USA > Connecticut > New London County > A modern history of New London County, Connecticut, Volume II > Part 5
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nature being to the public weal was carried out to the letter, remaining so until such things as partitions, deeds and records became an official verity. In this manner the way was paved for a more definite and organized method by which the people might be reimbursed for and in some degree protected against loss by fire, and all early organizations of this nature were on a strictly mutual basis.
The belief should not be ventured that the settlers in New England were by any means the pioneers in instituting a compensating plan with relation to loss by fire. The actual beginning of the practice is obscure, though it appears that nearly three thousand years ago in the East, particularly in Assyria, magistrates were appointed in each town and district to levy con- tributions from each member of the community to provide a fund against such calamities as drought and fire.
It is quite certain, however, that in the early part of the last century, proportional to the amount of property involved, organized fire insurance protection was as rapidly developed in southern New England and Pennsyl- vania as in any part of the world at any period in history. There was very good reason for this. Clearance of the lands meant production of lumber, and it was quite natural that this should be absorbed in erection of buildings, accounting in a large measure for the prevailing wooden construction of our communities. The fire hazards through these conditions were naturally more menacing than in the older European communities where brick and tile and stone and cement could be used with greater facility and had for many years been employed in building construction. Moreover, business was expanding by leaps and bounds; mercantile houses were increasing in number to an amazing extent. In modern times, fire insurance has come to be recognized as an indispensable element in the business world as a guarantor of credit. This fact early in the nineteenth century was rapidly becoming recognized, and mercantile houses were clamoring for enlargement of such facilities. Thus from the demands created through the hazards of frame construction, as well as the insistent appeal of business for financial protection, from the small beginning of the neighborhood group who mutually covenanted to share each others' losses, were developed the highly organized fire insurance com- panies of New England, among which those of Connecticut and of New London county have gained a very enviable place.
First American Companies .- It has been stated that Pennsylvania shared with New England in the earliest establishment of organized fire insurance Companies, and the first whose title appears on record was The Philadelphia Contributorship for the Insurance of Houses from Loss by Fire-a typical Philadelphia title. This honorable institution was organized on March 25, 1752, Benjamin Franklin being a director, and is still doing business, its sole territory being the State of Pennsylvania. Many other companies were organ- ized in the succeeding years, either to succumb shortly or to live a feeble existence which has left no record, with the exception of The Mutual Assur- ance Company for Insuring Houses from Loss by Fire, organized in 1786 in Philadelphia, and still in existence. These were nearly all in Pennsylvania,
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however, and none in Connecticut until forty-two years later.
In 1792 the Insurance Company of North America came into being in the same room in Independence Hall, Philadelphia, where the Declaration of Independence had been signed sixteen years bfore. This company to-day enjoys the highest regard of the insuring public in every State of the United States, as well as the provinces of Canada, and is one of our strongest and largest underwriting institutions. It may not be an unpardonable digression if here are quoted the words of a paragraph from a book recently published by this oldest American joint-stock insurance corporation, recounting its distinguished history : "Its early history is closely interwoven with the history of the Government itself, and reflects at every step the early struggles of the fathers of a nation to make the Great Republic we have to-day. The North America has therefore veritably grown up out of and with the country itself. Its archives teem with entries and records concerning great historical names and transactions connected with places, property and events that occu- pied the thoughts and inspired the hopes of the makers of liberty and their successors, the makers of the country."
The stage being thus set with sufficient background to make an impres- sion as to the antiquity of the event, we now come to a very important episode and one which relates intimately to our study of fire insurance in New London County-indeed, is the very inception of enduring fire insurance organization in Connecticut, if not in New England. For, yielding only two years' priority to the Insurance Company of North America, in 1794 were born twins into the insurance field. One was the Insurance Company of the State of Pennsylvania in Philadelphia, and the other The Norwich Mutual Assurance Company, in Norwich, Connecticut ; the full dignified name of the Insurance Company of the State of Pennsylvania in Philadelphia, perhaps this abundant title is more in keeping with the characteristic Philadelphia copiousness of cognomen. We may dispose of the Insurance Company of the State of Pennsylvania with but a word. In fact, it to some extent disposed of itself, when in 1913. after more than a century of honor- able record, its individuality was somewhat sacrified through merger with the American Fire Insurance Company of Philadelphia, a youngster ( !) organized in 1810.
