New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-08
THE INSURANCE DEPARTMENT.

THE INSURANCE DEPARTMENT..
RESOLUTION OF INQUIRY IN RELATION TO
CHARGES MADE FOR EXAMINING INSURANCE
COMPANIES ADOPTED ~ THE ASSEMBLY.
fTRoM REGULAR CORRESPONDENT OF THE TRiBUNE
ALBANY, Feb. Tt has been rumOred for
several that charges of some kind were to be
preferred to the Legislature against Mr.. Smyth,
superintendent OF the Insurance Department
Usually it was said, when INJURY made
OF the nature OF the charges, that an insurance
company whose books had been examined by
the superintendent had been compelled to pay too
highly for the work OF the examiners Governor Robin
in his annual message affirmed that the examination
Of the companies TOO expensive burden for them
often to bear Perhaps from this assertion OF the
Governors that the class Of referred TO above
originated. The first step in attack upon the super
intendent taken III the Assembly to-day, when Mr.
Halliday presented the following resolution:
Whereas Reports have been for time past current
that large have been collected from life insurance
companies IN this State by the Insurance Department
under the form Of bills for the examination OF tie affairs
Whercas The statutes OF the State require that all bills
r EXPENSES in he examination of said companies shall
he presented the Controller in emzcd form. and
by him audited before presentation TO the said com
Bheods The presentation Of such bills the insurance
compan before being audited 10y the Controller, is III
BesOrod. That the Controller Of state be. and he Is
hereby requested to report Ia tins House, within ten
DAYS whether such bills expenses and examinations
presented 10 HIM for audit and approval, to-
gethcr with the amount tIercoa the cOnpaies against
wlch such bulls were charged. since first day Of
January 1877 also, whetnct hr has any knowledge OF
any bills for expense incurred by attorneys and apprLis
commssiuers designated 10y the Insurance De
partncnt TO pcriOm duties In the matter of the
smination OF the Ncw-Yo7l Lie, the Manhattan; the
Metopohtan the Homeopathic The universal ana tie
GOhc Insurance Companies having been prcsenied ~
that department direct To the companies examined wi H.
on" having been mel submitted To MIN Tor hls au"it anu
approval together with any Uncr facts or information
which he possess bearing upon The subject matter Of
this inquiry.
Speaker Hustled. after the resolution read called
the attention OF the Assembly IT, but wished TO
debate it and passed. Mr. Halliday. even. did not
address Assembly respecting it, aud aiterward said
that had only introduced it by request, knowing noh
Ing about the matters referred TO.
Controller Ocoti, in response, will give detailed
statement Of the bills from the Superintendent Of the In
suranoe Department Most OF these bills for petty
matters-tmvening expenses and the like. None Of
them Is OF the magnitude that bill would
have been for the examination Of any
OF the insurance companies mentioned. IL Is
said that the persons who drew mp the resolution Of In
quiry believe it the duty Of the Superintendent to
send the bills for these examinations to the Controller 10
audited that il he has done he has rendered
himself liable TO be adudsed guilty OF misuemeanor
They base their belief the following section Of chapter
1913 Of the Laws Of 1873, which defines toe powers and
durcs Of the superintendent OF the Insurance Depart
mcut: So
company 10y the superintendent or Deputy superinl"ne-
ent personally or by OF the regular clerks
animation but Tor necessary travelling ana ccf actual
cNpcn-cs and an charges lganst any company by
i0rncy appraiser OF THIS department shall be- presented
In the form OF an lcmZnd bu. whlch sdal ms De az
proved by the said Superintendent aai then audited by
lie ConrOler, and sbal Ice paid his warrant drawn
in the usual manner upon the Treasurer the per
son pe; making such examination aud the com
hi Of charges, ~ audited and paid by the Con
tfoller shall repay the amount OF the same TO
into the State Treasury to replace the money
drawn ont rs above prov ded for; ana company
iuetls ho Lett a.
d gratulty otherwise, any other or further sum Ia
Sand SvprIutcudcnt or examiners services extra ser
vices or for purposes OF legislation or on any other pre-
tencc said superintendent, examiner. or any
officer clerk or other enIoyt II any insurance company
violating the proysuns OF Ihls section shall be guilty Of
- misdcH4canOr.
Superintendent, smyihc II IS stated did not disr gard
the law 1873 quoted above without having excellent
legal advice that II his duly TO do Hi- counsel
informed him. 1, is declared that the law OF 1873 was
unconstitutional. Il directed hc superintendent 10
dsobry section : of article OF the Cow
stiiution. winch says: "No moneys shall ever
be paid out Of the treasury Of the State
or any OF the fGnd- under rs cement except IN
pursuance OF an appropriation by law" No sufficient
appropriation WIS made Dy the Legislature Tor
the purpose Of examining Insurance companies.
aud the superintendent could not. therefore. obey
the law without running cou.cr 10 tie con-
stitu;ion Eut the chief obstacle to the Suner-
inieudent's obeying the law Of 1873 the fact
that. although money might drawn cui ui the stare
Treasury, there WAS no way of caaiy getting II back
AGAIN Tie Treasurer might pay warrants drawn by
tue Controller, but ne had authority To receive The
money Of the insurance compauy 10 return. II not
among the enumerated duties OF his office.
Last year there large number of insurance com
pa!cs VINO desired an examination oi Their b"ohs, and
The appropriation made Tor the support Of the depart.
suic sn 10 The haari.s of the depart
employs audUf the oNamincr- Of tn c'mpaLirs.
Mr.. smyihc felt 1. To he his duty, however, to
make the many examinations he ia OF iustf-
aDce companies dosrtc thr defective law. IN
order to restore public confidence in them, which
then slight Under the law ~ 1873 II II Is sn Quail
II VIII be perceived that officer OF insurance
pany who paid the examiner also liable TO be- declared
guilty OF "A iulsdoineanOT To- that act