The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1914-06-17
TREASURER FILES
ANSWER IN SUIT
BY GOVERNOR
Denies Authority Of Executive
10 Demand New Bond
DID NOT cOsCEAL FACTS
Belief That Proceedings viii Be Dis
continued as New Bond
Has Been offered

Montpelier. June 1.-THE answer
Of State Treasurer Deavitt was filed
yesterday in the mandamus suit
brought against him by Gov. Fietch-
er. The measure states that he knew
Of the conditions of The American
Fidelity company when he offered his
bond to the goyernor for approval
October 4. 1912. that company then
was and now is solvent, that at the
request OF the governor he furnished
further securities and believed by so
doing he had satisfied the governor
Treasurer Deavitt states that he
wishes 10 deny misrepresenting or
suppressing information from the
governor. lie admits that the share
holders OF the American Fidelity
company surrendered for cancellation
in December 1913, s367.250 capital
stock and securities. This action
was taken with the approval OF the
insurance commissioner of Massa-
chusetts. Connecticut and New York.
and that through some misapprehen-
sion of a former secretary OF the
company the company declared devi-
dend without first securing the APP
prevail OF the insurance commissioner
but that In all other respects the
company has complied with all recon
mendations OF the insurance COM
missioner and has been and is con-
Quoting its business in a safe and
proper manner. that January 6. 1914.
the governor demanded cancellat-
ion of the bond and the treasurer de-
clined to accede to the request ana
saws said demand was one which the
governor had no authority to make
and the treasurer no right or power
to comply with; that June Is, 1914 he
rendered the governor a bond OF the
American Surety company Tor
$780, 900 to cover from the present
time TO the expiration of his term
and at the same time delivered a let
ter stating that he was acting under
advice of counsel and still declined
TO cancel and abrogate existing Sc
curities for they we're ample and en-
forcable and that counsel advised the
treasurer that the governor had no
right 10 make, and the treasurer had
no right or power to grant the re-
quest made, thereby depriving the
state OF all subsisting securities for
the faithful performance OF the
treasurers duties from the time OF
his election in October 1912, to the
present time. Counsel for the COVER
nor raised an objection RS to the
form of the bond and the treasurer
offers to comply with the request for
change in the form.
The state treasurer denies the ale
CATION that he maliciously or. wilfully
concealed or suppressed facts about
his sureties which he AYERS are sound
and safe. The answer covers six
typewriter pages.
Secretary of State Guy w. Bailey
this evening. stated that he received
from State Treasurer Deavitt in the
secretary's Office in this city last Sat
urday morning subrogation agree
ment between the international Fidel
ity and Insurance company of New
Jersey and the American Fidelity
company of Montpelier in which the
former reinsures $4,000 of the treas
urer's bond of 100000 carried by the
Montpelier concern.
This subrogation agreement is to
provide for the reinsurance of part
of the 100000 bond which was plac.
ed with company not admitted to
do business in Vermont. II was par
TALLY upon this reason that Gov
Fletcher brought mandamus pro
ceedings to compel Treasurer Deavitt
to furnish new bond which he did
last Saturday.
AS the matter now stands $4,000
of the original bond issued by the
American Fidelity company has been
reinsured in companies admitted to
do business in this Slate.