The Mutual Assurance Company of the City of Norwich .- In the Mutual Assurance Company of the City of Norwich, however, we have a great interest. Its unique distinction of being the first established enduring insur- ance organization in the Eastern United States of the period creates a heritage of which New London county may well be proud.
A serious fire occurring in Norwich in 1794 so painfully illustrating the inefficiency of the fire engines and the total losses to which all property owners were liable, was the direct cause of the founding of the Mutual Assurance Company. At a meeting held in the court house in Norwich Town, Monday, December 29, 1794, Dr. Joshua Lathrop was chosen chair- man, and the following officers were elected : Secretary, Zachariah Hunting- ton; Directors, General Ebenezer Huntington, Mr. Joseph Howland, Mr.
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Daniel Coit, Mr. Thomas Fanning, Mr. Samuel DeWitt, Colonel Joshua Huntington, Mr. Levi Huntington and Colonel Christopher Leffingwell.
On May 18, 1795, the members petitioned "The Honourable General Assembly now sitting in Hartford," for an act of incorporation "for the purpose of rendering any future loss which may happen to them by fire, as light as possible to individuals sustaining such loss," and for the purpose of mutually insuring each other. This request was granted the second Thursday of May, 1795.
In this connection it is interesting to note that nine months prior to the first meeting of the local organizers, or in March, 1794, the firm of Sanford and Wadsworth of Hartford began business by issuing policies under the names of the Hartford Fire Insurance Company. The following year the same parties, with some additional members, continued business for a short time. using the title of Hartford and New Haven Fire Insurance Com- pany. As both of these ventures were partnerships which began and con- tinued without special legislative sanction, the Mutual Assurance Company of the City of Norwich became the earliest incorporated body of its kind in Connecticut. The Hartford Fire Insurance Company, which succeeded this informal enterprise, was not chartered until 1810. The Security Insurance Company of New Haven, probably also a successor, was organized in May, 1841.
The company never had a president. Among those who succeeded Dr. Joshua Lathrop as chairman or moderator were Nathaniel Shipman, Captain John L. Buswell, Charles P. Huntington, Roger Huntington, General William- Williams, George Bliss, General Joseph Williams, Eleazer L. Lathrop, Apple- ton Meech, Abiel S. Sherman, Oliver P. Wattles, Gardner Thurston, Z. R. Robbins, Henry Bill, Samuel B. Case, Edmund B. Roath and General Edward Harland.
This first policy issued February 16th, 1795, was as follows :
NORWICH MUTUAL ASSURANCE COMPANY FOR INSURING BUILDINGS FROM LOSS BY FIRE
No. 1.
THIS POLICY Witnesseth, That Christopher Leffingwell
having become, and by these presents becoming a Member of the MUTUAL ASSURANCE COMPANY of the city of Norwich, pursuant to a Deed of Settlement, bearing date the fifteenth Day of December, One Thousand Seven Hundred and Ninety-Four. And for and in Consideration of the Sum of Five Dollars & Twenty-five Cents in hand paid by the said Christopher Leffingwell to the Treasurer of the said Assurance Company, being the Amount of Premium for insuring the Sum of One Thousand and fifty Dollars unto the said Christopher Leffingwell his Heirs, Executors, Admin- istrators and Assigns, upon the Dwelling House in which he now lives, Situ- ated on the west side of the main street in Norwich, two stories high, forty three feet front and Forty three feet Wide, Built of wood, the Chimney therein being also included, as recorded in the register book of the Treasurer of said Assurance Company, Letter A, Page Ist, during the term of one year from the date hereof ; the said Policy commencing the 16th Day of February instant, and ending on the 16th Day of February next, commencing and end- ing at 12 o'clock at noon.
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FIRE INSURANCE IN NEW LONDON COUNTY
This policy was dated the 16th of February. 1795, was signed by Zach. Huntington, secretary, and by Ebenezer Huntington and Jacob DeWitt, directors, and insured three-fourths of the estimated fourteen hundred dollar valuation of the house, the premium being at the rate of one-half of one per cent. This insurance, which has never lapsed, still protects the old dwelling near Harland's corner, Norwich Town.
