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A QUARTER-CENTURY'S 
 
 FIRE UNDERWRITING 
 
 1871-1896 
 
 AN HISTORICAL AND BIOGRAPHICAL 
 
 MILESTONE 
 
 IN THE LIFE OF 
 
 THE NATIONAL FIRE INSURANCE CO. 
 
 ii 
 
 OF HARTFORD, CONN. 
 
 THE DEVINNE PRESS 
 NEW-YORK 
 
I St 
 
 £ 
 
 & 
 
 
 <UH 
 
 Copyright, 1897, 
 
 By The National Fire Insurance Co. 
 
 ofNlartford. * >^ 
 
TABLE OF CONTENTS. 
 
 Page. 
 
 Preface 1 
 
 Introduction 3 
 
 A Quarter Century's Fire Underwriting 9 
 
 Financial Tables 117 
 
 The Home Office Building 125 
 
 Biographical Sketches 133 
 
 Index 161 
 
 ■512 
 
ILLUSTRATIONS AND PORTRAITS. 
 
 {By the Heliotype Printing Company, Boston.) 
 
 Office Building — Front Frontispiece 
 
 Facing Page. 
 
 Board of Directors — Dec. 31, 1896 12 
 
 President 1871-1887 — Mark Howard 14 
 
 Facsimile of First Policy — Face 16 
 
 Facsimile of First Policy — Back 18 
 
 President — James Nichols 62 
 
 Vice-President and Secretary — E. G. Richards 64 
 
 Department General Agents and Managers 68 
 
 President's Room 74 
 
 Office Building — Side and Rear 80 
 
 Assistant Secretary — B. R. Stillman 86 
 
 Directors' Room 88 
 
 Vestibule and Staircase 96 
 
 Vestibule 98 
 
 Main Office — Looking East 102 
 
 Supply Room 108 
 
 Vice-President and Secretary's Room 112 
 
 Stenographer's Room 116 
 
 Main Office — Cashier's Department 124 
 
 Main Entrance 128 
 
 Main Office — Looking South 130 
 
 Main Office — Looking North 132 
 
 General and Special Agents, Home Department ) 
 
 > . . . 142 
 Special Agents, Pacific Department \ 
 
 Special Agents, Western Department 146 
 
PREFACE 
 
 TTJTISTORIES of business houses are usually unin- 
 J^J. teresting, and it may be due to the fact that the 
 useful or personal details are those which cannot be given 
 to the public; otherwise the history of many an establish- 
 ment would furnish the materials for a fascinating ro- 
 mance. The vital factor of personal ability animates a 
 mass of transactions which escape record and defy ana- 
 lysis. A business succeeds because certain men decided 
 wisely and acted with energy in its daily problems ; but 
 how and why is part of the mystery of life. Even if all 
 could be known, most of it would relate to bygone con- 
 ditions, and so become valueless for present use. The 
 boohs and letters, worth not even shelf-room now, have 
 gone to the paper-mill; the actors and their confidants 
 are no more; the happiest fortune one can hope for, by 
 the rare and casual grace of fate, is to find one or two old 
 
2 PBEFACE 
 
 ledgers, and a stray last leaf or so of business contempo- 
 raries with a few precious and sometimes treacherous 
 memories and traditions. 
 
 Politics, law, and literature embody their outcome in 
 cherished records or printed monuments ; but a business 
 may flourish for an age, cover a continent, make mighty 
 fortunes, become a vital force in countless lives, and the 
 predominating though secret causes for that success be 
 scarcely more traceable than yesterday's sunset cloud. 
 
 The history of a corporation must be largely imper- 
 sonal, that distasteful laudation or unwelcome criticism 
 of the chief actors in its affairs may be avoided. It must, 
 therefore, be confined mainly to an account of events that 
 led to its creation and growth, and those which were con- 
 temporaneous therewith, leaving the recorded results of its 
 operations to suggest the latent causes for its success or 
 failure. 
 
INTBODUCTION. 
 
 RIEF mention of the events that led 
 to the organization of the National 
 seems necessary that the record may- 
 be essentially complete, for the life The 
 of the National was not begnn with its capitaliza- Pr °s enitor 
 tion in November, 1871, but in some measure was National, 
 a continuation of the life of a previous company, 
 the Merchants' of Hartford, a company organized in 
 1857; being one of several Hartford companies that 
 dated from about that time. 
 
 To E. Thomas Lobdell, the first secretary, credit is The 
 due for having been the originator of the Merchants' oftEe* ° r 
 and for performing much of the preliminary work of Merchants ' 
 organization. 
 
INTBODUCTION 
 
 Its president was Mark Howard, one of Hartford's 
 
 The early and successful underwriters, whose insurance 
 
 Protection. e( j uca ti n had been mainly acquired as general agent 
 
 of the Protection, a yet earlier company, which retired 
 
 in 1854. 1 
 
 The Merchants' was chartered May 28, 1857, and 
 
 in the following July was organized with a capital 
 
 Merchants' f $200,000. It conducted a fire insurance business 
 
 Organized 
 
 only, and during its existence, until wrecked by the 
 
 terrible conflagration of Chicago in October, 1871, its 
 
 experience was one of constant growth in strength 
 
 and resources, and it had gained a reputation for 
 
 sound, conservative management and honorable 
 
 dealing. 
 
 m 
 1857. 
 
 1 The Protection commenced busi- 
 ness in 1825, with a capital of $150,- 
 000, ten per cent, cash, absorbing the 
 charter of the Hartford Marine Insur- 
 ance Co. of 1803, and failed in 1854. 
 Its failure was due to accident rather 
 than necessity, and experienced under- 
 writers believe that with an earlier 
 abandonment of the marine under- 
 writing it would have been saved by 
 its splendid fire business. 
 
 It was the first company to establish 
 a general agency in the West. Its 
 original report in 1849 to the New 
 York State Insurance Department 
 
 shows assets $356,597, with an impair- 
 ment of $28,000, presumably occa- 
 sioned by its heavy losses in the great 
 fire of that year at St. Louis, Mo., 
 which are said to have aggregated 
 $130,000. The last report at the close 
 of 1853 showed assets $383,000, sur- 
 plus $14,000. 
 
 The presidents of the Protection 
 were as follows: Gov. W. W. Ells- 
 worth, 1825-1837; D. F. Robinson, 
 1837-1840; Hezekiah King, 1840-1841; 
 Eliphalet Averill, 1841-1842; Daniel 
 W. Clark, 1842-1854. 
 
INTBODUCTION 5 
 
 To those familiar with Hartford's history the fol- 
 lowing list of directors elected at the first meeting 
 of the stockholders will be interesting: 
 
 Mark Howard, Wm. H. D. Callender, 
 
 Samuel Woodruff, Sidney A. White, 
 
 1 James Bolter, Charles T. Hillyer, 
 
 First 
 
 Ebenezer Eoberts, Elijah H. Owen, B° ard 
 
 Guy R. Phelps, x Homer Blanchard, Directors. 
 
 Timothy Sheldon, Richard D. Hubbard, 
 
 James P. Foster, Matthew M. Merriman, 
 
 William L. Collins. 
 
 At a meeting of the directors immediately follow- First 
 
 Officers. 
 
 ing, Mark Howard was elected president and E. 
 Thomas Lobdell, secretary. 
 Mr. Lobdell held the office of secretary until his its 
 
 second 
 
 death, November 4, 1870. His successor was James secretary, 
 Nichols, now president of the National. Nichols. 
 
 The office of the Merchants' was first located on 
 Main Street, in the Hartford Trust Company's build- 
 
 1 Messrs. Blanchard and Bolter have then of the National, to the present 
 been in active and continuous service time, covering a period of nearly forty 
 as directors, first of the Merchants', years. 
 
6 
 
 INTKODUCTION 
 
 Its Con- 
 servative 
 Methods. 
 
 Financial 
 Progress. 
 
 ing, but in a few years was removed to the corner of 
 Asylum and Trumbull streets, in the second stoiy of 
 the Charter Oak Bank Building, and there continued 
 during the remainder of its business life. 
 
 Reference to the underwriting methods at that time 
 employed in the appointment of agents and the gen- 
 eral conduct of business would be extremely inter- 
 esting, as a perusal of the correspondence of the 
 Merchants' office demonstrates; but such detail is 
 here impracticable. 
 
 It may well be said, however, that if the under- 
 writer of to-day exercised the care and discrimina- 
 tion which then prevailed in the selection of agents 
 and risks, the business would be improved and ele- 
 vated, the irresponsible agent rare, and the moral 
 hazard would certainly be reduced. 
 
 The career of the Company under the able manage- 
 ment of Mr. Howard was, as before indicated, one of 
 conservative but healthy growth. 
 
 The premium receipts for the first fiscal year 
 amounted to $17,476.16, and during the first few 
 years its risks were confined almost entirely to non- 
 hazardous classes. Later, its methods and fields of 
 
INTRODUCTION 7 
 
 operation were broadened, so that during its eighth 
 fiscal year the premium receipts reached the sum of 
 $157,273.42. Before its demise in 1871 the premium 
 income had reached about $350,000, its assets $580,- 
 000, while dividends ranging from four per cent, 
 to twenty per cent, were paid (from the investment 
 income only) every year but the first. 
 In 1871 the market value of its stock had reached Retirement 
 
 of the 
 
 250 on a par value of 100, and the shares were difficult Merchants' 
 
 in 1871 
 
 to obtain even at that figure. The heavy losses at 
 Chicago by the conflagration, October 8 and 9, 1871, 
 made a continuance of the Company not easy of 
 accomplishment ; therefore its affairs were placed in 
 liquidation, and its valuable plant transferred to a new 
 company, " The National Fire Insurance Company of 
 Hartford." 
 
A QUARTER CENTURY'S FIRE 
 UNDERWRITING 
 
 HE National Fire Insurance Company 1871 « 
 of Hartford was chartered June 4, 
 1869, but it was not until November, J^tionai 
 1871, more than a month after the ? r ?tSf ed 
 
 7 in 1871. 
 
 great fire in Chicago, that the Company was organ- 
 ized and commenced business. 
 
 Its officers, field force, and early agents were those 
 who had conducted the business of the Merchants' The 
 Fire Insurance Company, and the cash paid in for its an 
 capital stock was at once employed in the purchase oAhe 
 of the securities of the Merchants', which were of Mercllants, • 
 high grade and of the most desirable character. The 
 original list of stockholders embraced almost in its 
 entirety that of the Merchants'. Hence, the two or- 
 2 9 . 
 
10 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1871. 
 
 Origin of 
 
 Hartford's 
 
 Fire 
 
 Insurance 
 
 Interests. 
 
 ganizations, while entirely distinct, were parental and 
 filial in their relationship. 
 
 The soil from which the National sprang (and like- 
 wise its progenitor, the Merchants') was the genius 
 loci, which would generate an insurance company in 
 Hartford almost spontaneously. Most cities have 
 some rooted industry or business enterprise which, 
 being familiar and intelligible to their citizens, is ac- 
 cepted as a judicious investment for capital, while 
 the same business, even in some nearby city, would 
 dwindle, if not perish, because of the absence of in- 
 herent conditions necessary to success. 
 
 Thus, in Hartford, to secure the capital for a manu- 
 facturing plant of any magnitude was long a difficult 
 matter, while insurance in its varied kinds never 
 languished for lack of favor and ample financial sup- 
 port. By contrast, in neighboring cities, manufactur- 
 ing was the calculable risk, the class of enterprise that 
 found a soil rich in the elements of successful growth ; 
 while insurance was the incalculable risk, and there- 
 fore a business devoid of strong attraction as an in- 
 vestment to their moneyed citizens. 
 
 The cause of Hartford's specialty is not hard to 
 
A QUABTEB CENTURY'S FIRE UNDERWRITING 11 
 
 discover. At the head of navigation on the Connecti- 18 7i. 
 cut, it was, up to the time of many railroads, the chief 
 distributing point for the rich Connecticut Valley, a 
 port of much shipping, and one of the great Northern 
 seats of the West India trade, and even of European 
 
 Hartford's 
 
 commerce, in the days when vessels were rated at early 
 
 Importing 
 so many hundred tons instead of so many thousand, and 
 
 The clearances of craft from this port, singular as the interests, 
 idea now seems, were as much a part of the expected 
 regular information in the papers as the weather re- 
 port is now. This made it, while little more than a 
 village, a center of wholesale mercantile and import- 
 ing houses, and of business capital and banking. 
 Early in the century, with but six or seven thousand 
 people, 1 it had several such establishments, and one 
 bank, the Hartford, which was chartered in 1790, and 
 the fifth to be organized in the country. To protect 
 these interests, private firms in and out of " Lloyds'" 
 associations here carried on marine insurance at an 
 early date, and as Hartford's capital grew, insurance 
 became a natural and familiar field for its investment; 
 
 1 The population of Hartford, January 1, 1897, was variously estimated at 
 from 65,000 to 70,000. 
 
12 THE NATIONAL FIKE INSUBANCE COMPANY 
 
 1871. 
 
 Navigation 
 
 Interests 
 
 the 
 
 Parent 
 
 of Fire 
 
 Insurance. 
 
 Influence 
 of 
 
 Hartford's 
 Business 
 Men upon 
 its Fire 
 Insurance 
 Companies. 
 
 and as the country grew, the danger from fire loss on 
 the land far outstripped that from disaster on the 
 water. Thus Hartford's navigation interest was the 
 historical parent of, and formed a natural stepping- 
 stone to, its fire insurance interest, and therein its 
 evolution resembled that of many other business and 
 social organisms. 
 
 The conservative spirit which in a marked degree 
 characterized the business men of Hartford in its 
 early days was potential in the counsels of the in- 
 surance companies, whose boards of directors were 
 largely made up of successful merchants. 
 
 But these business men possessed both conser- 
 vatism and courage, a conservatism that laid solid 
 foundations for business enterprises, and a courage 
 in the face of disaster that carried Hartford's fire in- 
 surance companies through the maelstroms of Chi- 
 cago and Boston, leaving fewer wrecks behind than 
 any other American city in which fire insurance had 
 attained prominence. It is also worthy of note that 
 the directors of Hartford companies have chosen 
 as executive officers practical underwriters and, as a 
 rule, men who had gained an intimate knowledge 
 
Frank W. Cheney 
 
 John R. Buck. 
 
 a 
 
 William B. Franklin. 
 
 James Nichols. 
 
 m 
 
 
 
 *< 
 
 
 * 
 
 Henry C. Judd. 
 
 James Boltek. 
 
 Jonathan F. Morris. 
 
 Francis T. Maxwell 
 
 Ellis G. Richards. 
 
 Board of Directors — Dec. 31, 1896. 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 13 
 
 of underwriting conditions in the agency field, thus 18 ?i. 
 enabling them to be in familiar and sympathetic 
 touch with their agents throughout the country, and 
 competent judges of the relations of fire hazards to 
 insurance capital. 
 
 So, while Hartford's West India trade has passed 
 away forever, its shipping interest become unworthy 
 of serious mention, and its large wholesale houses 
 few in number and comparative importance, their 
 offspring — Insurance — has waxed strong and po- 
 tential. 
 
 It is true that wrecks and failures have marked 
 the way. No battle was ever won without sacrifice, 
 neither is there a royal road to success unmarked by 
 losses and discouragements. 
 
 Notwithstanding these, Hartford's fire insurance 
 interests have steadily grown in strength and 
 influence. 
 
 Returning now to the National's early history. 
 The Chicago conflagration, so costly and disastrous 
 both to insured and insurer, depriving thousands of 
 
14 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 1871. 
 
 Chicago 
 
 Losses 
 
 showed 
 
 Necessity 
 
 for 
 
 Stronger 
 
 Companies. 
 
 Capital 
 of the 
 National 
 made 
 $500,000. 
 
 individuals of their all, and bankrupting more than 
 a hundred fire insurance companies, was a great edu- 
 cator to the insuring public, in that it demonstrated 
 the importance of securing insurance in companies 
 of great financial strength. It was therefore early 
 decided by the organizers of the National that a 
 much larger capital than that of the Merchants' 
 was necessary, to command the best business in the 
 field and secure the full confidence of the insuring 
 public. 
 
 The capital of the National was fixed at $500,000, 
 an amount then exceeded by few American com- 
 panies. The books were opened for subscription on 
 November 14, 1871, and in five days over $600,000 
 was subscribed. The corporation was duly organized, 
 the stock awarded to the subscribers, and at the first 
 stockholders' meeting November 27, 1871, the direc- 
 tors chosen were : 
 
 First 
 Board of 
 Directors. 
 
 Mark Howard, 
 Elijah H. Owen, 
 Richard D. Hubbard, 
 James P. Foster, 
 
 Homer Blanchard, 
 Wareham Griswold, 
 John F. Judd, 
 Daniel F. Seymour, 
 
J!$fyrwo(, 
 
 President 1871-1887. 
 

A QUARTEE CENTURY'S FIRE UNDERWRITING 15 
 
 Elisha N. Welch, Frank W. Cheney, i87i. 
 
 James Bolter, Harrison B. Freeman, 
 
 William B. Franklin, William S. Pierson, 
 
 Ebenezer Roberts, Timothy Sheldon, 
 
 William H. Lee. 
 
 Upon the same day the directors elected as officers : 
 
 Mark Howard, President. 
 
 James P. Foster, Vice-President. Officers. 
 
 James Nichols, Secretary. 
 
 The office of the Company was that formerly occu- 
 
 Offi.ce 
 
 pied by the Merchants' at the corner of Asylum and located on 
 Trumbull streets in the second story of the Charter JjJJJjJ 1 
 Oak Bank Building, and there remained until re- 
 moved in 1893, to its new building, of which men- 
 tion is made hereafter. 
 
 The first policy, issued November 29, 1871, to the 
 Hon. James G. Batterson, one of the Company's in- First 
 
 corporators, was for $7500, covering upon the new Written 
 
 November 
 
 Batterson Building on High Street, Hartford, Conn. 29, 1871. 
 The Company immediately established agencies, and 
 
16 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1871. 
 
 The 
 First 
 Month's 
 Premiums. 
 
 Effect 
 
 of 
 
 Chicago 
 
 Fire 
 
 upon Fall 
 
 Business. 
 
 for the month of December the premiums received 
 from the forty-seven agencies reporting, out of one 
 hundred and forty-two appointed, were $19,771.70. 
 
 Had the National been organized and ready for 
 business a month or six weeks earlier, its premium re- 
 ceipts for 1871 would have been very largely increased. 
 
 Millions of policies in ruined companies, covering 
 property other than that destroyed in Chicago, had 
 become valueless, and property-owners sought for 
 security elsewhere. 
 
 This sudden renewal or replacement in October of 
 policies whose expirations would ordinarily have fal- 
 len in other months, brought an enormous harvest to 
 the remaining solvent companies that were prepared 
 to receive it, a harvest in which the National could 
 not share. 
 
