The liability of this bond is unrestricted, extending to any and all losses the corporation may sustain through the active misdeeds, the omissions or the failures of the treasurer. The terms of a personal bond are, on occasion, modified but they are almost invariably characterized by the stringency of their conditions. For the treasurer and his friends who are to sign the bond, to question its terms would seem to cast doubt upon either the integrity or the ability of the treasurer. It is therefore but seldom that active objection arises to the terms of a personal bond.

When, however, a surety company enters the bonding field, the conditions are entirely different. No personal reasons intervene and the guarantees are reduced to the lowest possible terms. Accordingly a striking difference will be noticed between the sweeping and unreserved liability of the personal bond just given and the cautious circumspection of the surety company bond which follows. This latter, as given, covers nothing save losses arising through the personal dishonesty of the employee amounting to "larceny or embezzlement."

Form 32.-Treasurer's Bond. Surety Company*

KNOW ALL MEN BY THESE PRESENTS, That we

(hereinafter called the Employe), as Principal, and the NATIONAL SURETY COMPANY, a New York corporation (hereinafter called the Company) as Surety, are held and firmly bound unto (hereinafter called ...... Dollars,

the Employer) in the penal sum of. good and lawful money of the United States, for the payment of which amount we do bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

...day of

..190....

Dated this WHEREAS, The Employer has appointed the Employe to the office or position of.. in the service of

and the Employer requires and may require security in a stated amount as indemnity against loss which the Employe may sustain by or through the personal dishonesty, amounting to larceny or embezzlement of the Employe, in the performance of his duties in the position to which he has been or may be appointed by the Employer;

NOW, THEREFORE, For and in consideration of a premium, computed at an agreed rate, the Company hereby covenants and agrees to and with the Employer, that it will, subject to the conditions and provisions herein

* Secured through the courtesy of the National Surety Company of New York City.

contained, which shall be conditions precedent to the right of the Employer to recover under this Bond, at the expiration of three months next after due and satisfactory proof of the loss herein mentioned shall have been furnished the Company, make good and reimburse to the Employer any and all direct loss of money, securities, or other personal property, belonging to the Employer, or in its possession and for which it is legally liable, sustained by the Employer, by or through the personal dishonesty, amounting to larceny or embezzlement, of the Employe, and for which the Employe shall be legally liable to the Employer, occurring at any time during the term beginning the day of 190.... and prior to the day of 190. which said loss shall be discovered during such term or within six (6) months after the last day of such term, and within six (6) months after the Employe's death or his dismissal or retirement from the Employer's vice happening during the term aforesaid, and within six (6) months after the termination of this obligation by the Company. Provided, however, the Company's liability on account of the Employe shall in no case exceed the amount for which the Company shall become surety hereunder.

ser

THIS BOND is executed by the Company upon the following express conditions:

(In order to save space, an abstract only of the conditions of this bond are presented.)

(1) Bond not effective until signed by the Employe and ceases on payment of any loss.

(2) Employer to immediately notify Company, under penalty of failure of bond, of any information coming to his notice tending to show that Employe is unreliable, deceitful, dishonest or unworthy of confidence, or that he is intemperate, gambles or indulges in other dissipation; and if at any time such information is sufficient to establish the fact, Company is not liable thereafter for the misdeeds of Employe.

(3) If present bond is a renewal, liability under preceding bond ceases six months from the renewal date and-if there is any difference in amount between the original bond and the renewal-the total of all losses collected shall not exceed the amount of the larger bond, the intent being that but one guarantee shall exist at any one time.

(4) Any previous default of Employe known to Employer shall void bond.

(5) If Employe resigns, is discharged or ceases to act, Company is not liable for his acts thereafter.

(6) Company is not liable for any existing debt or shortage of Employe, or for funds or property used to make up same.

(7) Employer must give Company immediate written notice on discovery of any loss and must within ninety days thereafter file written claim and proof of loss; failure shall release Company.

(8) If any written statements of Employer concerning Employe are untrue in any particular, Company is released.

(9) Any change of business or relations of Employer and Employe must be notified in writing to and be consented to in writing by the Company, or bond is void, and in case of default Employer shall on request give information and assistance (not pecuniary) assisting the Company in the capture and prosecution of Employe and reimbursement of Com

pany.

(10) Employe agrees to pay Company any loss, damage or expense incurred by the Company herein.

(11) Company not liable hereunder for accident, mistake, negligence, error, breach of contract or for anything save personal dishonesty amounting to larceny or embezzlement of Employe.

(12) If Employer holds other security or otherwise recovers losses sustained through Employe, Company shall pay proportionately less.

(13) Company may terminate bond at any time by written notice to Employer, unearned premium-unless some loss has been already incurred to be repaid.

(14) No action at law to be had on bond unless commenced within six months after claim is made.

(15) Receipt or retention of bond or making claim for any loss thereunder binds Employer to all the terms hereof; Employer is also required to make frequent audits and examinations and take and use all reasonable precautions against loss.