Other insurance which was issued the same day and is still in force is as follows: Policy No. 4, insured the same Christopher Leffingwell in the sum of $600, "on his Dwelling house in which Mr. Belsher now lives, situated on the Cross Road so called from the meeting house to his said Leffingwells Trading Store and near the Potters Kiln," which residence was recently the property of the late Epaphras Porter; No. 9 was issued to Joshua Lathrop in the sum of $900, and covered "his Dwelling house in which he lives," "on the eastern side of the main Street," which property in later years became known as the Gardner Thurston place; No. 14 was issued in the sum of $750 to Daniel Lathrop on "his Dwelling house in which he now lives," "on the east side of the main Street," which homestead became in time the resi- dence of the late Deacon James Stedman.
Other early insurance which is still existent is represented by Policy No. 36, which bore date February 23, 1795, and in the sum of $525, insured Thomas Harland on "his Dwelling house in which he lives, situated on the east of the main street in Norwich opposite Christopher Leffingwell's trading store." This fine old property has never been alienated, and was the home of the late Gen. Edward Harland at his death. Policy No. 53, issued to Daniel L. Coit, Feb. 24, 1795, in the sum of $1275 on "his dwelling house in which he now lives, situated on the east side of the main street, in Norwich." This residence, still known as "the Coit house," passed by inheritance to the Gilman family.
Among other early policy holders were Gen. Ebenezer Huntington, Thomas Fanning, Levi Huntington, Col. Joshua Huntington, Thomas Hub- bard, Rev. Joseph Strong, Ebenezer Carew, Gardner Carpenter, James Hyde, Ebenezer Thomas, Joseph Carpenter, Mundator Tracy, Christopher Starr, Elisha L. Reynolds, on "his dwelling house in which his Honoured Mother, Mrs. Phebe Reynolds now lives," and many others.
The company issued policies on property not only in Norwich Town and Landing, but in Bozrah, Windham, and other nearby places, and had accred- ited agents in New London, the first of whom, Major Simeon Smith, Capt. Nichol Fosdick and Mr. Isaac Treby, were appointed March 7, 1803.
The company early "voted that on every principal building, in each policy insured, there shall be a badge, in a conspicuous place, in the front of the building with the words ("Mutual Assurance") ingraved, painted or plated
MUTUAL ASSURANCE No. 203
thereon, together with the No. of the building agreeably to the number of the policy, by which the same is insured."
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For many years and until a comparatively recent time, these quaint tokens embellished many local habitations, particularly those at Norwich Town, but have now generally disappeared. One may yet be seen, however, over the front door of the home of the Ladies Gilman, in that section of the town. Its presence is something of a mystery, as its number (203) corresponds with that of a policy issued September 6, 1797, in the sum of $450, to John French on "his dwelling house improved by himself situated in New London, on the west side of the road leading from the church to Greens' brick house."
For many years the amount set aside for the payment of losses and dividends was $6,666.67 ; the assets at the close of the year 1865 were $8,979.95 ; they are now $18,346.84.
Annual meetings are held in January and, the Company being purely mutual, the dividends then declared are devoted to the payment of premiums. While taking excellent care of old clients by continuing their policies at one- quarter of one per cent .. the company has declined new business during the past twenty-five years. The present directors of the company are C. R. Butts, F. D. Sevin, H. L. Yerrington, Z. R. Robbins, and S. B. Palmer. Charles R. Butts is its present secretary, having held this position since 1904.
