USA > Pennsylvania > Philadelphia County > Philadelphia > Early Philadelphia; its people, life and progress > Part 18
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THE " WHITE TURTLE" AND THE "RED CRAB" RUSHING TO A FIRE
FIRE PROTECTION
to beginning conflagrations; and in fact, since these insti- tutions, the city has never lost by fire more than one or two houses at a time, and the flames have often been extinguished before the house in which they began has been half consumed."
In 1821 there were 35 fire companies in active service in Philadelphia. By 1838 there were 44, and these 44 companies incorporated the Fire Association of Phila- delphia. This Association was authorized by its charter to issue policies of fire insurance and the profits and divi- dends of the business were distributed among the fire companies. Thus did Quaker thrift make out of virtue more than its own reward. In 1856, the volunteer com- panies, then numbering 78, with an active membership of 2100, and a total membership of 7500, were confed- erated to form the Fire Department of Philadelphia. In the same year the first steam fire engine was bought, but of it the Chief of the Department said: " So far as regards extinguishment, it is an utterly worthless article." Two years later the Hibernia bought an improved steam engine; it cost $4500 and was such a novelty that it was exhibited and received a great ovation in New York, Brooklyn, Boston, Newark and Charleston. When Fortress Monroe was being attacked in 1862, President Lincoln called upon the Hibernia for eight volunteers and the use of their steam engine to protect that important fortress. In 1870 a paid Fire Department superseded the volunteer system, for rea- sons obvious from the following records :
1814, Jan. 29-Gin at the fire, 65 cents.
1814, May 1-Gin at the fire, $1.00.
1815, Oct. 25-Quart of gin at the fire, 34 cents.
1815, Dec. 13-One-half gallon of gin at the fire, 621/2 cents.
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The American Hose Company, as did all the compa- nies, had a schedule of fines for offenses. "For being visibly intoxicated while wearing the equipment or badge of the company-for the first offense, $5.00; for the second offense, $10.00; for the third offense, expulsion." The constitution of that company provided " Spirituous liquors shall not be admitted into the house on any occasion." There .
was a fine of $2.00 imposed upon any member who " aids or encourages the carriage in a trial of speed with that of any other company returning from a fire or false alarm." In the rules established by the Fire Department in 1855, there is record evidence of another prevalent fault: " Any company who shall be guilty of rioting or fighting in the public streets, shall pay a fine for the first offense, $25.00; for the second offense, $35.00, and for the third offense, $50.00." Evidently firemen were favoured, if not in the eyes of the law, at least in its administration, for the report of the Chief Engineer of the Department in 1856 recommends a strict enforcement of the criminal law against members who participated in fighting, then so common at fires, and he regrets that "at present, every one arrested in case of an outbreak, can, if he has a friend or two outside to interest themselves in his behalf, escape from punishment, and finding that with the influence of his friends to sustain him, he can violate the law with impunity, he becomes more turbulent than ever." As so often is the case some few members brought the whole into disrepute, and the old order of the volunteer system changed and gave place to the new paid department because these few were, to use the lan- guage of the Police Court, " drunk and disorderly."
On the Old York Road near Noble Street there was a tall flag pole with the figure of an Indian upon the top. It was the custom of the fire companies to take their engine
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FIRE PROTECTION
there to test it by seeing if they could throw a stream of water to the top of the "Indian Pole," as it was called. These exhibitions attracted crowds of people and are re- membered by persons now living.
The rows between rival fire companies at a fire became characteristics of the time and many of these fights for priority took precedence over the fire in the attentions of the companies.
Some of the fire companies, notably the United States, were composed chiefly of Quakers, and it was a curious sight to see these enthusiastic Friends rushing to a fire in their brightly coloured tin hats and plain coats.
