The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-29

A great amount Of ingenuity was exercised
in suggesting reasons for the result of the
Senate's trial Of the charges made against
the Superintendent Of the Insurance De-
partment, the most original being that
which alleged a bargain by which the Tam
many democracy were to become the cham
pions of Roscoe Conkling's reelection to
the United States Senate. The Senators
who voted for Mr.. Smyth's acquittal are
entitled to be credited with having rem
dered decision in accordance with their
convictions of duty. whatever may be thought
Of their action by those who did not patiently
hear and carefully weigh the evidence ad-
dnced on the trial. and the result proves
conclusively that there must be some radi-
cal defect in the law regulating the exami-
nation of insurance companies. The Super
intendent did not pretend that this law hal
been rigidly observed but he based his de-
fence on the ground that his first and para
mount duty was to satisfy himself OF the
security and solvency of all insurance COM
panies for the protection of the public, and
that hecould not do this and obey the law
regulating examinations. This plea having
been accepted by the Senate it becomes
imperativcly necessary that the law in ques-
ton should be revised. The Senators who
acquitted Mr.. Smyth will be culpable if
they fail to change law which, by their
Judgment in the case, they have declared to
be inconsistent with the proper management
Of the Insurance Department
The law of 1873 is Objectionable in many
respects. It provides that the charges OF
appraisers and attorneys employed by the
Insurance Department. in examinations shall
be subject to the revision and approval of
the Superintendent and Of the State Comp
troller. 1t is alleged that capable appraisers
and attorneys will not undertake the duties
if their charges are liable to be objected to
and cut down by two independent State
officers, and that the provision encourages
secret payments by companies to the exam
liners. The law requires the companies to
pay the charges for examination after the
bills have been officially approved. The
most experienced persons in the insurance
business believe that the best law that could
be enacted to regulate examinations would
be one fixing the fees of appraisers and at
torneys at certain positive amount; pro-
viding for the payment of an annual tax by
insurance companies, graduated according
to their capital, which should form a fund
out Of which tho cost Of examinations
would DO paid by the State as
soon as the work was completed; and
making it felony punishable by fine and
imprisonment for au appraiser or attorney
to receive or nm insurance company to pay
any additional fees or any money whatever
on an official examination. The payment
of an annual tax for IN examination fund
would prevent any financial transactions
whatever with a company under examine
ton, and, as oil companies have to be
examined nt some time or another. would be
fair to oil. The positive fixing of fees for
examinations would prevent any cavil or
dispute as to the charges of examiners. We
believe that such law as we have here
crudely sketched would remove oil danger
of corruption from the Insurance De-
partment, and would be great adj
vantage both to the companies and the
public.