 The Company continued to establish agencies 
 throughout the Eastern and "Western States, and at 
 a few points in the South, avoiding the Pacific slope. 
 
 From these early appointments we take pleasure in 
 mentioning the names of those who have continu- 
 ously represented the National to the present day. 
 
nTT 
 
 1H E 
 
 / ' / . 
 
 -t*& 
 
 National Fire Insurance Company, 
 
 OF HARTIORD, CONN. 
 
 In jjonsidrration «f the receipt of ^fti/ius 
 
 DO HEREBY INSURK 
 
 legal representatives £. 
 
 /.,c '../<_ /><> U ./,-,. C i aA ic- '/J. .r ',/.'.. y~ FCCc/lcCcC 
 
 >/?vr yjut'u/,^./', .:/<.<'< ,.< /Ac < y A. A. ■ ■. v," < '/W, -\ ..■ ■ '. ,( &*>** 
 
 / 
 
 P©* the term of . £ V i C l /^"4 from the -Jhxa*& m'titA day of I ../ .e, s.^/s^ iS'Y/. t at 12 o'clock noon, to dui_0»£6CaK strn/Z 
 
 day of -r^i c.ut'cci'^} /i8 •y'&i, at 12 o'clock noon^gainst all such immediate Loss or Damage as miy occur by FIRE to the property specified, not 
 
 exceeding the sum insured, nor the interest of the assured in the property, except as hereinafter provided, to be piid in sixty days after the prooft required by this Company 
 shall have been received at the office of the Company in Hartford, and the loss shall have been satisfactorily ascertained and proved, as required by the ; 
 of this Policy. 
 
 ■ Compear shall not b« liable until the nctaai payment m the premium to the Company, or it* ' IN CASE OF LOSS, the assured shall give immediate notice the 
 
 tent : nor tot Los* by theft . no. lor Iom by 6rc caused be nt)^, not. cm! roramotioa military , a particular account, m writing, of aaid lana, under o-tb. stating the time, 
 
 ewer; aor for loss earned by lightning or eardoaiona of an* kind aniens fire m*ne*. ami the*, for the ^aprnqr of the buildiagva Mired or cant. .nine the property insured ; 
 
 ■c<mly: i^farbMwdaauKcuDicdbrnegWtrrftDeaauiredorhUasciita, louw all practicable ' — 
 
 b uildiag insured or cant tilling tl 
 
 roticias; the ahuie value and ownership of the property, ai 
 ace the certificate wader teal of a magistrate, notary pwbhc, or com 
 are, aad not concerned in i be low or sriatrd U the ataared, stating t! 
 II be liable - attending the lean, know* the character an* carcunwaance* <4 the awur. 
 withont frand, (aatainad lota on the proaa Hy maared to the amoa 
 •ball the Company be liable or the claim be fee a greater hub than 
 property at the time of the lire, or beyond inch an 
 
 policy. 
 
 r Specially Hasardoua, 
 
 'iVl'.'iiuk' 
 
 ti phosphorus, saltpetre. 
 
 ia or extra time, of nights, unlets by 
 
 vrndinK therein any ■>( ih- jiV . 
 
 " irdous. in the v -ond. I i'i "i tin.' list ul < I ". - ' H -i.nU annexed to I 
 
 ...:........, ■ ■ . 
 
 aj will riliiilr ill-- itiMirjuce, except tin- 
 
 if If Una Policy b made and issued upon, or refer* to, an application, aurvcy, plan, or dctcn'ption of 
 
 ■ ■ 
 y> I. ilM.u, unlt-a* Mipcr^cded by a new description of >fi r. L It* willing . m-l if the :n"ur--il 'T Ins .(Kent iba 
 
 It the baaard oi * m* ncani wrthta ihr 
 
 34 which renders the riak more haurrloai th.Ti at raa time o! io*ut ne, ur ,1 ihr pr.mmrs insured are or 
 jj mhalL durinc the continuance of thia cuntrad. brcnaae vaunt, aaaciamin. or not in use. from »ni cause, and 
 ■ .. ■ ■ - : :■ . ■ . ■ ■ ,.:..-■■ 
 
 Swnot the sole, entire, aad unc oninti-nal nwaer of I he peoa- n y maured, and (il a building i» iniuredi of the land 
 on which the baiMinc Minds, by a sole, aao-ndrtioaal ami eatire own,r-!iii> lar] a ■■■ lirnpaaj or if the 
 
 T , t*iMin S stand* on leased land, or the Laid af aaMher. witaoat bca» specified m the written portion of this 
 ays Policy : or if there thai) be my sale, tranaVr, or change af title at of| possession of the property insured, or of 
 .■ ■-■.■■■. 
 *a there™, I loan, without wri I 
 
 44 This Policy rnsy'l* canceled at m lime, at irw rroaeM of the araured. the Lomp-iny retaining 
 
 40 f.mpjny on giving written or verbal notice to that enact, and r'fiiaiwng or tendering a rateable proportio' 
 
 2 taw premium for the unexpired term of the Policy. 
 It ike s —n w i ri . or an* other neranaa or nartiea iraateated, shall have existing durinR the contmuanc 
 ince (wheth -r valid or not) against loas or damage by 
 " o bythiaCorapanyin wr.i 
 
 go on the property herebv insured, or any part thereof, not e n na t a f d to brnvCaaapM 
 j. in or ii^t.-.I apoa rarataaaal be rokl and of no rfcet ; 
 
 5a hereon, the ssanred shall not be entitled to demand or rrcorer of that Cawpany any grrai.i ■aarriranrj 
 
 " War to the whole amount of auch conlrac 
 
 
 . ^_ aabsOibe such examinalrim when 
 
 totally destroyed, unless agreed apaa hetwaaa the Maarcd and ihe 
 
 __..d and competent prraana, asataatry adrncd apon by the parties. 
 
 asaured shall put it ia the best .ader prrssilaa, arparating the damaged fr 
 
 thereof, naming the qaantily and coat afrSx* a J 
 
 '- d;an*Tlh*d«-- : '-- J 
 
 tHu, W . att c ropt at fraud, 
 
 
 request of cither party, be 
 
 affect the gacation of and) liability. 
 Re-maa ran ce to be on il 
 
 
 concerning the amount of any loaa or damage by fire, after 
 
 judgment of aiUtrators. mutually agreed upon, wh 
 mage shill be binding on the partir* . but any awar 
 1 admission of liability, on the part of the Compii 
 
 be on the basis, that in no event will ihi» Company be liable for a sum 
 
 eaaxtarn and pi-opei iv. ;ind 77 
 
 ntiflg- Dataagetopr.ijHTty 78 
 
 SfaUert7«i^'.'^^! l 'h.- I'o 
 
 1 form a part of the proofs 83 
 
 I such proof* and certificate* 84 
 
 use rforfeitu*re |, o(- J aJi C claima 86 
 
 :t";;;; 
 
 1 •urn inanred by the ( 
 
 Ions, Una Company la pay pro rata, at and in the same time and manner as Ike Company reinsured. In case of 96 
 !<•*. the assured shall assign 10 this Company all his right lo recover satisfaction therefor from any other person 97 
 or persona, town or other corporation, with a power of amrrtey lo *ue for aad recover the same ai ihe expense 9* 
 of this Company. And. if insured as a mortgagee, the baa •hall not be payable antil payment of any such 90 
 
 KionofllwdebtMonbecrdlertedr^lrfirKrjrigniala an»i cealataral ahall 100 
 
 • been enforced ; and lhi« C o m p a n y ahall then only be liable to pay sneh sum, not exceeding the amount 101 
 
 H is further agreed, that there cm he n<< waiver of any condition of thi. Policy, unless such waiver is ioj 
 clearly eiprernH ntU* P licj ia nlamlfJ and lhat no person shall be deeased the agent of th-» Company in 104 
 any transaction, unless he shall hire recenred a comnuuton, signed by the officer* of thi* Company, appointing 105 
 
 
 It 1* furthermore expressly agreed, that no nit or action of any hind again* that Company for ihe ■« 
 ry of any cJain*. upon, under, or by virtne of this Pohey, ahall be ssnnainaWe m any Court of law or .at 
 ry, tmlea* mch sou or action shafl be crammenced within the term of twelve months next after the loss 109 
 
 '" 
 conclusive evidence againat the validity of lh( claim thereby so auempted to be enlorted, any statate na 
 
 f limitation lo the contrary notwithstanding. 
 
 r damage susttiuoJ. thjn the amoont hereby ii 
 "<( »h-th. 1 wi-.h .,■:. l.y ii>ecirtl in- by general or Moating polic 
 
 And this Policy is made and accepted on the above express conditions. 
 
 fit Witttft Wfcttttt, the NATIONAL FIRE INSURANCE COMPANY of Hartford have caused these presents to be signed by their President, and 
 attested by their Secretary, in v the City of Hartford, and State of Connecticut. 
 
 /•?,.> w £ '■ j Sfftrtirg; 
 
 u'i'j/WTflfCsi Jk,,i,„t. 
 
 Facsimile of First Policy — face. 
 
A QUAKTEE CENTURY'S FIRE UNDERWRITING 17 
 
 1871. 
 
 Honorary List of Agents, 
 
 appointed during the Company's first year, who still 
 represent the National on its quarter-century birthday. 
 
 M. W. Farr (now of Macomber, Farr & Co.), Au- 
 gusta, Me. 
 
 E. H. Cochran (now of Cochran, Baker & Cross), 
 Rockland, Me. 
 
 H. H. Wellington (now of Wellington & Bixby), 
 Adams, Mass. 
 
 Oliver Walker, Northampton, Mass. 
 
 R. B. Robinson, Westfield, Mass. 
 
 D. F. Viles, Waltham, Mass. 
 
 A. E. Mack, Lawrence, Mass. 
 Snow & Barker, Providence, R. I. 
 Timothy Jones, Danbury, Conn. 
 
 S. Y. St. John, New Canaan, Conn. 
 Cowles & Merrill, Norwalk, Conn. 
 
 B. P. Learned, Norwich, Conn. 
 
 C. A. Todd, New Milford, Conn. 
 C. H. Chesebro, Putnam, Conn. 
 L. Bissell & Son, Rockville, Conn. 
 
 3 
 
18 THE NATIONAL FIEE INSUKANCE COMPANY 
 
 1871. L. H. Pease, Thompsonville, Conn. 
 
 L. C. Mann, Son & Meaker (now W. H. Meaker & 
 Son), Auburn, N. Y. 
 
 B. Stafford & Son (now Harvey K. Stafford), Cana- 
 joharie, N. Y. 
 
 William T. Dodge, Cohoes, N. Y. 
 Samuel Southworth, Geneva, N. Y. 
 Josiah E. Ferry, Oneida, N. Y. 
 
 C. Hay den & Son (now C. T. Hay den), Rome, N. Y. 
 Hoyt & Butler, Utica, N. Y. 
 
 Edwards & Son (now Edwards & Kenney), Pitts- 
 burg, Penn. 
 
 Walter S. Shaefer (now of Shaefer & Lowrey), 
 Pottsville, Penn. 
 
 C. S. Kussell (now of C. S. Russell & Co.), To- 
 wanda, Penn. 
 
 W. B. Andruss, Amboy, HI. 
 
 S. M. Moore & Co. (now Moore & Janes), Chi- 
 cago, DL 
 
 Robinson & Callender (now Callender & Co.), Pe- 
 oria, 111. 
 
 Buford & Reed (now J. M. Buford), Rock Island, 
 111. 
 
§ ■? 
 
 
 
 1 2. 
 
 
 
 
 ■i 
 
 
 s 5 
 
 
 * 1 
 
 
 
 
 
 
 | -s 
 
 
 
 £• 1 \ 
 
 
 5 1 I 
 
 
 1 E 
 
 »' I 
 
 5 ■* 
 
 " v 
 
 his .nm«i a -s n 
 
 ■diuiis mui.. b -s - n 
 
 National 
 
 National 
 
 Fire Insurance Company, Fire Insurance Company, 
 
 HARTFORD, CONN. 
 
 DIRECTORS. 
 
 MARK HOWARD, r-REiiDENT. 
 
 E. H .OWEN, 
 
 HOMER BLANCHARD, 
 
 RICHARD D. HUBBARD, 
 
 WAREHAM oris wold. 
 
 J. F. FOSTER. 
 
 j. r. judo. 
 
 K. K WELCH. 
 
 D V. SEYMOUR. 
 
 JAMES BOLTER, 
 
 FRANK W. CHENEY. 
 
 KBENEZER ROBERTS, 
 
 HARRISON B. I'RKKMAN, 
 
 WH. B. FRANKLIN, 
 
 WM. S. PIKR30N. 
 
 WM H. LEE, 
 
 TIMOTHV SHELDON. 
 
 JAMES NICHOLS, Secretary. 
 
 HARTFORD. CONN. 
 
 No. 1 
 ASSUMED. 
 
 4 .. ':.->. 
 
 ) 
 
 Amount, 
 
 \ Pri-niiun 
 
 
 Property Covered, /,' r.i '/ j ul 
 
 Policy Expires, '- t 
 
 inmiMMHi '.r^r)f i m l 7 i i ^"rf*"j^'^^^jrfi!r r'*Ti 'i'7*' 
 
 ■^■rlij fuiM,« t '.d rH^ini I n-u Jhi t tuK| ih||Mu»ii*l)««T u 1 lw~5 
 
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 !£"' r??!nSuM 'w 
 
 
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 ■■''..•'.;, ,; ^JJ-', .; -. i 'j 
 
 ■ssvr) Xratj 
 SCIHVZVH HO S3SSV7D 
 
 ^ 
 
 Facsimile of First Policy — back. 
 
A QUABTEE CENTURY'S FIRE UNDERWRITING 19 
 
 Hawley & Grant (now D. & F. L. Grant), Spring- i*n, 
 field, ISL 
 
 Thomas L. Graves, Kendallville, Ind. 
 
 William Fulton, Keokuk, la. 
 
 Christian Mack, Ann Arbor, Mich. 
 
 Henry H. Hubbard, Battle Creek, Mich. 
 
 G. R. Lyon, Owosso, Mich. 
 
 Graves & Culver (now Graves-Manley Agency), 
 Duluth, Minn. 
 
 Delafield & Snow, St. Louis, Mo. 
 
 Wilson & Hale (now Edwin Wilson), Ripon, Wis. 
 
 N. B. Hall & Son, Jackson, Mich. 
 
 The condition of the insurance business in the 1872. 
 United States at the commencement of 1872 was 
 much the same as that of general business at the close f Fire 
 of the great civil war in 1865 ; its resources were de- B^ness. 6 
 pleted and its forces lacked effective organization and 
 method. 
 
 To more fully realize this fact, one needs but to re- 
 fer to the report of the Insurance Department of New 
 
20 THE NATIONAL FIBE INSUEANCE COMPANY 
 
 1872. 
 
 The 
 
 National 
 Board of 
 Fire Un- 
 derwriters. 
 
 Bates 
 
 Advanced 
 
 on 
 
 Account 
 
 of 
 
 Chicago 
 
 Fire. 
 
 York State for the year 1872, and compare the num- 
 ber and financial condition of the stock companies 
 then doing business therein with the record of the 
 companies reporting to the same department in 1897, 
 twenty-five years later. 
 
 At this time the fixing of tariff rates for stock fire 
 insurance companies was under the direction of one 
 central body, having its headquarters in New York, 
 and known as the National Board of Fire Under- 
 writers. 
 
 This organization had been in existence since 1866, 
 and its membership embraced the large majority of 
 agency companies. The National joined the Board in 
 1872. 
 
 The calamity at Chicago had been so disastrous to 
 the interests of fire insurance that an immediate 
 advance in rates was felt necessary, and a general 
 order to that effect was sent out by the National 
 Board to all the local rating organizations through- 
 out the country. The justice and necessity of an 
 increase in rates were generally conceded by the busi- 
 ness interests of the country. 
 
 The operations of the National during this year 
 
A QUAETEB CENTUBY'S FIRE UNDERWRITING 21 
 
 were necessarily more restricted than those of its 1872 « 
 older and stronger competitors; but this fact may 
 not have been without advantage; at all events, its 
 business yielded remarkably good results, for its 
 loss ratio previous to November had been extremely 
 low, and up to that time both officers and directors 
 looked forward to handsome profits upon the year's 
 transactions. 
 
 These expectations were not to be realized, for on 
 the 9th of November, upon Saturday evening, a fire 
 started in the business district of Boston, and fate- 
 ful conditions permitted its development into a vast, The 
 uncontrollable conflagration. Telegrams for assis- Fire# 
 tance were sent to New England cities far and 
 near, to which prompt answer was given, and avail- 
 able engines, apparatus, and men were sent with all 
 possible speed to aid the stricken city. 
 
 The enormous losses by the Chicago fire of the Effect 
 previous year were yet in keen remembrance, and the «f **■ 
 
 r * " News upon 
 
 news of Boston's calamity created intense excitement Hartford 
 
 Investors, 
 in Hartford, where insurance stocks were the ap- 
 proved investment for capitalist, trustee, widow, and 
 orphan; and this newly threatened danger of as- 
 
22 THE NATIONAL FIKE INSURANCE COMPANY 
 
 1872. sessment or entire loss of holdings caused great 
 
 consternation. 
 
 By Sunday evening the force of the conflagration 
 was checked and the flames were brought under 
 control, when, by an explosion of gas in a block of 
 stores on Summer Street, near Washington, which 
 up to this time had withstood the flames, a second 
 conflagration was started, and the devastation was 
 renewed and continued until Monday morning before 
 its force was abated and the limits of the burned 
 district could be denned. 
 
 The National's loss amounted to $161,825.55, while 
 
 the aggregate amount of losses by the conflagration 
 Losses 
 
 by was at least $80,000,000, of which about $56,000,000 
 
 Boston . . 
 
 Fire. was covered by insurance in companies solvent or 
 
 otherwise. The losses of Connecticut companies in 
 
 the fire amounted to $2,990,275. 
 
 Upon the payment of its losses the National had 
 insufficient funds to provide for the necessary re- 
 insurance reserve, though somewhat more than the 
 full amount of its capital still remained. 
 
 Regarding the manner in which this emergency 
 was met, the Connecticut Insurance Commissioner, 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 23 
 
 in his animal report for 1872, made mention as 1872 - 
 
 follows : 
 
 "The National Fire Insurance Company showed 
 
 an impairment slightly beyond the limit allowed by 
 
 law, and promptly called a meeting of the stock- 
 Assessment 
 
 holders for December 20, which voted a reduction of stock- 
 holders 
 of capital to $350,000, and afterward voted unani- to meet 
 
 Boston 
 
 mously to increase to the former amount of $500,000, Losses, 
 the subscriptions to the new stock payable on or 
 before December 27. An official examination, made 
 January 10, showed the sum to have been fully 
 
 paid and secured as required by law. The business- How Ac- 
 complished, 
 like manner in which this company, so recently or- 
 ganized, met this emergency is characteristic of its 
 management, which sustains it in the front rank of 
 reliable companies." 
 
