The New York herald., 1878-03-28
Insurance Superintendent Smylh Ac-
Quilted by tie Senate.
THE ACCUSED'S FRIENDS JUBILANT
Another Charter Bill Introduced for
N W York City.
\ MAYOR AND A DEPUTY Mayer.
Unsatisfactory Progress OF the
Excise Bills.
ALBANY, March 81, 1873.

ALBANY, March %, 1873
The Smyth trial rs over aud The Senate has ro-
fused, by small majority, 10 comply with the Gov
srnor's recommendation of removal. As may be
guessed the Senate Chamber was uncomfortauiy
crowded during these last hours OF great State
trial. the audience every where encroaching on tho
Senatorial reserve. The ladies' gallery brilliant
In its array OF beauty, a the better halves OF the
ting members being early onshand.
Senator Jacobs moved to have the regular order OF
business gone through with before a was taken;
but MS Mr. Harris objected the motion was Withdrawn
and the speechmakiDg began.
NERVOUS UNCERTAINTY.
During the morning much uneasiness was felt on
both sides as to the result Tor It stl uncertain
how Mr. Wasstan, Mr. Pierce, OF KiDgs; Mr. Ecolesine
and Mr.. Pomcroy would vote. Mr. Wasstan, during
the week had gwen out that be would vote on the
merits OF the case and not at the dictaton Of Four
teenth street. Mr. Eccesne father IS the editor
OF an insurance paper and who was iully cognizant
of many oil the abuses proved Dy the evidence be
It was spread upon the journal OF the Senate would,
1t was thought, assert his independence; but in both
cases the hope was disappointed The whole Tam
many delegation voted against the to
remove, ana were so instructed from New York. Tho
vote AS will be seen, was not strictly party one but
II
ernor he woula have had majority OF one including
the republicans who believed Smyth to be guilty OF
tho charges
Tho voie OF Senator Pierce, who was o many re-
speots more free to act than the Tammany deIega-
tion. which all questions except those adjourn
ment and privilege IL supposed to await instructions
from New York, has occasioned Muon surprise and
broad comment.
THE PROCEEDINGS.
When the President announced the question to be,
''Shall John \. Smyth be removed from the office Of
superintendent OF The insurance Department."
Mr.. Harms read an address, saying he had thus tar
reiralneu from speaking on this question because OF
sense o decacy; but he ielt II mis- duty pow to ex
plain the course OF the firm in connection with the
''opinion" furnished the Superintendent with refer
ence 10 the duty Of the insurance companies to pay
bills without the audit OF the Comptroller. The argu-
ment was in support Of tho correctness vi opinion
the effect that the law OF 1878 requiring audit
vi the Comptroller, was uncons titutoua.
Mr.. Pomeroy SAID the Senate had been many days
engaged IN this trial. He then related tho story OF
the office superintondent o the Insurance Depart.
ment ana Of the action OF the Governor recon-
needing Mr. spyth,s removal Tho question with
iniendent Smyth been proven Ae arguad that no
appropriation had been made for the inves-
cations could not be proceeded with unless Supern-
icndent Smytn had proceeded just us he had done,
aud sent the bills direct to the panics Tor puy-
ment As appears IRON the testiIb Superint tendent
Smyth, on entering upon the discharge OF us duies
cndcavorcd TO have bill PASSED TO AVOID audit by
Comptroller In order that might proceed with IN.
veslgations Thus bill passed both houses but died
Governors
paid by Comptroller O,cou were illegally paId without
iorm OF law In the famous Landon order several bills
were ordered paid dirscy by tho insaruaeo COMPANIES
Court believed the law Of 1873 was unconstitutional
Ho elt that the action OF the superintendent
ranted by law and ho could not, therefore, vote ior
his removal. He claimed that there funds nor
have there ever been any in the State Treasury from
winch bills be paid under tho Insurance laws OF
1859 and 1873. The law OF 1873 has become op-
erativc because Appropriation has ever been made
to NEE, IT, In conclusion, he did not hesitate to say
hat m I'M A0eu ma air ,inue
and Is pot The SINNER. Tho superintendent has
kept within the law Of 1853, aud he pomeroy) could
not consistently vote for his removuL Ar. Pomeroy
closed remarks tolows-"I trust that, without
fear. favor, affection, reward or the hope thereof,
Senators dispose of these charges solely upon tho
Mr. marvin said ihere has Been no proof to show
that any had been used In securing ihe pay.
mcnt OF bills by the insurance companisa He be-
lovcd II IN attempt TO injure isithiui oicer.
