The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-07
INSURANCE INVESTIGATION.
h Committee from the Assembly at the Cham,
her q Commerce Hearing Witnesses suspi-
sisus Facts and Feeble Cro~-Examina-
tisns-Expensive Investigations Of the
Affairs Of Insurance Companies.

Affairs Of Insurance Companies
a subcommittee OF tine Insurance COMMITTEE OF
the Assembly began the investigation OF the charges
against Superintendent Miller yesterday morning
at eleven o'clock The members OF the committee
are r. ". Toby, Of Essex, chairman; J. H. Babcock.
OF Niagara, and d. q. Aikens OF Kings
s-7llss THE FIRST WITNESS
examined was Herbert Giroux. who testified that
ne was President OF tue Lafay cite Fire insurance
Company. OF Brooklyn for three years; during that
time the AFFAIRS OF his company mad been examined
once by the state Department. OF Insurance-ln Au-
gust 1870; the examiners were Messrs. Briggs and
SouthwtcK, the nrst or whom rendered oil OF $500
for the examination whicn was paid; about three
days were spent in making the examination 1t was
claimed py Mr.. Briggs that the company had de-
olared . dividend in July, when ils capital was
impaired. thereby iorfeiung It's charter; the
witness heard no more on the subject until
he received q letter from Mr.. Miller who
wrote that he must report the facts In the case
to the Attorney General, who could then exercise
his discretion In regard to the course to be pursued
the witness then consulted Mr. Briggs on the mat
ter, and was told that, as the Impairment was
slight representation OF all the circumstances to
the Attorney General might prevent forfeiture OF
the charter; he employed Mr.. Briggs 10 manage the
AFFAIR, aud paid him therefor 81, 600; Mr.. Briggs
did intimate that any part OF this sum was TO be
used In influencing officers OF the Insurance De-
partm ent the whole amount was paid in currency
and out or the witness own pocket; a letter was
produced by the witness from Attorney General
Cnamplain announcing that no proceedings would
be instituted against the Lafayette Company.
Mr. MILLER here said that examiners were en-.
pl0yed by the Insurance Department only ior spe-
ctaI occasions and at the close OF an examination
IN winch they were engaged their connection with
tho ended.
Being crosse xamlned by Mr.. MILLER, Mr..
with him. sI6er direct or indirect for the payment
Of dollar; ne dd not n OBJECT 10 tne c0 OH
sidered IL reasonable, as he mad known a
similar bill for the same services to be paid
before when sn9 9 wns s Supe vo
lated q section OF the Insurance law Ia declaring
dividend when It's capital was mpaired; ne signed
Suranoe companies In Mr.. Miller without being IN.
duoed BY any fear Of hostile action on the part OF
the Superintendent should he refuse; the witness
thought the examination Of his company was bene.
nciaf In ITS results, and ne approved the general
system Of state exam inattons, though ne thought
the charges might be little less.
Henry A. Jones testified that he was President OF
the Hope Mutual Life Insurance Company until
about Z month ago when he resigned and became
Vice Prosldent examination Of the affairs OF the
sors-Messrs soutnwicK. Carr and EldrIdge-at the
request Of the Witness IL was very thorough, con.
David Rowland was employed by the company TO
procure the examination and TO 20 10 Albany ana get
paid for his services about ST. $50 the bi FOR which
cannot be found by tue witness
WAS 1T BRIBERY
memorandum SHOWN the witness by Mr.. Tobey
was recognized by him as in substance the state
ment OF account presented 70 nun MT
o. the items was payment OF 5000 tho 70
son who was sent TO Albany by the company
said that nothing could be done there FOR less tnan
search for Mr.. Rowlands BILL though he was sub
panaed to produce 1t before the COMMITTEES, as he
did not consider It q matter OF great Importance
and was able to testify to the. substance OF
It withous seeing 1t; he had not nad any converse
ton with any one IN regard to It.
ON cross -examinauon by Mr. Miller, the witness
said that he had never paid him any money or re-
ceved any request from him for any, either directly
or indirectly; ne mac never had any communication
with him IN regard 10 Mr. Rowand's statement t., OF
Miller BY the insurance interest was signed by him
In answer TO Mr. Barnes, the witness said that no
presents OF any kind mad ever been made by him or
hs company 70 Mr.. Miller. In reply TO Mr. Miller,
manDer in winch Mr.. Rowland dlsDursed the money
paid him; ne did not know whether the items IN
Tor the payment of the insurance examiner.
The neat witness was Edward A. Jones, President
OF the New York National Lire Insurance COMPANY.
He said that the AFFAIRS OF his company were ex.
smined in 1871 by Mr.. Eldridee appointed py Mr.
poysa Mr. a0' rowland 70 e Do some Ousi
sse a. ana se rowland &c
keop me posted on legislation adverse to young
c0mpsnies understood that Rowland wasa friend
OF miller; | paid Rowland 81 500; | never asked
what he did with it; 1t did not include cost OF OK.
Was sabsSens nu Of = the ' Hope my SrotSer
the last witness, recommended Rowland; the
Tss ss@ reOof .hs n Psd e
companies under examination at that time
examination; never employed any one but Rowland
In tho matter: Mr. Freeman recommended me to
" emey sen
tor from Brooklyn; was alarmed for the safety OF
ne out no. on account 81 our nc
we agreed to pay 1t at the commencement; Row
land was 70 get us examined and remain at Albany
panies; signed testimonial to Miller; after seeing
paper thus morning find that the statement IN
anoe convention Is untrue. as the article published
In 1870 suggested It, and Mers cali for the conven.
Was lair statement; never Was requested by Muller
90 pay for the statement; nor did l pay for the
that Miller secured any money tor the ex.
animation; my opinion Is tina. tine sys,
think 1t will ultimately lead TO putting tne system
OF life insurance upon sounde basis; the exami.
Europe; Rowland represented that ne was &C.
quainted with New YORK politicians in Albany and
could aid IN the matter; Rowland, who resides on
Staten Island, said he was acquainted with miller;
the President OF the Great Western Insurance Com
tne% 20 protect policy holders before putting
receiver IN; Miller made report to the Attorney
General and q receiver was put In.
The investigation here adjourned for recess. and
was resumed at haf-past two In the afternoon.
AFTERNOON SESSION.
Frederick A. Freeman. President OF the Widows
and Orphans Life Insurance Company testified; the
examination OF the books Of the company was made
by J. w. Bryant and South wick, which occupied o
week, for which the company PAID the examiners
ABOUT Six DOLLARS.
Thoy also paid their counsel $1,000 with the
understanding that all bills incurred by them
were to 90 paid from this amount. The report
OF the examiner was favorable 10 the company.
winch bad suffered very much by false reports or
tnotr standing, The company never paid Mr.. Miller
any money for any purpose whatever.