 This action of the stockholders gave to the official 
 staff great courage and confidence, and is still re- 
 membered with gratitude and pride. The course its 
 pursued proved wise for the Company, giving it at 
 once a strong position, and enabling it to secure its 
 fair share of the most desirable business offered. 
 Two other Hartford companies took similar action. 
 
24 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 1872. 
 
 An Oppor- 
 tunity not 
 fully Ap- 
 preciated. 
 
 The great influx of new business to the companies 
 that survived the Boston conflagration was a repeti- 
 tion of the preceding year's experience. 
 
 Their capacity to care for the flood of business 
 which now sought them was severely taxed, but the 
 remarkable opportunity offered to American com- 
 panies for building up grand and even colossal pre- 
 mium incomes at this time and during the years 
 immediately following, was not fully appreciated until 
 in later years, when the opportunity had passed away. 
 
 1873. 
 
 Prophecies 
 Fulfilled. 
 
 The events of November 9 and the days follow- 
 ing justified the prophecies of many underwriters who 
 for several years had regarded the business district 
 of Boston with increasing distrust, though the novice 
 in fires and fire underwriting little thought that its 
 solid walls could be the victims of a sweeping con- 
 flagration. 
 
 The Boston fire, involving the failure of all but 
 two local companies, and large numbers at other 
 insurance centers, emphasized the lesson of the Chi- 
 cago fire, which was already losing force. Chicago 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 25 
 
 was largely a frame city ; the conflagration started 18 ?3. 
 in a wooden vicinity, and gathered such irresistible Lessona 
 power that, reaching brick, stone, and mortar, it de- *° Un " 
 stroyed those materials as quickly as if they were from the 
 
 Great Con- 
 paper or wood, and even invaded the city of the dead, flagrations. 
 
 crumbling its monuments into dust as completely 
 as if they had been placed in the alchemist's furnace. 
 In contrast, Boston's great fire started in the busi- 
 ness district, built of brick and granite, but the value Wooden 
 
 Mansard 
 of this construction was minimized by wooden man- Roofs 
 
 one Cause 
 sard roofs, which were numerous throughout the dis- of Boston's 
 
 Fire. 
 
 trict and proved, in the crucial test, no better than 
 elevated lumber yards. 
 
 Wooden mansards now came to be regarded by 
 underwriters as little less than devices of Satan for 
 the discomfiture of insurance companies, and, there- 
 fore, by means of schedule rating then inaugurated, 
 they were made exceedingly expensive to the owners 
 of buildings already erected, and were practically pro- 
 hibited in new construction. 
 
 The investigations made for determining the origin Open 
 
 Elevators 
 
 of the Boston fire demonstrated that the open ele- aContribu- 
 vator was also a serious defect in building construe- 
 
26 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1873. tion equal in importance to wooden mansard roofs. 
 
 In the building where the fire started the flames were 
 communicated by the air-shaft or chimney formed 
 by the open elevator-way to each floor and to the 
 wooden roof with almost hghtning rapidity. 
 
 These lessons have not been lost upon the under- 
 writers or the public, and a business block constructed 
 since that time with a wooden mansard roof is a 
 rare occurrence, while the objectionable form of open 
 elevator or wooden elevator shaft, though not infre- 
 quent, is unknown in all standard mercantile and 
 manufacturing risks. 
 
 The occurrence of two disasters of such alarming 
 magnitude within so short a period had an intensely 
 disquieting effect upon the entire country, and there 
 
 Conflagra- 
 tion Hazard were few towns or cities of large size that were not 
 of other 
 Cities critically reviewed either by the underwriter or the 
 
 Critically 
 
 Reviewed, public press with reference to their liability to de- 
 struction by conflagration. The daily papers and 
 magazines made the subjects of fires and fire preven- 
 tion topics of frequent and learned discussion, while 
 public confidence was sadly shaken in fire insurance 
 as an investment. Hence, to the introduction of the 
 newest and best methods for the extinguishment of 
 
A QUARTER CENTURY'S FIRE UNDERWRITING27 
 
 fires, as well as the improvement of those in use, 1873. 
 the attention of municipal governments throughout 
 the land was directed, and to that end large sums of 
 money were appropriated. 
 
 The National Board at once ordered a further ad- 
 vance in rates, and rapidly enlarged and perfected 
 its appliances for rating all insurable property. Rat- 
 
 A General 
 
 ing schedules for mercantile and special hazards Advance 
 were devised and adopted by many local boards, again made, 
 rating committees were organized among the field 
 men, while the field and office force of the Board 
 itself was largely increased. 
 
 As a member of the National Board, the Company 
 gave its hearty cooperation to this work of improving 
 the methods of underwriting, and to the establishing 
 and maintaining of equitable rates its loyal support. 
 
 The Insurance Commissioners of several States, no- 
 
 Better 
 
 tably those of Massachusetts, Connecticut, and New Methods 
 York, took an active part in the discussions of the day, cusseJby 
 and their reports for several years subsequent to the ^^g. ce 
 large conflagrations were exhaustive and full of valua- 8ion ers. 
 ble suggestions. In these reports, improved construc- 
 tion, the evils of over-insurance, the necessity of larger 
 capitals and stronger reserves, and similar questions, 
 
28 THE NATIONAL FIBE INSURANCE COMPANY 
 
 1873. were ably discussed, and the underwriter of to-day will 
 
 derive much interest and profit from their perusal. 
 
 Absorbing attention was now given by the National 
 Board to standard construction and protective appli- 
 ances, and the records of its meetings during the 
 years 1872 to 1876 teem with discussions and legisla- 
 tion upon these and kindred subjects. 
 
 In Boston and Chicago the reconstruction of the 
 burned districts received close attention, 1 and the 
 
 1 To lovers of antique in history, and 
 as illustrating the progress of ideas 
 during the past two hundred years or 
 more, the following excerpts from the 
 records of Boston will have interest: 
 
 Immediately following the great 
 fire in Boston in 1653, the following 
 order was adopted by the town: "Or- 
 dered — That thear be a ladder or 
 ladders to every house within this 
 town, that shall rech to the ridg of the 
 house, which every houshowlder shall 
 provide for his house. . . . that every 
 houshowlder shall provide a pole of 
 about 12 feet long, with a large swob 
 at the end of it, to rech the rufe of his 
 house to quench fire ; that the seleckt 
 men shall provide six good and large 
 ladders for the town's use, which shall 
 hang at the outside of the 'meeting- 
 house,'" etc. 
 
 Act op Mat 28, 1760. 
 
 An Act for the better rebuilding that 
 part of the Town of Boston which was 
 
 laid waste by the late fire — and for 
 preventing fire in that Town for the 
 future. 
 
 Whereas, great desolation hath been 
 lately made by fire in the Town of 
 Boston, which hath been principally 
 occasioned by the narrowness of the 
 streets, and the houses being built 
 with wood, and covered with shin- 
 gles. . . . 
 
 Be it enacted: That no house or other 
 building whatsoever of more than seven 
 feet in height shall be erected in Bos- 
 ton otherwise than of Stone or Brick, 
 and covered with slate or tiles, and 
 that no house or other building already 
 erected of any greater dimensions than 
 as aforesaid shall be hereafter covered 
 anew on the top, any otherwise than 
 with slate or tiles, on penalty of fifty 
 pounds, to be paid by the owner of the 
 same for the use of the poor of the 
 said town, to be recovered by an action 
 brought for the same by the town 
 treasurer. 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 29 
 
 opportunity now offered for eliminating those serious 1878. 
 hazards in building construction which had proved 
 so fatal was unequaled. Believing that the require- 
 
 Precautions 
 
 ments of the underwriter could be best secured by forsecur- 
 means of schedule rating, the local boards of under- Buildings 
 writers devised and carried into effect systems of districts of 
 rate-making which offered low rates for buildings 2***° 
 that were built in accordance with the standard fixed Bost °n. 
 by the schedule, but made heavy charges for danger- 
 ous defects. 
 
 These precautions, in conjunction with improved 
 building laws, were successful in securing in both 
 cities buildings of a superior class, thus greatly 
 reducing the probability of future sweeping con- 
 flagrations. 
 
 The secretary of the Boston Board of Fire Under- 
 writers reported that during the first year's operation 
 of the schedule in Boston "no wooden mansard 
 roofs had been erected in the burnt district." 
 
 Other cities followed the example thus set, and of ec 
 adopted the schedule system of making rates. Sing 16 
 
 In New York, from January 1, 1873, to March 23, 
 1874, no less than sixty-three buildings were im- 
 
30 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1873. proved by the removal of their mansard roofs, and 
 
 large numbers of other important changes were 
 brought about through the disciplinary effects of 
 the schedule. 
 
 By similar methods numerous improvements were 
 also effected in the fire departments of both large 
 and small cities, building laws were secured where 
 none had before existed, and those in force improved. 
 
 Probably in no single year have so many radical 
 changes occurred in methods and conditions affecting 
 the business of fire underwriting as in 1873. Such 
 improved conditions brought their legitimate results, 
 notwithstanding the recurrence of conflagrations 
 which were disturbing in their effect upon the 
 entire public. 
 
 May 30 a serious fire occurred in Boston on 
 Washington Street, which destroyed property valued 
 at a million and a half of dollars before being ex- 
 tinguished, while in the month of August, Portland, 
 
 Large 
 
 Fires in Oregon, was visited by a conflagration covering a 
 much larger district than that in Boston, but involv- 
 ing a slightly smaller loss. The National suffered by 
 the Boston fire only. 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 31 
 
 The loss record of the country for the year to all 1873. 
 companies was a ratio of losses to premiums of 60.06 L 
 per cent. ; fortunately the National's record was more Record - 
 favorable, being about 40 per cent. 
 
 This year witnessed a severe financial panic; and 
 that the year's business yielded even a small profit 
 was a surprise to underwriting theorists, refuting 
 their commonly expressed opinion that hard times 
 produced heavy fire losses. Upon this result a well- Financial 
 
 Panic 
 known writer has remarked : and its 
 
 Effect upon 
 "The financial panic that suddenly swept over Fire 
 
 In S 11 r ci 11 C G 
 
 the country carrying ruin to many of the oldest and Hazards, 
 apparently strongest business and financial institu- 
 tions, and threatening disaster to every monetary 
 interest, strange to say, had no unfavorable result 
 on the fire companies beyond retarding the collec- 
 tion of premiums, and depreciating to a considerable 
 extent the market value of a part of the securities 
 held by them. The reign of fire so confidently pre- 
 dicted as the inevitable concomitant of great financial 
 depression and disturbance was not inaugurated, and 
 the year 1873 was apparently content to expire with- 
 out the sensation of a great conflagration in addition 
 
32 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 1873. 
 
 Standard 
 Policy 
 Adopted 
 by Massa- 
 chusetts. 
 
 The 
 
 Atlas of 
 Hartford. 
 
 to that of one of the most extended and disastrous 
 financial panics this country has ever experienced." 
 
 During the year another advance toward better un- 
 derwriting was secured, though not inaugurated by 
 the companies themselves. Heretofore each company 
 had used its own form of policy and few were pre- 
 cisely the same. The assured was perplexed by the 
 multiplicity of conflicting policy conditions printed 
 in microscopic type and oftentimes exasperated by 
 their operation in case of loss. The National Board 
 in 1868 adopted a standard policy, but it was used 
 only to a limited extent. Massachusetts was the first 
 State to enact a law requiring the use of a uniform 
 policy printed in long primer type; and a standard, 
 prepared by a legislative committee upon which the 
 companies were represented, was adopted in 1873, and 
 has since been used, with slight amendments. The 
 size of type required in the Massachusetts form has 
 become the standard type for fire insurance policies 
 throughout the country. 
 
 In July the Atlas of Hartford commenced business 
 with a capital of $200,000, and established agencies 
 in many sections of the country. Discouraged, how- 
 ever, by adversity, it retired November 19, 1881. 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 33 
 
 The Atlas was the only stock fire insurance com- 1873. 
 pany organized in Hartford after the National com- ^8^ 
 menced business, and the six Hartford companies now JJ artford 
 
 x Companies 
 
 in operation are the same that reported to the State in 1872 
 Department twenty-five years ago. in 1 897. 
 
 The high-water mark of rates was reached during 1874. 
 the year 1873, and thereafter a decline set in, the gt ad 
 rates steadily dropping from year to year. The cause 5 eclin ! in 
 is readily found. Following the Chicago and Boston caused, 
 fires, the pendulum of reform swung to the extreme 
 of high rates, reaching a figure far beyond that ac- 
 tually necessary for the yielding of a fair profit. A 
 discontented public and its demands for not only 
 more but cheaper insurance brought the natural 
 result, viz., a large increase in the number of com- 
 panies seeking the business. Not less than one hun- 
 dred new companies entered the field within a com- 
 paratively short period, and while a few were well 
 organized and financially sound, by far the greater 
 number were weak and irresponsible. 
 5 
 
34 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1874. 
 
 Competi- 
 tion from 
 Non-Board 
 Companies. 
 
 1874 a 
 
 Profitable 
 
 year. 
 
 Extension 
 
 of 
 
 Agencies. 
 
 Nearly all of these companies refused to join the 
 National Board, or be governed by tariff rates, and 
 believing that the Chicago or Boston fires would 
 never be repeated and that enormous profits could 
 be obtained, offered their policies to a confiding and 
 willing public at largely reduced rates, regardless of 
 their ability to meet the losses sure to follow. 
 Though failure of the majority of these companies 
 was an inevitable result, their competition invited 
 demoralization and served to diminish the premium 
 income of the National and other Board companies. 
 This result was gradual, however, and during the 
 year 1874 the business yielded large profits. 
 
 The National's loss ratio for that year was 39.08 
 per cent., while the average of all companies was 
 45.06 per cent., and this favorable figure was reached 
 even with heavy fires at Oshkosh, Wis., of about 
 $1,000,000, and at Chicago of nearly $3,000,000. 
 
 The National continued to extend its business with 
 caution, entering, during the year 1874, the States of 
 Tennessee and Colorado, and planting agencies therein. 
 
 During this year the first instance occurred of co- 
 operation between insurance companies in coercive 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 35 
 
 measures, for the purpose of enforcing favorable leg- W4 
 islation by a cessation of business. Much dissatis- 
 faction was occasioned by the failure of the city 
 government of Chicago to carry out promised reforms 
 in fire department and other protective matters, and, 
 
 With- 
 
 because of such failure, in September, by vote of the drawai of 
 
 National Board of Fire Underwriters, seventy-two f r0 m 
 
 companies, members thereof, including the National, an dSub- 
 
 decided to discontinue business in that city. The fff"? 
 
 agreement took effect October 1st, and the National, 
 
 with others, arranged for an immediate withdrawal. 
 
 Through lack of unanimity among the companies, 
 
 this effort to compel the needed reforms was but a 
 
 partial success, and business was therefore resumed 
 
 in that city during the following month of November. 
 
 The year 1874 was the first in which the companies 
 
 were required by the State of New York to report 
 
 their liability for unearned premiums, upon the basis -^ w York 
 
 now universally used. jL asis for 
 
 Unearned 
 
 Some underwriters, whose surplus suffered thereby, Premium 
 
 Liability. 
 
 made strong protest against compliance with this 
 
 requirement, but its wisdom was generally indorsed. 
 
 The National was not inconvenienced, as that basis 
 
36 THE NATIONAL FIBE INSUBANCE COMPANY 
 
 1874. for reserve premium liability had been previously 
 
 adopted in its reports to Connecticut. Its net sur- 
 plus at the close of 1874 showed an increase of more 
 than $100,000 over that of the previous year, but the 
 premium income had decreased because of the steady 
 reduction in rates. 
 
 1875. 
 
 Increased 
 Demorali- 
 zation. 
 
 The years following 1874 up to and even after the 
 year 1880 covered a period of demoralization in the 
 business of fire underwriting such as was never before 
 experienced, and it is hoped may never again occur. 1 
 
 Nevertheless, the year 1875 opened favorably be- 
 cause of light losses and the fact that rates in the 
 aggregate upon such business as could be retained 
 from competitors yet offered a margin of profit, but 
 in April and May a series of disastrous losses oc- 
 curred, discouraging alike to the National and other 
 companies. 
 
 1 The fierceness of the competition were admitted to the State during that 
 
 during this year and those immedi- year. But one of the entire number 
 
 ately succeeding is realized by refer- now remains in business. During that 
 
 ence to the " Massachusetts Insurance year ten companies withdrew from 
 
 Report for 1874," in which it is re- that State and ceased business, 
 ported that twenty-seven companies 
 
A QUARTEE CENTURY'S FIRE UNDERWRITING 37 
 
 The work of extending the Company's business 1875. 
 was continued with extreme conservatism. The ^ 
 Company qualified during this year in the States of Co " 1 P an y 
 South Carolina, Alabama, and Arkansas, and estab- sta *es. 
 lished a few agencies therein. 
 
 Though the business in general, and for the Na- 
 tional in particular, for the year 1875 yielded a profit, 
 the results were less favorable than those of 1874. 
 
 The year's 
 
 From the reports of companies authorized to do Results less 
 
 i . ^ . Favorable. 
 
 business m New York State, it appears that the 
 premiums fell off $2,308,784, or about ten per cent., 
 the losses increased $1,095,661, or about fifteen per 
 cent., and a decrease in risks written of $53,279,385. 
 These figures indicate substantially the relative ex- 
 perience of the National. 
 
 Agitation and discussion as to the best means for 
 strengthening the fire insurance companies, and pre- Reserve ^ 1 
 venting their future annihilation by sweeping con- Fund Law 
 flagrations, resulted during the year in the passage of York state - 
 a law by the State of New York, known as the " Spe- 
 cial Reserve Fund " law, whereby a New York com- 
 pany, availing itself of the conditions of said law, 
 could deposit with the State a certain portion of its 
 
38 THE NATIONAL EIBE INSURANCE COMPANY 
 
 1875. 
 
 Operation 
 
 of 
 
 the Law. 
 
 A similar 
 Statute 
 Considered 
 in Con- 
 necticut. 
 
 Downward 
 
 Tendency 
 
 of 
 
 Company's 
 
 Business 
 
 not checked 
 
 until 1880. 
 
 assets, and the sum so deposited should not be sub- 
 ject to the claims of policy-holders losing by a confla- 
 gration, but in the event of all other assets being 
 swept away by such conflagration losses, said deposit 
 should constitute a new capital, and enable the com- 
 pany to continue business without interruption. 
 
 Nine New York companies are now operating under 
 the provisions of this law. Undoubtedly it is more in 
 the interest of stockholders than of policy-holders; 
 but fortunately its wisdom or justice has never been 
 put to the test by calamities like those of Chicago and 
 Boston. 
 
 The officers of the National, and of other Hart- 
 ford companies, gave careful consideration to the 
 merits of this law with a view to the enactment of 
 a similar statute in Connecticut, but the matter was 
 finally dropped. 
 
