USA > Connecticut > Connecticut yesterday and today : 1635-1935 : celebrating three hundred years of progress in the Constitution state > Part 6
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34
And this fire was only one of what were, each in themselves, serious disasters at the beginning of the twentieth century. The company's loss by the fire in Ottawa, Ont., April 26, 1900, had been $177,785. The Jacksonville fire of May 3, 1901, was the most serious up to that time since the Boston fire and the company's loss by it ($215,900) had been nearly half as great as that in Boston. Then had fol- lowed the Paterson (N. J.) fire of Febru- ary 9, 1902, with losses of $106,643 to the company; and the year of the Balti- more fire, the company had to pay claims amounting to $ 160,952 in Toronto, Ont., for the fire of April 19, 1904.
Even for those inured by such mis- fortunes as these, the earthquake and fire in San Francisco, in mid-April, 1906, was a blow at first incomprehensible.
The story is well known now, and need not be repeated, but again it was one of tremendous loss, greater than any ever im- agined, of many companies forced out of existence-a story of great tragedy. The largest loss to fall on any one in- surance company and to be paid in cash was the Hartford's, a total of $7,011,636.
Notwithstanding the fact that the fire left the company without one dollar of surplus, the directors promptly voted to recommend that the capital be raised at once from $1,250,000 to $2,000,000 by issuing $750,000 new stock at a premium of $400 a share thus making a surplus of $5,000,000. The recommendation was adopted, the additional stock was taken up and every obligation to policyholders was discharged faithfully and in good season.
Two years later Chelsea, Mass., suffered a conflagration, and on June 25, 1914 a large part of the factory section of Salem, Mass., was destroyed by fire with an in- surance loss set at that time at about $12,000,000. The Hartford's loss on
both occasions was large, and was settled promptly.
In the last quarter of the century there have been many large fires and heavy losses, many of conflagration proportions, such as Chelsea, Mass. and Salem, Mass. in 1914, Berkely, Calif., and Charlotte, N. C., in 1923, Palm Beach, Florida, Council Bluffs, Iowa, in 1925, Fall River, Mass., in 1928, Nashua, N. H., in 1930, Auburn, Maine, in 1933 and Chicago, Illinois, in 1934. In all of these and many others the Hartford's share was large. Modern fire fighting methods, and modern building methods have done much to reduce the possibilities of such histori- cal disasters as Chicago and San Francisco, but even "fireproof buildings" burn and the finest fire-fighting methods are not infallible. So the Hartford Fire Insurance Company continues to increase its surplus, building always for the future safety of its policyholders. From 1810 to December 31, 1934, the Hartford has paid in losses to its policyholders $593,- 750,465.69. The Company's financial statement for the year 1934 shows a sur- plus to policyholders of $45,039,770.27 and assets of $84,343,198.30.
ETNA INSURANCE COMPANY
Established 1819
THOMAS K. BRACE, President, 1819-1857
URING the early months of 1819, Thomas K. Brace, one of Hartford's leading men, was a frequent caller at Morgan's Coffee House, a popular gath- ering place and the center of both social and business activities. The purpose of his visits was not alto- gether social, however, but to further a project in which he was greatly interested,-namely, the formation of a new fire insurance company.
Mr. Brace was well qualified to start such a move- ment. Two years before he had resigned from the board of directors of the Hartford Fire Insurance Company of which he had been a member from the start in 1810. He had definite ideas on the conduct of the business some of which did not agree with the easy-going methods then in vogue. In furthering his project he did not hesitate to criticize the secretary of the Hartford Fire Insurance Com- pany for spending too much time out of his office. His inaccessibility made it difficult for the merchants of Hartford to secure insurance when they needed it.
But Mr. Brace and his friends, while undoubtedly up in arms against this sad state of affairs, had other more fundamental reasons for launching another fire insurance carrier. One of these was clearly stated in the petition finally presented to the General
Assembly-"that there is a great deficiency of Fire Insurance Capital in this State, there being but four offices and the whole amount of their capital but six hundred thousand dollars." The petition further states that an increase of capital would tend but little to render the public safe without an increased num- ber of offices.
