The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-23
SUPERINTENDENT SMYTH.


BE REMOVED ON WEDNESDAY NEXT.
ALBANY. March 20, 1878.
The Senate met at ten O'clock when Mr. Henry
Smith, OF counsel for John +. smyth, Superintendent
OF Insurance. continued argument for the defence
Ho said little more than one year ago John +.
Smytn was appointed Superintendent OF Insurance
by the Governor with the consent OF tho Senate To
day this official thus honored ago stands before
you accused Of abusing powers OF the Office by
Same power which appointed MIN. The respondent
into Office A. period OF great agitation. Of great
disturbance in the business AFFAIRS Of the country,
and Of great dstrust the sovency OF the insur
ance companies In the State On his access 10 ONCE
he entered into a thorough examination Of the
affairs Of the companies Just before the present
Superintendent appointed the Continental lnsur-
ance Company, which was supposed TO be stanch and
secure failed. This discovery startled and alarmed
tho community, and tho people demanded that oil
the companies SHOULD be examined, that the
people who held policies might know whether
lncy were warranted in continuing TO pay premiums,
with the certainty that the terms Of their policies
would be carried In good faith by the companies.
Tho counsel then quoted from the laws governing tho
Insurance Department the sections bearing on the
matter Of the expenses oil that department. He
found by the Appropriation bill Of 1876. certain ap.
preparations made Tor the general expenses Of the 10
surance Department. which sums are to DO returned
to the department by the several insurance COM
panies, but nothing said about an examination
DID sMYrH TRY TO THE LAwf
There was a demand Tor examinations to determine
the solvency of the companies The New York Life
Insurance Company had 10000 policies out ana 1t
required nco and delicate computations arrive at
correct solution OF question 10 the ability Of the
company to secure TO each person insured the pro-
visions Of the contract required by the policea No
hnnk tn he
charges made for examinations. But for the Law
of 1873 the Superintendent might have increased the
Tor services direct from the companies The Super.
iutendent did not desire 10 create any
liability against Inc state, ana not desiring
Inv able create debt under tho law be came to tho
Legislature and asked Tor law which would have
enabled the work Of examination to proceed bust
ncss like way. IL has been heralded tn roughou the
STATE that tins was a scheme Of Mr.. Smyths 10 reward
his pocal friends But that is not true, as counsel
would show hereafter. Tho Governor. however,
allowed oil which had passed b0th houses with
singular unanimy TO iall Tor lack OF MS Signature
every member OF the Legislature state ofhclas
have on otnor occasions d'sregarded the law
and were not accused Of treason. He inslanced
the case OF Judgc Allen, VINO, whom Comptroller,
refused 10 pay certain for observatory
for Union College. Tho college folks underworld to
cocrce HIM by mandsmus. but mis- course was sus-
tanned by the people. The incorporate language Of
the Governors oil the case to the Senate
indicates that His Excelency had not carefully ex
ahmed the law on the question. When Supernten-
don't Smyth found the embarrassment surrounding
his making exam nations oil insurance companies hs
went TO h is personal TREND an eminent lawyer, and
OBJ aimed his advice and an opinion from him. Men
do not go TO an enemy when they have trouble in
thor temporal affairs
WANTED NEW LAW PASSED.
The superintendent had attempted to get relief
from embarrassment by legislation aud failed He dd
not desiro trample upon any law Of the State, aud
mad already received tho sanction OF Judge vi the
Supreme Court to pay bills OF like character. The
Superintendent entered upon investig atons and
they were made complete, exhaustive and cor
rect The result showed that the proceed
have been welded out and sound companies
have been shown TO be- worthy OF confidence There
was intense anxiety throughout the State and 30 Tor
as the superintendent was concerned ho had at
tempted 10 relieve this feeling by causing these ex
nminaions TO be made There Is no evidence neore
desired to evade any provision Of law relative to
the audit of the Comptroller Counsel for tho
people asked, Why get lawyer IRON PORT Henry
to examine the titles OF property ~ New York;
Mr. smith replied that If ne wanted his work done
faithfully and well he would employ psinstaklng
country lawyer, and as TO tho question charges.
the ability of lawyers should be considered. This
legal firm staked .ner legal reputation when they
York Lie Insurance Company. why did they not
call rooey il they wanted 10 know what became OF
not DO So and yet by nnusnuo counsel for the people
would Senator's believe that part of u was used
ior political pui poses In conclusion he asked eacn
Senator to be au judge and pay attention
partisan circulars, which are beng freely sent 10
Senators 0rdcr " create feeling against respondents
the ev,den presented, and lie begged Senators not
to make IL political question.
MR.. HALE's ARGUMENT.
Mr. Matthew Hale. counsel Tor me people, said Su.
epdcnt Smyth mad frequently violated cuaplei
sos OF the Laws OF 1873 He read rom charges made
IN the Miller of 1872 with reference TO
payments made TO examiners, anu also extracts IRON
q speech made by AIR. LOBBY denouncing Miller Tor
allo wing counsel to receive ices from companies
Mr., Hale SAID II was pity that Mr.. robeY was not
here now, That his voice might be heard denouncinl
inc action of the present Superintenaents course,
hno aen
any charged against any previous superintend.
enl Counsel called attention TO the evidences oi
Deputy Superintendent Mccall with references to the
biii oi McssrA roDey, Waldo and Grover wherein he
scCalD warned superintendent Smyth that ali Dilis
should DO audited by the Comptroller Mr. Smyth
replied that nc Understood the matter and was
determined to proceed. The opinion which Senator
Harris furnished superintendent Smy,h, with refer.
cnce 10 the cons utionalty Of the law, was fraud
LOADED THE INSURANCE. COMPANIES.
Mr. Hale related tho application oil the Universal
Life to inc courts PERMISSION 10 pay Their clerks
ard me additional cause winch superintendent Smyth
added 10 nave the bills Of examiners also PAID Tue
company consented to TINS simply because desired
to the means to protect itseIL Mr. Hale tlen re-
lated the account vi The visit oi Mr. Knox 10 Albany
Lille, ana the latter nurryius OF 10 New York 10
hurry up the report OF Mcssrs Waldo, ToUey aud
Gfov "1% t S,ir suT 1srurs Counsel u,s l
sisted that Superintendent Smyth deliberately
violated ali law apparently 10 reward political irienus
Tnc insurance companies OF tue stale were loaded
with Superiul ndenL Sniyth ana his son ana CLERKS
win Senator harris ana partner and with Mr. fo6eys
law urm lie SAID the paragraph In Now YORK
paper saying MS frm Hand, Hale swartz) Ead re-
ceIvea So 100 Tor Two days service was untrue Win
reference to the amount oi work performed.
Mr Hale reviewed at length Inc bills OF Harris Il
Ru,id for examining abstracts, anu sau Nc had made
ut ons and found that each young man oil tho
1rm was paid $ll9 81 per day Tor the examnation Of
these abstracts lie ssid, what uid Mi. iooey want
with s24 700 10 bils2 E'even thousand SIX hundred
aud Ia enty.nve dollars went 10 Mr. Grover aud Tor
the balance OF $l3 000 what became VI M II would
be interesting 10 Know how much To6ey contributed
e,ectioncerlng fund The facts proven III this
ease will Tor all time superintendent Smyth IN
the ewes Of policy holders OF Lille insurance companies.
TbnL officer had levied tribute upon the companies
and he should be removed
The case being closed, the senate agreed to take q
final vote on question VI removal next Wednesday
moruin at ten o'clock III open Session.