Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-07-09

or anyone else respecting such security
/ furnished by the treasurer before enter
| Ing upon the duties Of his office, and |
cannot find that the Legislature has at
| tempted to provide any procedure in con-
| flict with the constitutional provision
| quoted and should the Legislature at.
tempt to provide for any subsequent pro-
ceedings after entering upon the dutics
of the office | can see where a state
treasurer might be subjected to serious
embarrassment in the performance of his
, official duties
! am aware that in saying this | may
show that l am not willing to entertain
suggestions from you touching my office.
| Nothing can be farther from the fact.
| For it has been my constant cndeavor
! for over seven years to comply with
every kind of a request coming from the
executive head of tho State, for 7 feel
! that 1t is the duty Of all State officers t.
give the Governor their loyal support,
| and to furnish ii to tho best of their abil-
ity, and it has been my purpose in my
feeble way to contribute such support to
the best Of my ability.
! common way of stating the dstinc-
tion Is that one is a contract of insurance
and that the other is a contract of in q.
demnity
In our talk over the phone on the 18th
inst. YOU did raise a practical question
and that was whether under these subro-
cation agreements there was any way for
the State to enforce it's obligations here
at home and told YOU there was because
each of the companies has service of pro-
cess against agents in tho United States
district, and since our talk have asked
the secretary of State to ascertain re-
EardinG this matter and | find that Max
!" Powell of Burlington is attorney for
the service on process in the federal
courts for the 1nterna tional Fidelity In
surance company. w. II. Bottsford or
Rutland for the Southern Surety COM
pany and Thomas W. Moloney of Rut-
land for the Southwestern Surety Insur-
an"o company
You may reply that this does not per
NIT the State to bring suit in the State
courts, which is true. and my answer 70
that is that were tho companies sued in
the state court like other foreign com
panies they would have the right to have
their cases removed to the federal courts
so that | say the State has lost nothing
by any failure on my part to fully ac-
quaint You with all the facts
But in view of the statement Of your
position had YOU known the facts to he
as they are have asked the American
Fidelity company to request these three
companies to come into the State regular
~ admitted companies for the purpose Of
doing business herein.
This request is now being complied with
and the International Fidelity Insurance
company has asked for papers and agreed
to file forthwith an application for adj
mission and as this Is one of the most
successful Of the smaller companies there
can be no reason why they should not he
admitted here as we'll as the other com
panies as all three companies are regu-
larry admitted in the State of New York
and are licensed to write bonds for tn
federal government
And to show YOU the spirit in which |
APPROACH this matter ! am FOR a moment
going to say what s the constitution
between friends And also say that tho
other day Senator Darling, who is at
work on the revision Of the statutes, call
ed upon me and asked if I thought it was
necessary to have an extra session t.
take care Of the extensions Of the terms
Of various State and county officers by
constitutional amendment
! replied to him that had thought
about the matter as applied to my bond.
and had wondered If I made shift in
my present bond whether It should com
mence at the beginning of my term Of
commerce now. whether IT should end in
October 1914 or January, 1915, and
whether the extension Of my term Of
office had affected in any way the obliga-
ton of the suretics on my bond
al
II would be necessary To call session of
the Legislature as far as the auditor Of
accounts and myself are concerned for |
thought we could get the suretics on our
bonds in consideration of an additional
premium covering the additional term to
execute an agreement conscnting to be
held until January, 1915.
And | have taken that matter IN with
the American Fidelity company and they
are willing to do that and think there Is
no question hut that the matter can be
satisfactorily arranged with the rcinsur-
ing companies. And ! see no objection to
the other officers at the expiration Of
their term giving new bonds for the ad-
ditional term. But of course that is a
matter upon which IL Is not for me to
pass final Judgment.
| am sure that | am troubling YOU with
a mass of wearisome detail but before
closing ] want to consider for a minute
the American Fidelity company upon its
merits. And | am not unmlndful Of
what YOU stated as the controlling fac
tor IN your mind in requesting the change
in my bond. And ! want to say that |
feel that YOU are to a certain extent JUS
tined in your Judgment. And | know It
must seem strange to You after all |
have told You that | still want to keep
my bond as it is II can make the change
And I'm this connection | want to say
that | believe no mans action was evar
moro misunderstood than has my action
touching the American Fidelity companF
been misunderstood by certain officers Of
the company in the past, and never We're
any Insurance departments more imposed
upon by company than were the depart
ments of New York, Massachusetts AMI
Vermont by the American Fidelity COM
pany when a dividend was paid year
ago in the face of an agreement made
with the departments in question that no
dividend should he paid after the exam
nation made by the three departments in
January, 1912, until such payments first
had the approval of the three DEPART
ments.
But I cannot feel taht this betrayal Of
faith on the part of one officer who is
now no longer connected with the COM
pany, ought to overbaance the protec-
tion Of interests of innocent stockholders
and directors who had not the means Of
knowing the facts or chance to act in
the lisht ar the facts as thAv ara I am