obligation is passing out
after many bitter experiences and
tremendous personal losses sustained
by individuals"
Defalcations Of trusted employer
and officials no longer cause the con-
sternation in business and financial
circles that they once did, since In
nearly every case the concerns in
volved have taken advantage OF
surety company protection.