The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-12
ALBlNT's EXCITEMENT
Rumors that nm Astounding Ring OF Wreck
ers Is to be Broushf 10 I.laht.

ALBANY, Feb. 1.-THE uppermost topic
about the Legislature. and in Albany Is the ru-
NOR OF coming developments in connection
with the management Of the Insurance Depart
mont tho initiatory steps Of which we're taken
last week in the Assembly by the ador,ion of
Mr.. Halliday's resolution Of inquiry Before
that time there wore many rumors ne To- crooked
proceedings on the part of the Superintendent
and some OF hi5 appontcca In connection with
the examination Of life insurance companies
but since then they have increased m
hundred fold. and II half that has been
rumored shall prove to have foundation in
fact. the result will be the uncnrthing Of
Ring Of wrcckers such ns has never before
existed in this State There s much comment
over the bill introduced in the Senate lust be-
fore the adjournment on Friday last by Judge
Robertson. This bill ID ~ generally under
stood cmanatcs from the Insurance Depart
mont and ts object is solely to allow examina-
tions OF insurance companies to be made direct
by the department. and the bills to he paid upon
the ccrtihcation Of tho Superintendent. with u
provision that in the event OF the companies
obiccting to the bills. then they shall be sub
miited TO a board TO consist Of the Comptroller,
the Attorney General. and the Superintendent
OF Insurance. II does not. as has been said in
some quarters, change the present law bv re-
puiring the bills for such examinations to be
confined TO actual eNpenscs-that is the law
now. and It s said that f. Just this feature Of Il
tons. ENOrbtant sums which. II was believed,
the Comproncr would not approve have been
charged Tor sueh examinations and the com
Tho defence of Mr. Smy,h which he intor-
| polated In an argument before tho Insurance
commi,tec on Friday. in favor Of the passage of
this bill. Is also tho subject Of much criticism.
II will be remembered that in these dispatches,
when this matter was first ventilated said that
had gooL reason for believing that Attorney
General fairchild had never expressed an
opinion that payment for these examinations
prove proved II y H tho rS whSt Fanpcha IGn
did say Mr. smyth incorporates in his defence.
| reply to MIR. Smyth's inquiry, . ] am Of the
opinion that you can employ parties To- examine
the conduct Of the Insurance Department Is
exhausted. without mourning liability and sub
jectng yourself 10 removal" This, It will be
seen-and 1t is all there is OF the opinon-does
not say one word about the payment Of the bills.
| or the question OF their examination and ap-
| provnl 10y the Comptroller. There IL nothing in
| such auditing and examining that conflicts with
ariicl" I. section :. of the Constitution, quoted
| 10y Messrs. Harris and Rudd. which provides
! that no moneys shall over be paid out Of tho
TREASURY ut this state or any of its funds. any
| of the funds under its management. except in
The fact appears to be- that the desire and the
| determination Of tho Superintendent was 10 get
| rid Of this man. who stood between him and
| direct communication with the companies in
| this matter Of presenting and paving bills. and
| the Constitution was Interpreted 50 ms TO make
| II appear that the moneys paid for such exam
| nations could not be made available to carry
on the business Of the department and SO not
| only the money must be paid direct to the de-
partment. but the process 10y which II was to be
| collected from the companies also to be
| changed. and the only safeguard against any
| att"mpt or disposition TO ovrrcharge for such
examinations on the part of persons making
them, except the Superintendent himself, must
| be- ignored
| Mr.. Graham introduced In the Assembly n
bill defining the duties OF receivers OF insolyrn'
insurance companies. and regulating the dis
| tribution Of the assets II is the same bill in
| troduced last year without amendments Mr.
| Graham also introduced bill in relation tc
| foreign life and fire insurance companies doing
business in this State. Ii il the bill Of last year
| requiring such companies to give n writer
| agreement 10 not remove suits into Cnltct
| States courts before being allowed 10 do bust
ness in this State.