 Reference to the tables of experience of the Com- 
 pany elsewhere in this book will show that from 1873 
 its premium receipts steadily decreased year by year 
 until 1880, and it was not until 1884 that their amount 
 equaled the premium receipts of the year 1873. 
 
 It will also be observed that the volume of business 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 39 
 
 done, as indicated by " Amount at Risk," was barely 1875. 
 maintained during the years following 1873, until in 
 1879, when the first decided upward movement ap- 
 pears, but the increase was small in amount, and even 
 up to 1887 the growth of the Company was not com- 
 mensurate with its strength. 
 
 Nevertheless, progress was made and the net sur- 
 plus increased year by year, showing that the busi- 
 ness done had brought reasonable profits. 
 
 During this period the policy of the President was 
 
 an extremely conservative one. An underwriter of 0onser - 
 
 vative 
 
 the old school, with stern ideals as to the manner in Policy of 
 
 President 
 which business should be conducted, he had little Howard. 
 
 favor for radical methods or ideas, and regarded the 
 
 loss of business at reduced rates as preferable to an 
 
 aggressive policy from which future advantage might 
 
 be gained. It was frequently remarked by him that 
 
 the business of the Company was growing too rapidly, 
 
 and that in one direction or another it must be 
 
 reduced or repressed. 
 
 Undoubtedly the bitter experience through which 
 
 he had passed on account of the Chicago and Boston 
 
 fires made him regard the possibilities of another like 
 
40 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1875. 
 
 Results 
 of that 
 Policy. 
 
 Effects of 
 Continued 
 Demorali- 
 zation. 
 
 calamity as best guarded against by a strict and 
 severe limitation of liabilities. 
 
 Whatever, if anything, may be said in criticism 
 of such policy in the light of subsequent years' ex- 
 perience, the fact remains that the Company was 
 builded on foundations of strength and stability for 
 which the present management cannot be too appre- 
 ciative, nor too great credit given to the staunch 
 maintenance by Mark Howard of sound under- 
 writing principles. 
 
 In the meantime, demoralization of rates and good 
 underwriting practices continued and increased; the 
 mortality of the " wildcat " competitor was enormous, 
 while retirement by failure or re-insurance was the lot 
 of many a worthy but financially weak company. 
 
 The days of the "local" company, which regarded 
 the business of its particular locality as its chief 
 dependence, and the agency business of the country 
 at large as merely a " side issue," were numbered. 
 
 The problem of the "survival of the fittest" was 
 being rapidly demonstrated, the "fittest" company 
 being the one having an able management, financial 
 strength, a general business well selected and dis- 
 tributed, and a good average of liability. 
 
A QUARTEE CENTURY'S FIRE UNDERWRITING 41 
 
 The experiences through which the underwriter ivn. 
 
 passed for a period of ten years subsequent to the 
 
 conflagrations in 1871 and 1872, whether in an official 
 
 Effect 
 capacity or in the field, were productive of a broad upon 
 
 t . 1 , . ., Field 
 
 experience, a sound, independent judgment, and espe- Men. 
 cially a strong self-reliance, qualities which prepared 
 the special agent or field man in particular for the im- 
 portant responsibilities which fell upon him early in 
 the eighties, in the reestablishment of tariffs and 
 tariff organizations upon new and somewhat unfa- 
 miliar fines; for this work, outside of the largest 
 cities, then devolved almost entirely upon the spe- 
 cial agent. 
 
 The business for 1876 yielded to the companies in 1876. 
 
 the aggregate a good margin of profit even in the 
 
 The 
 
 face of an increasing demoralization. Premium in- year's 
 comes were largely decreased; yet losses were fairly esu "" 
 light — hence a resulting profit. 
 
 The affairs of the National Board, regarding the 
 
 maintenance of rates, grew daily more complex and 
 
 disturbing, and competition was increased by the 
 
 retirement of some of its members and the entrance 
 
 6 
 
42 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 1876. into the field of many new competitors, mainly weak 
 
 and inexperienced. 
 
 The attention of underwriters was called to the in- 
 evitable results of such competition if continued, by 
 both the insurance and public press, and particularly 
 by the State Commissioners of those States where 
 the great bulk of insurance capital was domiciled. 
 
 1877. 
 
 The 
 
 National 
 
 Board 
 
 abandons 
 
 rates. 
 
 Continued pressure from competition, loss of busi- 
 ness, and to some extent, a lack of good faith among 
 themselves, led the Board companies to take action, 
 and at the meeting of the National Board in April, 
 1877, a resolution was adopted by a vote of 31 to 9 
 for the abandonment of its rate-making powers, and 
 the relegation of its jurisdiction over rates to local 
 boards. 
 
 Rates on property not within the territory of local 
 boards were declared open. 
 
 This action was in effect the relinquishment of all 
 tariff rates, for few boards attempted thereafter to 
 maintain even the semblance of a tariff. 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 43 
 
 The great fire in St. John, N. B., June 20 and ws. 
 21, brought fresh alarm to the underwriter, and of 
 the total property loss, amounting to not less than Sonta?**" 
 $13,000,000, about $7,000,000 was covered by insur- g*" **=• 
 ance, largely in English companies, though two 
 Hartford companies suffered to the extent of over 
 $300,000. 
 
 Because of the burdensome deposit and tax laws 
 existing in Canada, the National had no established 
 agencies therein, and thus escaped loss. 
 
 The Company was less fortunate in its experience 
 
 at Gralveston, Texas, where a severe conflagration oc- Galveston 
 
 fire, 
 curred November 13. By this fire, property to the 
 
 value of $2,000,000 was destroyed, entailing a loss 
 
 upon the insurance companies of $1,129,061. The 
 
 National was a sufferer to the amount of $20,560, 
 
 by far the heaviest of its losses during the year. 
 
 At the close of the year 1877 the companies found Results 
 
 for 
 
 a profit from the business, though largely decreased 1877. 
 from that of 1875 and 1876; but the affairs of the 
 National showed little or no advance, and the out- 
 look for 1878 was extremely discouraging. 
 
44 THE NATIONAL FIBE INSUBANCE COMPANY 
 
 1878. 
 
 The Com- 
 pany with- 
 draws from 
 several 
 States. 
 
 Demands 
 for 
 
 increased 
 dividends 
 
 Met by 
 a stock 
 dividend of 
 $100,000. 
 
 During the year 1878 the Company sought safety 
 in retrenchment rather than by an extension of its 
 lines or agencies. 
 
 Because of the passage of objectionable laws in 
 Georgia, Alabama, and Delaware, the Company closed 
 its agencies in those States, and in the case of Del- 
 aware no cause or inducement has since been found 
 for a return to the State. 
 
 The heavy losses of stockholders and directors 
 in the Chicago fire and the payment of $150,000 to 
 make good the re-insurance reserve in 1872, caused 
 a minority of the directors to demand larger divi- 
 dends than the majority deemed prudent or justifia- 
 ble. It was conceded that the money so cheerfully 
 advanced at the time of the Company's need should 
 be returned in some form when its condition would 
 permit it, but it was claimed that moderate divi- 
 dends should be declared, and the Company strength- 
 ened by yearly additions to the surplus. 
 
 These views prevailed, and in 1878 a fair surplus 
 having been earned, a stock dividend of $100,000 was 
 declared, which, with the cash dividends already 
 received, and those to be declared on the capital, thus 
 
A QUARTEB CENTURY'S FIRE UNDERWRITING 45 
 
 increased to $600,000, amply reimbursed the stock- 1878. 
 holders. 
 
 Had it not been for this drain upon the net sur- 
 plus of the Company, a substantial increase would 
 have been made in that year, for the results of the L 
 
 year's transactions had been good, and though pre- f or1878 
 J ™ ° * lowest ever 
 
 miums reached a very low ebb, the loss ratio dropped reached by 
 
 Company, 
 to 37.5 per cent., the lowest point that has ever been 
 
 realized by the Company in its history. 
 
 The year following brought little encouragement 1879 « 
 to underwriting interests at large, for 1879 witnessed The year's 
 
 1*0011 If" Q 
 
 the retirement of many companies, and large reduc- generally 
 
 tions in the surplus of others that remained. able. 
 
 The loss ratio for the companies reporting to the 
 
 New York State Department was 61.77 per cent., a 
 
 higher ratio than had been reached since 1872. 
 
 During the year the Company retired from North With- 
 drawal 
 Carolina, because of the passage of laws which were from North 
 
 regarded as practically prohibitive. 
 
46 THE NATIONAL FIBE INSUBANCE COMPANY 
 
 1879. 
 
 Premium 
 
 receipts 
 
 reach 
 
 lowest 
 
 point. 
 
 Unsuccess- 
 ful effort 
 to restore 
 National 
 Board rates. 
 
 The Company's operations were extended some- 
 what in other directions to offset if possible the loss 
 of receipts from older agencies. The premium in- 
 come, however, reached its lowest ebb during the 
 year 1879, but in amount of risks written, a slight 
 gain was perceptible. 
 
 During this year an effort was made to rehabilitate 
 the National Board with its former rate-making 
 powers. Circulars were sent out to all companies 
 engaged in the general agency business, asking their 
 views regarding the expediency of a re-organization 
 of the Board and the reestablishment of rates. 
 
 At the meeting following this action, the replies 
 to said circulars were presented, and upon a vote 
 being taken, re-organization was postponed by a 
 vote of 22 to 2. 
 
 1880. 
 
 Demorali- 
 zation 
 checked. 
 
 The year 1880 showed little betterment in the fire 
 insurance business, but the force of competition and 
 demoralization was nearly spent, and most companies 
 had reached the conclusion that even if cooperation 
 for the establishment of rates was yet impracticable, 
 
A QUARTEE CENTURY'S FIRE UNDERWRITING 47 
 
 the time had come when self-preservation required isso. 
 that a stand against further reduction in rates should 
 be made. 1 
 
 No increase in the average premium rate took place, 
 neither was there a decline, and with a small reduc- 
 tion of the average loss ratio over that of the previ- 
 
 Company's 
 
 ous year, the net results were more favorable. This business 
 
 for 1880 
 
 was not evident in the affairs of the National, for it unfavor- 
 able, 
 suffered during this year a heavier loss ratio than 
 
 in any previous year since the Boston fire, and the 
 
 business yielded but a slight margin of profit. 
 
 V 
 
 The hoped-for improvement in underwriting con- issi. 
 ditions was realized neither in 1881 nor 1882, though 
 
 iSome idea of the disheartened Again, in April, 1880, President 
 
 feeling among prominent underwrit- Baker referred to the situation as 
 
 ers during the years 1876 to 1881 or follows: 
 
 1882 may be gathered from the reports " Demoralization in the front ranks, 
 
 of the National Board, as well as from with hostile legislation in varied shapes, 
 
 other sources. are fast hurrying underwriting to a 
 
 President Baker, in his address Oeto- low level." 
 
 ber 10, 1877, to the Board, said : The Commissioner of Massachusetts 
 
 " Competition has brought about de- in his annual report for 1877 said : 
 
 moralization ; rivalry has buried the u The average premium rate is proba- 
 
 safeguards far out of sight. bly lower than before the Chicago fire, 
 
 "Local boards have ceased to exist and with many of the companies the 
 
 except in a few places. situation may be briefly stated thus : 
 
 " The great disasters of Chicago and Less expense, less losses, higher rates, 
 
 Boston have been lost sight of." or bankruptcy." 
 
48 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1881. 
 
 Formation 
 of the 
 Western 
 Union. 
 
 Capital 
 
 of the 
 
 Company 
 
 increased 
 
 to 
 
 $1,000,000. 
 
 the prospects for a reestablishment of tariff organi- 
 zations steadily brightened. 
 
 The condition of business had already been ma- 
 terially improved in the Western States by the or- 
 ganization of the " Western Union " in May, 1879. 
 
 This organization was composed mainly of the 
 managers of the Western Departments of the leading 
 companies; and not only had it placed the business 
 of that territory upon a better basis, but it eventually 
 succeeded in substantially controlling both rates of 
 premium and commission. Its original membership 
 (by companies) of forty-one has since increased to 
 seventy-eight, and its operations have brought valu- 
 able results to fire insurance interests. 
 
 The demands of the public for strong companies, 
 and the advantages apparent to those having a capital 
 of at least a million dollars, led the directors of the 
 National, at a meeting held July 1, 1881, to vote an 
 increase in its capital stock to one million dollars 
 by cash subscription, with the understanding that 
 dividends then should be reduced to ten per cent. 
 This action brought undoubted advantage to the 
 Company. 
 
V 
 A QUARTER CENTURY'S EIRE UNDERWRITING 49 
 
 Though the general underwriting situation did not im- 
 materially improve during the year 1881, the premium 
 income of the National showed a considerable ad- 
 vance for the year, due mainly to an extension of Good 
 
 " results 
 
 agencies. The losses were but slightly more than forissi. 
 for the year preceding, hence the underwriting mar- 
 gin was good, and the surplus increased correspond- 
 ingly. 
 
 The year 1882 was less favorable. In February the 1882 - 
 Company experienced heavy losses by a severe con- 
 flagration in Haverhill, Mass., which destroyed the Haverhill, 
 entire business center of that city, and nearly anni- JJnliagra- 
 hilated the shoe-manufacturing industries, for which tlon * 
 it had acquired a national reputation. 
 
 The Company's business was small in that city, 
 and, indeed, in the State of Massachusetts, but its The 
 losses were probably heavier proportionately than losses « 
 those of many companies, being $25,130, while the 
 losses of all companies interested were not less than 
 $2,000,000. 
 7 
 
50 THE NATIONAL EIKE INSUEANCE COMPANY 
 
 1882. This disaster was severely felt by tlie insurance 
 
 Effect upon companies, for underwriting profits upon New Eng- 
 
 New ' 
 
 England land risks had been very small for the most favored 
 
 writing. companies, while with the majority the territory had 
 averaged a loss for a series of years. 
 
 The magnitude of manufacturing interests in the 
 New England States was then greater in proportion 
 to other business than elsewhere in the country, and 
 insurance thereon had become particularly unprofita- 
 
 Mntuai ki e no ^ on iy on account of inadequate rates and ex- 
 
 competi- " rL 
 
 tion. cessive fire losses, but because the better risks had 
 
 been lost by stock companies through the competition 
 of manufacturers'' mutuals, and the average quality of 
 those remaining had been correspondingly diminished. 
 These conditions, so discouraging and alarming, 
 drew the field men together by a bond of common 
 sympathy, hoping by conference and concerted effort 
 to secure an improvement in the situation. 
 
 .. . Following serious losses in the lumber districts of 
 
 of field men Burlington, Vt., during the settlement of which un- 
 to improve o ? > o 
 
 conditions favorable conditions were discovered, not previously 
 
 in Burling- 
 ton, Vt. known, the adjusters prepared and sent to the 
 
 companies a tariff of rates more nearly adequate 
 
A QUAETEB CENTURY'S FIRE UNDERWRITING 51 
 
 to the hazard than had before been obtained, which 1882. 
 were unanimously adopted. 
 
 Gratified by this approval of their work, the field 
 men were encouraged to then consider the rates pre- 
 vailing upon shoe factories, a class of risks repre- R ?' tes 
 
 senting a larger number of plants than any other uponshoe 
 
 factories 
 occupation in New England, and an agreement was 
 
 secured from the companies to uphold certain mini- 
 mum rates to be made thereon. 
 
 Later, the representatives of companies interested 
 in the writing of New England paper-mills met in 
 Boston, and formulated a tariff which was adopted paper- 
 with the utmost unanimity by companies writing 
 that class of hazard. 
 
 Thus emboldened to further efforts, other reforms The New 
 were discussed at subsequent meetings, and the work insurance 
 so begun crystallized into the organization, January organized. 
 6, 1883, of the New England Insurance Exchange. 
 
 The urgent need for reform and re-organization was 
 
 likewise felt in other parts of the country during the The South - 
 
 Eastern 
 
 year 1882, and in the South led to the formation Tariff 
 
 Associa- 
 
 of the South-Eastern Tariff Association at New Hoi- tion. 
 land Springs, Gla., August 16 of that year. 
 
52 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 1882. The years 1882 and 1883 mark a distinct era in rat- 
 
 ing methods, for in previous years the fixing of tariff 
 rates had been largely performed by organizations of 
 the companies themselves, or under their immediate 
 direction; but in these years the field men and local 
 agents assumed the work of reorganizing local boards 
 and the establishment of tariffs, with little attempt at 
 supervision on the part of the companies. In many 
 of the larger cities the work of reform had already 
 been commenced by the local companies and agencies, 
 independent of outside assistance, and in some cases 
 
 Boards and 
 
 Ta £ iffs w ^ e Doar( ^ s so organized, by bringing under wise con- 
 supervision. ^ rQ j ^ Q ra ^ es f p rem i um an d brokerage, greatly facili- 
 tated the work of the field men in the larger and sur- 
 ^ rounding territory. The efforts also of the local agents 
 in these cities in promoting standard construction, 
 protection and otherwise more favorable underwriting 
 conditions have done much to elevate the business 
 and furnish reasonable profit to their companies. 
 Some of the brightest underwriting talent in the busi- 
 ness is to be found in the local offices of the larger cities. 
 The general underwriting results of the year 1882 were 
 not disastrous and yielded a small margin of profit; but 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 53 
 
 because of the amount required for dividends on the 188s - 
 increased capital, and for an increased reserve liabil- 
 ity, the Company's surplus showed no material ad- 
 vance at the close of the year. 
 
 The organization of the New England Insurance isss. 
 Exchange in January, 1883, was followed by a similar 
 movement in New York State, resulting in the New 
 York State Insurance Exchange, which was organized 
 June 12. 
 
 This body was afterward merged into a new organ- n . 
 ization September 12, taking the name of the Under- liters' 
 
 Association 
 
 writers' Association of New York State. of New 
 
 York State 
 
 Great enthusiasm was developed in the work of organized, 
 both Associations, and the re-organization of boards, 
 the preparation and adoption of tariffs, the compila- 
 tion of rating schedules, the rating of special groups 
 or classes of risks, etc., were pushed forward with 
 vigor. 
 
 During this time the field men of Pennsylvania, 
 New Jersey, and Maryland were not idle, for in May, 
 
54 THE NATIONAL FIEE INSUKANCE COMPANY 
 
 1883. 
 
 Organiza- 
 tion of the 
 U. A., of 
 the Middle 
 Dep't. 
 
 Brighter 
 under- 
 writing 
 prospects. 
 
 Business 
 
 conditions 
 
 in 
 
 New York 
 
 City. 
 
 was organized the Underwriters' Association of the 
 Middle Department, which was an outgrowth of a 
 previous association started in 1881. Until this 
 year no effective work in the making of rates had 
 been attempted, but the organization of local boards 
 and the preparation of tariffs were now forwarded in 
 this field with great energy. 
 