THE INSURANCE COMPANY OF NORTH AMERICA
UNDRY citizens of Philadelphia, and some of Boston, planned an associa- tion " for the purpose of raising a fund upon lives, to be applied to the charitable and other uses," early in 1792, upon the experience of similar efforts in Boston and New York, both of which had failed. "The Universal Tontine," as it was named to avoid the appearance of only a local scope, was called to the attention of Ebenezer Hazard by his friend Samuel Blodget, Jr., a son-in-law of Provost William Smith of the University. Five agents were ap- pointed, John Maxwell Nesbitt, Walter Stewart, Jasper Moylan, Samuel Blodget, Jr., and John Dewhurst, and one Secretary, to wit, Ebenezer Hazard. One hundred and eighty-seven persons signed the Articles of Association and Mr. Blodget subscribed 50,000 shares to be offered for sale in Boston. The failure of the Boston and New York Ton- tines and the general disrepute of the plan caused the project to lag and at a meeting of the subscribers held at the State House on November 3, 1792, a plan for a general Insurance Company was substituted. Nesbitt, Moylan, Stewart and Blodget of the original committee, with Alex- ander James Dallas, Matthew McConnell and Edward Fox were appointed to devise a plan for employing the fund in hand. Subsequent meetings of the subscribers at the same place led to the formation of the Insurance Com- pany of North America before the close of the month. Mr. Hazard received the subscriptions at his new house, now Number 415 Arch Street, and soon had the minimum amount of 40,000 shares subscribed. Thus was born in the
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FIRST HOME OF THE INSURANCE COMPANY OF NORTH AMERICA AT 213 SOUTH FRONT STREET
INSURANCE COMPANY OF NORTH AMERICA
famous old Independence Room of the State House a company which was " To make such Insurance upon Ves- sels and Merchandise at Sea, or going to Sea, or upon the life or lives of any person or persons, or upon any goods, wares, merchandise, or other property gone or going by land or water; and at such Rates of Insurance or Premium as they shall deem advisable."
Marine insurance was not new, and private under- writers did a good business from London in the Colonies. In the Penn and Logan correspondence we find frequent mention of the subject, against which Penn had some scruples.
The first book printed by Franklin was entitled " Ways and Means for the Inhabitants of Delaware to become Rich," by Francis Rawle, in which insurance is praised and in 1752 Franklin was greatly instrumental in founding the first insurance company on the continent. John Copson opened an insurance agency at his house on High Street in 1721 and we know that Joseph Saunders, an eminent Friend, was among the local underwriters of the day. His policies began with the invocation, " In the Name of God, Amen." The beginnings of associated underwriting were in 1757, when several merchants under the name of Thomas Willing and Company entered into articles of agreement to insure ships, vessels, goods and merchandise.
The Board of Directors of the Insurance Company of North America met the day following their election, 11th December, 1792, at the City Tavern, west side of Second Street north of Walnut, elected John Maxwell Nesbitt President and Ebenezer Hazard, Secretary. Offices were opened in what is now 213 South Front Street and on the 15th of December the first policies issued. It is curious to note in their petition to the Legislature for a charter
17
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the Directors enlarge upon their desire to serve the public welfare by providing much needed underwriting of re- sponsibility and that these conditions, rather than the hope of individual gain, have led them to associate for the beneficent purpose named. There is no doubt that these gentlemen were serious and sincere, although in the light of the present day attitude toward corporations one is compelled to smile at their phrases. Perhaps if the trust accorded these worthies was exhibited now we would be rid of much abuse in word and deed.
The opposition, however, even in those days made a con- siderable showing, being composed of individual under- writers whose trade was threatened, and the charter was delayed until April 18, 1794. The principle of no inter- locking directors, which we have hailed as a modern idea, was enunciated in the charter and as soon as any director was chosen in like capacity in another company his place was declared vacant.
Mr. Hazard opened the books and wrote the first policies, but in a few days a clerk and a porter were sup- plied to him. The first received $500 a year and the last £6 per month, " and a hint of a douceur at Christmas." The first policy was issued to Conyngham, Nesbitt & Co. on the ship America, James Swing, Master, from Phila- delphia to Londonderry, for $5333.33, at 214 per cent. The office hours were from nine to two o'clock and from four to eight. The President was required to be on hand from eleven to two and from five until eight o'clock. The committee of the week of the Board must be in attendance every day from twelve to two and from six until eight. As early as 2nd March, 1795, a risk of $35,000 was taken, a very considerable one for those days. Much anxiety was felt during the troublous times with France and Britain
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INSURANCE COMPANY OF NORTH AMERICA
but careful management brought the company through safely.
