USA > New York > New York City > History of New York City : embracing an outline sketch of events from 1609 to 1830, and a full account of its development from 1830 to 1884 Volume II > Part 7
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So early as the year 1857 these doubts led to a survey the next year of a portion of the upper Croton valley, for the purpose of construct- ing a storage reservoir somewhere. But here the matter rested for years, notwithstanding the Croton AAqueduct board urged the necessity of such a reservoir, for prudential considerations. At length one was constructed, at Boyd's Corners, in Putnam County, under authority given by the Legislature in 1865. It was completed in 1873, and has a storage capacity of 3,000,000,000 gallons.
Since then various projects for increasing the water supply have been proposed. One, to bring water from the Housatonic River, by a canal to the Croton valley, has met with much favor ; and another, to bring water from the Bronx River, in Westchester County, has been adopted. and work upon it is now (1883) progressing. In the spring of 1883 the Legislature authorized the city of New York to construct a new aque- duct. Commissioners were appointed for the purpose. They organ- ized on July 3, 1883, and chose the mayor of the city, Franklin Edson, president of the board.
CHAPTER II.
TN the year 1842 the foundation of a great financial institution was laid in New York City. That institution is THE MUTUAL LIFE LY- STRANCE COMPANY OF NEW YORK. It began its career without a dollar of capital, forty years ago, its sole basis for operations being $500,000 of risks, on paper, taken by the corporators of the company, that they might avail themselves of a special charter passed that year. Now (1883) that institution has nearly $100,000,000 of aggregate assets. The facts concerning the history of this institution down to a late period have been drawn from a little work, by Joseph Howard, Jr .. entitled " Marvels in Finance."
The real founder of the Mutual Life Insurance Company of New York was the late Alfred Pell. On returning from a trip abroad, in 1842, having observed and studied the workings of the life-insurance system in England and France, he suggested to some of his wealthy and influential friends the propriety of testing the purely mutual system in this country. At his suggestion the Mutual Life Insurance Company was organized, with the following named corporators : William H. Aspinwall, James Brown, John W. Leavitt, Elihu Town- send, James S. Wadsworth, Philip S. Van Rensselaer, Gouverneur M. Wilkins, John V. L. Pruvn, Thomas W. Olcott, Charles L. Livingston, Joseph Blunt, Jacob P. Giraud, John C. Cruger, Alfred Pell, David C. Colden, Jacob Harvey, Robert B. Minturn, Mortimer Livingston, Rufus L. Lord, Arthur Bronson, Henry Brevoort, Theodore Sedgwick, Stacy B. Collins, Robert C. Cornell. James Boorman. James Campbell. William Moore, Zebedee Cook, Jr .. Jonathan Miller, Fitz-Greene Halleck, John A. King, T. Romeyn Beck, Richard V. De Witt. Gideon Hawley, James J. Ring.
Mr. Pell secured a charter from the Legislature in the winter of 1843, and, in order to avail themselves of it, a certain amount of insur- ance was subscribed for by the corporators. So limited were the means of the institution that in the first year the salary of the president was only $1500, from which he was to pay the rent and current ex- penses !
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HISTORY OF NEW YORK CITY.
The growth of the institution was gradual at first, but at the end of five years it had made considerable progress. Up to that time it had not been discovered that the company had been operating upon a vitally erroneous basis, which Mr. Pruyn, who drew the charter, had not considered. The error consisted in the omission to provide for reserves to meet current expenses, and also to meet the losses of future years. The charter, as drawn, provided that at the expiration of the first five years, and of every subsequent five years, a balance of the accounts of the company should be struck. and after deducting its pay- ments from its receipts, all the remainder should be divided among the policy-holders. By this scheme the company really began business afresh every five years.
The charter was at once amended so as to provide for the accumula- tion of a sufficient reserve to meet the future liabilities, and " the re- cuperative power of compound interest did the rest." It was a lucky escape from imminent peril.
The first president of the company was Morris Robinson. He died, and Joseph B. Collins was elected to fill his place, which he did until June, 1853. At that time-the close of the first ten years of its ex- istence-there were 6773 policies in force, insuring $17,917,418, with assets of $2,040,000. During that time the company had received the gratuitous services, in the way of advice and active interest in its affairs, of Alfred Pell, Joseph Blunt, and J. V. L. Pruyn, who may be justly styled the fathers of the great company.
