The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-08
LIFE INSURANCE SCANDALS.
THE HORKTNGs or THE DEPARTMENT
10 BE LOOkED INTO.
Proposed Legislative Inquiry Concerning
some Large sums Of Money that Companies
are said to have Paid for Investigations"

ALBANY Feb. There Is much interest
here. and in certain quarters excitement. over
movement in the Assembly to-day looking to an
| investigation Of the management of the Insur-
ance Department. The muttcrngs of the gath
ering storm have been heard about the Icgisla-
turc and In the departments for weeks until
they became 40 loud ns to attract the attention
not only Of members ~ the Legislature but Of
those otherwise high in authority. Mr. IIalli-
day of TOmpk ms. who is above the suspicion
of being engaged in any matter not strictly hon
orahe and Legitimate. to-day offered In the As
scmhy resolutions forashadowing thorough
Investigation Of that department rs. in tho
event " the Comrtrollerconnrming the general
belief that the Superintendent has been guilty
of violation of the law in making examine
tious nj great expense to these companies the
Legislature cannot refuse to make thorough
investigation into the whole matter. The fol-
lowing is Mr. lIalliiays resolution:
Wh.oi' Reror- have boon 'gr SOME tine ras current
colHnirs in I'M. state D., tie Insurance Department
unh' che form OF bulls for the examination the afair,
wt.e,. M statute. Of the state require that nm.
r. presented o. Oh, comrtrlrr iu an icn1d urn. and
- m audited before prcscniton To- the said conn ani,s
nA,,n' The presentation such hin. The in.urauce
di. % ,i1 nouri Che laws o. the state Therefore
hcnl 3, requested To- report 20 tn. House within rn ia,-
~. nor so,h til or ~ rn.e. ani ,Nlmimios have
vl'l Che amount thereof and the co.ufanc alaiu-t
Wir, is77 N.n VII, il.r h' Ha eU, tno,,i' ,,,
mil. irr 'Nf'n-e incurred 10y attorneys "nl apIasrf-
mcnt topc form any duuc. iu ne matter ot tc Namnl
tan. tnc iionooiatlic. the Universal fnl ncG'oit ii
,w, in., i' li. i.'n li,',n..l if uia d.
having been nr.t submitted Co nim or i- audit aud ai
wlrh Doe NAV ross,ss bearing upon tic subject matter u
th.- iulutN.
tnnt lusurHnr" Superintendent SWyth hHl IT,
ccivNd large sntuso money from life insurance
companies n paym"nt igr examinations mudr
in violation W Tine law. The amount which on"
company WIS suid 90 have uaid WAS rinenI m
from SIS plu % 800 nuu How. in view of the
.N istius law. .u .n amounts could N, Difufu..f
from any ouuiuuny was uniccouutntir. except
upon Inc assumption That The irfmrut ff~
power poss ~-'d hy th' department had lHrn
Put into force To- compel IL" companies 90 pnp.
or els" Doe Subjected ~ delays and aunovun..s
in the making ui the examinations. VIII rh would
uu- O." the rouillDn'" of tn" public and IN tuc
.ni result IN greater loss IMAM the sum de-
mnnl"d Tor mnkIn tho examination. II not IN
rum. Ihe condition ~ ~" puhhf mind ~ re-
hNr"s NE inSui in " '"npnni'S : rec ~" rN-
pu-urns AMI inNrstiE ton, begun IN 1872. has
made these corporations very sensitive io any
tliu- mat would t'ni 20 lead thr puOl' 10 look
upon tnrm with suspicion. and = - upon this
for. Z II asserted. that IN department, hus or-
crutDi iu forcing tuc payment of STA 10 oNlfili-
tani tees. Had The companies mt Tie demands
boldly. and ius istcd upon strict carry ~. out
~ the law they cnulI never have, h.-u mad, To-
pay any such sums. The law carefully guar *
against any su 10 abuses and proyll"s AN tho
necessary check. hN requiring SUPER, ision ~
mrut hy the state Comptroller before the com
pnnies could b" compelled TO pay them. Ths
safeguard. Tor som" reason which VIII doubt.
Hss ur tNplhih'u yl9i. ltls h.ttrf Is 81 Spo-ri
~. the companies failed to avail themselves Of
and they Were. as consequence. at the mercy
OF the Insurance Department.
II may b~. remembered that in 1872 there was
S wSsn @poH iai- ws SAM ce ap T.,
sign his Office in order 10 avoid being removed
by the Governor. One Of the charges over
raised was the fat that Mr. Miller had charged
one company 5000 tor making an eNamina-
ton. and another 81 100 Th.s" charges were
pronounced illegal at that time because they
were IN excess 81 actual expenses incurred.
which the law said WAS all that the department.
should bc allowed 10 charge. The report Of the
committee OF the Legislature 81 ls12. which
made the Investigation under the charges
brought against Mr. Miller reported that in
violation # law he had received and IN some
rasss charged Tor his own Us" sums largely m
"N'"ss 81 his l"Sitinai" expenses ln utkiu
-p"rhl "nl "tn"r eNnnnail 'nr. ant rlr' thHi
%" hal appointed commissioners t' make ~
We ir's 'h'nll. NJ - '@ cNl'n~" upon 81"
Hoffman appointed * stat" senator Chapman
Snperin"nd"nt, VITA" -n' s"gu.niy Resigned.
ana the position Was held hy his lcput, until
the appointment Of The present SuI"rnt -ndrut
ny Gov robinson Iasi winter IN 1913 II"
l'gis allure amended the law establishing un
Insurance Depnnm"ni, IN mnnncr that It WIS
were d y.loped IA the investigation of Superin
| t.ndent Miller. In order o. show now ronelai
seems To directly bear upon the charges which
nr' now made AGAINST Superintendent John f.
Smyth. section chapter 593. ct the Laws ~
ttbsh an Insurance Department." passed
Aprii IS. 1859. provides ~ follows:
sscrios wnenever examinations shall 10
NIX ,t n.y., tn ~, ,. '. ui.nt
De- maze un such tmHuon hnt Tot Necessary travel
| iur cNanduauOn. of ANY in.u .suce cnnpauy .nd