Fire insurance claimed the attention of the Board of Directors at an early period as the two existing companies insured houses only. A fire-mark of a wavy star cast in lead and mounted on a wooden shield was adopted and on December 10, 1794, the first two policies were issued, both on dry goods. The star badge was shortly abandoned and another substituted.
The first life policies were issued for insuring persons against capture by Algerines in 1794 and the terms of the early life risks were short. This branch of the business did not survive a decade, and it was not until the incorpora- tion of the Pennsylvania Company in 1812 that life insur- ance secured any extension through the community.
Nearly opposite the company's office on South Front Street lived the president, Mr. Nesbitt, with his counting house on the first floor, as was the early custom. Joseph Moylan, a director, lived next door and John Ross nearby. Isaac Wharton and David Lewis, Robert Ralston, Miers Fisher, Peter Blight, Nalbre Frazier, Francis West, Samuel R. Fisher, Mordecai Lewis, and John Morton were all within a stone's throw on South Front Street. The Philadelphia Dancing Assembly made an offer to the company to erect a suitable building for joint use, but the project was not carried out. The social life of the City was connected with its trade in a definite way such as is not dreamed of now.
During the yellow fever outbreak of 1793 Mr. Hazard, deserted by clerks and directors, moved books, papers and business to his house at 145 Arch Street, where he and eight others of his household contracted the epidemic, two of them dying from it. The faithful porter, John Valen-
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EARLY PHILADELPHIA
tine Cline, rode out on horseback to President Nesbitt in the country at Nicetown and Hart Lanes and Hazard kept up the business of the company, writing 53 policies during this trying time. In 1794 the offices were moved to the southwest corner of Fourth and Walnut Streets, and in 1797 to the opposite corner. The fever breaking out again in this year, the business went over to Arch Street and in 1798 all records were removed to the Ger- mantown Academy, orders being taken for insurance at Sixth and Arch Streets. The next move was to the corner of School House Lane on the Main Street of Germantown, whence Mr. Hazard removed during the prevalence of the epidemic.
In 1804 Number 204 South Second Street, as it now is, was leased so as to be near the Exchange and in 1800 they removed to Number 138. In 1834 a location at the southwest corner of Walnut and Dock Streets was secured, and as business increased the company moved again to 232 Walnut Street in 1851, erecting a new building on the site. Adjoining properties were gradually secured to accommodate the growing business until in 1881 the present new building was completed and occupied.
John M. Nesbitt and Ebenezer Hazard have been shown as the leading spirits in the earliest days of the company. The former was an Irishman who came here in 1728, was successful in mercantile business and an active member of the First Troop throughout the Revolu- tion. He was a faithful patriot, and besides his personal services in the field was interested in the formation of the Pennsylvania Bank and the Bank of North America, lend- ing his aid toward sustaining the credit of the country and the provisioning of Washington's army.
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INSURANCE COMPANY OF NORTH AMERICA
To the energy and industry of Ebenezer Hazard was due the instant success of the company. He was prominent in many undertakings. He was a graduate of Princeton College, of the Class of 1762, and was engaged in the book business in New York until 1775, when the Continental Congress appointed him Postmaster there. From 1777 to 1782 he was surveyor of post-roads and offices and travelled from New Hampshire to Georgia on horseback until he became Postmaster General of the United States, suc- ceeding Richard Bache and Benjamin Franklin in that position and which he held for seven years. This high position brought him gladly to a residence in his native city, instead of being " hurried through life on horseback " and in this settled state he was able to contribute much to recorded history and to engage in so notable an enter- prise as the Insurance Company of North America. His steadfastness and faithfulness, so characteristic of the man, have been related in connection with the company's busi- ness at the time of the yellow fever in Philadelphia. His industry and energy were exceptional, and he says he is " seldom with my family, except at meal times and while I am asleep." He was a devout Presbyterian and fine Greek scholar. The records of many useful enterprises bear his name and he was one of Philadelphia's least mentioned but most distinguished citizens.