It was at the beginning of a new decade in the life of the company that the trustees became dissatisfied with the management of the presi- dent. There was then in the board of trustees a clear-headed mer- chant, who had accepted a seat at the board on the earnest solicitation of the first president (Mr. Robinson) and Mr. Minturn, with the assurance that it need not take more than four hours of his time in a year. The office was then in Wall Street, near Pearl Street, not far from this trustee's place of business. He soon perceived that if he should do his duty as a trustee of a great moneved institution, if he .. cared to know anything of the workings of the company, he must spend four hours a day, instead of four hours a year, in order to under- stand the responsibility he had voluntarily assumed. He accordingly visited the institution almost daily, spending a long time in studying the details of the work. The other trustees soon perceived that there was a dominant mind among them, and they elected this merchant president of the company in 1853. That chosen officer was Frederick
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SECOND DECADE, 1840-1850.
Seymour Winston, who still holds the arduous and responsible posi- tion .*
It was a fortunate day for the Mutual Insurance Company when it chose Mr. Winston for its president. With his inauguration the higher life of the company began, and the institution soon assumed a proud position. It was affected by the financial difficulties of ISST, yet it went steadily forward with ever-increasing strides. Then came a crisis which required great wisdom and sound judgment to meet. Civil war broke out in 1861. Immediate confusion followed in all the relations of life, social, mercantile, and financial, as well as political. Confidence was disturbed, and very soon there was little more than bel- ligerent communications between the people of the North and South.
The Mutual Life Insurance Company held risks at the South. It was impossible for the Southern policy-holders to meet their obligations with the company. The holders were beyond the company, as the company was inaccessible to them. The question arose, not What is expedient ? but What is just ? On the suggestion of the president the company assumed that each policy so held in the South was tendered to the company for surrender, and that it would accept the surrendered policies, paying the holders the value thereof. The Supreme Court decided that this course was legal and just, and there was general satis- faction among the policy-holders.
Then arose another important question : What shall the company do with policies held by soldiers in the Union armies ? By the rules of the company the moment a policy-holder bore arms in any cause what- ever, his policy became void. The company, led by the wise and patriotic impulses of the president, did not hesitate a moment on the verge of the question. but determined to carry the policies upon their books, charging an extra amount that might seem reasonable against the dividends, and to pay the face of the policy in case of death. They also took new risks upon the same terms, and the losses and the extra
* Mr. Winston is a native of Ballston, N. Y., where he was born in the year 1812. His parents were Frederick and Susan (Seymour) Winston. His father was of a Virginia family, his mother of a Connecticut family. In 1833 Mr. Winston married Miss Lucy Cotton. They have been blessed with six children, and lived to celebrate their golden wedding. The education of Mr. Winston was academic. He passed his youth on a farm, but has been a resident of New York City since 1826, where he began his business life as a merchant, and pursued that vocation until elected president of the institution of which he is the head. He has been a life-long and devoted member of the Protestant Episcopal Church, and was for many years an active member of the vestry of St. George's Church and leader in its Sabbath-school.
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HISTORY OF NEW YORK CITY.
amount received for policies held by soldiers balanced within a few dollars. The following letter, written by the president to Captain T. Seymour, in Fort Moultrie, Charleston Harbor, on December 26, 1860, shows the humane and patriotic spirit of the company :
" DEAR SIR : Your note of the 22d is before me. May God avert the insane outrage and the terrible calamity you contemplate ; but if it comes to you now, while doing your duty in Fort Moultrie, abandoned by the government that should sustain you, have no anxiety about your policy. So sure as there is a North on this continent, you shall be paid if you fall.
"On no spot in this land is so much interest concentrated as on the fort you occupy. May the stars and stripes wave over it forever.