 Meanwhile in the West and South the business 
 was being brought to a tariff basis, and the outlook 
 for the future as to rates and practices was more 
 promising. 
 
 Lacking the necessary field force, this work was 
 shared in but little by the National for several 
 years, but rates and rules wherever adopted received 
 the cordial support of the Company. 
 
 The conditions at this time surrounding fire in- 
 surance in New York City were of the most un- 
 favorable character. No fixed rates were in effect, 
 and the payment of excessive commissions made 
 the business almost universally unprofitable. 
 
 The Company's interests, though apparently in 
 good hands, had suffered by heavy losses and ex- 
 tremely low rates, and seeing no prospect for better 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 55 
 
 conditions, and regarding the conflagration hazard 1888. 
 
 as a serious menace, the directors voted to dis- The 
 
 . Company 
 
 continue business in that city, not to be resumed withdraws 
 
 until some radical change for the better should take New York 
 
 i City, 
 
 place. 
 
 The business for the year 1883 yielded a small profit 
 but showed no improvement over that of 1882; yet 
 the outlook was brighter and underwriters were gen- 
 erally hopeful. 
 
 Confident therefore of better times, it was deter- 1884. 
 mined in the summer of 1884 to open a department 
 upon the Pacific Coast, carrying out a decision of the 
 directors made in December, 1882. 
 
 Up to this time the policy of the Company had been 
 adverse to the departmental system of conducting 
 business, all local agents being required to report 
 
 x ctcinc 
 
 direct to the Home Office at Hartford. Coast De- 
 
 partment 
 In establishing a Pacific Department, direct deal- established. 
 
 ings with the local agents of the territory to be cov- 
 ered were regarded as impracticable, and a general 
 
56 THE NATIONAL EIRE INSURANCE COMPANY 
 
 1884. agency was given to Hagan, Mannheim & Co. (after- 
 wards Mannheim, Staples & Co.) at San Francisco, 
 for the Pacific Coast States. 
 
 The premiums secured through this department 
 disappoint- proved small in amount, and during its continuance 
 the results were not as favorable as hoped for. 
 
 The year's business yielded little profit to com- 
 panies at large, but the National proved an excep- 
 tion, for its ratio of underwriting profit was good. 
 
 The shrinkage during the year in market values 
 
 Reasons for „ . 
 
 decrease of investments was very heavy, exceeding in amount 
 msurpus ^ e p ro fit derived from underwriting, and this loss, 
 ompany. a i<j e( j ^y an i ncrease m reinsurance reserve, caused 
 an unavoidable decrease in the surplus of the Com- 
 pany. 
 
 1885. One of the most notable events of the year in the 
 underwriting world, and which will long be remem- 
 
 TneNew Dere d, was the so-called New Hampshire Compact, 
 
 Hampshire the first and only agreement that was ever entered 
 Compact. J ° 
 
 into with practical unanimity by agency companies, 
 to resist antagonistic legislation. 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 57 
 
 In the summer of that year a bill was introduced 1885. 
 into the New Hampshire legislature directed against 
 
 companies foreign to the state, prohibiting joint 
 
 Oppressive 
 
 action in the making of rates, and forbidding a com- legislation 
 
 its cause. 
 
 pany when sued, to transfer its case to the United 
 
 States Courts ; also containing a valued policy provi- 
 sion and other features which were regarded by the 
 companies and their representatives as inimical to 
 their interests; and in the legislative hearings that 
 followed the objections to the bill were ably, pre-- 
 sented, but without favorable effect. 
 
 When it became apparent that neither opposition 
 nor argument would avail, an agreement to cease 
 doing business in the State was circulated, and signed Became 
 by every company interested, the local New Hamp- Aug. 28. 
 shire companies alone excepted. Upon the passage 
 of the bill this agreement became operative, and 
 from that day (August 28) the signers, which in- 
 cluded the National, ceased issuing policies upon New companies 
 Hampshire property and did no business in that State JJJJJ g^£ e 
 for a period of more than four years. 
 
 Probably no agreement entered into between fire 
 insurance companies was ever maintained with such 
 8 
 
58 THE NATIONAL FIKE INSUEANOE COMPANY 
 
 1885. 
 
 Its failure 
 and aban- 
 donment. 
 
 Rate-war 
 
 in 
 
 Chicago. 
 
 nearly absolute good faith as this. Few infractions 
 were known or suspected, and confident of the jus- 
 tice of their cause, the companies seemed determined 
 to give the experiment the most faithful trial. 
 
 The unlooked-for retirement of a few companies 
 from the agreement in the latter part of 1889 was 
 a startling surprise to the majority; the compact 
 was therefore quickly abandoned, and the greater 
 part of the signers returned to the State at once. 
 
 Though the experiment proved a failure, it was 
 believed by many that a continuance of the agree- 
 ment for a year or two longer would have brought 
 the results desired, viz., a repeal of, or a modification 
 in, the laws. The outcome as between the companies 
 was such as to make a similar future experiment 
 improbable. 
 
 During the year a rate-war broke out in Chicago, 
 causing a suspension of tariff rates for several 
 months, and general demoralization ensued. 
 
 Chicago had maintained an Underwriters' Associa- 
 tion almost continuously since 1856. In 1880 certain 
 members withdrew from the Board and formed a 
 separate organization known as the Exchange. These 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 59 
 
 two bodies continued a separate existence until this 1885. 
 year (1885), when peace was declared, the rate-war Chicago 
 
 F. U. 
 
 abandoned, and a union was effected under the Union, 
 name of the Chicago Fire Underwriters' Union, which 
 has been in active operation to the present time. 
 Before the close of the year 1885, in the Eastern 
 
 territory, especially in New England and the Middle Tariffs 
 
 nearly 
 
 States, the establishing of local boards was prac- completed 
 
 in the East. 
 
 tically completed, and rates had been fixed by special 
 
 or minimum tariffs upon substantially all insurable 
 property outside of a few of the large cities. 
 
 The work accomplished by the various tariff or- ^^^ 
 ganizations throughout the country developed health- co °P eratlon 
 ier conditions, and fire underwriting was rapidly ap- Pushed, 
 proaching a sound basis. 
 
 For the first time stock companies began to recog- 
 nize that they had a mission to perform beyond the 
 
 mere collection of premiums sufficient to bring profit 
 
 Somethings 
 
 to their stockholders; that profit must be obtained Under- 
 writers 
 by an improvement of risks and a reduction of haz- had 
 
 ards rather than by any large or general advance in 
 
 rates; that the mutual interests of policyholder and 
 
 stockholder were to be considered ; that an improved 
 
60 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 1885. 
 
 Improved 
 
 relations 
 
 between 
 
 Companies 
 
 and 
 
 Assured. 
 
 The 
 
 business 
 
 advancing 
 
 to a 
 
 scientific 
 
 basis. 
 
 risk might mean a lower rate of premium, but it 
 likewise meant an equally assured profit, a larger line- 
 carrying capacity per company, and consequently less 
 need of new capital in the business and perhaps less 
 ultimate competition. 
 
 Kindly relations between the assured and rating 
 organizations were therefore cultivated, and the busi- 
 ness was studied along scientific and intelligent lines 
 more than ever. 
 
 By drawing the attention of the public and the 
 property-owner to the advantages gained by better 
 construction, protection, and care, thereby bringing 
 them into closer relations of mutual interest with fire 
 insurance, a long step has been taken by the under- 
 writers of the United States toward bringing the 
 business to a truly scientific basis. 
 
 It needs no exhaustive study of the history of un- 
 derwriting from the years 1882 or 1883 to the pres- 
 ent time, to realize the advance which has thus been 
 made. 
 
 1886. 
 
 The year 1886 brought excellent results to the Na- 
 tional — much better than 1885. 
 
 Advanced rates, better policy-forms and other im- 
 
A QUAETER CENTURY'S FIRE UNDERWRITING 61 
 
 proved conditions were having their effect. The 1886 - 
 Company's premium income had shown no material 
 increase in the East and South for two or three years ; 
 
 J ' Why the 
 
 the advance was realized from new business received Company 
 
 made a 
 
 upon the Pacific Coast and in the West, but a low better 
 
 record 
 
 loss ratio and an increase in market value of secur- in 1886. 
 
 ities brought a substantial increase in surplus. 
 
 Up to this year, the only standard form of policy 
 
 required by statute was that of Massachusetts, but 
 
 during the year a new form was prepared by an J Y - 
 
 standard 
 
 able committee appointed by the New York Board of Policy. 
 Fire Underwriters which later was accepted by and 
 became a law of the State of New York. 
 
 The conditions of this policy were generally re- 
 garded as more equitable and comprehensive than Generally 
 any before prepared, and it was gradually adopted a PP roved 
 by the companies for use throughout the country ug ed 
 
 wherever 
 
 where permissible, besides being made a legal stan- permissible, 
 dard in several States. 
 
 Advancing years and bodily infirmities had for a 1887 - 
 long time diminished the activities of President How- 
 
62 THE NATIONAL PIKE INSUBANCE COMPANY 
 
 1887. ard, rendering frequent intervals of rest and change 
 
 of scene from the affairs of the Company absolutely 
 
 illness and nece ssary. These infirmities increased during the 
 
 President latter part of the year 1886, and finally, after a pro- 
 Howard. 
 
 tracted illness, his earthly career was closed by death 
 
 January 24, 1887. 
 
 Mr. Howard was a gentleman in the best meaning 
 
 of the term and a representative underwriter of his 
 
 time. His sterling integrity and forceful nature, 
 
 coupled with business abilities of a high character, 
 
 have left an impress upon the Company which will 
 
 always be felt. 
 
 Following Mr. Howard's death, the directors filled 
 Promotion 
 
 of Secretary the vacancy by electing Judge James Nichols to the 
 
 Nichols. . n 
 
 presidency. 
 
 Mr. Nichols had served the Company as its secre- 
 tary most efficiently from the beginning, and, during 
 the periods of frequent absence of President Howard 
 because of ill-health, had been the virtual head of 
 the Company. His promotion was therefore but the 
 natural and fitting reward for faithful service, and 
 it brought to the position a man in every way quali- 
 fied for its responsibilities. 
 
C&oonjod/ c^f^-t- 
 
 President. 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 63 
 
 E now come to a new epoch in the 1887. 
 National's career dating from the com- 
 mencement of the present management 
 in 1887, viz., the promotion of Secretary- 
 Nichols to the presidency in January, and in April 
 
 the election of E. Gr. Richards, of Boston, as secretary. Manage- 
 ment. 
 Mr. Richards was an experienced and well-known un- 
 derwriter, and at the time of his election, special agent 
 of the Queen Insurance Company for New England. 
 
 The growth of the Company during the previous 
 eight years, while considerable and steadily progress- 
 ive from the lowest ebb of affairs in 1878 and 
 1879, was not altogether satisfactory to the new 
 management. The Company was strong financially, 
 
 had a small but conservative business, and corn- 
 Company's 
 manded the respect of its agents and associates as past pro- 
 well as the confidence of the insuring public, but isfactory. 
 its progress was not commensurate with the times. 
 Other companies of less capacity were outstripping 
 it in the race, and unless new fife and energy were 
 instilled into its veins, it would soon be distanced. 
 
64 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1887. 
 
 Changed 
 
 conditions 
 
 required 
 
 advanced 
 
 methods. 
 
 Prepara- 
 tions for 
 a more 
 aggressive 
 policy. 
 
 Approved 
 
 by 
 
 directors. 
 
 In the course of years conditions had materially 
 changed. The methods,, of even a decade before 
 might be quite unsuited to present requirements, 
 while success could only be secured by a clear con- 
 ception of such changes with an ability to adapt 
 present means to the newer conditions 
 
 The judgment of the underwriter, to be at its best, 
 must be kept " revised and corrected to date." 
 
 During the year 1887 new methods were introduced 
 into the home office, systematizing and facilitating 
 the handling of business and preparing the way for 
 an increase. Many new agencies were established 
 and changes made, chiefly in New England, the bene- 
 fit from which was soon felt. There was no radical 
 change in policy or overthrow of the precepts of 
 former experience, but it was purposed eventually to 
 place the National among the leading fire insurance 
 companies of the country. 
 
 This policy received the cordial support of the 
 directors, and during the year 1887 a satisfactory 
 advance was made in view of the then condition of 
 the country and of fire insurance. 
 
 Important milestones along the path of underwrit- 
 
c3?4?J^2^x^c 
 
 Vice President and Secretary. 
 
A QUABTEB CENTUBY'S FIBE UNDEBWBITING 65 
 
 ing during the year 1887 were the formation in Bos- 18 87. 
 ton of the New England Bureau of United Inspection 
 and the Insurance Library Association, both of which 
 originated in the New England Insurance Exchange. Seasons 
 
 The independent supervision by each company of inspections 
 its manufacturing risks, especially where large lines imperative, 
 of insurance were carried, had for years caused great 
 annoyance to the manufacturer and served to create 
 a feeling of prejudice against stock companies when 
 their absence of system was contrasted with the me- 
 thodical, thorough, and intelligent bureau inspections 
 of the manufacturers' mutual companies. 
 
 The comparison became increasingly detrimental to 
 the interests of stock companies, and to correct this NewEng. 
 
 Inspection 
 
 evil the New England Bureau of United Inspection Bureau 
 
 organized, 
 was organized, and the supervisory care of large 
 
 manufacturing hazards in New England was rele- 
 gated to the Bureau and its inspectors. 
 
 The experiment proved a success, and led soon after 
 to the formation of a similar bureau for the Middle 
 States. 
 
 The Insurance Library Association likewise met a 
 long-felt need, and its work has grown in magnitude 
 9 
 
66 THE NATIONAL FIBE INSUEANCE COMPANY 
 
 Insurance 
 Library 
 Associa- 
 tion. 
 
 1887. and usefulness far beyond the expectation of its 
 
 founders. 
 
 It is an incorporated body, and has gathered to- 
 gether probably the finest and most complete collec- 
 tion of publications bearing on fire insurance and 
 kindred topics that can be found in the United 
 States. Started with a fund of $5,000 contributed 
 by many companies (of which the National was one), 
 it is supported mainly by membership fees and an 
 annual appropriation from the New England Insur- 
 ance Exchange. 
 
 Its value to the field men of New England, by 
 whom its treasures of book and map are mainly used, 
 cannot be over- valued. 
 
 The business of the Company had already felt the 
 effect of the aggressive efforts of the new manage- 
 
 Business in 
 
 NewEng. ment, and in New England, a field in which, for a 
 
 sliows lcircfG 
 
 increase. home company, the National had been far from 
 strong, the advance was especially noticeable by the 
 close of the year. 
 
 Up to this time the larger portion of the profits of 
 the National had been derived from the Western 
 States, due in part to the fact that the Company 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 67 
 
 commenced business too late to suffer by the Chicago 1887 - 
 fire, but in season to sustain a heavy loss at Boston 
 in 1872. 
 
 V 
 
 About the first of January, 1888, an unexpected 1888. 
 opportunity presented itself for greatly advancing 
 the Company's interests. 
 
 The Washington Fire & Marine Insurance Com- Retirement 
 pany of Boston, an old and well-known company, washing- 
 decided to retire from business and reinsure its out- Boston, 
 standing risks. 
 
 It was well represented throughout the Eastern, 
 Western, and Pacific States, but had no agencies in 
 the South save in Louisiana. 
 
 A reinsurance of its risks in the Middle Eastern 
 States had practically been arranged for with another 
 company. 
 
 The business in the West had been built up and 
 managed by Fred S. James, its general agent at Chi- ^West- 
 cago, a successful underwriter of long experience and jj ^ 
 excellent judgment, and his department had yielded 
 to that company a uniform profit. 
 
68 THE NATIONAL FIBE INSUKANCE COMPANY 
 
 1888. 
 
 The 
 
 Western 
 
 business 
 
 reinsured 
 
 and a 
 
 department 
 
 established. 
 
 A radical 
 move but 
 a wise one. 
 
 The Wash- 
 ington's 
 New Eng. 
 business. 
 
 Successful negotiations with Mr. James and the 
 Washington ensued, the Western business was se- 
 cured by the National on favorable terms, and a de- 
 partment at once established for its immediate con- 
 tinuance, Mr. James being placed at its head as 
 general agent with Mr. Greo. W. Blossom, an under- 
 writer of unquestioned ability, as assistant general 
 agent. 
 
 The departure thus inaugurated in the affairs of 
 the National by the establishment of a branch office 
 at Chicago was a radical one, but it was in line with 
 the methods of the large and successful companies 
 and its wisdom was undoubted. 
 
 The results of that action up to the present time 
 have been excellent, and fully confirm the favorable 
 opinions then formed. 
 
 Following the contract made for the Western busi- 
 ness, arrangements were concluded for reinsuring the 
 New England risks of the Washington (except those 
 in Connecticut), and the position of the National in 
 its home field was thereby materially strengthened 
 because of the many new and valuable agencies 
 thus secured. 
 
Gforge W. Blossom, 
 Asst. Genl. Agt. 
 
 Fred S. James, 
 Genl. Agt. 
 
 Charles Richardson, 
 2d Asst. Genl. Agt. 
 
 Western Department. 
 
 JET i 
 
 &%&* 
 
 *PN 
 
 George D. Dornin, 
 Manager. 
 
 George W. Dornin, 
 Asst. Manager. 
 
 Pacific Department. 
 

A QUARTER CENTURY'S EIRE UNDERWRITING 69 
 
 A reinsurance of the Pacific Coast business was 1888 - 
 also effected, and George D. Dornin, a prominent and p acific 
 successful Coast underwriter, by whom that business JJjJJ 1 *" 
 had been developed for the Washington, was placed 
 in charge as manager, and as successor to Mannheim, 
 Staples & Co. 
 
 The business in Louisiana was also obtained, but 
 reinsured again in another company. 
 
 The action of the officers in this matter was unani- Approved 
 
 mously approved by the directors, and the Washing- ^f rectors 
 
 ton's business thus secured, amounting in unearned Alar s e 
 
 contract. 
 
 premiums to nearly $500,000, proved an important 
 
 acquisition. 
 
 The accession of this large volume of premiums 
 
 and the increase of agencies occasioned thereby, was 
 
 the first grand stride toward the high position which 
 
 the National had determined to reach. And while the its ad- 
 vantages 
 officers and directors were fully aware that the ac- and 
 
 * dcLHsrcrs 
 
 ceptance of the business must temporarily affect the 
 net surplus disadvantageously on account of the 
 largely increased reinsurance reserve, and that for 
 the time being a risk was assumed of enormous loss 
 by a possible conflagration in the large cities, they 
 
70 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1888. felt that their design of placing the National upon a 
 
 broader basis had all reasonable assurance of ulti- 
 mate success, and that the move though bold was 
 judicious. 
 
