The Barre daily times. (Barre, Vt.) 1897-1959, 1914-06-16
HE DENIES DECEIT IN
GETTING APPROVAL
Deavitt Defends American
Fidelity Co. as Solvent
and in Condition to Meet
It's Accruing Liabilities"
Denies Fletcher's Right to
Request Cancellation

state Treasurer EDWARD Ill, DeaYItt 8
answer to Governor Fletcher's mandamus
writ compelling the treasurer to show
cause why new 100000 bond should
not be furnished as security for the state
of Vermont was fled with Clerk l.. G.
Moody of the Vermont supreme court at
Montpelier to-day Treasurer Deavitt
admits therein that he has secured a
new bond for 100000 with the Ameri-
can Surety Co but that he declines to
cancel and abrogate existing securities
for the period of his service up to the
execution of the new bond because he
believes the old securities "ample and
enforceable and because, furthermore,
he is informed by counsel that the gov
ernor has no right to make such a re-
quest and he tDeavitti has no right or
power to grant the request.
In his answer, Treasurer Deavitt as
serts he had reason to believe the Amer
lean Fidelity Co. was Solvent and in
condition to meet its aecruing liabilities"
when he presented his first bond on that
company and that he still believes the
company to be solvent and able to meet
its aceruing liabilities.
However, in compliance with Governor
Fletcher's request, says the answer filed
to-day, Treasurer Deayitt procured and
rendered further securities and he AYERS
that lack of authority to do business in
Vermont did not affect the validity OF
the consents attached to his bond nor
would it increase the expense of any suit
or suits for the enforcement of any liza
bility aecruing under said contracts"
He adds that all the re-insuring com
panies except the Southwestern Surety
Insurance Co. had been authorized to do
business in Vermont before Governor
Fletcher's petition was filed.
Treasurer Deavitt denies alleged mis-
conduct in representing, misrepresenting
and suppressing and concealing facts
from the governor in regard to the cir.
cumstances OF the said approval of the
bond aforesaid; and he further denies
that he "wlfully, maliciously and with
intent to deceive the governor and to
procure his approval of such bond, did
not inform him Of the financial condition
of the American Fidelity Co." etc.
Treasurer Deavitt declares that he
took one oath OF office and that such
oath met the requirements OF the law
In closing his reply, he relates about
the tender of the new bond of the Amer
lean Surety Co. and of the objection by
the governors counsel that the bond
ought to have been executed to the sec.
rotary of state rather than TO the state
of Vermont as obligee. Treasurer Deav-
lit says he still believes the bond ought
to be executed to the state of Vermont,
but he is taking steps to have it execut-
ed to the secretary of state.
Full Text of Reply.
Treasurer Deavitt's reply in full is as
follows:
"State of Vermont ex rel Allen NJ.
Fletcher. Governor of Vermont v. Ed
ward II. Deavitt, Treasurer of the
State of Vermont.
"Supreme Court, Washington County.
"The answer of Edward H. Deavitt.
State Treasurer, to the petition of Al
len NJ. Fletcher, Governor:
"This respondent Edward H. Deavitt. |
for answer to the petition of the said
Allen NJ. Fletcher governor, as relator, |
or so much thereof as he is advised is
material TO be answered SAYS:
"That he admits the respondents elec.
tion and commission as state treasurer
of Vermont as set forth, and the tender
Of bond with the American Fidelity |
as surety. upon which was this
oath of office duly certified,
to the governor for his approval.
"And this respondent denies that he
at all times has had the custody. as in |
surance commissioner of Vermont. of the |
reports showing the financial standing of I
said American Fidelity company and I
AYERS that he believed he knew the fnan-
,ial standing and condition Of said com I
nany Mt the time of the execution OF I
said bond, and had reason to and did /
believe, and he therefore AYERS that the
said company then was and now is sol
vent and in condition TO meet its accru-
ne liabilities.
This respondent admits that the gov
'rnor assigned as reason for not ap
,roying said bond when presented, that he
.hought that in view of its other obliga
ions to the state there should be more
han one surety besides the American
Fidelity company for so large a penal
ium.
"And in answer to so much of said pc
ition as purports to Teeite the circum
tances of this respondents furnishing
urther securities this respondent says i
Continued on eighth psge1