The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1914-05-27
LETTER
BY DEAVITT
States Treasurer Replies to
Governors InsinuatiOn
Relative to Bond
DID NOT WITHHOLD
MATERIAL FACTS

Says Examination Shows Bonding Com
pany to Be Perfectly solvent-De-
clares He Will Use Every Endeavor
to Protect Vermont Institution.
To the People of the state of Yer
mont:
While l have in mind the saying
that explanations OF personal conduct
are unnecessary, for your friends do
not require them and your enemies Will
not believe them, yet | feel when the
character and motives of Il public of
hcial are assailed that the people are
entitled to know the facts on which
insinuations and inuendOes are made.
His EXcellency Governor Allen NJ.
Fletcher sometime since saw fit to ad-
dress the honorable Justices OF the su-
preme court of this state and TO sub
nit certain questions concerning the
| bond Of the state treasurer. As [ was
| then holding that office it is plain that
| his statements suggesting that the
| concealment of material facts had
| fraudulently secured his approval Of
| the bond Of the treasurer must refer
| 10 me.
Presented Bond for Approval.
As soon as [ was elected treasurer
by the general assembly in October,
| 1912, / presented 10 Governor Fletcher
| for his approval my official bond as
state treasurer in the sum of 100000
with the American Fidelity company
of Montpelier as sole surety thereon.
The bond was in the form approved by
| Attorney General Sargent in 1910 and
the surety was the same as approved
by Governor Mead for the preceding
term.
As the law provides that domestic
surety company may act as surety ou
the bond of the state treasurer, and as
the American Fidelity company at that
=, time had an unimpaired capital stoeE
, Of $750,0e0, / was very much surprise,
, when Governor Fletcher declined to ap
; prove the bond forthwith as Goveruo
: Mead had done, In conversation abOu
the matter the Governor stated tha'
, he had nothing against the company
but in view of the fact that the bon,
f, OF the auditor of accounts for $4,000
: was carried by the same company h
: felt that the sum of 100000 was NOR
: than the company ought to carry ol
that particular bond. / stated that tw
: years before the company had rein
snred one third Of the amount i
another company, and We're making
like arrangements as to the bond j
question, and he said that he felt tn
company ought to reinsure all excess O
y liability above $25, 900. l. took tn
l matter up with the company official
and found that they had already adopt
ed the policy OF limiting their liz
K bility to loss on such bonds at $25,O0
and had expected to carry my bond q
a larger net figure only because the
had carried the previous bond at
larger figure, that the risk was 4
at home. and that on the whole the
Il felt warranted in the action they ha
y proposed to take, but they readil
; asquiesced in the suggestion of I'll
Governor.
"a Governor Seemed Reluctant.
&c Accordingly the company effected fu
ther indemnity agreements SO that tt
in net amount for which the compau
or might be liable when the bond w;
ne approved by Governor Fletcher W;
es $50, 900. We had several interview
re about the matter as the Governor seer
as ed reluctant to approve the bond, al
during a period of four months Il
matter came MP in one form or anOth
until | had procured from my sure
agreements Of the reinsuring col
panies permitting the state of We
mont to proceed against the reiusu
* ing companies directly in case Il
surety should become insolvent VIII
| might be in default. These agre
y ments were taken at my suggesti
" to avoid an awkward situation viii
es- occurred in the state of New Yo
ol. when a depository bank and its sure
re- failed at the same time, and was
&C. accordance with a procedure adopt
)e by the state Of Tennessee in n simil
ty, case, and this information came to
he while | was performing my duties
" insurance commissioner. | am not nj
ed to recall all of the matters discuss
me but / gave the Governor the full,
information concerning what | suppos
to be material facts and in a fra
- and direct manner, and all | can saw
a. that whatever statements | made
him were true. As to what inquir
ia he may have made | have no kno'
edge, but | assumed that during /
four months he was giving the mat
To such attention as he supposed its
air portance required, and l attempted
yho do everything he suggested should
son done, and | suggested such things as
mo CURED to me as proper to protect
He interests of the state. And [ und
an. stood that the attorney general %
oh. the matter his consideration, in fact
IN Governor Fletcher IS request / subn
mr.. ted the reinsurance agreements to
,ars --------