The Barre daily times. (Barre, Vt.) 1897-1959, 1914-05-29
GOV. FLETCHER GETS
WRIT OF MANDAMUS
Case Will Be Argued at the
October Term of Vermont
Supreme Court-Fletcher
Says He Was Deceived in
Accepting American Fl
deity Bond

| As his next important move in an ap-
parent effort to make State Treasurer
Edward H. Deavitt OF Montpelier furnish
a new 100000 bond, Governor Fletcher
last night secured mandamls writ from
Supreme Court Justice John H. Watson,
compelling Treasurer Deavitt to appear
in supreme court at the October, 1914,
term to show cause why new bond
should not be furnished. A copy of the
order was served on Treasurer Deavitt
at his home in Montpelier shortly before
| ii o'clock last evening.
! In his petition for the writ, Governor
Fletcher alleges that Mr. Deayitt "wiI-
fully and maliciously and with intent to
deceive said governor" concealed the
fact that the bonding company was in
bad financial condition at the time and
he also alleges that Mr.. Deavitt con-
cealed the fact that three OF the re-
insuring companies which took part
of the risk, We're not admitted to do bus
mess in Vermont and that they have no
agents on whom process could be served,
Fletcher Wanted Several Sureties.
After giving the details of the taking
out of the original bond with the Amer
lean Fidelity Go. of Montpelier, the pc.
tltion goes on to say;
THE relator further AYERS that at the
time of the tender of said bond to said
governor as hereinbefore set forth said
American Fidelity company was in
serious financial condition and to such
an extent that there was an impairment
of at least fifty-three thousand (S53000)
dollars of the seven hundred fifty thous-
and (S750000 dollars of paid-inf capital
of said company that said company was
then and had been for some time past
doing business at loss; that the con-
dition of said company prior to said ten.
der of said bond had been such that
said Deavitt as insurance commissioner
as aforesaid and acting in behalf of the
state of Vermont and i'll 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 its capital stock without the
consent of all of said insurance commits
sioners, to which said company agreed
and assented, and that said Deavitt at
the time of the tender of said bond as
aforesaid well knew the facts as to the
condition of said American Fidelity com
pany as hereinbefore set forth but did
not impart to said governor said facts
nor did said governor then have any
of the same.
"The relator further AYERS that said
governor did not then approve said bond
for the reason that he did not think it
expedient or wise or subservient 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 t$l00,000j dollars
specified in said bond and that said gov
ernor then and there notified said Deav
lit that he would not approve said bond
unless said Deavitt procured additional
sureties thereto.
"The relator further AYERS that said
Deavitt, though repeatedly requested by
said governor, neglected TO furnish addi-
tional sureties to said bond until the 18th
lay of February 1913. when said Deayitt
said bond with. the instru
nents thereto attached as hereinafter
,et forth to said governor for his APP
1roval
.The relator further AYERS that be-
.ween said 4th day of October. 1912,
md said 7th day of February, 1918, said
American Fidelity company declared and
aid n dividend of four a. per cent upon
Is capital stock without the consent of
,aid insurance commissioners of Yer
mont. Massachusetts and New York. or
my Of them. and in direct contraven-
ion Of said understanding and agree
nent between said company and said in
urance commissioners which said divi-
lend had not been earned by said COM
,anv and all of which said Deavitt well
new on and before said 9TH day of
february, 1918. but which said governor
lid not then know"
The New Bond Presented.
Next in his petition, Governor Fletch-
r gives the statements of the re-insur-
ng companies secured by Treasurer
)eavitt, the companies being the South
restern Surety Insurance CO., the In
Fidelity Insurance Co., the
lew England Casualty Co. and the
southern Surety Co, the statements be
lg entitled consent TO subrogation."
md the petition goes on to say:
"The relator further AYERS that when
aid Deavitt re rendered said bond to said
overnor for his approval on the 7th day
t February. 1913. as hereinbefore set
orth, said Southwestern Surety Insur-
nee company, said international Fidel-
" Insurance company and said South
rn Surety company were all foreign
l.