The New York herald., 1879-03-08
Superintendent Of Insurance Smyth
Replies to Thomson.
FALSE STATEMENTS REFUTED
Another Attempt to Abolish the In
Surance Department.
RAILROAD INVESTIGATIONS.
ALBANY, March z, 1879.

ALBANY March z, 1879.
The Smyth excitement has been postponed until
Wednesday next ostensby in order that the charges
may be printed. but really to give the "grave and
reverend Senator's and the various political factions
surrounding them an opportunity of studying up
the situation. 1t is conceded that the people of the
State will watch this second bitter controversy over
Smyth with . good deal of interest. The men who
aided in his acquittal last year remembered. and
their action upon the present charges will receive
considerable attention. If the republican party can
afford to let the Insurance Superintendent again 60
free many democrats here say they are willing to
grant them the privilege. on the ground that such
action would greatly to benefit the followers Of
Governor Robinson.
sMYTH's REPLY 10 THoMsoN's CHARGES.
In his reply to the charges of Lemon Thomson.
sent In to the Senate this morning. Mr. Smyth takes
up the specifications seriatim. and shows that the
accusations not sustained by the facts. He says
that the statement in the first specification that the
Superintendent reported to the Attorney General the
Atlantic Mutual Life Insurance Company in
solvent when solvent. and that said company was
safe and we'll managed company, capable Of meeting
every claim demand upon it at the tipe is untrue.
Tho Deputy Superintendent sfter examine
ton of this company in April. 1877. reported the
company deficient IS regards policy holders.
$11O.385. and the capital entirely gone. He
produces letter written to Robert H. Pruyn Presi-
dent OF the Atlantic Mutual Life Insurance Com
psny Of this city demanding that the cash assets Of
the concern. amounting to 2548. be deposited in
an incorporated banking institution-it then in
q private bank-and adding:-"I am constrained
to notify you that cannot under the law.
allow this deposit asset, and to request that
you win cause this money at once to be invested
fr, INh OF rrnf
lying me Of the fact and furnishing me with .
schedule containing the particulars Of the transac
mentioned in this letter not being complied with.
the Superintendent notified the Attorney General
being appointed for the company. smyth fortifes
his position by quoting Judge Learned's decision
denying the petition OF Prnyn ana others to have the
ferred back to the charge of its President and his
assistants The Judge stated among other things
TO Ta # the s @ s
vice presid.n, hs individual security by keeping
rsn.nsd % ss% Gso
the s Inv Ss ws into s
opportunity before the receiver was appointed of
SSs:n'"s gsssm.ss business 1syans
ri: sss:sis delay | The
suggested in reply this ths. hs policy holders have
the former management but that was protection 20
sT as psS
control over Their are principally
q 4
holders 1t IL matter out of the question
CASE THR GLOBE MUTUAL.
In reply to the second specification Superintendent
Smyth states that the complaint made against him
for not promptly proceeding to punish for alleged
breaches of trust the officers Of the Globe Mutual
Life Insurance Company has no foundation. tor the
reason that no power is conferred upon him under
the insurance laws to punish breach Of trust to
remove the officials OF any company or to dictate
in tha m He rSIu
the matter to the Attorney General; and
y bill is now. pending in the Senate
authority to act in such cases, He (Mr. Smyth)
brought about partial change in the management
change from the counsel Of the company, and also
the return to the company Of mortgage Of
$4,000: Throwing out this mortgage the
admitting 1t among their assets it was entirely
solvent. The officers Of the company were no.
tihed Of the situation. and promptly responded. Sc
curing the mortgage in the most ample manner and
thus putting the company upon solid footing again,
stead Of pursuing this course the SUPERINTENDENT
had published the examiner's report II would have
ended in the unnecessary ''wrecking" OF the com
NO ILLEGAL FEES TO RECEIvEns
In answer to the third specification, the Superin-
tendcnt says he has never paid any receiver ac-
tuary. and has paid appraiser or attorney since
the Investigation of last session; that employees
no expenses Of Insurance. examinations have been
fixed by the superintendent for any services por-
formed at his instance in any examinations com
menced since the investigation of last session. To
that portion of the third specification referring 70
the charges upon which the Senate has already
passed he deems II unnecessary to allude With
reference to the fourth specification the Superin-
tendent says the Governor having recommended the
abolition of the Insurance Department he (Mr.
Smyth sent out lat circular letters to the
companies, asking their opinion to which all the
companies replied negatively. except four or Ave.
Among those replying was the Globe.
Mr.. Sessions moved to postpone the entire Smyth
matter until Wednesday next, Immediately after the
reading OF the journal. This agreed to.
FIIIBUsrERINo ovER THE COMMUNICATIONS
A few minutes before noon the republican Sena-
tors in order to gain time. ordered to third read
ing the act adding nine supplementary chapters TO
the code. While the Clerk was reading the
first Ave six sections the republican NOM
bers seemed to be still undecided to
what course they would pursue when the
hour should be up and the Consideration of the
insurance question should be resumed. They
dropped out by one into the Senate library and
held sort Of off-hand caucus. 1t is customary
In the case OF such long bill to read
merely few sections from the beginning
nrns ama snsn s o tS ns Snd
while everybody's mind was fixed upon the topic
TO be discussed in few minutes and nobody
moved that the special order on the smyth
question should be postponed until the reading
OF the bill had been concluded The object Of this
to gain time for his colleagues. who seemed still
in q quandary as 10 their action. The motion was
not comprehended by the Senators. A few voted In
the affirmative, nobody said and IL
passed. The democrats soon afterward awoke to
the fact that they had postponed the Smyth
question for about week. IL the act To be read
through. IL contains about two thousand sections
and very nearly ono thousand pages OF
printed matter senator Ecclesine tried to "shake
that the bill had been reported from the committee.
after the usual formula, a. properly engrossed,
whereas 1t apparent the face Of IL that IL
not engrossed at all. but printed. Prcsident
Dorshemer ruled the point not we'll taken.
1T Is cngrosscd by a machine" he said. with
smile.
..Y.s and IL ia oono tbro,,gb nv m I'M acb,na % re-