New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-22
TIE SNITH TRIAL.

TIE SMYTH TRIAL.
TESTIMONY OF NEUTRALITY-SUSPICIOUS. BARNES AND
| MILLER AS TO CHARGES FOR EXAMINING TITLES
FOR LIFE INSURANCE CoMPANiEs-ARGuMENf
OF MR.. HAND FOR THE PROSECUTION AND OF
MIR. pECKHAM FOR Thu DEFENCE
ALBANY. March 21.--The Senate, this morn
ing resumed tho trial Of superintendent OF Insurance
Smyth.
John n. Whiting counsellor. OF New-York, was called
for the defence and testified ms follows: Had pceh en-
gagged in The practice OF law IN NcwIork City for thirty
years; considered $40 not too Iarsea Ice ioi 'o ~
nation Of any abstracts
Cross-examiucd-Had not had much expericuce III
looking over real estate abstracts in case the lawyers
having charge of the abstracts did rot give personal
attention the abstracts my opinion as TO The value OF
the service would be changed
Mr. Barnes. ex superintendent OF the Insurance Dc
partment, was called by counsel for the people aud
sworn; Hal occasion during his ten years experience
as Superintendent to have many examinations OF com
panies made.
Odd you ever hear companies make complaint OF
losing money defective titles OF real estat"
Objected ny counsel for the accused The President
decided the question could not be answered The ques
ton was then submitted the Senate, and IL was de-
cided by vote In the affirmative 10 IL in the neg
alive 10 refuse to allow this line OF evidence 10 be entered
into.
Q-wben you were superintendent OF the Insurance
Department, did you employ OUTSIDE hWNtrr 10 nhNe
examinations abstracts at the expense of the nsur
ance cOmpanicsl The President decided the question
could not he answered under the previous rulings VI the
! Senate
Counsel for the people said they desired to show that
| Superintendent Smyh nearly the first officer who
ever ordered examinations made OF abstracts OF titles
held by companies. The Senate decided the question
| might be answered.-Ayes. q nays &c., -.
| Al did examine abstracts when found thon
among the assets of insurance companies.
| observation-disclosures two life insurance com
MIN Cix In
all examined; only two examiners were appointed
TO make EXAMINATIONS of companies during his term OF
Redirect exammaton-The examiners witness ap-
pointed received from - 10 $40 day MessrS UIDHn
and Whitehead were the examiners.
George W Miller. exSupcrlutendent Of the Insurance
| Department called and sworn During the three
wears he Superintendent OF the Insurance Depart
ment there expenses made 10 cOmpauie Tor eN
aiming abstracts OF titles except where the ties we're
10 deposited with the Insurance Department under
the 100000 clause required under the registry law
John 4. McCall, Deputy superintendent Of Insurance,
recalled h., counsel for the people knew OF 10 charges
made by COUNSEL to examine abstracts of titles during
| Globe Insurance ComUsny OF Chicago
At l1:l5 counsel for both sides said the evidence was
all H. and each side having closed TIE senate Thea d-
rected hat the summing u began at O'Clock tins alter
| noon.
The senate met 1T p. ~, when Senator Hughes offered
resolution that counsel he allowed one h0nr ehch ana
that the Senate in secret session next tuesday at nOo
! shall act upon tic question.
| senator Goodwin suggested making the day Thursday
sena Hughes said he would like the Senate to pass
upon TING question as soon as possible, I9eIe WeIe
he would Ike to be rid Of it as soon as possible
The Senate agreed 10 give each counsel one hour and
| laid the rest Of The resolution on the table
MP. HANDS ARGUMENT
Mr. Hand Of counsel for the State, said the evidence
was clear and PLAIN against superintendent Snyth The
acts proved revolt against the laws Of the STATE
and warrant his removal The acts Of this officer were
aided and abeted by Senator and when this fact
remembered will be how difficult and delicate
the task Of counsel for the state The persistent and
wful violation by the superintendent of The statute has
| ngi.nVu if.tnt IA
from the insurance companies by lawyers ahd eX.
aminers through the superintendent connyance and
The counsel then rected the requirements of the
Controller and referred TO the evidence or President
Knapp, Of the Metropolitan Life Insurance Company.
had called the Office of the company together and
| Harris presented his bin against the company The
! Superintendent knew he was violating the law III every
respect when he personally sanctioned the payment OF
thus bill with no audit or Encouragement On IT, In
| the superintendent was present In New-York
apparently for Tie purpose Of approving lhe bill a. made
clearly and boldly showed his disregard OF The law In
dent attached and the amounts were paid directly
by the company, instead OF being paid by the state
returned TO the State Treasury by the insurance
companies required BY the law The charges then.
proven. H. DECLARED that the meanest criminal at the
bar OF justice rs not allowed 10 plead the excuse or JUS
caiOn that he considered the law nc had broken an
| unconstitutional law. Mr. Hand then proceeded TO
argue length the constutonality of the law o 1873.
| Constitution The Ncw.York Life Insurance Com
pany, in September, 1877 applied to Mr.. Knox. coun-
the report OF the department on the condition a,
paving him then 81 900 aud the day Suern cndent
smyth writes to Tobcy to hurry up MS report OF The
company. Harris in the meantime, although employed
counsel IN antagUnsm TO the department. writes an
opinion the unconstitutionalty Of the law of 1873,
and says that bills be audited by the companies
without the audit of the Controller T0bey's bill for
S2i 900 IL paid him by the company ana tbs bank
bills placed under his pillow. When the money was thus
placed under senator TObeys pillow the report was
dent Smytb knew that the question of the constitution
alty Of the law never passed upon by Justice Ian
don. He Nir. smyth) would have placed himself right
the record II he had applied To the chief law officer
OF State to pass the cOnstut0nality OF the
law. The evidence cOnyIcts Smyth OF wifuly dsobey-
ing the law The case Is most important one. There
panes and this officer will be left with unbrided power
over this IL the Senate shall allow state officer 10
prey upon 1t In disobedence OF all law.
Mr.. PECKHAM FOR HE DEFENCE.
Mr. Peckham OF counsel for Mr. Smyth, said the
Is most remarkable one-most important to supern-
tendent smyh. On his conf into Office, year ago,
he found great doubt existing IN the public mind as TO
the financial soundness OF life insurance companies I'm
der this state Of affairs, the Superintendent felt
that every company ought to be subject
to investigation. He believed his duty
called upon him to go with this work and he
did Counsel history the legislation OF 1873
1877 which latter did not the sanction OF
the Governor, and said bis Excelency did not thor
Oughy understand the question Counsel then related
the history q Legislation w sa 10 70 Tse
additional laws followed IN 1880 and 1893, aud In
1859 the insurance Department. was instituted Conn
claimed that the law OF 1873 Is IN direct violation u
shall be paid from the Treasury until an appropriation
has been made. Counsel argued that the insurance