 Fortunately for the net surplus of the Company 
 the large liability upon the Washington's business 
 
 was assumed at the commencement of the year, thus 
 Effect J ' 
 
 upon the giving opportunity for the expiration of all annual 
 
 Company's 
 
 business, and short-term risks before its close; therefore, with a 
 
 its surplus, 1 rH 
 
 and favorable loss record during the year, the Company 
 
 P e * commenced the year 1889 with its normal business 
 
 nearly doubled, its net surplus diminished less than 
 
 $50,000, its prestige vastly increased throughout the 
 
 country, and an enthusiasm developed within its ranks 
 
 that gave promise of grand results in the future. 
 
 Few companies, perhaps none, were so favorably 
 
 — . ^ situated at that time as the National to obtain the 
 
 The right 
 
 thing in fullest advantages from so important a reinsurance 
 
 place. deal. 
 
 Its immediate effect upon the home office was to 
 
 render imperative still greater improvements in its 
 
 office methods for handling effectively its increased 
 
 business, and especially the devising of a better sys- 
 
A QTJABTEB CENTUBX'S FIBE UNDEBWBITING 71 
 
 tern for close and accurate analysis of risk and 188 8. 
 
 agency. The results obtained by reason of the improved 
 
 methods at 
 
 changes made have proved their wisdom and value Home 
 
 Office, 
 to the Company. 
 
 At the same time the general underwriting policy 
 
 A broad- 
 Was broadened, and lines increased in desirable direc- ened 
 
 policy. 
 
 tions, while in other ways increased conservatism 
 obtained. 
 
 At this point reference should be made to a rap- 
 idly growing class of business, to which the Na- 
 
 The 
 tional under its former management had paid little automatic 
 
 surinklfiT* 
 
 or no attention, viz., risks protected by automatic 
 sprinklers. 
 
 With many underwriters who doubted or wholly 
 disbelieved in the efficacy of the automatic sprinkler 
 as a fire extinguisher par excellence the subject was 
 for many years a favorite one for ridicule, but with How 
 others who had become convinced that it was a by stock 
 power which would radically alter, if not revolution- liters 
 ize, certain underwriting conditions, the automatic 
 sprinkler and its application to fire hazards had be- 
 come a fascinating study. 
 
 Skepticism on the subject was largely confined to 
 
72 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 1888. 
 
 and by 
 mutual 
 under- 
 writers. 
 
 Origin of 
 the 
 
 automatic 
 sprinkler. 
 
 The 
 
 perforated 
 Pipe 
 system 
 first used. 
 
 the stock underwriter, for the officers of mutual com- 
 panies, whose business consisted wholly of manufac- 
 turing risks, were devoting time, talent, and money 
 to the practical development of this modern fire- 
 fighting appliance, not only for the improvement of 
 the risks then upon their books, but as a means for 
 securing a yet larger control of the desirable manu- 
 facturing business yet upon the books of stock 
 companies. 
 
 The progress made by the automatic sprinkler in 
 gaining the confidence and indorsement of stock com- 
 panies is interesting history, and as the National, 
 since 1887, has been regarded by its associates as a 
 prominent advocate of " sprinklered risks," and withal 
 a courageous underwriter thereon, a brief resume of 
 the subject in its relations to stock underwriting may 
 not be out of place in this historical record. 
 
 The extinguishing of fires in mills by means of 
 water applied in fine spray streams, instead of by 
 hose and nozzle, was first effected by the use of iron 
 piping suspended from the ceiling in lines eight to 
 ten feet apart, having small openings upon the upper 
 surfaces for the discharge of the water. These pipes 
 

 A QUAETEE CENTUEY'S FIEE UNDEEWEITING 73 
 
 were divided into systems, usually one to each, floor, 1888. 
 each system having a valve through which the water 
 was admitted whenever the emergency required. 
 
 Improving upon this device or system, sprinkler From pipe 
 
 system to 
 
 or "rose" heads were used, in form resembling the sprinkler 
 
 sprinkler end of a garden watering-pot, but smaller 
 
 in size, these being set on the upper side of the pipe 
 
 from six to ten feet apart. 
 
 In either case the water was held back by a valve 
 
 at the commencement of the system. 
 
 From the "rose" head was evolved the idea of the From the 
 
 "rose" head 
 automatic sprinkler. The advantage of having the to the 
 
 , -, automatic 
 
 water constantly in the pipes was soon recognized, ^ e& ^ 
 
 and many contrivances were devised for delivering 
 
 the water automatically in case of fire. Finally this 
 
 was accomplished by covering the "rose" head with 
 
 a metal cap held in place and made water-tight by 
 
 means of a solder fastening, fusible at a low degree 
 
 of heat. In this crude form the Parmelee Auto- spr i n ki e r 
 
 matic Sprinkler, as it was known, was approved * 
 
 by mutual companies, and reductions in rate were 
 
 granted by them for its use. 
 
 No recognition of its merits from stock companies 
 
 10 
 
 automatic 
 device. 
 
74 THE NATIONAL FIBE INSURANCE COMPANY 
 
 1888. 
 
 Reported 
 upon by 
 National 
 Board 
 Committee. 
 
 First recog- 
 nition by 
 stock 
 companies. 
 
 The 
 report. 
 
 could be obtained until 1875, when a committee of 
 the National Board of Fire Underwriters, known as 
 the "Committee on Origin of Fires, Patents, and 
 G-as Machines," investigated the device and reported 
 in favor of its approval. 
 
 This report was signed by William H. Ross (of 
 New York), Chairman ; John E. Kahl (of New York), 
 James Nichols (of Hartford), G-eorge P. Field (of 
 Worcester), and John A. Child (of Indianapolis). 
 
 As the first formal recognition of automatic sprink- 
 lers by stock companies, the report has interest and 
 is here quoted in part: 
 
 "Another patented improvement on this principle 
 comes up for examination, viz., The Automatic Fire 
 Extinguisher and Alarm, which appears to be nearly 
 all that is required. ' An apparatus in all places suf- 
 ficient of itself, always ready, always there, to act en- 
 tirely by itself, and which cannot go asleep or make 
 blunders.' 
 
 "As is usual with all valuable improvements, it is 
 so simple as to be understood by any one. It works 
 automatically, and spreads no water except where 
 the fire is and will put out a small or large fire 
 equally well. 
 
w 
 
 H 
 
 o 
 o 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 75 
 
 " This improved sprinkler is a series of pipes near i^ 8 . 
 the ceiling of the room to be protected, consisting 
 of a main pipe in the center connecting with a reser- 
 voir, with side branches or arms at proper intervals, 
 to which are attached small pipes half an inch in di- 
 
 Construc- 
 
 ameter, terminating m a finely perforated cap, so as tionand 
 
 ATT 3.H fffi- 
 
 to throw a very fine and dense spray on everything, ment of 
 and filling the air very completely for a radius of 7 explained, 
 or 8 feet, thus rendering the existence of any fire in 
 that space impossible. These pipes are so arranged 
 as to have one of these perforated caps at each in- 
 terval of ten feet in the length and breadth of the 
 room, thus supplying one of them for every 100 
 square feet of flooring. 
 
 " The automatic effect is secured by placing a light 
 metalhc cap over the rose sprinkler, fastened in its 
 place by being soldered to the shoulder of the sprink- How 
 
 ler with a metal fusible at 155° Fahrenheit. This made 
 
 automatic. 
 
 admits of water under constant pressure being kept 
 in the pipes at all times. On the occurrence of a fire 
 under either of these caps, it will at once melt the 
 solder. The pressure of water in the pipe removes 
 the outer cap, and the water escapes in spray directly 
 
76 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 Method 
 of giving 
 alarm. 
 
 1888. above the fire, and as experience proves, arrests it 
 
 then and there without injury to property in other 
 parts of the room. 
 
 "By a valve in the main pipe with the lever at- 
 tached, an alarm is given either by a bell or steam 
 whistle. The first motion of the water caused by the 
 opening of one or more of the caps, opens the valve 
 and gives the alarm, the whole operation being entirely 
 automatic. In fact, when emergency for its use arises, 
 it sets itself at work, and tells you what it is doing. 
 "This is unquestionably superior to all previous 
 
 Anun- devices for extinguishing fires with water. It needs 
 
 qualified en- 
 dorsement, no praise; it commends itself, and we trust it re- 
 quires no special appeal to Underwriters from your 
 committee to commend it to their favorable consider- 
 ation. It will afford one of those happy occasions 
 where it is much more pleasant to reduce a rate 
 than to add to it, whenever and wherever it is prop- 
 erly applied." 
 
 This report was adopted by the National Board 
 Report April 23, 1875, but no further legislation on the sub- 
 byNationai ject is recorded. Repeated efforts were made by 
 Board. those favoring it to secure the adoption of rules pro- 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 77 
 
 viding for a reduction in rates on establishments 1888. 
 where automatic sprinklers were used, but without Failure 
 success, and the stock companies continued power- reductions 
 less to prevent the capture of their best manufac- m ^^ toT 
 turing risks, from this and kindred causes, by the andjje 
 
 result, 
 mutual companies. 
 
 This state of inaction and indifference continued 
 for at least ten years, through lack of intelligent 
 consideration, sufficient unanimity of opinion, and 
 concerted action. 
 
 Meanwhile the Parmelee Automatic Sprinkler was 
 being introduced with steadily increasing favor until, 
 in 1882, when its manufacturers substituted an im- The 
 
 Parmelee 
 
 proved form known as the Grinnell Sensitive Auto- superseded 
 matic Sprinkler, which with several other designs Grinnell 
 have competed for business since that time. in"^ 6 . 1 
 
 In the address of the president of the New Eng- 
 land Insurance Exchange at its second annual meet- 
 ing January 3, 1885, a report was made upon mutual 
 competition, which brought forcibly to the attention tothesub- 
 of field men and their companies the magnitude of ^E.ins. 6 
 this competition and its destructive effect upon the Exchan s e ' 
 interests of stock companies. 
 
78 THE NATIONAL FIEE INSUKANCE COMPANY 
 
 1888. 
 
 Committee 
 appointed. 
 
 Its 
 report. 
 
 Factory 
 Improve- 
 ment 
 Committee. 
 
 Its 
 
 valuable 
 service to 
 the stock 
 companies. 
 
 At the next annual meeting in 1886 reference was 
 again made to the matter. 
 
 As a result a special committee of the Exchange 
 was appointed to make a thorough report upon auto- 
 matic sprinklers with recommendations. 
 
 To this work a large amount of time and careful 
 investigation was given, and the report which fol- 
 lowed was a most intelligent and far-seeing treatise 
 upon the subject, and formed the basis for imme- 
 diate action by the Exchange. 
 
 A committee was then appointed with authority 
 to prescribe requirements for standard sprinkler 
 equipments, approve or disapprove particular de- 
 signs, encourage standard construction in proposed 
 new sprinklered risks and the introduction of auto- 
 matic sprinklers wherever practicable, and the com- 
 mittee was empowered to fix rates therefor. 
 
 The Factory Improvement Committee thus formed 
 was well named, and since its organization in 1886 has 
 done splendid service for the companies. Through 
 its work a class of risks has grown up in New Eng- 
 land which, for quality of sprinkler protection and 
 character of construction, cannot as a whole be found 
 
A QUABTEK CENTUKY'S FIBE UNDEBWBITING 79 
 
 elsewhere. The manufacturer was never in such cor- 1888 ^ 
 dial and satisfactory relations with the companies 
 as to-day, and as a result of these conditions the 
 
 Benefits 
 sprinklered risks in that territory have thus far been derived. 
 
 retained by stock companies with a very small loss 
 
 from competition. The pioneer work so commenced 
 
 and continued has been an educational force which 
 
 has been widely felt. 
 
 Similar methods were adopted by other tariff Associa- 
 organizations, and at the present time automatic where take 
 sprinkler protection is being fostered and scientific- action? 
 ally applied with increasing advantage to stock com- 
 panies and their patrons. 
 
 In forwarding this work in New England and else- 
 where the National under the present management 
 has been one of the pioneers, contributing both time J. h ?. 
 
 JN ft ulOUctl cL 
 
 and money freely, believing that in so doing it has pioneer, 
 best served the interests of its stockholders, agents, 
 and patrons. 
 
 The year 1889 was in many ways an eventful one 1889. 
 to the Company. 
 
80 THE NATIONAL FIBE INSUBANCE COMPANY 
 
 1889. 
 
 A Home 
 
 Office 
 
 building 
 
 decided 
 
 upon. 
 
 Extension 
 of business 
 to Southern 
 States. 
 
 Louisiana 
 entered. 
 
 Touching upon its home interests, the offices of the 
 National, in the Charter Oak Bank Building, had long 
 ago become unsuitable for its uses. 
 
 Recognizing the necessity for better accommoda- 
 tions, and believing that the Company should have 
 an office adapted to its needs, safe from the chances of 
 destruction by fire and in every way creditable, the di- 
 rectors early in June, took the first step in that direc- 
 tion by authorizing the purchase of land on Pearl Street 
 and the preparation of designs for an office building. 
 
 In the field, there was yet room for an extension 
 of the Company's business, especially in the South, 
 where for some years it had no established agencies 
 beyond Mason & Dixon's line, save in the States of 
 South Carolina, Texas, and Arkansas. 
 
 As conditions at this time seemed favorable for 
 profitable business in other of the Southern States, 
 the officers were authorized by the Board to enter 
 such States as, upon investigation, seemed desirable, 
 and make deposits where required. 
 
 Arrangements for carrying out this policy were 
 completed near the close of the year and the Com- 
 pany entered Louisiana. 
 

 o 
 
 o 
 
 W 
 c 
 
 c 
 
 
A QTJAETEB CENTUBY'S EIEE UNDEEWBITING 81 
 
 In December the business of the Atlantic Fire & !889. 
 
 Marine Insurance Company of Providence, R. I., was R einsur . 
 
 reinsured. *^ e °£ „ 
 
 Atlantic of 
 
 The business so acquired, though extremely small Providence, 
 and not of a high average quality, has proved of ad- 
 vantage to the Company. 
 
 Heavy conflagration losses during the year in Boston 
 and Lynn, Mass., Seattle and Spokane Falls, Wash., 
 
 Large 
 
 with others of lesser magnitude, played havoc with conflagra- 
 tions, 
 the profits which otherwise would have been made. 
 
 The underwriting of the year resulted in a small 
 
 profit to the Company, but though small, the next 
 
 annual statement showed a fair increase in assets 
 
 and reserve, and such increase in the net surplus as 
 
 indicated that the profits of the business for the ^ C0li for 
 
 the year. 
 
 two years past had overcome the temporarily un- 
 favorable effect of increased liabilities caused by the 
 reinsurance of the Washington. 
 
 Early in the year 1890 the States of Virginia, North i890. 
 Carolina, Georgia, and Alabama were entered, and southern 
 agencies planted at the most desirable points. entered 
 
 11 
 
82 THE NATIONAL FIEE INSUBANCE COMPANY 
 
 1890. i n February the Factory Insurance Association 
 
 was organized with headquarters at Hartford, and 
 
 for the first time stock companies made a concerted 
 
 Factory and determined effort to check the inroads being 
 
 Insurance 
 
 Association made upon their business by their great competitors, 
 
 organized. 
 
 the manufacturers' mutual companies. 
 
 The necessity for some such attempt had long been 
 recognized by the great majority of stock fire under- 
 writers, but no concerted action could be obtained 
 
 History nor satisfactory plans devised to accomplish the re- 
 
 of the 
 
 movement, suit. Many believed something should be done, but 
 
 few had the courage to run the risk of loss, to meet 
 
 the ridicule or prejudice of doubters, or suffer other 
 
 disadvantages involved in such an undertaking. 
 
 Efforts to this end first assumed shape in the fall 
 
 of 1884, and by the spring of 1885 an organization of 
 
 twenty companies was formed under the name of the 
 
 The 
 
 Mutual " Mutual Union." Active operations were never com- 
 menced owing to disagreements, and the scheme was 
 abandoned. In this movement the National took no 
 part. 
 
 The hope of successfully meeting this competition 
 of mutual companies was never abandoned by a few 
 
 Union. 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 83 
 
 underwriters, and in the fall of 1889 four companies 189 °- 
 (of which the National was one) met in New York, and 
 agreed to act concertedly in seeking and writing stan- 
 dard "mutual" mills protected by automatic sprink- 
 lers, each company being pledged to write equal lines movement 
 
 SvSfftMl 
 
 upon strictly standard mills, in amounts not exceed- by four 
 
 companies. 
 
 ing fifty thousand dollars for each company and at 
 
 an annual rate of 25 cents. The movement thus 
 
 started found favor with other companies, and the 
 
 membership soon increased to eight. 
 
 When formally organized at Hartford in February, Member- 
 ship of 
 1890, the Factory Insurance Association included in eleven 
 
 . . i i • i • when first 
 
 its membership eleven companies. organized. 
 
 In this, as in similar movements, which had for 
 their object the improvement of the business, the 
 National took an active interest. 
 
 The fundamental principle of the Association and 
 
 the purposes for which it was founded are to stem the 
 
 tide of mutual competition by securing from mutual Principles 
 
 of the 
 companies, so far as possible, such standard mills as Association. 
 
 are now upon their books, or to save from their com- 
 petition other mills built or being built, which are in 
 preparation by their owners for insurance in said mu- 
 
84 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1890. 
 
 Standard 
 required 
 for 
 acceptance. 
 
 What risks 
 open to its 
 free com- 
 petition. 
 
 Mills in 
 
 stock 
 
 companies 
 
 how and 
 
 when 
 
 considered. 
 
 A friend 
 to the 
 
 agent, not a 
 competitor. 
 
 tuals, and which, without the aid of the Association, 
 would inevitably be lost to the local agent and his 
 companies. 
 
 The Association accepts no risks that are not of su- 
 perior construction, thoroughly protected from fire by 
 every needed appliance including automatic sprinklers, 
 and operated by parties of strong financial standing. 
 
 Any such mill, not covered by insurance in stock 
 companies, is regarded by the Association as open to 
 its free competition, upon application of the owner 
 or a representative of stock companies. In the case 
 of a mill of the standard described which is now in- 
 sured in stock companies in all or part, if the agent 
 controlling the insurance finds that the mutuals will 
 secure the risk unless by interference of the Associa- 
 tion it can be saved for him, the Association will use 
 its best efforts to hold the business upon application 
 in writing from himself and the assured, together 
 with the consent of the rating organization having 
 jurisdiction, and if so held, allow him a commission 
 upon the entire premium. 
 
 The Association is intended to be a friend and helper 
 to and not a competitor of the local agent. 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 85 
 
 Its business is conducted in conformity with the 1890. 
 laws of the State in which the risk is located, and Advantages 
 from the premium obtained, the State receives its and citizen, 
 taxes and the agent securing the business his com- 
 mission. 
 
 If the risk be placed in outside companies that are Disadvan- 
 beyond the legal jurisdiction of the State, and which JJ^Sj^ 
 pay neither taxes nor commission the disadvantages ^author- 
 to the State and its citizens are obvious. companies. 
 
