The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-22

dence was clear and plain against superintend ent
Smyth. The acts proved are revolt against tho laws
of the State aud warranted his removal The of
this officer aided and abetted by one Senator,
and when this fact is rene mbered will be seen
difficult and delicate Is the task OF counsel for the
State. The persistent and wiIful violation by tho
Superintendent of the statute has been shown Ex-
orbitant OF money have been taken from the In
companies lawyers ana examiners through
the superintendent conn,vance and aid. MT.
Hand then recited tho requirements OF the statute
with reference to obtaining the signature OF the
Comptroller aud referred to the evidence o. President
Knapp, OF the Metropolitan Life Insurance Company,
stating that superintendent Smytn anu Senator
Harris had called al the office OF the company TO-
gethsr ana Harris presented his bill against tho COM
pany. The superintendent know he was violating
the law every respect when he personally
sanctioned the pay ment OF tins bill with no audit or
Endorsement on It. In tue case OF the Dill oil waldo
Tobey Grover the was present In New
York apparently Tor the purpose Of approving the
bill as made out and presented 10 him by Senator
Harris. Thus ne clearly and boldly showed his dis
regard Of the law In OF ten other bills the
name OF the superintendent was attached 10 them
aud tho amounts were paid ny the company direct,
instead of ing paid by the State Treasurer on the
warrant OF the Comptroller ana Inc noun. returnsa
to the State Treasury by tue insurance companies, ~
NO KxcusE FOR NIX. sMYTH.
The charges then, far us they claim violation oil
the law Of 1879, are proven. He declared that tho
meanest criminal Al the bar OF justice 10 not allowed
TO plead the excuse or justification that he considered
the law no had broken IN unconstitutional law. Mr.
Hand then proceeded TO argue At length the consttu
tionallty oil the law of 1878 and SAID there was no
clause in 1t in violation OF the constitution The New
York Life Insurance Company III September, 1871
applied 10 Mr.. Knox, counsel Tor the company, lOr
ADVICE n pushing The report OF the department ON the
condition OF tue company. Knox retains Senator
Harris. paying him then $1,000, and the
next day Superintendent Smytn writes TO Tobey
pauy Harris iu the meantime. although employed
as counsel in antagonsm 10 tue department. writes
opinion as to the unconstitutonaty OF the law OF
1873, and says that bills may be audited by the COM
pauies without tho AUDIT OF the Comptroller Tobey's
bill Tor over $24 100 paid HIM by the company ana
the bank bills placed under his pillow. When the
money was thus placed under Senator robey's pillow
4 thar annr had nuh hA I'm
menL Superintendent Smyth knew that the ques
ton OF the constitutlopahty OF the law was never
would have placed himself raht upon the record II he
mad applied to the chez officer OF the State TO pass
upon the constltutionallty Of the law.
wILFuL psoBEDIENcE OF LAW.
The evidence convc,s smyth OF wiiuly disobeying
the law The case Is most important one There
are $500, 900 involved IN It among the different
companies aud TINS officer Will BIO left with unbrded
Iower over this sum II the senate shall allow State
officer prey upon It Ia dlsobedienco Of all law.
WHEELER IL PEcKHAM's ADDRESS.
Mr. Peckham, OF counsel Tor Mr.. Smyth, said the
case was a most important one-most important 10
superintendent Smytn. On his coming into Office
one year ago he iound great DOUBT existing
In tho public mind as TO tue financial sound
ness of life insurance companies. Under THIS
state OF affairs the Superintendent ielt that every COM
PAM should be SUBJECT to an investigation. he be-
work, he did He gave history OF the legsla.
ton Of 1873 and OF 1877, which latter did receive
did not thoroughly understand the qaeso Counsel
then related tho history Of legislation with reference
to insurance companies The first law was passed in
1S49 Then additional laws followed III 1850 and 1862
1859 tho Insurance Department was instituted
Counsel claimed that The law Of 1873 Is in
direct VIOLATION OF section OF the constitu.
ton, which says money shall be patd
from tho Treasury until appropriation
has been made. Counsel argued that the insurance
companies hau right TO transact their business IN
their own way denied that anything regarding tho re-
taiuer paid Senator Harris by the New York Lie In
surance Company initiates against Superintendent
Smyths integrity, ana said the counsel Tor the peO-
pie did not Insinuae that any part OF the $ 600 paid
TO Senator Tobey went to superintendent Smyth. He
closed by asking the Senators TO take the matter into
serious CONSIDERATION answer whether John r.
perpetual disgrace.
The Senate then adjourned to meet at ten O'Clock
Friday morning.