New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-08
SUPERINTENDENT MYTirS TRIAL.

SUPERINTENDENT sMYTii'S TRIAL.
OPENING OF The CASE BY COUNSEL FOR HE STATE
TESTIMONY or JOSEPH g. KNAPP, u. j. T..
BROWN AND THEODORE NJ. BANTA.
ALBANY, March THE Senate met at 10
O'Clock tins morning to hear the OF superintendent
smytb of the Insurance Department. Superintendent
,myih aud Acknowledgements McCnl, with coun
sell occupied seats within the circle of the SENATE on the
left of the Chair ard Messrs Hand and Hale, o counsel
for the people of tine state, seated the night Of
the Chair within the circle.
TIE Opening FOR THE 'TATr.
Nj Hand said So much public discussion has been had
that the state does not deem II necessary ~ occupy
much time The Governor has recommended the re-
mova Of superintendent smyth on the ground. prnci-
pav Of MS refusing obey the law OF 1873. Previous
10 that year the superintendent Of Insurance was au
,horized to cause examinations OF Insurance companies
having almost unlimited power in snch examn ATOMS
and To- rye what pleased for them without any
srani from any person In 1872 II was suggested that
the Leg laurc pass some cheek upon Inc chaTStH Or
ANNA lions Of those charges being very large
Inn these amounts utterly insignificant ~ com
pared the amounts which are 70 be considered IA
Tins The officers of insurance conpail,s 60 nn
enter complaint, ana would rather pay amy DlIs OF Inc
superintendent OF his eHaminers, no matter 30" lHS'
than to have the il-Yll Ol me supeIAtcneh n tnc
companies entirely at his mercy Inc insurance
Deuatucnt was instituted for the protection Oi policy
holders, but II is douniiu Ln'y "Ir nus @
Under the previous 10 1873, great depletion OF
the funds Of these c0iupaes was made by thc tuifE
Of the superintendent 3Id ms examines ana ut Ii'
non then arose " Who shall protect the companies
came in the form OF the law OF 1873. ohligluG al
audit In order to make the law obeyed, distInct
cnaIg. Of misdcmcanor Incorporated n il, IN case
that If superintendent Snyth has knowingly ana incn-
oaay violated this law then ne is liable 10 be renewed
guilty OF such condpct They expect To show. IN one
case company refused 10 pay large Bill except
dent or M, GXahnef coz ~ , ave.
tl howl ny !
LAndon never issued any opinion on toe que iiOn OF
present destroyed a the safeguards with
reference TO the cost oi examinations which we're
nc NV Hoi X moi Guc,on for th SUPERINTENDENT to
| decide. 1t is law, aud should ht obeyed: pubic
| officer who wiuly and persistentIy dsobeys law,
is unworthy TO remain public on al. The hi ls pre-
| scented to the companies bear all The cainafk' ot q
desire . friends, personal and political, nj the cX'
pcnse Of the trust funds of these Insurance COMPANIES
Counsel referred to me PMS OF me a. hih oil
I ToDcy as large beyond all precedent
| EXAMINATIONS or TIE hErROrOIITAN LIFE
Counsel for the People then called Joseph g. Knapp,
president Of the Metropolitan Life Insurance Company,
who was sworn His company was examined last year
the first communication in writing; the eXamna-
ton was begun in OctOber and was conducted by Hams
Eudd Mccall, Ballard, Tay or Costigan and smytn IT.,
and property appraised By Thomas Murphy ana
ex-senator LaImbeer ofNeSYork; bill for ~ 500 was
presented personally Ia tn, witness ny Hamilton Iiar-
re SENATOR witness asked Superintendent SmJ II q
check for the bin should be made to the order 81 me H
plrtment; the superintendent SID no. Superintendent
the office OF the insur2nC" company t'Gcihcf
Counsel Tor the People desired - prove 10y witness that
anditng This bin at once, because OF the presence OF
superintendent smytb, instead Of referring II 10 Il
Board OF Audit ~ IL the uelai custom Ia. snptrll-
dents counsel Objected to the question and the Senate,
by vote ot yeas To nays, refused TO admit it.
Counsel for the people asked the value OF The properly
Conmsc for Superintendent smyth objected to the wit
ness answering saying that This question does not enter
into the matter at all. The Governors message oi
February II says nothing as TO such charges ana
Ihcm by witnesses and evidence winch VIII cause
C1usl iol The People in reply SAID that it en-
trey proper 10 have tbs question opened Inc inquiry
should be broad mat enuIe justice may o. uoI &c.,
Intending Sir smyth's removal. 1t was not charged III
the Controllers the Governors letter that Tire bills
Denomination OF companies are enormous ones.
SUPPLEMENTAL CHARGES.
The Chair decided that IN order to II proper settle
mcnt of the question, IT should be written allegation
and as an addition to the Governors charges.
Counsel for the people then offered In writing sup
Elemental paper ayefDg that the charges against the
Metropolitan Life Insurance Company aud other nsur
ance companies were made with the approval aud
ton OF the superintendent ana without tne dudt 81 the
Controller were first excessive and exOrUitInt IN
amount second, that they performed nj tho re-
quest Of the Superintendent. aud were unnecessary
third that selected to perform sch sr' ces
not selected by OF any special ntness but
BY reason OF Their personal poca iilehusnip 10 me
upeinendent fourth that the payment OF these bills
within the mischief 10 be prevented ny he Gct VI
1873
CDuu Superintendent Smyth argued that II these
additional charges considered, the balance OF the
session of will be occupied In the cODsdera
ton OF this trial. 49,
Mr Hale. OF counsel for the people, said this
WAS not a court and trial. The Senate Is merely
called upon 10 perform duty III ths matter OF removal
lie proposed TO show that the mortgages beld by
me companies were correct, aud that II was UNI
necessary TO have them reexamined by inexpeleneed
lawyers at the rate OF $4,000 MONTH IL was odd To
find Albany and Essex County lawyers called upon 10
give the value Of property III BioOky ne pioposea W
show thai the Superintendent ordered these eXauina
tons TO him repay certain persons faction OF
party. for political fay0rs and also tiat members o
the last Senate profted by the examinations
Mr. Smith, OF counsel for superintendent snyth, said
this yas be first time he had heard OF removing
,an hecansc he neased a DOtical friend rather than