This petition was dated April 19, 1819, and it was signed by 137 leaders of the community. Accord- ingly, on June 5, 1819, the legislature granted a charter for the organization of the Ætna Insurance Company, as it was to be called and gradually be- come famous. The actual founding of the company again took place at Morgan's Coffee House, on June 15, 1819. Here most of the original stockholders, numbering 87 in all, met and elected Thomas K. Brace, president and Isaac Perkins, secretary. Mr. Perkins, one of Hartford's prominent attorneys, was closely associated with Mr. Brace in the early dis- cussions. He had his law office in Morgan's Coffee House and there all the business of the Company was transacted while the business of the office was attended to at the Phoenix Bank.
The Ætna Insurance Company opened for busi- ness on August 19, 1819. The first policy, however, was issued two days before to Joseph Morgan who got the jump on the public by insuring his famous coffee house.
President Brace's first term of office was brief for he resigned September 27, 1819, owing to "pecuniary embarrassments" having to do with his outside interests. His successor was Henry I. Ells- worth, who held the presidency until March 6, 1821. Upon his resignation the directors again elected Thomas K. Brace, whose fortunes had now been rehabilitated. His second term of office lasted until August 4, 1857.
Although the year 1819, was a hard one for busi- ness, the Ætna soon began to make insurance history. In the first place it issued a booklet of instruction for agents in which fire risks were first classified and rated. It also took steps to build up a nation-wide business by appointing its first agent, outside its home state, in Fayetteville, North Carolina. Another im- portant and far-reaching move was the taking over of the Middletown Fire Insurance Company, found- ed in 1813, with risks aggregating $69,500 on twenty-one policies. This was the first known case of reinsurance.
Meanwhile the Ætna's agency system was gradu- ally spreading out and, on December 22, 1821, an agent was appointed in Montreal. In March of the following year, Secretary Perkins established another precedent by laboriously travelling to Norfolk, Va.
ÆTNA INSURANCE COMPANY
Established 1819
to adjust and settle a loss. This long, tedious journey was followed by another through several New England states to establish agencies.
When the Ætna was organized it had an author- ized capital of $150,000, with the privilege of in- creasing it to $500,000. Subscribers to stock were only called upon to pay 10% of their subscriptions in cash. The other 90% was secured either by mort- gages on real estate, or by indorsed promissory notes, payable 30 days after demand. As the shares had a par value of $100, the initial cash capital of the com- pany was only $ 1 5,000.
The first dividend was declared December 15, 1819, at the rate of 6% on paid up capital, representing a total payment of $900. This distribution of profits was, per- haps, a bit premature as the company had yet to suffer its first fire loss. This occurred in June, 1821, and amount- ed to $4,000. In December of the following year the directors raised the capital to $200,000, placing the new shares as much as possible with new investors. As they were sold at a premium of 5% and as $15 was paid in cash on cach share, with the balance of $90 in well secured notes, the growing company was provided with $22,500 addi- tional cash capital.
'This financial set-up proved adequate until December, 1845, when the capital was again raised, this time from $200,000 to $250,000. Four years later another $50,000 increase was authorized and, by 1854, the company's capital had reached its charter limit of $500,000.
The next evidence of growth and prosperity came in 1857, when the company's charter was amended by the legislature, authorizing an increase of capital from $500,000 to $1,500,000., the addition to be paid for out of the company's surplus. Accordingly on June 23, of that year, directors declared a stock dividend of $500,000, making the capital $1,000,000. This substantial and im- pressive financial structure was achieved under the presi- dency of Thomas K. Brace. His resignation took place shortly after this handsome stock dividend was declared. His administration was not all smooth-sledding by any means. It was marked by a number of threatening crises brought about by conflagrations, panics, wars, which, under less able leadership, might have ended the company's career.
