New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-09
EXAMINATIONS OF INSURANCE {

EXAMINATIONS OF INSURANCE COMPANIES.
A BILL TO AMEND THE LAW OF 1S73-sTATEMENT
BY SUPERINTENDENT sMYTII-A FULL INVESTi-
CATION OF HIS COURSE To BE ASKED FOR By
his FRIENDS
lFRoM THE REGULAR CORRESPONDENT OF THE rRIBUNE.l
ALBANY, Feb. S.-Controller OlcOtt did not
send Il report to-day in answer to the resolu
ton passed by the Assembly, yesterday ask
ing for information respecting the bills for
examinations OF insurance companies audited by him.
Inasmuch as the superintendent of the Insurance De-
partment had said that such bills not sent To the
Controller Information expected on this point,
although information other subjects relating to the
Insurance Department hoped for by the authors OF
the resolution.
A bill intended 10 take away the legal barriers that
prevent the superintendent OF the Insurance Depart
from ordering the examination OF such OF tine
panes he may consider need such an investigation
was presented in the Senate, to-day. by Senator Rob
ertsol. BY the law OF 1873, quoted In THE
TRIBUNE of yesterday, payment OF the examiners
OF insurance companies Is ordered TO BIO made in
very crcuitous manner. The law says "all charges
against any company by any attorney or appraiser OF
this department shall be presented the form of an
itemkcd bill, which shall first be approved by
the said superintendent and then audited by the
Controller, and shall he paid on his warrant drawn
the usual manner upon the State Treasurer to the
person or persons making such examination, and the
bill OF charges shall repay the amount OF the same to
the State superintendent to be by him paid into the
state treasury replace the money drawn out as above
provided for"
Under Senator Robertson act this bill OF the examiners
would first presented to the companies examined II
they object to paying 1t the bill is to be audited by the
Controller, the Attorney General and the Superintend
eut OF the Insurance Department. This method
would give the Superintendent full liberty to
order q needed examination aud not subject
him the charge IN future Of disobeying law. II
would also not involve drawing of money from the
State Treasury but solely from the insurance companies
Last year there not n sufficient appropriar
ton both for the support of the Department aud TO-
conducting the examinations OF tho companies. The
money appropriated might be paid out warrants to
examiners but its by the companies 1t could
not again by law be paid out again IN support OF the
Department Once returned 1t must remain until another
augmentation was made by the Legislature although IL
might be idcnticaly the same money. Superintendent
smith, by auditing tho bill and having the companics
pay the examiner direct. obvated this eInbar-
ru.sment, and was enapled 10 make the necessary
organizations. The proposed law has his hearty sup
10, T. and tho subject % long communication from
INN to the nsu ance Committee TO which Senator Robert
sons bill was rserrcd Mr. Smyth states the PROVISIONS
L9 law OF 1873 and the Constitutional restrictions
already published in THE TRIBUNE. He says:
Practically, the law OF 1873 Is In direct conflict with
the Constitution as above cited This embarrassment
and difficulty curly foreseen. and during the admin
stration of my predecemssor in office few examinations
When took possession OF the office OF the superinen-
dent of the Insurance Department., early In 1871 tue
demands by the people for the regular examination OF
tanned by the whole press Of the state
and country aud urged by the superin-
my Immediate predecessor had begun examination OF
the Equ e Insurance Society Of the United states,
commissioning attorneys TO examine into the validity