Chap. 157.—An Act regulating contracts of surety between common carriers
and their employees and sureties upon such contracts, and imposing
penalties for violations of this act. (Ss. B. 143.)

Approved March 20, 1914.

1. Be it enacted by the general assembly of Virginia, That
if any common carrier authorized to do business in this State shall
employ any person in any position of trust in this State, and shall
apply to any surety company for security for the faithful perform-
ance of duty by such employee, or for any form of fidelity insurance,
and such surety company shall refuse to become responsible for
such employee, or, having become responsible for such employee, shall
thereafter cancel such responsibility, such surety company shall
furnish to such employee a statement in writing of the reasons
therefor, which statement shall be sent by registered mail to such
place as he shall designate, addressed to such employee, promptly on
his demand therefor in writing sent by registered mail to the head
office of such surety company, addressed to such surety company or
any officer thereof; and, unless such common carrier shall have
other reasons for refusing to employ such employee than the fact
of said refusal of such surety company to so become or continue
responsible for such employee, such common carrier shall, on request
of such employee, accept as security for the fidelity of such employee;
a bond or obligation in the same form or substantially in the
same form as that under which such surety refused to become or
continue responsible for such employee, when duly executed and
acknowledged by any other solvent surety company authorized to
execute sueh bond or obligation in this State or a personal bond
with satisfactory surety and furnished to such common carrier by
such employee without cost or expense to such common carrier;
provided, however, that such surety company shall not be required
to disclose the sources of its information regarding such employee,
and that all communications, written or verbal, between such surety
company or any officer or representative thereof and such common
carrier or any officer or representative thereof or such employee or
any person, firm or corporation mentioned. in any statement made
by such employee to such surety company shall be deemed privileged
communications; and, further provided, that no action or legal
proceeding for libel or slander shall lie against such surety company
or such common carrier by reason thereof.

2. Any surety company or any common carrier which shall,
by its officers or representatives, violate any of the provisions of
this act shall be deemed guilty of a misdemeanor, and be punished
by a fine of not less than one hundred dollars nor more than one
thousand dollars. ‘