During President Brace's administration several amend- ments were made to the company's charter other than those mentioned. In 1839, authority to write inland marine and transportation insurance was secured but this right was not exercised until 1843 when the directors voted to begin operations. In 1820, permission was first granted by the legislature to write life insurance but the company took no further action along this line until 1850, when it was decided to organize a life department. The legisla- ture then granted a new amendment authorizing the com- pany to take this step, which was accomplished in 1850, under the supervision of Eliphalet A. Bulkeley, who had become vice-president and chairman of the life department. In 1853, by vote of the directors and authority of the legislature, this life department became an independently
W. Ross MCCAIN, President
chartered and operated company, known as the AEtna Life Insurance Company.
Isaac Perkins served as the Etna Insurance Company's first secretary until June 9, 1828, when he resigned and was succeeded by James M. Goodwin, who served until 1837. Simeon L. Loomis then became secretary and held office until 1853, when Edwin G. Ripley succeeded him. One year later he was promoted to vice-president and, after President Brace's resignation in 1857, he became the Etna's third president.
President Ripley served the AEtna until his death in 1862. The company now had a capital of $1,500,000. Thomas A. Alexander was the next president holding office from 1862 until his death in 1866. Lucius J. Hendes then be- came president and served until 1888. His successor was Jotham Goodnow. Upon his death in 1892, William B. Clark became president. He retired in 1923 to become chairman of the board of directors, a post which he held until his death in 1927. Ralph B. Ives succeeded him as president, serving until September, 1933, when he was made chairman of the board. W. Ross McCain then took over the office of president. Mr. Ives died in January, 1934.
148}
ETNA INSURANCE COMPANY
Established 1819
Left-The Etna office 1837-1867
KLIN CLARK
DYNAINSURANCED
Right-The Atna office 1867-1903
"ענתי
BIO SHIFTNA INSURANCE COMPANY
1004
Present office of the Etna, constructed in 1905
ÆTNA INSURANCE COMPANY
INNERANCE COMPANY
BY THIS POLICY OF INSURANCE, THE ETNA INSURANCE COMPANY. in con-hleration of shorty Five Dollars- javiby the asured Invent after spiel , the recept whereof is bien by actonledged, DO Ibol KE
Yosefale. Hangara je bity 8 Hayora accettate a Connudunty
AGAINST LOSS OR DAMAGE ON FIRE, TU THE AMOUNT OF
Six Thousand Dollars fin he Dwelling base in
the City of Marque Bounty of the year vient of him.
20 12
Alva Gilman
Thomas D). Gordon.
Joseph B. Gilbert.
Daniel Gillett, Jr.
Erastus Graves
llall and Green.
Joel Holkins
John llall
John Hempsted
Joseph Harris
Henry Kilbourne
62
John Kelsey
Sam and William Kellogg
10
Gaius Lyman
50
Heman Laffin
10
John Mather
10
Return S. Mather
Denison Morgan
Joseph Morgan
Nathan Alorgan
Dwell Morgan
Ralph R. Phelps
Caleb Pond
Theodore Pease & Co.
Daniel Pitkin
Joseph Pratt
Isaac Perkins
Wanton Ransom
Riley and Brown.
Benjamin and M. Stebbins
Jesse Savage
Luther Savage
12
HENRY KILBOURNE
J. P. MORGAN
HENRY SEYMOUR
HORACE B. CHENEY
Levi Stewart
Grithin Stedman
19
Henry Shepard
12
Israel Shepard
1)
Charles Sheldon
lu
Ehsha Shepard
Christopher Saunders & Co ...