 The business of the Association has grown rapidly, 
 its name become a familiar one to leading manufac- 
 turers throughout the field where its operations ex- the Associa- 
 tend, and the ability of the stock companies to com- tlon * 
 pete successfully with the mutual system has been 
 established. 
 
 The offices of the Association are located in the 
 National's home office building. 
 
 Believing that in the West this work could be car- 
 ried on to better advantage by a separate organiz- 
 ation, the Western Factory Insurance Association ^ e e stern 
 was organized in September, 1891, and though work- Associa- 
 ing under somewhat different conditions, in many 
 respects even more unfavorable than those experi- 
 
86 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 1890. 
 
 Its work 
 
 and 
 
 results. 
 
 Present 
 member- 
 ship. 
 
 The 
 
 Company's 
 record 
 for the 
 year. 
 
 enced by the Eastern Association, the results which 
 it has accomplished in the interests of stock com- 
 panies have been remarkably good. The rules of the 
 two Associations do not materially differ. 
 
 The Eastern Association is now composed of twenty- 
 nine companies, while the Western Association, with 
 headquarters at Chicago, has twenty-three members. 
 
 The year 1890 was an exceptionally favorable one 
 for the Company. Investment values had depreciated 
 somewhat, but the year closed with an underwriting 
 income and profit sufficiently large to secure substan- 
 tial gains in assets, reserve, and surplus. 
 
 i89i. Advantages were secured to the Company early in 
 
 January, 1891, through its Western Department, by 
 the reinsurance of the Kenton Fire Insurance Com- 
 
 Reinsnr- 
 
 anceofthe p anv of Covington, Ky. A valuable local business 
 
 Kenton 
 
 ofKy. and many desirable agencies, together with the ser- 
 
 vices of its secretary, Captain U. F. Moss, were thus 
 obtained. 
 
 The rapid development of the affairs of the Com- 
 
Assistant Secretary. 
 
A QUAETER CENTURY'S FIRE UNDERWRITING 87 
 
 pany, and consequent increase in official duties, made 1891 - 
 necessary an addition to the executive staff in Feb- Election of 
 
 assistant 
 
 ruary, 1891, by the election of Benjamin R. Stillman, secretary, 
 formerly of Springfield, Mass., as assistant secretary. 
 June of the same year witnessed the retirement 
 of the People's Fire Insurance Company of New 
 York, one of the oldest companies of that city. This 
 company was in good financial standing and bore an 
 
 excellent reputation, but the expense of conducting a Reinsur- 
 
 • f ° anceofthe 
 
 small business, and the increasing difficulty, as with People's of 
 
 New York, 
 many metropolitan companies of small size, in secur- 
 ing a sufficient amount of good business, induced 
 its directors to decide upon its retirement, and ne- 
 gotiations for a reinsurance of its risks by the Na- 
 tional were concluded. 
 
 Reinsurance contracts in themselves have, as a 
 rule, produced little profit to the National, and that 
 of the People's proved no exception, but its indirect 
 benefits were very gratifying. 
 
 The Company had no agencies in New York City 
 
 or Brooklyn, having withdrawn in 1883, and was stances 
 
 J ' & . which made 
 
 therefore free from liability therein, while at various contract 
 
 desirable, 
 other points at which the People's had desirable 
 
88 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 1891. 
 
 Record 
 of the 
 People's in 
 New York 
 City. 
 
 The 
 
 Company 
 re-enters 
 N. Y. City. 
 
 Opens 
 Canal 
 Street and 
 Brooklyn 
 
 offices. 
 
 A fortunate 
 circum- 
 stance. 
 
 agencies, the National was either unrepresented or 
 unfavorably placed. 
 
 The business of the People's in New York City, 
 under the skilful direction of its officers, had made 
 an almost unbroken record of profit for a long series 
 of years, notwithstanding no fixed rates of premium 
 or brokerage there obtained during that period. 
 
 Hence, with the approval of the directors, the Na- 
 tional at once obtained the Broadway office of the 
 People's, there established a branch office, placing 
 in charge of same its president, F. V. Price, and as- 
 sistant secretary, John B. Brickelmaier, as managers. 
 
 The Canal Street office of the People's was also 
 continued, and George G. Milne, for many years in 
 the employ of that company, placed in charge. An 
 agency was also established in Brooklyn, with D. H. 
 Cobb, a former agent of the People's. 
 
 The resumption by the Company of business in 
 New York City at this particular time proved a happy 
 circumstance, because a few months later the New 
 York Tariff Association was organized, equitable rates 
 established upon business property, and the rate of 
 brokerage thereon limited to fifteen per cent. The 
 
o 
 o 
 
 o 
 
 o 
 
' -. 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 89 
 
 fire insurance business in New York City was thus 1891 « 
 
 placed upon a healthy basis and the success of the 
 
 Company's experiment assured. 
 
 An important agency change growing out of this Branch 
 
 office 
 reinsurance deal was the opening of a branch office established 
 
 at Philadelphia, with the firm of Bradway & Jocher 
 as managers, while the reinsurance led also to ad- 
 vantages in other prominent places. 
 
 The year 1891 closed without serious conflagration 
 
 The 
 disaster, and the affairs of the National were found year's 
 
 record 
 to be in a healthy condition, showing that excellent 
 
 progress had been made. 
 
 If the National had unintentionally gained some- 1892. 
 what of a reputation as a reinsurer of retiring com- 
 panies by reason of its past record, it was probably 
 not lessened by the events of January, 1892, in which 
 month three companies were reinsured, viz.: 
 
 The German Fire Insurance Company of Philadel- Reinsur- 
 ance 
 phia, The Aurora Fire and Marine Insurance Company of three 
 
 of Cincinnati, and the Firemen's of Dayton, Ohio. i n January. 
 
 12 
 
90 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 1892. The business of the German was quite small, but 
 
 Their that of the Aurora and Firemen's was of greater im- 
 
 portance to the interests of the Company, and largely 
 through its means the National gained an influential 
 position in Ohio. 
 With the reinsurance of the Firemen's was ob- 
 An tained the services of its secretary, Mr. Charles Rich- 
 
 tothe° n ardson, who was appointed second assistant general 
 Department a g en ^ °^ ^ ne Company for the Western field and has 
 staff. proved a valuable addition to the staff of that de- 
 
 partment. 
 Large During the year serious conflagrations occurred at 
 
 fires * Milwaukee, Wis., and Camden, Me., in both of which 
 
 the National sustained heavy losses. 
 
 The urgent needs of the Company for better office 
 accommodations continued to be felt and daily be- 
 Progress came more pressing. 
 
 anew As previously noted, the property at the corner of 
 
 Pearl and Lewis streets, known as the Brinley Es- 
 tate, had been purchased in 1889 as a site for the 
 proposed new office building. 
 
 In August, 1890, the property adjoining on the 
 west, belonging to the State Savings Bank, was also 
 
A QUAKTEB CENTURY'S FIRE UNDERWRITING 91 
 
 purchased, and thus ample ground room secured for 18 92. 
 the building itself, and an excess sufficient to insure a dditionai° 
 abundant light and air and a safe distance from the p e "ri°st 
 buildings of abutting owners. 
 
 During these years much time and thought had 
 been devoted by the officers to designing and deciding JJSj£l 
 upon the essential features required in the building accepted- 
 proposed, its general plan and internal arrangement. 
 
 Mr. W. C. Brocklesby, of Hartford, was selected as 
 its architect, and plans submitted by him to the di- 
 rectors in September, 1891, were accepted. 
 
 In March, 1892, the contract for building was Contract 
 awarded to Charles H. Andrus, of Hartford, over 
 other competitors, work upon the foundations was 
 commenced as soon as the weather permitted, and 
 by the close of the year its construction was well 
 advanced. 
 
 In recording some of the notable events which have The 
 contributed to fire underwriting history during recent C o-insur- 
 years, a failure to mention the progress made in the average, 
 use of the co-insurance principle in the policy contract 
 would be a serious omission. 
 
 While co-insurance or general average has always 
 
92 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1892. 
 
 Fundamen- 
 tal with 
 marine and 
 manufac- 
 turers' 
 mutual 
 companies. 
 
 Adopted 
 by N. E. 
 Exchange 
 Dec, 1892. 
 
 By 
 
 S. E. T. A. 
 
 in May '93 
 and by 
 local 
 boards. 
 
 been a fundamental and uniform requirement in ma- 
 rine insurance, it was little used by stock fire insur- 
 ance companies in this country until within a few 
 years. 
 
 The necessity for co-insurance has always been fully 
 recognized by the manufacturers' mutual companies, 
 and their policy-holders are required to carry insur- 
 ance equal or nearly so to the value of the property 
 insured. 
 
 The adoption by the New England Insurance Ex- 
 change in December (1892) of a rule making obliga- 
 tory the use of a co-insurance clause upon all 
 specifically rated risks or an increase in rate for the 
 absence of same, was the first attempt, by a State 
 association, to bring the clause into general use. 
 
 Similar action was taken by the South Eastern 
 Tariff Association in the following May, and soon 
 after by other associations. 
 
 Local boards in Boston, New York, Philadelphia, 
 Chicago, St. Louis, and other cities made the clause 
 a rule on specifically rated risks. 
 
 In New York State, the Underwriters' Association, 
 after long consideration and much opposition, agreed 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 93 
 
 upon the adoption of the clause throughout its juris- 1892 « 
 
 diction, fixing for its enforcement a day in Decern- Unsuccess- 
 ful attempt 
 ber, 1894, but unfortunately the Association was re- to adopt 
 
 strained from carrying out its purpose, and since then a nce in 
 
 no effort has been made to revive the matter, though states? 
 
 the clause is there in use upon sprinklered risks and 
 
 some other hazards. The Association of the Middle 
 
 Department was similarly situated. 
 
 In Texas, the "Equitable Co-insurance Clause" was Also in 
 
 made a requirement by the State Association, but exas * 
 
 owing to lack of full cooperation by the companies 
 
 in its support, it remained in force but a short time. 
 
 The use of the clause aroused in some localities the Reasons for 
 
 antagonism, 
 
 antagonism of property-holders and even of some un- and result, 
 derwriters, through ignorance of the principles un- 
 derlying same, and a misconception of its effect in 
 case of loss; hence it is not surprising that this an- 
 tagonism led to hostile legislation, and the passage 
 in several States of laws prohibiting the use of the 
 
 co-insurance clause in insurance contracts. 
 
 Anti-co-in- 
 
 In Maine a similar law was enacted in 1893, but in surance law 
 
 in Maine 
 
 the year following the subject was taken up in con- repealed 
 
 and rates 
 
 nection with other existing laws unfavorable to in- reduced. 
 
94 THE NATIONAL FIEE INSUBANCE COMPANY 
 
 1892. 
 
 The 
 
 principle 
 of co-insur- 
 ance. 
 
 Justifica- 
 tion for its 
 universal 
 use. 
 
 surance, and following free discussion by the public 
 press and otherwise, all were repealed in 1895. This 
 favorable action was recognized by a reduction in 
 rates throughout the State. 
 
 The principle of co-insurance is that the entire 
 value of the property insured (whether of one or 
 many property-holders) shall bear the burden of the 
 losses thereon. It means equal rights to all and a 
 mutuality of interests. 
 
 If the valuation of property is necessary to obtain 
 an equitable basis for taxation, so is the valuation 
 of property by the co-insurance system necessary to 
 give to the underwriter the true relation of value to 
 loss, and thus an equitable basis for taxing the cost 
 of insurance upon the insuring public. Again, if 
 standard or legal weights and measures are necessary 
 to trade, so is co-insurance as the measure of liability 
 essential to a just division of the burden of the im- 
 mense fire waste of the country between its insur- 
 ing citizens, and the standard for that measure, like 
 others, should be fixed and uniform. 
 
 If the laws of every State should require that all 
 insurance policies contain a condition measuring the 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 95 
 
 liability of a company in case of loss substantially 1892. 
 as follows: "This company shall be liable only for 
 such proportion of any loss occurring to the property „ 
 
 x r J Suggested 
 
 insured by this policy as the amount hereby insured P° lic y 
 
 condition, 
 bears to eighty per cent, of its actual cash value at 
 
 the time of the fire, nor shall it be liable for a greater 
 proportion than the amount hereby insured bears to 
 the total insurance thereon," the purpose and effect 
 of such a law would be to levy the cost of insurance 
 to all insurers upon a practically uniform basis of 
 value. 
 
 Such a statute would do more to equalize and re- 
 duce rates of insurance and make the business less 
 
 _ Purpose 
 
 a game of chance and more of a science than any- and effect 
 
 thing within the power of the State or the under- 
 writer to do. 1 
 
 In the latter part of this year the Company discon- 
 tinued the direct control and conduct of its Hartford 
 
 1 Such a law would not prevent the Its operation would be felt upon 
 property owner, if he chose to do so, losses which in amount were less than 
 from obtaining full insurance and thus eighty per cent, of the value, provided 
 securing full indemnity for any loss the property was insured for less than 
 sustained ; nor would it affect recovery eighty per cent, of the value. 
 in any case, where the loss equalled or Tor instance, if a property was in- 
 exceeded eighty per cent, of the value sured for one half its value and a fire 
 of the property insured. loss of fifty per cent, occurred, recovery 
 
96 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 1892. 
 
 Company 
 
 establishes 
 
 separate 
 
 local 
 
 agency in 
 
 Hartford. 
 
 Appoint- 
 ment of 
 general 
 agent at 
 Home 
 Office. 
 
 local business by establishing an independent agency 
 for tbe care of its local interests. 
 
 The National was the last of the Hartford compa- 
 nies to adopt this course, a method which has proved 
 of great advantage to all companies represented in 
 Hartford, because it has freed the business from un- 
 favorable conditions which follow from the direct com- 
 petition between local companies and commissioned 
 agents. The same plan carried out in other insurance 
 centers, by companies having head offices therein, would 
 simplify the solution of some perplexing problems. 
 
 A continued increase in official duties at the Home 
 Office, rendered increased assistance necessary, and 
 in November to meet this need, the position of gen- 
 eral agent was created and J. F. Hastings was pro- 
 moted thereto from the New England field, where he 
 had ably served the Company since 1889. 
 
 The year's record for 1892 was not altogether satis- 
 
 would be made but for f of the loss — 
 if insured but for forty per cent, of the 
 value, but $ of the loss would be re- 
 covered, and so on. 
 
 Simply stated, property would thus 
 be taxed for the cost of insurance upon 
 a basis of eight-tenths of its value. 
 
 Without such requirement every man 
 
 would be his own assessor and if he in- 
 sured, would pay his rate of insurance- 
 tax upon any basis of valuation that 
 pleased him, unless he belonged to the 
 debtor class, in which case his mortga- 
 gee or creditor would compel him to in- 
 sure the full, or nearly full, value of his 
 property. 
 
A QUARTER CENTURY'S EIRE UNDERWRITING 97 
 
 factory, for while a profit was made, and the business 1892. 
 
 in some sections yielded good results, other sections, 
 
 notably some of the more important Eastern States, 
 
 Year's 
 
 were extremely unprofitable. The financial storm results and 
 
 unfavor- 
 
 centers corresponded closely with these localities. able 
 
 outlook. 
 
 The losses in the latter months of the year were 
 exceptionally heavy, the general business conditions 
 exceedingly poor, and to the keen observer, the pros- 
 pects for the year 1893 were far from encouraging. 
 
 These forebodings were abundantly fulfilled. 1893. 
 Losses throughout the country were phenomenally 
 heavy during the first three months of 1893, except 
 on the Pacific Coast, where for the early months of opensdis- 
 the year a fair average loss ratio prevailed. astrousiy. 
 
 Disastrous conflagrations occurred in Boston Janu- 
 ary 10 and March 10, by which the National suf- 
 fered to the extent of over $27,500. 
 
 As in the great fire which occurred in Boston in 
 1889 on Thanksgiving day, so these fires originated 
 13 
 
98 THE NATIONAL FIKE INSURANCE COMPANY 
 
 1893. 
 
 Large 
 fires in 
 Boston 
 originating 
 in large 
 area risks. 
 
 Heavy 
 
 Western 
 
 losses. 
 
 The 
 
 Company 
 loses money 
 for the 
 year. 
 
 Financial 
 panic 
 
 depreciates 
 securities. 
 
 in large area risks, and, gaining for a time uncontroll- 
 able headway, destroyed many buildings before the 
 fire department was able to conquer the flames. 
 
 Later the fire-storm center veered to the West, 
 where in June, Fargo, N. D., was nearly destroyed; 
 in August Minneapolis experienced one of the largest 
 fires in its history, and in other places during the 
 remainder of the year many large losses occurred; 
 in isolated risks also the record of loss was unusually 
 heavy in all sections of the country. 
 
 Companies early lost hope of any profit upon the 
 year's transactions, and were concerned solely as to 
 the extent to which their assets would be depleted 
 below the amounts shown in their preceding Janu- 
 ary statements. 
 
 For the second time in the history of the Company 
 (the first being in 1872), its underwriting income fell 
 short of its combined expenses and losses, and the 
 balance sheet at the close of the year showed a net 
 loss of over $13,000. 
 
 The financial distress from which the country suf- 
 fered was evidenced to the insurance companies in 
 the depreciated values of their investments, and 
 
< 
 
■ 
 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 99 
 
 these unfortunately concurrent conditions resulted 1893. 
 in unfavorable annual statements to which that of 
 the National was no exception. 
 
 Under such trying circumstances, the necessity for 
 stricter economy and a reduction in expenses where 
 practicable became an imperative duty. 
 
 By reason of competition the rate of commission 
 paid to agents had for years been slowly increasing, 
 producing demoralization and fostering the brokerage J!°^ j®* 1 " 
 system. The effects of this competition were being 5555 
 
 a r ° commis- 
 
 severely felt. In the West and South the subiect sions 
 
 J J checked, 
 
 received early attention from the organizations hav- 
 ing supervision of those fields, and agents' com- 
 missions were limited to fifteen per cent., save in a 
 few of the larger Western cities, where the greater 
 expense of maintaining offices and conducting busi- 
 ness made such a rate of commission impracticable. 
 In the New England and Middle States the need 
 of cooperation in the matter led to the formation of 
 the " Commission Compact " Association in Decern- ^t ers ^ er ~ 
 ber, 1892. This was afterwards reorganized in No- Jjjjj!^" 
 
 vember, 1893, as the Fire Underwriters' Union and state s 
 
 organized. 
 
 its membership included the general agency compa- 
 
100 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1893. nies in principal control of the business in the 
 
 Eastern States. By its rules agents' commissions 
 were fixed at fifteen per cent, and brokers' commis- 
 sions at ten per cent. Its jurisdiction was not ex- 
 232 tended to cover Boston, New York, Philadelphia, 
 operations an( ^ Pittsburgh and their suburbs, nor other terri- 
 tory in which the enforcement of its rules was re- 
 garded impossible. 
 
