Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-08
BY I. A. FLEMING.

Insurance is q very large part OF the
banking business nor does there seen
to be the slightest indication that Il
will be reduced in the slightest: :.
Interest payment to depositors L
charged with IS per cent OF the tota
expense, with banks straining their ef-
forts to gather in the cash this year
when the prevailing high rates for cal
money offer an opportunity to DO bust
ness and make more money.
But the cost Of fiduciary insurance II
mounting somewhat with the increasing
risks that attend banking, so that there
would be few days and nights Of any.
thing like peaceful rest from the dread
of q hold-up, forgery Is the fall Of q
heretofore honest teller, chicanery by
trusted member OF the offlcial stan who
has been advanced to high place.
When the crime Is committed II
stuns, 1t hurts and seems impossible
but it is borne by the bank with less
regret II the loss falls entirely on the
bonding, and as q rule it does-it Is the
banks business to see that 1t does.
Kinds Of Insurance.
There are different kinds of policies
including the so-called blanket, like
charity itself, in that 1t covers q null
titude Of sins. Here Is the full list:
/. Bankers blanket bonds.
2. Individual fidelity bonds.
3. Burglary insurance in addition To
bankers blanket bonds.
4. Hold-up and robbery insurance In
addition to bankers blanket bonds.
5. Fire insurance on equipment.
6. Insurance on loss Of business by
reason Of fire.
Z. insurance on loss Of rent by rea-
son of IRE.
8. Forgery insurance on direct obli-
cations Of the bank.
9. Forgery insurance on savings &C
counts.
10. Forgery insurance on commercial
II. Group insurance on the lives Of
employees.
IL. Insurance for injuries to the
public or employees.
Is. Tornado insurance.
II. Registered mail insurance.
is. Plate glass insurance.
16. Workmen's compensation.
II. Insurance on jewelry.
All banks do not use all OF these
policies but the ultra-careful man
makes 1t q point to be especially In
sistent In placing these safeguards
around his peace OF mind.
Not All Sins Published.
Not all crimes against banking are
punished. One man held
in high repute as q note teller in some
manner got away with $65, 900 Of money
earned by the bank in interest pay
ments. A short, comfy stay in the jail,
with reputed Joy rides after working
hours. A close observer Of many years
in the banking business has noticed
many instances of crimes unpublished
In the slightest.
The insurance company has the say
the culprit generally Is given disgrace
full publicity, but 1t is up TO the In
surers to prosecute. Bankers associa.
lions and the American Bankers As
ISOLATION are IN favor of exercising the
law without fear or favor.
What the insurance company wants
Is the recovery of the loss, all II pos
sible, in any event the limit that may
be Obtained from the relatives of the
man who made the mistake, always Sim
tending to replace It,"
Life Insurance, Too.
Banks are likewise interested in life
insurance trusts and in life insurance
we are advised by the pres
ident of the District of Columbia Life
Association that the
procedure when policies Of in
surance are accepted as collateral is
possession Of the policy under a proper
assignment by both the insured and
the beneficiary, and notice to the home
ONCE of the company issuing the pol
Icy Of such assignment with acknowl-
edgment thereof, which automatically
results in premium notices to the bank.
The naming Of the bank as beneh-
ciary Is not considered good practice
where no trust agreement exists.
In the Matter Of Fees.
Fiduciary corporations serving cor
porations in various ways for many
years have long been discussing the
matter Of uniform fees for services
rendered. After many meetings the
Corporate Fiduciaries' Association Of
New York City has agreed upon a sched-
ule for services. The matter has been
very generally debated and given united
approval.
OF course Washington Is interested
in the subject and our association APP
a committee to investigate and
report to the association its findings
and to submit q report upon which the
able to discern signs Of recovery In sew