Mr. Lynde affirmed that he could not consistently
vote keep In office who had continually viO-
iatea law, simply because Law firm, deeply inter-
estcd in the matter claimed that IL was uDconsiitu-
tionaI The moneys so lavishy PAID out to Superin-
tondcpt Smyth's agents by tho Insurance ies
wore moneys belonging 10 widows and their children
Sir. Lppiit argued that II was unjust 10 the policy
holders o.. insurance compaues to allow Superin-
tendent TO prey upon the treasures Of
wherein their ttie savings are placed. He regretted
that Mr.. Smyth had not conducted his dc par ment
within the spirit of the law.
Mr. Raines said that Senators should reflect seri-
ously when considering 20 important question tbe
now before them. Tho charges before the SENATE
ng from man OF such recognized purity as tho
ton whether $lOo 900 have psen aken from tue com.
panes not Is 10 be excluded IRON cunsiderat,o
the senator IRON the Twcnty-nlth district (Mr
Pomeroyl Look ut tue millions OF capital aud tho
hordes OF rionds, agents and employees OF these great
insurance compapies and see how sensitive they are
to any biut which may como from the Insuraucs De-
partment. IL Is not true that runors start Them
selves There must be something rotten In the nan-
agemcnt OF department when became notorious
throughout the ST le Tor the evyng OF claims upon
t0aI- uraW
UP by Harris and ordered paid by Smyth
without any consultation with the Comptroller, as
the law required to dp. All laws supposed to
have iptcrJected into them the provisions Of the
stiiut'on. No ohccr can excuse himself Tor oincial
misconduct oy sayiug that sume co-urdinntc ollcer
or branch oi government iailed to do It's duly.
There was an APPROPRIATION In 1877 TO meet
just such biiis ana 33V,OOO arc IN the hands
o, the Comptroller 10 pay sucn accounts
He glanced throughout the State ana saw fournftns
o. the lawyers Of The state working Tor less tnan
$4,000, and yet Tor u lew months service q icw
lawyers received over $4,000. some the best
lawyers OF tie state would have been glad to co The
work oi looking over the abstracts oil the New York
ccived S24, 900 ior Ito work. Tbat these large
bids we're paid win smytn's consent Is not ques-
tioned but IL would been business ike II
smy the had mud some agreement as TO the Gust VI
theso invostigato0s
Mr.. Raiues continued that II was In wastefuI ex.
travagsace several WAYS, one oi VIII. Gu cgis
htion. tuat the luLds o insutnpce eompagies had
been depicted When the pJiicy holders of tue state
los over the ,xorDitant lawyers chargys allowed by
auprrintcnhcnt auytn they arc shocked aud turu TO
TIC ooHatc W protcct thcm H'H' t"c fhIacty VI
agents wno wouia Prey upon them senators arc nero
representatives, OF tue people and ,hey must rc-
resent them honestly aud ieariessy. Tnis Is timo
for the set is lace against aSeductioD IN the
expense oi any department.
Sir. turner argued VI length In behalf OF Smyib,
t3efe cvideucc that any benefit accrued
to nIm. WnIic he conceded that Smyth had violated
IN Jaw o 1873, yet ne could not vo.e Tor his rc-
mOval aud be did not want ANYBODY 70 whilewash
him ior such course.
The question Was then decided that smyth should
not bc removed, by u vote oI-Ycas IL, nays 10, us
follows (dcmoorats 10 ltalcs):--
YEAS !, essfs GUcbeI, Goodtoia, Hughes, ytcoJs,