" Very respectfully yours,
F. S. WINSTON."
At this dreadful crisis in the life of the Republic, the government needed money. Its securities had been discredited by a traitorous Secretary of the Treasury, Howell Cobb. Its credit was well-nigh gone. Banks and capitalists, regarding its bonds as almost worthless under the circumstances, tightened their purse-strings. Where was the money to be procured ? The wise and patriotic Mutual Insurance Company answered the momentous question. Through its president it said to the Secretary of the Treasury, " We have considered the gov- ernment bonds good enough to warrant our investing fifty per cent of our assets in them. If they fail, we fail. If the country survives, we survive."
From that time the Mutual continued to make large subscriptions to government loans. On one occasion Secretary Chase came from Wash- ington, called a number of capitalists together, and represented to them the immediate perils and the wants of the government. The Mutual Life Insurance Company was represented at the meeting, and it showed its faith in the government, its true patriotism, and its loyalty to the flag, by subscribing 8200,000, taking government bonds at $1. And in like manner it gave its aid to the government all through the dire conflict, and profited by it in every way.
Then came the rise in gold and the suspension of specie payments. The country was flooded with a depreciated currency-paper money. so called, not worth its face. The questions confronted the company : Shall we accept this currency, and take the chance of its future appreci- ation ? or shall we decline to take it, and sacrifice the business of the company ? Good judgment, sound discretion, and faith in the triumph of a righteous cause solved the question immediately. The company decided to take the paper currency and call it cash, and this policy was pursued until the resumption of specie payment and the equalization of
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SECOND DECADE, 1840-1850.
value between the greenbacks and gold and silver. In this wise and patriotic course the company reaped many profits and won a host of friends.
In the cause of benevolence the Mutual was ever conspicuous during the war. President Winston was present at the formation of the I'nited States Sanitary Commission in New York, and contributed lib- erally, then and always, to its funds. The company was ever ready to extend a helping hand in time of need. Mr. Howard relates that after a severe battle the society was without funds to carry on their work at that point with efficiency. The Rev. Dr. Bellows, president of the commission, called on the president of the Mutual, and said :
" My dear friend, we don't know what to do, where to turn, where to go to ; how to raise money for our absolute needs is beyond us. We have funds sufficient for a few days only, and unless something turns up. or something comes unexpectedly to our relief, we shall be obliged to disband. It will be difficult for us to continne the work three months longer, as seems necessary."
" How much do you want ?" asked President Winston.
Dr. Bellows named the sum, when the president instantly replied :
" You shall have it. Come to me always ; we will do our propor- tion, and our example will unquestionably be followed by others."
The Mutual not only helped the nation in its distress, but it helped the city and country of its birth in patriotic operations. The president of the company had faith in the ability and disposition of both to meet their obligations, and his faith inspired others.
Late in the war the public confidence in the ability of the city and county of New York to meet its liabilities was fearfully shaken, and the city bonds could not be readily negotiated. It was just after the last call of the government for volunteers. There were plenty of recruits at headquarters, but money was lacking to enable the authori- ties to send them to the field. A committee from the comptroller's office called on President Winston and asked for a loan, stating the circumstances. . He examined their statements, and said promptly. " Go back to headquarters, arrange to send your men away, bring me the bonds. and take the money." The proper authorities officially thanked the company for this timely help.
The lesser benefactions of the company have always been conspicu- ous. It sent 810,000 to the sufferers in Chicago after the great fire there. When Memphis was smitten with the yellow fever it sent $5000 to the authorities of the afflicted city ; and when the gal- lant Seventh Regiment National Guard, to whom the city is so
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much indebted for immunity from riots and insurrections from time to time, appealed for aid to build their magnificent armory on Fifth Avenue, the Mutual was a liberal subscriber .*
For thirty years since the elevation of Mr. Winston to the presidency of the Mutual Life Insurance Company of New York, a broad and lib- eral policy has characterized its conduct. Its success has been marvel- lous. It is to-day the foremost financial institution in the world. Mr. Winston is still (1883) its president and Isaac F. Lloyd is its secretary. To Mr. Winston's wisdom, perspicacity, and business ability is mainly due the pre-eminent position now enjoyed by the Mutual. Its assets in November, 1883, were $100,000,000.+
* The new armory for the Seventh Regiment National Guard is a magnificent building, occupying a whole square between Fourth (or Park) Avenue and Lexington Avenue, and Sixty-sixth and Sixty-seventh streets. It covers an area of 200 by 405 feet. It is con- structed of Philadelphia brick, with granite trimmings. The style of architecture is mixed. It has a square tower at each corner, and one at the centre of the front. At the main entrance there is a broad platform and steps, and the staircases are broad and elegant. Facing Fourth Avenue are the administration-rooms, occupying the whole front, and leaving the remainder of the floor (200 by 300 feet) for a drill-room. The interior is admirably arranged for the purpose for which it was designed, and most sumptuously fitted up. There are ten company-rooms, each of which is fitted up in accordance with the taste of each company. No two are alike. The woodwork of one is mahogany, of another oak, of another rosewood. The ceiling of one is frescoed, another is of carved wood panels. Our space will not allow a description of these rooms. Most ex- quisite taste is displayed in all. There is nothing meretricious. Everything means something. There is an air of spaciousness and substantiality about them all. The veterans' room-the room devoted to the use of the veterans of the regiment -- is magnifi- cent, and beautiful in details ; it is an art sindy.