39
George Smith
12
Normand Smith
12
JOSEPH MORGAN
WILLIAM R. C. CORSON
Deodat Woodbridge
Lemuel White
Thomas Williams
Ward Woodbridge
50
Elijah White
20
CHARLES BABCOCK
W. Ross MCCAIN
GEORGE I .. BURNHAM
Established 1819
Original Stockholders of the Etna Insurance Company
Number of Shares
Name
Eliphalet Averill
50
F
Chester and W. Andross
8
Thomas K. Brace
69
Judah Bliss
50
llorace Barber
20
l Torace Belden
Frederick Bange
Olmsted Bulkley
Charles Babcock
Nathaniel Bunce
Thomas Belden
Elisha B. Cock
Elisha Co!t
Merrit W. Chapin
Jesse Charlton
11. and S. Chaffce.
Elisha and William Dold.
David Deming
llenry L. Ellsworth
40
Timothy Ellsworth
Eli Ely
12
Asa Farwell
8 10
Edmund Fowler
Edmund Freeman
5
James by the de Bare I'Mmented by saus Herquin
------ -
.. ...
---------
ATNA POLICY NO. 1
First Board of Directors
of the
Present Board of Directors of the
Etna Insurance Company
Atna Insurance Company
THOMAS K. BRACE
THOMAS BELDEN
ARTHUR L. SHIPMAN
SAMUEL TUDOR, JR.
CHARLES A. GOODWIN
Asahel Saunders
12
Henry Seymour
10 10 8
GRIFFIN STEDMAN
JOHN I .. WAY
GAIUS LYMAN
EDGAR J. SLOAN
CALEB POND
CHARLES G. WOODWARD
NATHANIEL BUNCE
CHARLES WELLES GROSS
JEREMIAH BROWN
ELISHA DODD
ARTHUR P. DAY
THEODORE PEASE
GUY E. BEARDSLEY
Thomas S. Williams,
20
HENRY L. ELLSWORTH
John Waburton
Eunice White, Jr ....
9
JAMES M. GOODWIN
CHARLES P. COOLEY
50 20 20
ELIPHALET AVERILL
Spencer and Gilman
JUDAH BLISS
Samuel Tudor, Jr.
50
10 12 10)
5
12
50 5
10
10
12 13 5
12 10 30 30 30 30 5
in
10)
10 10
12 20 5 56 10
10 50 10 12
James M. Goodwin ...
10 43 7
12
THE CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
HE Connecticut Mutual Life Insurance Company enjoys the distinction of being the oldest life insurance company in Connecticut, and the sixth oldest in the United States. The charter was granted in 1846 to ten citizens of Hartford: Edson Fessenden, Richard M. Brown, E. O. Goodwin, F. B. Pratt, David S. Dodge, Guy R. Phelps, Thompson J. Work, L. B. Goodman, Hoyt Freeman, and James A. Ayrault.
These men first met, after the granting of the Charter, at the Eagle Tavern on July 16, 1846; here they met twenty-two times more before the end of the year, to the end that their company might be founded upon principles which would carry it through any storm that might beset in its hoped-for- long-life. These "solid" citizens, numbering within their group a tavern keeper, two doctors, a carriage- maker, a lawyer, and the proprietor of a shoe store, had secured the Charter because they believed in the benefits of life insurance and not because they were seeking individual profit. This motive is clearly brought out in the first important question which the incorporators found it their lot to settle. The Charter allowed them the choice of forming either a joint- stock company or a mutual organization. Adhering to their avowed principles, the "solid" citizens con- sidered the policyholders as the chief concern of an insurance company and voted for a mutual organiza- tion. This principle has been since 1846 the funda- mental background of the Connecticut Mutual. The original founders recognized at that time the guide which was later to determine the policy of one of its presidents in a battle he was to wage against nearly the whole insurance world.
Of these Doctor Guy R. Phelps, a graduate of Yale Medical College was the moving spirit; he served as secretary from 1846 to 1866, and as presi- dent from 1866 until his death in 1869. The other outstanding pilot of the Company in its early years was James Goodwin who succeeded the first presi- dent, Eliphalet A. Bulkeley in 1848. A man of wide and varied interests in banking, manufactures, fire insurance, he served the Company as president from 1848 to 1866, and 1875 to 1878. The Connecticut Mutual owes a debt of gratitude to his genius as a financier for he placed loans and made investments throughout the country, especially in the new West.