Colonel Charles Pettit, who succeeded Mr. Nesbitt as president, was a public man of note, serving in numerous positions in the Colonial Government of New Jersey and on the staff of Major General Greene. He was in the Pennsylvania Legislature and the Continental Congress, a Trustee of the University and member of the Philosophi- cal Society. Joseph Ball succeeded him and was a patriot
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EARLY PHILADELPHIA
and successful business man. He rendered important ser- vice to Robert Morris in sustaining the credit of the Nation. John Inskeep, John C. Smith, Arthur G. Coffin, and Charles Platt followed in the capacity of president. Mr. Platt was elected in 1878 but had entered upon the com- pany's work in 1860 as secretary. His long service through the trying years of the country's history was notable as covering the most active period of the business which became one of the foremost of American institutions.
THE PHILADELPHIA SAVING FUND SOCIETY
LTHOUGH so many of Philadel- phia's well and widely known institu- tions are before us to-day it so hap- pens that many of her early citizens of the greatest capacity and distinc- tion have been forgotten except within a very small circle of persons. Such a one was Condy Raguet, a man of many attainments. He was born in Philadelphia in 1784 and educated at the University. To complete his education he twice visited Santo Domingo and published two accounts concerning it. During the War of 1812 and after the British had captured the national capital there was great con- cern in Philadelphia over the expected fall of Baltimore and march on the City. As Colonel of a regiment Condy Raguet took a prominent part in the preparations for defense. About this time he turned his attention to finance and published his "An Inquiry into the Causes of the Present State of the Circulating Medium of the United States." In 1816 the City directory shows that he was in business as a merchant at 80 Dock Street and lived at 308 Chestnut Street. Soon afterwards he studied law and was admitted to the bar in 1820. With his generous equipment Mr. Raguet went to South America and was United States Consul at Rio Janeiro from 1822 to 1825. For the next two years he was Chargé d'affaires and successfully negotiated a treaty with Brazil. On his return to the United States he became widely known as a publicist on free trade doctrines through frequent contri- butions to the " Port-Folio " and other periodicals. He edited " The Free Trade Advocate," " The Examiner "
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EARLY PHILADELPHIA
and " The Financial Register " and was the author of " The Principles of Free Trade " and a treatise " On Cur- rency and Banking," republished in London and Paris and very highly esteemed to-day. He was a member of the Legislature, president of the Chamber of Commerce and of the Pennsylvania Life Insurance Company and a member of the American Philosophical Society.
It is, however, as the originator of the first Savings Fund Society in America that Colonel Raguet has the best claim to the enduring thanks of posterity. His ideas on this subject were formed in 1816 after reading about the first in Edinburgh, then six years old, and he invited Richard Peters, Jr., to join him in establishing such an institution. Mr. Peters agreed with enthusiasm and a number of gentlemen were asked to meet at the Penn- sylvania Insurance Company's office on November 25th. Thomas Hale and Clement C. Biddle joined heartily in the undertaking and these four were the founders. Others who became interested in the formation of the Society were John Strawbridge, John C. Stocker, John McCrea, Roberts Vaux, William Schlatter, Charles N. Bancker, Samuel Breck and Andrew Bayard. Colonel Raguet sub- mitted the plan of Association which, with amendments, was temporarily agreed to after several meetings during November. Andrew Bayard was chosen president, George Billington secretary and the Society opened its doors for business on December 2nd at Mr. Billington's office, No. 22 South Sixth Street. Curtis Roberts, Mr. Raguet's colored waiter, made the first deposit on this day and so in less than a fortnight this great idea became a reality. On the 4th a meeting was held at Rubicam's Tavern, next to the office, at which the president presided for the first time and the Articles of Association were adopted for
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FALSTAFF | HOTEL
THE SAVING FUND SOCIETY'S FIRST HOME AT SIXTH AND MINOR STREETS at the right )
PAPEL
SEVENTH AND WALNUT STREETS BEFORE THE ERECTION OF THE SAVING FUND'S PRESENT BUILDING
THE PHILADELPHIA SAVING FUND SOCIETY
" The Philadelphia Saving Fund Society." The name " bank " was anathema in the public mind at that time.
An address to the public, the Articles of Association and the list of officers was published on December 13th and printed in pamphlet form with supplementary argu- ments by a committee consisting of Condy Raguet, Richard Peters, Jr., and Roberts Vaux. The meetings were held at seven o'clock in the evening, as it was the custom then to dine at three or four o'clock and take the evening repast at eight. The pamphlet began with the following quota- tion from Franklin who was dead but whose influence still seemed potent and necessary :
" The way to wealth is as plain as the way to market. It depends chiefly on two words, industry and frugality; that is waste neither time nor money, but make the best use of both. Without industry and frugality nothing will do, and with them everything. He that gets all he can honestly, and saves all he gets, necessary expenses excepted, will certainly become rich, if that Being who governs the world, to whom all should look for a blessing on their honest endeavours, doth not in His wise providence otherwise determine."