Besides these rooms there are a library and reading-room, rooms for the officers and non-commissioned officers, a memorial-room, six squad drill-rooms, and in the basement a rifle-range 300 feet in length.
+ During the rule of a band of plunderers of the city treasury some years ago known as " The Tweed Ring," a conspiracy was formed among them to get control of the Mutual, by obtaining an order from a judge of the supreme court to place the affairs of the company in the hands of a politician and professional receiver, under the false charge that it was insolvent. Information to this effect reached Mr. Winston, and he employed George H. Purser, an astute lawyer, to use his knowledge of the thieves and his influence in averting the theatened peril. Parser called on the judge, who tacitly admitted that he intended to issue such an order. No argument could move him to prom- ise to desist from the intended crime. Purser then calle l on a prominent city official, who afterward became a fugitive from justice, and charged him with complicity in the conspiracy. He tried to bribe Mr. Purser. Perceiving that the conspiracy was nearly ripe for action, Purser again called on the judge, with a certificate of the superintendent of insurance to the effect that the Mutual was perfectly solvent. He told the judge plainly that unless he gave him a promise to desist from complicity in the villainous scheme, application would be made in the morning. before the proper authorities, to restrain him, as a chief of a band of conspirators, from interfering with the business
E
ومجيب
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SECOND DECADE, 1840-1850.
The great influx of foreigners into the city of New York for several wears, already alluded to in connection with the Election Riots of 1834, had increased the uneasiness of multitudes of reflecting minds concern- ing the safety of the ballot-box, the palladium of our liberties. These adopted citizens had grown so strong in numbers early in the second decade that they held the balance of power between the two great political parties, the Whigs and Democrats, at the spring elections. The consequence was that when either party gained a victory, the adopted citizens claimed, it was alleged, an unreasonable share of the spoils, and the amount of the patronage controlled by the mayor and common council of New York was very great. At length the native citizens became alarmed, and it was resolved to endeavor to make the naturalization laws more stringent.
In the winter of 1843-44 a large number of citizens, including many of the most respectable in character, influence, and wealth, and mem- bers of both parties, combined in organizing a formidable opposition to this aggressive and dangerous element in the local politics. This league was called the Native American party. They nominated James Ilarper, the senior partner of the firm of Harper & Brothers, publish- ers, for the office of mayor of New York, and a full number of alder- men. It was a "citizens' ticket." Mr. Harper was elected in the spring of 1844 by a majority over the Whig and Democratic candidates of 4316 .* The larger number of the Native American candidates for
of a solvent corporation. " I give you my word," said Mr. Purser, " as your personal friend, and as counsel for this company, that unless you assure me, before I leave this room, that this project shall be abandoned, I will not rest until I obtain an injunction against you as a conspirator in this infamy." The frightened judge promised, and the Mutual was saved from a great peril.
