The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-21
SENATOR MURPHY REBUKED.
A SCdTHING LETTER SENT TO MN BIZ
THE STATE COMPTROLLER.
One OF smyth's Insurance Scandals wildly
brought to LiGht-The Senator'S hin for
SO,sOO Cut Down by Mr.. OIcott 10 G7eO.

others. was the claim OF Senator Thomas
Murphy for services rendered the Manhattan
| Life Insurance Company in 1871 The charge
against tho Superintendent 1t may be romem-
bcrcd was with other things. that no had not
submitted the bills Of examiners. appraisers
and others to the Comptroller for his audit and
! approval before paying them. rs the law re-
| qured he should. IL so happened that Mr..
Murphy's account. though approved by the
| President OF the company and by Superintend-
ent Smyth, had not been paid at the time pro-
cecdings were begun under the Governors
charges. After the exposures then made
which proved Smyth guilty Of all that was
charged. though he was saved by partisan
friends and u corrupt political combination. ho
did not care to take the responsibility Of paying
Senator Murphy bill without tho audit OF the
| Comptroller Comptroller Olcott. having made
| n careful examination OF the work done by Mr.
Murphy. has audited his claim and. on the 18th
inst. he wrote tho Senator n letter informing
him that he was ready to pay his bill ut n sum
which he deemed to be fair and equitable
compensation for the work done. Mr.. MUIR
phys claim was for 81. 500. but this Comptroller
Olcott has reduced to 1920 which he says is ut
the rate Of 500 n day for the time Mr.. Murphy
was actually employed. In Mr.. Murphy's bill. MS
rendered. his expenses were at the rate OF 1913
| day. and his services Mt tho rate OF t2l9 day
Tho Comptroer CURLY says in letter TO Mr..
| MufbnNs Al inns rate, Tor yeur OF tIlrtt nun
drcd. working days YOU would receive tsi COO.
| which II an amount that would pay the salary
OF tho Superintendent OF the Insurance De-
| partment, to whom you are subordinate. for
nearly ~ years" The following is Comptro-
Ter olcott's letter in full. 1t is complete sup
| port OF the charges made against Superinten-
| dent Smyth by the Governor. and n condcmna-
ton OF his two whitewashings 10y the Senate;
STATE OF NEW YORK CoMprRoLLER's OFFICE.
ALBANY. March II, 1879
To the Hon. Thomas M,1phU
DEAR SIR-lour bill bearing the following
|
dent" Correct. John +. smyt6. supt,'"
against tho Manhattan Life Insurance Com
praising two hundred and twenty-eight pieces
| % property located in the Counties OF New York
turned herewith, Upon It's Being propsrS rs
ceipted 1t will be paid by this department Mt
| 1920. As near as | can ascertain you were on
gagged on this work six weeks. aud | have fixed
the per diem compensation at 500, careful
ANALYSIS Of the bill shows that aitcr making
proper deductions for pieces which were ada
cent or which were Joined TO other pieces ap.
praised b., you you, viewed about 159 pieces Of
property. The Superintendent OF the Insurance
| Department in letter dated 9th December
| 1871 a copy Of which can be- found on the sixty
aud the arguments Of counsel before the Senate
on charges against John I. Smyth. Suporiuten-
dent OF the Insurance Department seems to in
dictate that s. piece on property located within
the limits Of city and $40 upon each piece out
side OF the limits OF city is "a fair price for ap-
prasing property. This opinion II expressed
by the Superintendent in regard TO bills for APP
praising in localities where there were very
limited number Of pieces 10 be- viewed. Apply
ing the scale 81 prices fixed 10y the Supcrin-
tendent. and making allowances for the larger
number OF pieces viewed by you, and remem-
herring the fact that considerable number Of
the pieces charged for in your bill were adloin-
ing each other. the result reached would not
diner materially from that concluded on by me.
