Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-06-18

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does not affect the validity Of the con-
sents attached to his bond nor would
1t increase the expense of any suit or
suits for the enforcement of any Ii
ability accruing under said contracts
DENIES WITHHOLDING FACTS.
| And as this respondents alleged mis-
conduct in representing, misrepresen-
| ting, and suppressing and concealing
facts from the Governor in regard to
the circumstances of the said approval
of the bond aforesaid, and the consents
therto attached this respondent
denies that he wilfully, maliciously
and with intent to deceive the governor
and to procure his approval of such
bond did not inform him of the fl
nancial condition of the American
Fidelity company or of the fact that
the International Fidelity Insurance
company, the Southern Surety com
pany and the Southwestern Surety In
surance company were not authorized
to do an insurance business in the
State of Vermont, and this respondent
denies that he withheld and conceal
led said facts from the Governor. or
that any facts were withheld and con-
cealed with intent to deceive the Gov
ernor and to procure his APPROVAL of
said bond, or otherwise, or that this
respondent, in any respect msin form
ed or deceived the Governor, or sup
pressed or concealed any facts from
the Governor.
And this respondent admits that this
respondent took but one official oath and
submits that that met the requirement of
the law; and further admits that the
shareholders of said American Fidelity
company surrendered for cancellation, as
set forth in said petition, stock to the
par value of three hundred sxtyseven
thousand two hundred fifty dollars, and
says that this action was taken with the
approval of the insurance commissioners
of the State of Massachusetts,, Connect
cut and New York.
DEMAND FOR CANCELLATION.
And this respondent is informed and
believes, and therefore, states that after
the investigation of its affairs by the
insurance commissioners referred to
in said petition, the American Fidelity
company through some msapprehen-
sion misconduct of a former secretary,
declared a dividend without first obtain
Ing the approval of the insurance COM
missioners, and upon like information and
belief AYERS that in other respects the
said company has complied with all the
recommendations of said insurance COM
missioners and has been and is conduct
ing it's business in a safe and proper man
ner.
And as the allegations in the said peti-
ton concerning the demand of the said
relator, Governor that this respond
ent cancel and abrogate said bond with
the said American Fidelity company as
surety, and the consents to subrogat ior
thereto attached and furnish a new bond
In the penal sum of one hundred thou
sand dollars, with sufficient surety con-
ditioned for the faithful execution by this
respondent of the office Of treasurer OF
the State of Vermont for the remainder
Of his term, this respondent admits that
the said relator, as Governor, did on the
9Th day of January, 1914, demand of this
respondent that he cancel and abrogate
all the said existing securities for the
. faithful conduct of his office as treasurer
of the State Of Vermont and for his
faithful accounting for all monies and
other matters and things which had come
into his hands and possession by virtue
of said office; and at the same time fur
nish another bond for the penal sum
of one hundred thousand dollars for the
remaipder OF the term for which this
respondent was last elected. And this
respondent admits that he declined tc
accede to the said demand of the said
Governor so made.
QUESTION OF RIGHT.
And this respondent submits that sale
' demand was one which said relator, a.
{ Governor, had no authority to make ant
this respondent as State treasurer had M
8 right or power to comply with.
Y And as to all other matters and things
alleged In said petition by said relate,
material to be answered, confessed anC
, avoided, traversed or denied this respon
dent avs that the same and each of then
are not true.
And this respondent further answering
says, that after the service Of this petition
to wit on the 18th day of June. 1914, this
, respondent acting under advice of coun
! sci, rendered to the Governor of Vermont
his bond with the American Surety com
pany as surety thereon, a company au
thorized to do business in the State of Yer
mont, In the penal sum Of one hundre,
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ditioned for the faithful performa nee o
d, his duties as State treasurer from tn
time of the execution thereof to the ex
; piration of his term, whether by statutor!
D or constitutional limitation. And at tn
same time, delivered to the Governor
letter explaining this respondents attitud
! In respect to this matter stating substan
tally that this respondent rendered t
the Governor said bond acting under ad
. vice Of his counsel and that he must still
= decline to comply with the Governors re
quest for the cancellation and abrogatio
I of the existing securities for the rcaso
that said securities We're ample and en-
e forceable and further that this responder
: had been advised by counsel that tn
d Governor had no right or power to gran
e the request made, thereby deprivng tn
d State of all subssting securities for tn
n faithful performance of this respondent
q duties as State treasurer up to the tim
q Of the execution of the new bond; an
5 this respondent Graves leave to refer I
: said letter so delivered to the Governor
and the Governor received said bond an
letter saying that he would receive thei
va conditionally, that he desired to consu
~ his counsel in reference to what actio
he should take and that possibly he nigh
9 return the same to this respondent
And since such acceptance by the Gov
ernor as above set forth. the Governor
counsel, Robert C. Bacon, ESQ, has in
~ formed this respondent that said bon
should have been executed to the secrs