The New York herald., 1878-03-08
SUPERINTENDENT SMYTH.

| THE CHIEF OF THE STATE INSURANCE DEPART.
| MENT ON TRIAL BEFORE THE SENATE
QUIeBLEs OF THE LAWYERS SCATTERING
FAcrs-How INSURANCE COMPANIES ARE
MULCrED.
ALBANY, March T. 1873.
The Senate at ten O'Clock this morning TO hear
the case OF Superintendent Smyth, Of the Insurance
Department. superintendent Smyth and Assstant
superintendent Mccall with counsel, occupied seats
within the circle OF the Senate on tho lett OF the
Chair and Messrs Hand and Hale. Of counsel for the
people OF the State. seated the right Of tho
Chair within the circle.
HANDS OPENING ADDRESS.
Mr. Hand said SO much public discussion has been
had that they did deem Il necessary to occupy
much time The Governor has recommended the
removal OF Superintendent Smyth the ground
principally OF his refusing to obey the law Of 1S73
Previous that year the Superintendent OF insur-
authorized to cause examinations Of
insurance companies, having almost unlimited
power In such examinations. aud to charge
what ne pleased for them, without any
straint from any person In 1872 It was suggested
that the Legislature place some check upon the
charges for examinations, some OF those charges be-
Ing very large, but those amounts utterly insg
nihcant compared with the amounts which
be considered The officers OF insurance
bills of the superintendent or his aminers. mat
how large, than the will OF the Supern
tendent, the companies entirely at his mercy.
The Insurance Department instituted for the pro-
lection of policy holders, but he doubted II they
thus guarded. Under tho law previous to 1873 great
depletion OF the funds oil these companies was madc
by the charges OF the superintendent ana his exam
liners, and the question thcn who shall protect
the companies from their supposed guardian, the
superintendent Of the Insurance DEPARTMENT. The
In the form Of the law OF 1S73 obging all
oils Tor examinations 10 he to the Comptroller
Tor audit In order TO make the law obeyed distinct
Of refusal or neglect to obey IT, II seems plain that f
Superintendent Smyth has knowingly and inten-
tonay violated this law then he IL liable to be re-
moved Counsel believed that thoy could prove that
lie had been guilty Of such conduct They expect to
show IN one case wncre company refused 10 pay u
largo bill except bore the audtt OF the Comptroller
that the Superintendent his examiner presented
copy letter or legal opinion marked ''secrsi," T"
advising that the law 90 dsregsrdcd. They expect
show Dy evidence that Juege LsndOn never issued
any opinion this question Of auditing bills by tho
Comptroller The action OF the present Super
ent destroyed all the safeguards with reference to
the cost OF examinations which were enacted by
Tho Laws of 1873. Whether tho statute rs
wise not question for the
Superintendent TO decide. II was law and
should bo obeyod public oliaer who wilfully ana
persIstenty disobcys law is unworthy To remain
a public oihca.. The oilis presented to tho com.
pauies all the carmarks OF desire TO aid ircnds
iuuos OF these companies Counsel referred
TO the bills OF the law firm Of ex-senator Tobey as
large Huu befonu Ill prcctucut.
FIRST WITNESS.
Counsel Tor the people then called Joseph &. KNAPP.
president oi the metropolitan Lilo Insuranc Com-
pany, who was sworn His company was examined
last year; the first coinmuni icAtIon In writing
the aiu inatioB commenced IN Octoner and was
Quoted by Hams, Rudd, Mccall Ballard, Taylor,
Costpan ana Smyth, Jr, and the properly was APP
praised by Thomas Murphy and OK senator LtimDeor,
oi New YORK; BIN Tor H. 500 presented
personally 10 ,he witness by Hamilton Harris Sena
tor; witness asked superintendent Smyth n "a check
for tho bal should made to the order OF the depart.
ment; the supernt ntendcnt said "No;" Suporintcnd-
ent Smyth was present witn Senator Harris; they
came INTO the Office oi tho insurance company to-
gcther.
Counsel for tho people desired TO prove by witness
that In tho case OF THIS bill the usual oil the
company was departed from IN auditing this DILL AT
once, because vi The presence OF pcriniendont
Smyth instead oi reorrinR IL to board Of audit as
Is tie usual custcm. The Superiptcndcnt's counsel
oDcctcd to the question, and Senate, by votc OF
s yeas to 16 nays. reiuaed to admit II.
LEGAL pARRyiNG BEGUN
Counsel for the people asked the value OF the prop
cry cxamined
Counsel Tor superintendent Smyth objected 10 the
witness arswcring saying that this question does
enter into The matter at all. The Governors Mes
sage oil February II says nothing such charges
" this question 10 opened counrei Tor accused
will mcct them Dy witnesses and evidence which will
cause long aud tedious triaL
Counsel Tor the people, IN reply, said that II was
ontircly proper 70 nave this question opened Tho