Last of Eighteenth and First of Nineteenth Century .- Of some one hund- red and thirty American companies doing business in Connecticut in 1920, the so-called Norwich Mutual was the oldest, save one, the Insurance Company of North America previously referred to. The next oldest company reporting to the Connecticut Insurance Department is the Providence-Washington Insurance Company of Providence, Rhode Island, organized in 1799, and, as a matter of fact, the Insurance Company of North America, the Mutual As- surance Company of the City of Norwich and the Providence-Washington Insurance Company are the only American companies doing business in Con- necticut organized in the eighteenth century. Indeed, of all the fire insurance companies now entered in Connecticut of any nationality whatsoever-and practically all comprehensive companies of this and every other country in the world are so entered-the list of those organized in the eighteenth cen- tury embraces only nine. In addition to the three referred to previously are six English companies : The Sun Insurance Office, London, the oldest insur- ance company in the world, organized in 1710; the Union Assurance Society of London, organized in 1714; the London Assurance Company, and the Royal Exchange Assurance Company, both of London, and both organized in 1720; the Phoenix Assurance Company, London, organized in 1782; and the Norwich Union Fire Insurance Society, of Norwich, England, organ- ized in 1797. None of this group of six, however, were in the field in the United States when the other group of three were organized. The Phoenix Assurance Company was the first foreign fire insurance company to enter the United States, in 1804. The State of Pennsylvania was alert to protect its young companies, and in view of what has been said of the Pennsylvania companies in the early days, it is interesting to note that the legislature of that State in 1810 passed an act prohibiting all insurance by foreign corpora-
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FIRE INSURANCE IN NEW LONDON COUNTY
tions, and the Phoenix accordingly withdrew from Pennsylvania (and the United States) and did not return until 1879. The London Assurance Com- pany entered the country in 1872, the Norwich Union in 1877, the Sun in 1882, the Royal Exchange in 1891, and the Union Assurance in 1907. The Liverpool and London and Globe Insurance Company, organized in Liverpool, England, in 1836, entcred the United States in 1848 and therefore, with the exception of the temporary entrance of the Phoenix Assurance, has longest done an American business. Of late years companies of all countries are doing business here, China and Japan being strongly represented, though next to the English companies the French predominate. Previous to the earliest of these dates, however, practically all of the companies of the United States, including those of Connecticut and New London county, to which we are about to refer, were organized. It will therefore be evident that these institu- tions found their inception in the necessity for the facilities which they afforded, rather than to meet competition of outside corporations; it is the source of great satisfaction to know that early American industry and busi- ness had the sagacity and courage to care for its own risks unaided.
Reference was made in a previous paragraph to the rapid development and institution of fire insurance organizations in the early part of the last century in the Colonial United States. While other States, notably Pennsyl- vania as aforesaid, were productive to some degree in such organizations, their record did not begin to compare with that of Massachusetts and Con- necticut. Between 1800 and 1840 in Massachusetts no less than thirty fire insurance companies began operation. In Connecticut during that period, sixteen entered the business. Of these, two stock companies now survive, both being institutions which have taken the name of Connecticut into proud places and are the epitome of solidarity and integrity: The Hartford Fire Insurance Company of Hartford commenced business under charter in August, 1810, and the AEtna Insurance Company of Hartford on August 19th, 1819.
The Norwich Fire Insurance Company .- In 1803 there was chartered in Norwich the first stock fire insurance company in Connecticut. The original title was the Norwich Marine Insurance Company, but apparently the strictly marine business was not favorable, and in 1818 the name was changed by act of legislature to The Norwich Fire Insurance Company, the capital being increased from $50,000 to $100,000, with privilege for further increase to not more than $300,000, a large figure for the times, indicating ambitions for a leading place in the business of the period. The directors subsequently fixed the capital at $100,000, this being raised to $150,000 in 1849, just previous to the company being admitted to do business in the State of New York. The capital stock was increased to $200,000 in 1860, and to the maximum of $300,000 in 1864.
In the early years of the company, both a marine (insurance of ships and cargoes) and fire business was done. Risks were carefully selected, though in the absence of the present statutory restraint no reserves were erected against the liabilities of the company-or the amount at risk-and as soon as a dollar reached the treasury it was looked upon as earned. It was not until
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1837 that regulation of insurance was attempted by the State. An Act passed in Massachusetts in that year creating the so-called "reinsurance reserve fund" was the inception of the present comprehensive and wise State supervision existent country-wide. The conditions of to-day, therefore, are that a com- pany does not consider the premium paid by the assured as earned for itself until the expiration of the term of risk for which liability was assumed.
With this company, therefore, there seems to have been successive periods of encouragement through smiling fortune, and of gloom subsequent to adverse caprices of fate, abundance and destitution appearing to alternate. Every loss, however, was met with punctilious zeal. In 1849 the premiums had reached $22,056.35, and interest $1,204.20. Losses and stock dividends amounted to $22,270.38.