COLONEL. JACOB L. GREENE President, 1878-1905
number of other old-line companies. The first presi- dent of the Company, E. A. Bulkeley, later became the first president of the Aetna Life Insurance Com- pany. The first vice-president, Elisha B. Pratt, later founded and assumed the presidency of The Union Mutual Life, now of Portland, Maine. Edson Fes- senden, a member of the first Board of Directors, a few years later established the American Temper- ance Life, afterwards changed in name to the Phoenix Mutual Life, and served as its president for many years. Men of Connecticut Mutual training assisted in the founding of the Connecticut General. So the early destinies of four, at least, of our American companies whose histories date back more than fifty years were guided by men from the Connecticut Mutual ranks, a striking tribute to the interest aroused in the subject of life insurance by the founders of this Company, and an indication of the energy and initiative which characterized its pro- moters.
That the men connected with the founding of the Company were men of courage and initiative is From the beginning, The Connecticut Mutual Life Insurance Company has been a mutual com- evidenced by the fact that many of them were subsequently largely instrumental in establishing a .pany, in which the policyholders are members and
THE OLDEST LIFE INSURANCE COMPANY IN CONNECTICUT
JAMES GOODWIN 1848-1866 AND 1870-1878
GUY R. PHELPS 1866-1869
the business is conducted solely for their benefit. All divisible "profits" have always been returned to "the policyholders in the form of dividends.
" .. |Under President Goodwin, the young Company grew rapidly, so that it was a strong, prosperous, well established institution to which Colonel Jacob L. Greene succeeded as president in 1878. A man of courage, a warrior for the highest ideals and principles of life insurance, Colonel Greene not only guided his own company wisely, but fought a long and eventually successful campaign to free the institution of life insurance from speculative practices then so common in most forms of business.
In the early seventies the Tontine idea in insurance was adopted by several companies. The Tontine plan was a system involving forfeiture. It was the anti- thesis of the annual dividend plan. Instead of divid- ing surplus annually as earned, the surplus was to be held for an agreed period and, at the end of such period, if the Insured survived and the policy re- mained in force, the issuing company was to credit him with such an amount of surplus as it should then determine to be due. In other words, if the Insured should die within, perhaps, a twenty-year period or should fail to pay premiums during such time, all surplus which his policy had earned was to be forfeited as well as the policy reserve. To the persistent survivors, therefore, were to be given the dividends earned and the reserves. Later another modification grew up which was known as Semi- Tontine. The essential difference between the two was simply that of modification, much as was claimed
at the time for the latter. One involved forfeiture and the other, a modified forfeiture. Connecticut Mutual, in company with two other insurance com- panies rejected both and the president of Connecticut Mutual, Colonel Greene, waged an unrelenting fight against both to the end that insurance might remain a benefit rather than a plague.
Through his efforts, in the public press, the Com- pany's annual statements, leaflets and the public plat- form, he continued his fight until his death in 1905. In 1885, through the investigations of the New York legislature, he saw a partial victory, for Tontine in- surance was put down by salutary legislation, but
The Company's first Home Office, corner Pearl and Main Streets, built in 1870.
{52}
AND SIXTH OLDEST IN THE UNITED STATES Established IS46
JOHN M. TAYLOR 1905-1918
HENRY S. ROBINSON 1918-1926
Tontine in its modified form continued on for some time. Only after the ascendancy of John M. Taylor was the beneficial effects of Colonel Greene's policy felt in the growth of this "tower of honesty", as the Connecticut Mutual was called by McClure's Maga- zine in 1906. Such was this "solid" citizen's effort to continue the policy of the founders.
