Show ATTACK SURETY FIR FIRMS POLICIES Contractors Assail Use of I Influence By Public I Officials PORTLAND Ore Jan B 21 By 21 21 ByThe The A Associated d Attack Preas-AttaCk Press Attack on practices of surety companies and their agents featured reports today oday at the convention hero of The Associated General Contractors of America R It C Marshall Jr general manager of the presented A a statement reviewing grievances of contractors and suggesting remedies for tor tb the condi condi- conditions LIons of ot which thy complain I I Bonding of Irresponsible con con- contractors con contractors on tractors who frequently fall fail to car car- carI carry carry ry 1 out their obligations leaving ICIl construction work unfinished caus caUl causes es Cs heavy y losses It was pointed out Agents of surety companies often fall fail to Investigate bidders for con con- contracts contracts con contracts tracts and allow bonds to alt alt who are arc not qualified to carry carryout carryOut carryout out the thc contracts which they ob obtain thin tain It was it-was was alleged Remedies suggested In Mr Mar Mar- Marshall's Marshall's shall's report Included the separation tion of the selling and In investigating ing log functions of agents by me meana of regional investigation bureaus an 1 the adoption of suitable un- un un underwriting standards based on Investigation Co oper Cooperation atton atlon between een surety comp companies often fat fall to Investigate bidders bidden for contracts and allow bonds to Indi- Indi Indi Individuals who are not qualified to carry out the the thc contracts which they obtain It was alleged Remedies suggested In Mr Mar Mar- Marshall's I shall's shahs report Included the tho separation lion tion of the selling and Investigating functions function of agents by ly b means of ye- ye regional re regional gional Investigation bureaus and the adoption of suitable underwritIng underwriting ing standards based on scientific investigation in op Co-op operation Co-operation be- be between be between I I tween surety surely companies and the construction Industry and the adoption adoption tion of a code codr of ethics also werlo p proposed POLICIES Complaints against the surety practice voiced by Mr oIl Marshal la- la In Included eluded Failure to and adherE J to sound souna underwriting standards which failure Is responsible for forthe forthe the gr grunting granting of bonds to bidders without construction experience Or- Or Organization or organization or capital and to bid bid- bidden bid bidders den ders who are generally known to tobe tobe tobe be Incapable of executing their contracts or 01 dishonest and t t bIdders both large an who have ha become over extended In their operations Allowing public officials con con- concerned con concerned corned with the award of contracts or persons commanding Influence I with such luch officials to act as agents I for surety bonds bondo either contin- contin continI 1 I or for tor a specific bond Securing the enactment of leg leg- legislation l g creating a monopoly for corporate surety b b ds to the th ex- ex exclusion ex exclusion of other suitable guaran g guarantees tees SMi L OF OP UIS CJ Refusal to settle claims ac ac- ac according ac cording to the obvious equities In- In In Involved and s seeking to reduce t le- le claims or to 10 avoid old them by unnecessary delay resort to tG technicalities and court procedure or threat thereof Accepting re insurance from sureties 1 known to be reckless and unmindful of sound underwriting practices nr- nr |