(16) Premium due must be paid in thirty days or bond is void.

(17) "Employer" means any officer, manager or auditor of Employer having power to supervise and examine books, audit accounts or examine cash or securities.

(18) If Employe is acting jointly for some other person or corporation, joint audits of his accounts shall be made.

(19) Bond may be renewed from year to year.

(20) No condition herein shall be waived by Company unless in writing over the signature of President, Vice-President or Resident VicePresident of said Company, with its duly attested seal affixed.

IN WITNESS WHEREOF, The Employe has hereunto set his hand and seal and the Company has caused this Bond to be signed by its officers proper for the purpose, and its seal to be hereunto affixed on the date above written.

Form 33.-Indemnity Bond. Lost Stock Certificate.

INDEMNITY BOND.

KNOW ALL MEN BY THESE PRESENTS, That we, Frank H. Stafford, of New York City, as principal, and Henry W. Bronson and James H. Wells, both also of New York City, as sureties, are held and firmly bound unto the Sterling Manufacturing Company, a corporation duly organized under the laws of the State of New York, in the sum of Ten Thousand ($10,000) Dollars, to the payment of which to the said corporation, its successors or assigns, we do by these presents jointly and severally bind ourselves, our heirs, executors and administrators.

Signed and sealed this 18th day of January, 1908.

The condition of the foregoing obligation is that:

WHEREAS, The said Frank H. Stafford, the owner of record, as shown by the stock book of the corporation, of Seventy-Five (75) Shares, each of

the par value of One Hundred ($100) Dollars, of the capital common stock of the said Sterling Manufacturing Company, the ownership of said stock being further evidenced by certificate No. 275, issued in the name of said Frank H. Stafford on the 15th day of June, 1906; and

WHEREAS, The said Frank H. Stafford has made application to the Board of Directors of the Sterling Manufacturing Company for the issue in his name of a new certificate for the said Seventy-Five (75) Shares of stock, alleging that the original certificate No. 275 is lost, stolen or destroyed and that its present whereabouts and condition are unknown to him; and

WHEREAS, By due and formal resolution of the said Board of Directors a new certificate for said Seventy-Five (75) Shares of the stock of the Sterling Manufacturing Company was this day issued to the said Frank H. Stafford:

NOW, THEREFORE, If the said Frank H. Stafford, his heirs, executors and administrators, or any of them, do and shall at all times hereafter, save, defend and indemnify the said Sterling Manufacturing Company, its legal successors or assigns, of, from and against all demands, claims or causes of action arising from or on account of said certificate No. 275 for Seventy-Five (75) Shares of the capital stock of said Company, and of and from all costs, damages and expenses that shall or may arise therefrom, and shall also deliver or cause to be delivered up to the said Sterling Manufacturing Company for cancellation the said missing certificate No. 275 whenever and so soon as the same shall be found or recovered or come into his possession, then this obligation shall be void; otherwise to remain in full force and effect.

CHAPTER XXXVII.

CORPORATE SECURITIES.

Form 34.-Preferred Stock. (U. S. Steel Corporation.)

SEVEN PER CENT. CUMULATIVE PREFERRED STOCK.

Number

Shares

Incorporated under the Laws of the State of New Jersey.
UNITED STATES STEEL CORPORATION.

This is to Certify that

is the owner of fully paid and non-assessable shares of the par value of one hundred dollars each, in the PREFERRED CAPITAL STOCK of United States Steel Corporation, transferable only in person or by attorney upon the books of said Corporation, upon surrender of this certificate. The holders of the preferred stock shall be entitled to receive, when and as declared, from the surplus or net profits of the Corporation, yearly dividends at the rate of seven per centum per annum, and no more, payable quarterly on dates to be fixed by the by-laws. The dividends on the preferred stock shall be cumulative, and shall be payable before any dividend on the common stock shall be paid or set apart; so that, if in any year dividends amounting to 7 per cent. shall not have been paid thereon, the deficiency shall be payable before any dividends shall be paid upon or set apart for the common stock. Whenever all cumulative dividends on the preferred stock for all previous years shall have been declared and shall have become payable, and the accrued quarterly installments for the current year shall have been declared, and the company shall have paid such cumulative dividends for previous years and such accrued quarterly installments, or shall have set aside from its surplus or net profits a sum sufficient for the payment thereof, the Board of Directors may declare dividends on the common stock, payable then or thereafter, out of any remaining surplus or net profits. In the event of any liquidation or dissolution or winding up (whether voluntary or involuntary) of the Corporation, the holders of the preferred stock shall be entitled to be paid in full with the par amount of their shares and the unpaid dividends accrued thereon, before any amount shall be paid to the holders of the common stock; and after the payment to the holders of the preferred stock of its par value, and the unpaid accrued dividends thereon, the remaining assets and funds shall be divided and paid to the holders of the common stock according to their respective shares. The preferred stock and the common stock may be increased as provided in the Certificate of Incorporation. This certificate is not valid without the signatures of the Transfer Agent and the Registrar of Transfers.