Then follows an argument to induce saving and tables showing to what a small saving will grow by depositing with the Society. The same committee applied for incor- poration in 1817 and in 1819 it was granted. The amount of annual individual deposits was limited to $500 and in 1828 reduced to $200 where it stayed until 1869 when it was extended to the original amount.
In 1818 the Society moved across the street to the southwest corner of Sixth and Minor Streets, where it re- mained until 1821 when Number 2 Decatur (now Mar- shall) Street became the office. This site was not satis- factory and in 1826 the Society moved to the southwest
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corner of Third and Walnut Streets, just across from the house of James Wilson, where the riot occurred in 1779. The depositors now numbered 3543 and their deposits amounted to $575,027.94. The growing business soon required more room and the next year was moved to No. 66, now 304, Walnut Street. By 1840 a new building was erected after plans by Thomas N. Walter at No. 68 (306) Walnut Street, which was the first built and occu- pied by the Society. It is a white marble structure with Ionic columns and was occupied until the new building at Walnut Street and Washington Square was erected in 1869. Up to the first of the year 1916 there had been received from depositors a total of $605,494,279.24 to which has been added interest amounting to $74,985,383.60, mak- ing a grand total of $680,479,661.84. There are now over a hundred thousand more depositors in the Philadelphia Saving Fund Society than in any other bank in the United States and to take care of the variety of nationalities re- quires a retinue of interpreters, some of whom speak seven languages. The managers of the Society are appointed by the Judges of the Philadelphia Court and their work has increased over that of the founders about in the pro- portion that wages have advanced from the figures named in the first tables published by the Society a century ago, which mentioned " female domestics " as receiving from one dollar and a quarter to two dollars a week and coach- men eleven to fifteen dollars a month.
TITLE INSURANCE AND SAFE DEPOSITS
N olden times a person wishing to pur- chase a property would go with the owner to a conveyancer who would furnish him with a brief of title, a set of searches and the opinion of counsel thought to be experienced in real estate transfers. This method was not always satisfactory and nowadays a policy of title insurance to accompany papers in a purchase, backed and issued by a responsible title insurance company, is as indis- pensable as a policy of fire insurance. This modern method came into being on the 28th of March, 1876, when the Governor of Pennsylvania granted a franchise, under an act of the Legislature, to The Real Estate Title Insurance Company of Philadelphia to insure titles and this was the first ever granted by any governmental authority in the world. Such a plan for protection and indemnity is an- other evidence of the progressiveness and dependableness of Philadelphia institutions.
Safe deposit vaults were another form of protection originated in Philadelphia. Before the Civil War there were few coupon bonds but afterwards their multiplication and bulk caused the Fidelity Safe Deposit, Title and Trust Company in 1866 to provide a place for their safe keeping as well as household valuables.
THE OLDEST BUSINESS HOUSE
N a place where respect for old insti- tutions, historical records and an old family name is so solemnly held as Philadelphia one might expect ex- travagant claims for antiquity did one not know of the Quaker candour and general reputation for abusing themselves which the citizens have. To harbour the oldest business concern in America is, however, no mean achieve- ment and merits some account of The Francis Perot's Sons Malting Company, which is older than the Bank of England and has descended from father to son for eight generations.
The founder of this business was Anthony Morris, who was born in London in 1654 and after a sojourn in Burlington, New Jersey, came down the river to Philadel- phia in 1686 and within a year was settled on the east side of Front Street, below Walnut, where he erected a malt house and brewery facing the Delaware River. This establishment is shown on Peter Cooper's painting of " The Southeast Prospect of the City of Philadelphia " in the vestibule of the Philadelphia Library. Morris' brewery was the second in the neighbourhood, William Frampton having preceded him. Indeed the occupation was a fre- quent and profitable one among the industrious Friends and their " bitters " had a better name for purity and whole- someness and sold for more than English beer.
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