During Colonel Greene's presidency, in 1882, the Company, realizing that security is the chief requisite of life insurance, raised its reserve standard, basing its premium rates on the assumption of only a 3% return on highly selected investments. That it pointed the way to a better method of doing business
The Company's Home Office at 36 Pearl St., adjoined to the first building, occupied from 1902 to 1926.
is shown by the fact that 33 other then existing com- panies followed the Connecticut Mutual's pioneer step, wholly or partially, in the next 25 years.
As few men could have done John M. Taylor, in 1905, took up the leadership where Colonel Greene left it. Under his administration, the Company con- tinued to grow in size and in influence. A unique feature of his years as president, was the search for lost policyholders, begun in 1911. The result was cash payments of over $300,000 to beneficiaries who had no knowledge of the value or existence of the policies.
Henry S. Robinson, vice-president under President Taylor, became president in 1918 and served until 1926. During his presidency, the Company entered upon a period of considerable expansion, of adoption of many new underwriting features, and of increased activity in agency organization.
James Lee Loomis was elected President of The Connecticut Mutual in 1926. A recognized author- ity on insurance and finance, he has given a quarter century of devoted service to the progress of the Company in the respective capacities of Assistant Secretary, Vice-President, Director and President. Under President Loomis the Company has continued its steady growth.
By reason of its splendid history, fine traditions, and honorable record of fair dealing, able manage- ment and enterprising progress, The Connecticut Mutual Life Insurance Company occupies a dis- tinguished position among American life insurance companies.
153!
THE CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
The Board of Directors of The Connecticut Mutual Life Insurance Company
LUCIUS F. ROBINSON
SAMUEL M. STONE
EDWARD MILLIGAN
PHILIP B. STANLEY
JAMES LEE LOOMIS
JAMES W. KNOX
WILLIAM R. C. CORSON
PETER M. FRASER
HENRY H. CONLAND
JOHN B. BYRNE W. Ross MCCAIN
JAMES LEE LOOMIS 1926-
Present Home Office of the Connecticut Mutual Life Insurance Company :
.........
4541
Ætna Life Insurance Company and affiliated companies
THE ÆTNA CASUALTY and SURETY COMPANY THE STANDARD FIRE INSURANCE COMPANY
THE AUTOMOBILE INSURANCE COMPANY of Hartford, Connecticut
IN the year 1819, a group of Hartford business men gathered at Morgan's Coffee House and con- «ived the organization of a new fire wurance company. Subsequently a charter was granted by the General Assembly of Connecticut, incor- perating the Atna Insurance Com- pany. A year later, the Assembly approved an amendment permitting the new company to insure lives and to grant annuities.
Not until 1850 was this life in- warance privilege exercised, however. In that year, Eliphalet Adams Bulke- ky, a director of the Ætna Insurance Company, revived official interest in that long dormant life insurance project, and on June 6 a new depart- ment, known as the Etna Annuity Fund, was created to provide in- wrance on lives.
Believing that the Annuity Fund would best prosper as a separate organ- ization, Eliphalet Bulkeley and his wwwintes, supported by the Company's directors, petitioned the General As- wmbly for an amendment to the Atna Insurance Company charter, and on May 28, 1853, the Ætna Insurance Company Annuity Fund became the AEtna Life Insurance Company.
A newly-chosen board of directors elected Eliphalet Adams Bulkeley to be the first president of what was destined to become one of the greatest multiple-line insurance organizations in the world. And, although the period from 1850 .to 1865 was a critical one in the history of this country, the young Ætna Life grew -slowly, to be sure, but in a con- Sident, sure-footed way.
In the crucial post-Civil War period a million discharged soldiers found themselves in the process of re- adjustment. Many moved westward.
There they were confronted with the problem of raising money . for de- velopment. The AEtna Life, pioneer- ing in western farm mortgages, ad- vanced money to the settlers through land mortgages on their properties. Thus did the Ætna Life Insurance Company help to build up the great middle west.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.