In December, 1882, the MIatual bought the premises on Nassan, Cedar, and Liberty streets, occupied for many years as the city Post-Office, and which was formerly the " Middle Dutch Reformed Church." The dimensions of the lot are 181 feet 8 inches on Nassau Street, 115 feet 9 inches on Cedar Street, 110 feet 8 inches on Liberty Street, and 174 feet in the rear. On this lot the company has erected an edifice for its use, eleven stories in height, and at one point it reaches 161 feet from the ground. This building is in the style of the Italian Renaissance. The materials are of granite, terra-cotta, and buff brick, fire-proof, and furnished with six hydraulic elevators, the cost of the structure being abont $1.500.000.
* James Harper, the senior member of the original firm of Harper & Brothers, was the . son of Joseph Harper, a farmer of Newtown, Long Island. He was born April 13, 1795. His grandfather came from England to America about the year 1740, and was one of the earliest Methodists in this country. James and his three brothers -- John, Joseph
. Wesley, and Fletcher-adopted the religious belief of their father and grandfather.
James was a tall and stalwart lad of sixteen when he came to New York to learn the art of printing. By his unusual industry, fidelity, and thrift he gained in a few years
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aldermen were also elected. From this auspicious beginning the Native American party spread, and was an active element in the politics of the Republic. But its policy became so narrow and really anti-American in character that after the national election in 1836, when Millard
sufficient means to begin business as a printer on his own account. He had great phys- ical strength, and was considered the most expert pressman in the city. He was shortly after joined by his brother John, who had also learned the printer's trade, and very soon the firm of J. & J. Harper became known for its skill and trustworthy work. Their two younger brothers-Joseph Wesley and Fletcher-became their apprentices, and about 1826 their partners in business, when the firm of Harper & Brothers was estab- lished-soon to become the leading publishing house in America. To the frequent question, " Which is ' Harper' and which are the ' Brothers' ?" the invariable reply was, " Each of us is ' Harper' and the rest are the ' Brothers.'"
For forty-three years this brotherhood remained unbroken until, in the spring of 1869, the eldest brother and the founder of the house was suddenly removed by death. Early in the afternoon of the 25th of March, pursuant to an engagement with one of his nephews, he went to Rockwood's and had his photograph taken. After dinner, on his way to the Central Park, accompanied by one of his daughters, the horses were fright- ened and ran away, and Mr. Harper and his daughter were thrown violently to the ground. Mr. Harper was taken to St. Luke's Hospital, where he died on Saturday evening, the 29th (Easter even), never having recovered consciousness after the accident. The funeral services were held March 31st, in St. Paul's Methodist Church, attended by a large number of people. The pall-bearers were Peter Cooper, John Hall, Jacob Sleeper, A. T. Stewart, Daniel Drew, J. M. Raymond, Edwin Mead, James M. Morrison, Wesley Smith, William H. Appleton, Henry Drisler, and George William Curtis. There was universal mourning for the deceased, and marked respect for his memory was paid by societies, corporations, and the business fraternity with which he was associated. The members of the municipal government attended his funeral in a body.
While there was this public manifestation of sorrow-while the flags above the City Hall and other public buildings were displayed at half-mast, and the press everywhere gave utterance to the general regret for the loss of an eminent citizen-there was a multi- tude of those who were bowed down by a private grief, because they had lost a sympa- thizing friend. Few knew the extent of Mr. Harper's charities ; often not even the recipient knew from what source relief came. One instance may be mentioned as char- acteristic of the man and his unostentations benevolence. He knew the name and the circumstances of nearly every one of the hundreds employed in his establishment. A woman was suffering from an inflammation of the eyes. Her sister in the country wrote, urging her to visit her. She could not afford the expense of the journey. One morning Mr. Harper stopped at her stand and handed her a little book, saying, " There, there ! Don't be troubled about your eyes. Go and visit your sister, and here's a little book to read on the way." The woman opened the book, as he went away, and between its covers found money more than sufficient to meet her need.
Mr. Harper was both an example and an advocate of the virtue of temperance. He was the president of the first Washingtonian Total Abstinence Society founded in New York. In 1861 he was chosen by Mr. Matthew Vassar, of Poughkeepsie, as one of the incorporators of the first college ever established for women, and he remained a trustee of that institution until his death. He was without political ambition. It was only at the earnest solicitation of good men that he accepted the nomination for mayor of the city of New York. He was elected by a majority composed of the best citizens of both
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