ny referring TO page 80 OF tho documents
charged the New York Life Insurance. Com
pAny with the approval Of the Superintendent
Ing SIS plots OF pTopcrty in the city ooi New
York. This bill does not contain the value OF
!he property appraised. The price per plot iss
pieces viewed by you / find the result does not
vary materially from that determined upon
Upon page co Of the document twice before
referred 70 find that William Laimbeer and
| Thomas Murphy, with tho approval OF the SUI
| perintendent OF the Insurance Department, re-
| ceivcd $500 for making examination and plac-
ing values upon property IN the city OF New York
This was in the matter Of tho examination Of
the Homeopathic Life Insurance Company OF
New York In this case you received $3.50 for
viewing about 100 pieces Applying this rate
result reached is somewhat less than that con-
In the answer Of tho Superintendent Of the
Bank Department to a communication adj
dressed 10 him upon the subject OF appraisas
OF property OF institutions examined by his de-
parincnt, he says have employed two Rp-
praisers, both OF them resident experts IN such
matters. have always agreed with them that
they should be paid 50 Tor each appraisal which
they made. excepting large pieces only like the
Union Dime building and the stevens apart
! tnfnt motel. Inc premises were plotted Tor the
appraisers and they made certificate upon
such plotted sheet Of their appraisal. They
| paid their own expenses. For property outside
OF New York and Brooklyn, special terms were
| made
Applying the price paid by the superin,end-
| ent OF the Bank Department 10 your bil and the
| result does not vary materially from that
reached by me. From these various COMPARE
| sons conclude that the price determined on.
$40 day is fair price ut which TO audit the
In a supplemental sheet attached to your bills
the items 81 charge are stated rs follows: For
expenses, SS37l4 for services being at the rate
OF one-seventh OF one per cent. on the appraised
value OF the morgaged promises and real es
tate owned. SG274 OOOl. $500 Sc: total, $500
The expenses are at the rate of over f23 a dav
II the commission which you charge. Yne-sev-
enth OF one per cent? is applied 10 tb valuation
OF the, mortgaged premises AID real es-
pnny Of New York. which | assume to BE-
tl2OOOOOOO and propOrtiOnat charge for eX-
penses Is made the result would ho a bill for
more than sls6 900. Your penses aro charged
Tor at the ratr Of 1913 day ana your services at
day. II you could lind steady employment AT
this rate for a year Of 800 working days you
would receive ~ 600 which Is an amount that
would pay the salary Of the Superintendent Of
the Insurance Department to whom you are
subordinate, for nearly twelve years Assum-
ing that you We're occupied six hours each day
your charge is at the rate Of as per hour. A
consideration OF these calculations must lead
you to the conclusion that your bill il unfair
and eYorbtant. and II paid would be an act Of
gross ilinstcc 70 the company's interest.
Mosttruy yours T. y. OLCoTr. Comptroller
trOller Olcott whether or not he Viii accept mo
t720 in satisfaction OF his claim for $500. Ter
haps tho existence Of this letter may explain
the anxiety OF Superintendent Smyth and his
, friends yesterday when senator Jacobs called
attention to the fact that the clause requiring
I all bills Of this character ~ be audited by thh
Comptroller had been stricken from bill whice
had come up from the Assembly by the Senate
! Insurance Committee, and which II. may ho re-
mcmhercd, tho Senate Immediately restored by
a vote OF "a to2.
To-day Mr.. Smyth and his workers were very
active about the Assembly Chamber. rndeavor-
ing To get Harmony Hepburn, the father Of the
bill. to n-conGur in the Senate amendments,
and secure n conference committee which
a might in the last hours of the session. squech
this provision for the protection of the cOmpa-
MES and the policy holders. With Harmony
D | Hepburn, Smyh visited the Attorney General,
, and there said that the provision would inter
. | fere with the running OF his department. But
. | in this view he was not sustained, and The best
n ! he could do WIS to secure assent To mOdiHca-
e ton so that tho bills shall be approved by the
Z Superintendent. then audited by tho CONT
= | trOller and then paid to the Superintendent
= and by him paid into the State Treasury. In
| this way he will get the last squeeze on the
money. but after the bills have passed the in
spection of Comptroller Olcott II is very doubt
lul whether there will bo much left to stick to
his fingers,