The presidents of the company were: Samuel Woodbridge, Simeon Thomas, 1807; Thomas Lathrop, 1810; Ebenezer Huntington, 1813; David Ripley, 1819; Charles P. Huntington, 1820; John Bushwell, 1825; George L. Perkins, 1830; William Williams, Jr., 1836; Lewis Hyde, 1845; Charles John- son, 1846; John G. Huntington (when elected also being president of the New London County Mutual Fire Insurance Company), 1849; Samuel Mor- gan, 1853; Augustus Brewster, 1854; and Ebenezer Learned, 1864. The secretaries were : Shubael Breed, Joseph Williams, 1814. serving an unusual term of forty years; Ebenezer Learned, 1854; John L. Dennison, 1864; and W. T. Steere, 1868.
The great Chicago fire in October, 1871, caused losses so far in excess of resources that retirement was inevitable, and the company, which at that time had the tradition of being the oldest stock fire insurance company in Connecticut, was obliged to cease business.
A New London Company .- It is of interest to record that in October, 1818, the Thames Insurance Company was chartered in New London, being the only company of record organized in that city. The records of the Insur- ance Department in Hartford do not disclose any facts relative to the company and it is doubtful whether much if any business was done.
Other Early Companies in Connecticut .- Of the Mutual Companies or- ganized in Connecticut during the period of 1800-1840, the principal ones were primarily instituted as county affairs ; some of the smaller ones were township companies only. The oldest was organized in Brooklyn, and known as the Windham County Mutual Fire Insurance Company, commencing business in 1826. The Tolland County Mutual Fire Insurance Company was organized in Tolland, in 1828. In 1906 both of these companies retired, disastrous expe- rience in the insuring of farm risks primarily leading to their cessation. The Hartford County Mutual Fire Insurance Company of Hartford was organized in 1832. The Litchfield Mutual Fire Insurance Company of Litchfield com- menced business in 1833. On June 13th, 1836, the Middlesex Mutual Assur- ance Company began business in Middletown. The New London County Mutual Fire Insurance Company of Norwich was organized in July, 1840. These companies are all in active operation, the Hartford County Mutual Fire
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Insurance Company, the Middlesex Mutual Assurance Company and the New London County Mutual Fire Insurance Company being the leading mutual companies in Connecticut, while the Litchfield Mutual Fire Insurance Com- pany enjoys an equally high repute, though not conducting its business on quite as large a scope.
The New London County Mutual Fire Insurance Company .- At the biennial session of the Connecticut legislature opening in January, 1840, there was passed a resolution incorporating the New London County Mutual Fire Insurance Company, a copy of which is as follows :
Resolved by this Assembly :
Section 1. That Joseph Backus, Henry B. Norton, William P. Eaton, Newcomb Kinney, and Frederick Prentice, with such other persons as may become members or associates with them as hereinafter provided, and their successors, are hereby constituted a corporation, by the name of the New London County Mutual Fire Insurance Company, for the purpose of insuring against loss by fire, whether the same shall happen by accident, lightning or any other means, except by design or fraud of the assured, or by invasion of a public enemy, or by insurrection ; and that by that name shall have the power to hold, purchase, receive, possess and enjoy lands, rents, tenements, hereditaments, goods, chattels, and effects of every kind, and the same to sell and convey; to sue and be sued, plead and be impleaded, defend and be defended in all courts ; to have and use a common seal and the same to change at pleasure : to make and execute such by-laws and regulations, not inconsistent with this charter or the laws of this state or of the United States, as shall be deemed proper for the government of said Company.
Authorized through the granting of this charter, in the Town Hall, Nor- wich, and on the first day of July, 1840, the members of the New London County Mutual Fire Insurance Company met and formally organized the company. The first directors were Joseph Backus, William P. Eaton, Fred- erick Prentice, William L'Homedieu, Elijah A. Bill, David Smith, Samuel Mowry, George Sherman, Sydney Miner, William C. Crump, Gurdon Trum- bull, Edward R. Warren, Joseph Tyler, Thomas P. Wattles and Learned Hibbard.
One of the early by-laws was that all policies of insurance expire on the first Monday in January each year. This may have been in accord with the custom of the Mutual Assurance Company of the City of Norwich, which had then been in business for forty-six years. The Mutual Assurance Company still retains the custom to the present day. In February, 1842, the by-laws of the New London County Mutual Fire Insurance Company were amended, allowing policies to be written for any term of not over three years; and at a later date, to conform with the customs of the business in general, to a maximum term of five years.
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