The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1914-06-01
GOVERNOR VS.. IREAsuRIR
Writ 10 Compel Latter 10 File Ks~
Bend

neakiit o. entitled state nf vermont
a rel Allen n. Fletcher. Governor Of
Vermont. IS. Edward n DcaRiit
Treasurer Of the State Of Vermont
u sets forth the facts regarding the
election. commission and bond Of Mr.
Doasitt aud includes copies OF the
bond. oath and other preliminary
papers and alleges the trcasurers
knowledge OF the condition Of the
American Fidelity company and com
menis as follows
The relator further aver that al
the time OF the tender OF said bond TO
said governor as hereinhefore SCI
forth said American Fidelity com
pany vas In a serious financial condi-
ton and 10 such an extent that there
Was IN impairment OF M least hlty-
three thousand tS53.00ol Dollars OF
the seven hundred NIFTY thousand
ts750O00l lsliars Of paid-in capital
OF said company: that said company
was then and bad been for sometime
past doing business al a loss; that
the. cogditlon OF said company prior
TO said tender OF said bond had been
such that said Deavitt as Insurance
commissioner. a. ssoresaid and acting
in behalf OF the state OF Vermont and
in conjunction with the Insurance
commissioners OF the states of
Massachusetts and New York, had
notified said company to refrain from
declaring and paying dividends what
ever upon It's capital stock without
the consent OF all OF said insurance
commissioners. 10 which said com
pany agreed and assented. and that
said Deaviit at the time OF the tender
OF said bond as aforesaid well knew
the facts as To the condition OF said
American Fidelity company as herein
before set forth but did not impart to
said governor said facts nor did said
governor then have any knowledge o.
the same.
The relator further AYERS that
said governor did not then approve
caid bond for the reason that he did
not think il expedient or wise or sub
servient to the best interests of the
state OF Vermont to have only one
surety become and be responsible for
the whole penal sum OF one hundred
thousand (slOO,OOO) dollars specified
in said bond and that said governor
then and there notified said Deayitt
that he would not approve said bond
unless said Deavitt procured addi-
tional sourctics thereto.
The rclator further avors that
said Dcayitt, though repeatedly re
quested by said governor. neglected
to furnish additional sureties TO said
bond until the 9TH day of February.
1913. when said Dcayitt rctendorcd
said bond with tho instruments there
10 attached as hereinafter set forth
to said governor for his approval
The rclator further ayers that he.
tween said ith day of October. 1912,
and said 9TH day Of February. 1918.
said American Fidelity company de
clared and paid dividend of four
90 percent upon its capital stock
without the consent Of said lnsur-
ance COMMISSIONS OF Vermont.
Massachusetts, and New York or any
OF them. and in direct coutravention
of said understanding and agreement
between said company and said in
suranee commissioners, which said
dividend had not been earned by said
company and all of which said Dea-
Witt well knew on and before said 9TH
day of February. 1913, but which said
governor did not then know
Then follows the statements in re-
gard to the consent to subrogation, .
on the part OF the re-insuring com
panies, the Southwestern Surety In
surance company, the International
Fidelity Insurance company, the New
England Casualty company and the
Southern Surety company which are
inserted in full. The complaint con
tinues:-
"The relator further AYERS that
when said Deayitt retendered said
bond to said governor for his approx
al on the 18th day of February, 1913,
as hereinbefore set forth said South
western Surety Insurance company,
said International Fidelity Insurance
company and said Southern Surety
company were all foreign corporal
ions and we're not authorized to do
business in the state of Vermont nor
had they become so authorized on
the 14th day of January, 1914, nor
have they become so authorized since
that day to the knowledge of said gov
ernor; that said governor did not
know on said 18th day of February,
1918, that said companies were not
authorized to do business in the state
of Vermont, and that said governor
did not know on said day that said
American Fidelity company was then
in the serious financial condition here
inbefore set forth but supposed and
believed that said companies were
authorized to do business in the
state of Vermont and that said Amer
lean Fidelity company was in sound
financial condition.
THE relator further AYERS that
said Deayitt on said eth day of Febru-
airy, 1913, well knew that said foreign
companies were not authorized to do
business in the state of Vermont and