The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-09
TIE INSURANCE SCANDALS.
CONSrl'RvfTrOV CiuSED ny THE LET.
ting ~ on LfGHT.
what tho Governor aud the Cnmptroiicr nre
Expected 60 bo-'ihc Icrisinturc's work
Ec-terdnN -Nr. Hnbertson's Insurance Uiii.

intcndcnt himself that examinations OF insur-
anco companies have been mH1c and the bills
therefor paid without having first boon audited
and approved by the Comptroller as required
by the law Of 1873 But this course 1t Is at
tempted to Justify by the Superintendent on the
ground that that law was unconstitutional. and
that its workings would cmbarrass the depart
mont. MS there was no way provided by which the
money paid into the treasury for such cxamna-
tons could be obtained to carry on the work
Of tho department. To sustain them In this.
as was intimated In THE SUN OF to-day.
Mr.. Smyth has obtained tho written opln-
ion OF what he cns eminent counsel
and OK parte orders OF Judge. to the effect that
bills for such examinations could be paid with
out their first having been presented to tho
Comptroller. Thus 1t will be seen that Mr..
Smyth and his - eminent counsel" have con-
stitutcd themselves n court to pass upon the
question of the constitutionality OF law, as
well ns hie official powers and duties. And not
the least singular pnrt Of this transaction ia
that this they have done without even dcigning
70 consult the Governor the law officer Of tho
S,mc. or tho Comptroller. whose OH 'iHl duty in
the matter they have utterly ignored 1T IL m
~ this business rvcr y" reached II Will more
than llkuly Bee found that som" oi th, eminent
counsel upon whom Mr. Sm>N has relied,
havn thrul- 'lVes uro.it u o. no ~mhll anouni
hy the de 'oN ~ of a WAY in which toEytaround
the examination OF these bills By Comptroller
As iothe lauor oil ,.r IL Is known that he has.
for rur'r tlmr. hrrn satisfied thHi b,iI- Tor tho
%IqS9- Of a Regr"@s ,n rsmHnnIrd and 4G pG
without h.ii. 800. flr-i lH'n approved hy him. II
Y al-n gen .rnl.S und. ieo"H tnA' D.. h"s m.an ,
companies. for som" reason best known 10
th'r's. " s huy, thus Ilr fted to exhibit TO
him aurh nilI4 Two ,,ropuli ure us-i..nnd for
eush nt4fou bv tho cnnpanlrs; first. tipt
ih-y f'1rd rrU- 'ui.on tlrmsriN.S the law
iii,s ss y. ms for III" inn'-tu,rnt ,n rro,,nt
thrft. = ''.,n.i Tint ti.y letr t. offend H. ~
:, !, '.. o' ,. '' '. T. ., & thry
,yrli know
ior.', /" "n,oi IN AZ, 'ngtiDe th"t h..yc
I., ot,,,ti f,r q, ,,',s i ti.'. l,.lf- nr,.-.nrd
n.sn them 10 INN. thrn be- wul r.p1It ihat flrt
/, M tss5r,bv AVID tho t,nir ,lu,y oi that
body then. and one which il cnnnot ignore. vii
l., H. rai-~n s.,imitil." 20 Inv st..ntc ih 4 whole
tif,D =, no v.rv fotf.r' AMI i'm tbr uionn
time II IA beIicyrd that Gov l,uhn nson too. has
mn i5 a ri1.n e;ieni h. Mi b. hnll rrsponsi,
bln by tho r.npl, ior his nri .ial action
Mr. Sw.ih'. fri,nds -t th0t IA. viii l-e only
nprgls,.,nsnt Of the affairs Of the Insurance De-
without even tho smell of nro upon his gar.
,n,'nis. Unless the minority in the Lasisa.
ture' who aro in political harmony with him.
S,,vti, will .ertninly is, run,is hapry in this
respNt Tho movements of tho leaders last
pie.h, hnwov,r when IA, full sion ifru ncr of the
r.olution iniroduced by. Mr. Halliday cnme
to bs understood did not Indicate that
they. at least. were particularly. happy
selves and ench other roundly for
their stupidity In nol objrrtng 10 or d,baiing
Ia, resolution and thus srudins il over until
r"v' w.ok g. 1--WE thrn more simo,o make their
plans to mot -qu'-f'en. Al ono { ma il was
'lrtnrr,tnnI f.. riaa d., an ,ff,rt is have the vot,
.l1r .ne the r,s 1'ut. m ro.,n-! -r.i ana th, n
sri.i ,ttnti., Insurance CoulinIiirc where tho
minority could Lola II urtd told t. lrt 20. or
~ N.ta l..a
I of mt ~ fr. thi- ~ -n'u- soon satisfied thrm
TINT mis- coull r.tl dome. anal after the arrival
! of 'iHl SuN with tAr fun inside si-nlli.uuro of
/ this movement 'uly q ,'ueaioG. it is doubtful
! whether lw-nty-!lNo votes Tor such a motion
| could hav boon obtained.
| bill which, hoWrN,r is said to have boon
! onro'tcd 10y Il few lnnl"rs Int. last night. was
introduced today h{ senator l.obrrison. n a
| that he had not examined the hil. or the law
| which i proposed 70 change; Il w9as handed to
! him with request to Introduce. ~ also SAID
| that he should give II careful examination.
and II there was anything wrong about IL he
should To- the first 70 help XII, it, The bli
his eminent counsel are so confident Is un-
naon 70 be- % S E to The % companrs % dr%c
| alter having been approved by me Superln,
tSndent OF me insurance Dfparthmen' ,h, should
are, to be submitted, 70 board consisting
OF the Comptroller and Attorney General, The
principal features oi the NH hre as follows
Whenever examinations shall be made Of any
! 10y any person hlI'' iht'u ny nun. no 'HaIk''
shall De made Tor such nNamlnatipn. except lor
necessary travelling expenses ana other actual
! expenses and chnrge8 Tor making eNamina-
tons, and all charges against any insurance
company or by any attorney or appraiser OF
this department shall br pnid by NJ company
unlss objection u MADE hereto. IL the bill Is
ohIoctod 10 within ten days after the receipt
thereof a writing. specifying the objections Ia
| the bill or tho items thereof then
the same sinai be- submitted 10 board consist,
lng 81 III" Auorney-hcn'fal,C Comptroller. and
experimenting oi Insurance. VINO are created
II Board oi AudIl 10 settle disputed hlls against
anyeompany Tor me work OF examination.
After short sessions bnth Houses adjourned
until Monday evening Ine feature ol the srs-
sion III th' Assembly, was iie report ot IN" Tom
Hlu," on lrlNleGrs anu llrctlonS ~ thc eaSl
o. MorrIs against iurdy, IN the flr-t Dls.rlt ol
Mrstchrrtrf. vMngdlhe lhe sem Ia Mf, MOTIFS
on tnr lhrc oi tnc returns WIN PERMISSION u
Mr.. iurdy To come IN as contestant; I'm At
tempt was made by me ChhlrmAn ol the com
mlt'et 70 unNr thr report mhuc aspc'Wl oru'i
Tor heM Nruh'Suiy but upuh sIutrnrnt n
Juhge flpor, VINO ules.'nWu lhVI'lton, thut ht
desired 10 make minority report anu could
not be ready 10y mat time, ihe whole matter w0s
tahed. Il y understood that a strenuous
effort vii be male TO send tho whole
qu'si non naek 70 the comllnter' WIN IA
stru'tons 10 thkc testimony nhu 20 nehlh'
wv " N ililA IL ~ ~ uAhS