 Its operations have as a whole been successful, and 
 it is the only organization, other than local, that has 
 ever attempted with success to maintain uniform 
 rates of commission in the Eastern and Middle States. 
 In other directions as well, an advance toward bet- 
 ter methods was noticeable. 
 
 The system of rating mercantile risks by schedule, 
 
 instead of by the old method of flat rates, received 
 
 great impetus during this year by the completion and 
 
 The publication of the "Universal Mercantile Schedule." 
 
 Mercantile ^is scne dule, chiefly the work of a prominent 
 
 Schedule. New York underwriter, entered more minutely into a 
 
 close analysis of the hazards affecting mercantile risks 
 
 than was ever before attempted. 
 
 Though regarded by some as impracticable, by the 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 101 
 
 majority of underwriters it is accepted as a great ad- 1893 ^ 
 vance over all previous schedule systems. It is scien- 
 tific, educational, and, especially in its application to 
 brick buildings, more nearly measures the cost of fire 
 hazard, than do other methods. In its original or in 
 modified form it has been adopted and used in many 
 places. 
 
 The depressing effects of a large loss ratio, a pros- 
 pective loss on the year's business, and a decreased 0ffice 
 surplus did not prevent the National and its friends JjJJJSjJa 
 from rejoicing over the completion and occupancy of and . 
 its new office building September 1, and in all re- 
 spects it has proved to be not only "a thing of 
 beauty," but in convenience, comfort, and complete 
 adaptation to existing needs, it has exceeded expec- 
 tations. Visiting underwriters are unanimous in re- 
 garding it a model insurance office, and as directors, 
 stockholders, and the public declare it to be credit- Regarded 
 able to the Company, the officers are content. Insurance 
 
 It is hoped that the views and description of the office * 
 building to be found elsewhere in this volume may 
 give to those who have not personally examined it 
 a fair idea of its merits. 
 
102 THE NATIONAL FIEE INSUBANCE COMPANY 
 
 1893. The years which have elapsed since 1882 may well 
 
 be designated as the Era of Cooperation. 
 An "Era During these years, in the making of rates, inspec- 
 
 operation." |j on f risks, improvements in construction and pro- 
 tective appliances and like matters affecting the fire 
 hazard, the agency companies of the country have 
 been nearly a unit. Occasional and local exceptions 
 have occurred, but as a whole cooperation has been 
 the rule. 
 
 No reform, no betterment to the business, nothing 
 which serves to bring permanent advantage to the un- 
 derwriting interests at large or to the public, is ever 
 accomplished by the independent action of an indi- 
 vidual company. 
 
 The campaign of education in fire underwriting as 
 in politics must be by joint action of the many. 
 
 Hence it is to be regretted that the advantages 
 derived from years of cooperation should have been 
 lost upon the Pacific Coast by the suicidal rate-war 
 which broke out in California during this year. Un- 
 necessarily high rates tempted the companies to ex- 
 travagant expenditures for obtaining the business, the 
 desire for position in the premium list induced for- 
 
 Cooperation 
 vs. inde- 
 pendent 
 action. 
 
 Rate-war 
 on Pacific 
 Coast. 
 
> 
 
 o 
 
 a 
 
 w 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 103 
 
 getfulness of honorable obligations, and demoraliza- 1893. 
 tion was the sequel, the effects of which upon agent 
 and company cannot be eradicated for years to come. 
 
 The results of the war thus inaugurated, and still in 
 operation, may be appreciated by the following facts. 
 
 In California where the struggle has been the 
 fiercest, the total^ premium income of all companies 
 in 1892 was $7,007,460, while in 1895 the income Effects of 
 
 same in 
 
 was reduced to $4,704,584, and a still further decrease reduced 
 
 premiums, 
 is expected to bring the premium income of the 
 
 State for 1896 to one half of that for 1892. 
 
 For the territory generally known as that of the 
 Pacific Coast division of the United States, the pre- 
 mium income was in 1892 $12,146,568, which was re- 
 duced to $8,609,500 in 1895, and a further reduction 
 will probably be shown in the returns for 1896. 
 
 These conditions have driven many companies from Companies 
 
 driven 
 
 the field, and brought the territory to a basis which from the 
 involves a probably heavy loss to the companies that 
 remain. 
 
 At the close of 1892 six local, sixty-seven Eastern, 
 and thirty-six foreign companies reported to the In- 
 surance Department of California. With the open- 
 
104 THE NATIONAL FIBE INSUKANCE COMPANY 
 
 1893. 
 
 Particular 
 
 mortality 
 
 among 
 
 American 
 
 Companies. 
 
 Pacific 
 Insurance 
 Union 
 dissolved. 
 
 ing of 1896 two local (California), thirty-five Eastern, 
 and thirty-three foreign companies only remained in 
 the field. The large percentage of retirements among 
 the American companies, as compared with the for- 
 eign, is a noticeable fact. 
 
 One serious result of this rate-war has been the 
 destruction of the Pacific Insurance Union, an organ- 
 ization which for years had supervision of the making 
 of tariff rates for the Pacific Coast, and, though faulty 
 in some respects, had brought valuable results to the 
 companies, but the abandonment of its rates and 
 rules has plunged the business for that territory into 
 nearly hopeless confusion. 
 
 1894. The severe loss record of 1893 demonstrated the 
 
 unprofitableness of certain classes of risks and a need 
 of increased rates. 
 
 Retail mercantile stocks, many varieties of special 
 Unprofit- hazards, and, as a rule, all country or unprotected 
 of risks. business had yielded an almost uniform loss to the 
 
 companies. 
 
A QUAETER CENTURY'S FIRE UNDERWRITING 105 
 
 A general disposition to analyze the business along 1894. 
 
 these lines and determine where an advance in rates . a 
 
 Advance m 
 
 was most needed manifested itself during the year rates 
 
 considered. 
 
 1894, and to this end several associations sought in- 
 formation and advice from the companies. 
 
 The responses received were conflicting and as a 
 whole unsatisfactory, and the need of some uniform 
 system of classification was never more apparent. 
 
 In no department of fire underwriting has less at- 
 tention been given or less progress made during the 
 past twenty-five years than in the practical classifi- 
 cation of premiums and losses. A standard 
 
 The " expectancy" of fire loss is a far more uncer- classifica- 
 r J tion needed. 
 
 tain factor than the " expectancy " of human life, for 
 reasons which need no explanation, but this fact ren- 
 ders even more necessary the adoption of some uni- 
 form classification system as a safeguard and guide 
 to successful underwriting. 
 
 When the ratio of insurance to value becomes fixed what 
 by usage or statutory requirement, and the classifica- JJjJJee 
 tion of premiums and losses is made by companies ^^a^ 6 
 
 under a uniform system, the true cost of insurance s cie . ntlfic 
 J basis. 
 
 can be determined, but not until then. 
 14 
 
106 THE NATIONAL FIRE INSURANCE COMPANY 
 
 1894. 
 
 Better rates 
 secured on 
 unprofit- 
 able classes. 
 
 Reinsur- 
 ance of the 
 Franklin of 
 Louisville. 
 
 Under- 
 writers 
 Bureau of 
 New 
 England 
 organized. 
 
 The State Associations were successful, however, in 
 accomplishing some good in the direction sought, and 
 an advance in rates was secured in many sections of 
 the country upon known unprofitable hazards. 
 
 The retirement of the Franklin Insurance Com- 
 pany of Louisville, Ky., in May of this year was 
 followed by the reinsurance of its outstanding risks 
 in the National. 
 
 The relations between the two companies had been 
 intimate, and its secretary, Mr. John J. Barret, had 
 represented the National in Louisville for many 
 years. 
 
 This transaction gave increased strength and sta- 
 bility to the Company's interests in Kentucky. 
 
 At this point it is interesting to record the com- 
 pleted organization of the Underwriters' Bureau of 
 New England, which took place in October, 1894, at 
 93 Water Street, Boston. 
 
 This organization but continued the work of in- 
 specting sprinklered risks which was first commenced 
 by the National and two other companies in 1887. 
 
 From small beginnings the work thus inaugurated 
 steadily progressed until the Bureau has become an 
 
A QUARTER CENTURY'S FIRE UNDERWRITING 107 
 
 acknowledged exponent and authority upon stan- 1894 - 
 
 dard construction and sprinkler protection, and it has its object 
 
 • • o 11 • i i i • i * -v-r -r-i an< ^ work.. 
 
 supervision 01 all spnnklered risks in New England 
 
 which are written by its members. Thirteen com- 
 panies now constitute its membership. 
 
 The Underwriters' Bureau of the Middle States, a Under- 
 writers' 
 similar body with headquarters in New York City, Bureau of 
 
 „ . , Middle 
 
 was formally organized soon after, though it had states. 
 
 been in operation for nearly ten years previous. 
 
 Its work was first commenced by the Phenix of 
 
 New York, but later in 1888 the National and others 
 
 joined with it in cooperative inspection of sprink- 
 
 Its origin 
 
 lered risks in the Middle and Southern States, and and growth, 
 this Bureau has continued to be a growing and in- 
 fluential factor in the expert supervision of that class 
 of property. 
 
 In November, favorable negotiations with the Trans- 
 atlantic Insurance Company of Germany, which had ance in " 
 a small but well established business in this coun- EL? 
 try, gave to the National by reinsurance all busi- f^ntic 
 ness of that company east of the Rocky Mountains, 
 except Chicago and New York. 
 
 The risks of the Transatlantic were well selected, 
 
108 THE NATIONAL FIKE INSURANCE COMPANY 
 
 1894. 
 
 and many new and valuable agency connections were 
 acquired through this reinsurance transaction. 
 
 1895. 
 
 Reinsur- 
 ance of 
 the First 
 National of 
 Worcester. 
 
 Its officers 
 become 
 agents 
 of the 
 Company. 
 
 The year 1895 was less eventful than some of its 
 predecessors and the National maintained its usual 
 steady policy with good results. 
 
 In April the reinsurance of the entire business of 
 the First National Fire Insurance Company of Wor- 
 cester, Mass., was offered and satisfactory terms 
 agreed upon. 
 
 That company had fought courageously for profit 
 since 1871 with varying success, but its directors 
 deemed the future outlook too uncertain and decided 
 upon a retirement of the company. 
 
 Its active underwriters, Vice-President Tatman and 
 Secretary Park, were made the sole agents of the 
 National for Worcester and vicinity under the firm 
 name of Tatman & Park. 
 
 The close of this year completed twenty-four years 
 of underwriting by the National in the State of Mas- 
 sachusetts, but so heavy had been the losses by nu- 
 
c 
 
 tl 
 r 
 
 o 
 o 
 
A QTJAETEE CENTUBY'S FIBE UNDEBWBITING 109 
 
 merous conflagrations in Boston, Haverhill, Lynn, and 1895. 
 
 other places during those years, that no profit had A profit 
 
 balance in 
 been secured from the State; but on January 1, Mass. for 
 
 1896, for the first time in the history of the Company, time . 
 the balance upon its entire operations in that State 
 became one of profit. 
 
 4 
 
 Little of special or unusual interest occurred in the 1896 
 National's affairs during the year 1896. 
 
 In January the Miami Valley Insurance Company 
 of Dayton, Ohio, ceased operations, and its risks 
 were assumed by the Company. The business thus Reinsur . 
 secured, though small, was deemed, desirable for the JjE^ 
 National's purposes, and its position in Ohio was J a E eyof 
 correspondingly strengthened. 
 
 The prevailing business conditions throughout the 
 United States were most unfavorable. The effects 
 of the panic of 1893 were still felt, the depressing D epress i on 
 uncertainty produced by contending political parties 5n C reased SS 
 in the presidential campaign creating distrust in busi- ^J 01 ^ 103,1 
 ness circles, stagnating trade, and reducing produc- 
 tion to the lowest limit. 
 
110 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 1896. 
 
 Its 
 
 unexpected 
 effect upon 
 the fire 
 loss record. 
 
 The year 
 a very 
 prosperous 
 one to 
 under- 
 writers. 
 
 A good 
 year 
 for the 
 Company. 
 
 The 
 
 Company 
 increases its 
 dividends. 
 
 While the effect upon fire insurance underwriting 
 was to decrease premium incomes because of de- 
 creased insurable values, the fire losses of the country 
 were also largely reduced and the very uncertainties 
 of the future seemed to tend toward an elimination 
 of the moral hazard. 
 
 Opinions as to the cause of the reduced loss ratio 
 may vary, but the fact remains that, notwithstand- 
 ing reduced incomes and depressed values of securi- 
 ties, the year was one of remarkable prosperity to 
 fire-underwriting interests. 
 
 In this prosperity the National fully shared. The 
 net premium income and reinsurance reserve had 
 slightly decreased during the year, but the ratio of 
 underwriting profit was large, and even with an 
 extremely conservative valuation of assets, the net 
 surplus rose above the million dollar mark and the 
 assets above four millions. 
 
 Since the increase of capital to $1,000,000 in 1881, 
 a uniform rate of 10 per cent, dividends had been 
 maintained, but the financial standing reached by the 
 Company at this time was such that the Board of 
 Directors deemed it but wise to advance the divi- 
 
A QUAETEE CENTUEY'S FIEE UNDEEWEITING 111 
 
 dends and the commencement of the second quarter- 1896. 
 century's history of the Company was accentuated 
 January 1, 1897, by the declaration of a six per cent, 
 semi-annual dividend. 
 
 The rapid progress made by the National during 
 its later years has been a source of sincere pleasure 
 and pride to every one interested in the Company. 
 
 Advance has been made, not only in the direction p rog ress 
 of greatly increased financial strength, but an agency reputa tion 
 of the National is to be found in nearly every town of0om P an y- 
 and city of importance in the Union; its name and 
 policies are familiar to business men and house- 
 holders, and its reputation for honorable dealings 
 is unquestioned. 
 
 The Company's agents are of the highest average in k s 
 personal worth and business standing, and evidences 
 of their appreciation of and loyalty to the National 
 are always present. 
 
 Among its field men, through whose personalities Essential 
 the character and worth of the Company are to a process. 01 
 great degree measured by the public, a splendid esprit 
 de corps prevails, while their services deserve un- 
 stinted praise. Indeed, the spirit of harmony and 
 
112 THE NATIONAL FIBE INSUKANCE COMPANY 
 
 enthusiasm that has pervaded the ranks of the Com- 
 pany is rarely equaled and never excelled. These 
 conditions have been very essential factors in the 
 progress of the Company. 
 
 In the preceding pages the historian has endeav- 
 ored to bring to the attention of the reader the salient 
 points in the history of the National. If, at intervals, 
 he has apparently drifted from his subject to the dis- 
 cussion of general topics or to the introduction of 
 matters apparently irrelevant, it has not been with- 
 out a definite purpose, and however imperfectly he 
 may have justified his course in so doing, the excuse 
 given is that the affairs and interests of a single com- 
 pany are so blended with the whole business of fire 
 underwriting that, in generalizing concerning all, he 
 has followed but the historical record of the one. 
 
 In closing this epitome of the National's life and 
 ethics, it is but natural to glance toward the future 
 and speculate upon the changes it may bring to the 
 business of the fire underwriter. 
 
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A QUABTEB CENTUEY'S FIEE UNDEEWEITING 113 
 
 Progressive thought and effort have been particu- 
 larly directed in recent years to the improvement of 
 risk and the reduction of hazard. The effect of this 
 work cannot be measured, for it has been far reach- 
 ing and the changes wrought have been beyond cal- 
 culation. 
 
 Not long ago, the danger of conflagration in many 
 congested business districts, as well as the values at 
 risk in large unsprinklered manufacturing hazards, ex- 
 ceeded, in many cases, the ability of the fire under- 
 writer to protect, and merchants and manufacturers, 
 being unable to secure at home the insurance needed, 
 were compelled to seek indemnity in unadmitted and 
 unknown companies of foreign lands. 
 
 These conditions scarcely exist at the present time, 
 for the fireproof building is rapidly honeycombing 
 the mercantile districts of large cities ; the automatic 
 sprinkler and alarm and other protective devices are 
 reducing the individual hazard to a minimum ; flimsy 
 construction, wherever effective building-laws pre- 
 vail, is becoming the exception ; fire departments are 
 reaching degrees of efficiency unknown a decade ago, 
 and all these circumstances are tending slowly but 
 15 
 
114 THE NATIONAL FIBE INSUBANCE COMPANY 
 
 surely in the direction of the elimination of confla- 
 gration hazard and a reduction of the fire waste of 
 the country. 
 
 Long continued financial depression has not only 
 curtailed production to the lowest point compatible 
 with the immediate needs of the consumer, but has 
 taught the merchant how to conduct his business 
 along more economical lines. 
 
 Eeduced quantities and lower values have decreased 
 the demand for insurance, and nowhere is this de- 
 crease so great or more noticeable than in the con- 
 gested districts of large cities. 
 
 "While these changes in physical hazards have been 
 taking place, the financial resources of strong, well-man- 
 aged insurance companies have steadily increased and 
 their line-writing capacity grown larger year by year. 
 
 It cannot be doubted that the spirit of antagonism 
 against corporation interests, already too evident in 
 the public mind, is growing more aggressive; and 
 however the insurance business is to-day hampered 
 by unwise and conflicting laws in the various States 
 of the Union, it will be more seriously embarrassed 
 in the future by inimical legislation. 
 
A QUABTEE CENTURY'S FIRE UNDERWRITING 115 
 
 Fire underwriting must, indeed, be raised to yet 
 higher planes of integrity and sagacity, that public 
 respect and confidence in its conduct may be in- 
 creased and present antagonisms avoided. 
 
 What, then, will be the future of fire underwriting 
 in the United States'? Even though unusual catas- 
 trophes intervene and temporarily check the steady 
 reduction in the cost of insurance now in progress, 
 that reduction will continue. The large profits ac- 
 cruing from the underwriting of the past few years 
 are bringing their natural results, for companies al- 
 ready in the field are exerting every effort to increase 
 their prestige and premiums, new American com- 
 panies are being launched, and fresh competitors from 
 foreign shores have arrived or are preparing to cross 
 the seas to share, if possible, in the profits of Ameri- 
 can underwriting. History is thus repeating itself. 
 
 But the tide will turn, the supply of indemnity will 
 exceed the demand, increasing competition will force 
 rates below the profit fine, retirements by failure and 
 reinsurance eventually follow, and, sometime in future 
 years, the business will settle into the hands of a 
 few companies. 
 
116 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 The survivors, by sound judgment, strong convic- 
 tions and steady courage, with a wise readjustment 
 of methods to changed conditions, will have earned 
 a right to continue, and he able to conduct business 
 in a large way at a lower cost than former expe- 
 rience would have regarded possible. 
 
 The race is open to all and the prize worthy of the 
 underwriter's noblest effort, but the future alone will 
 reveal the winners. 
 
 Closing its first quarter-century of business with the 
 year 1896, the Company takes pleasure in presenting 
 this Souvenir to its friends, hoping that an historical 
 record of its past may be a means of maintaining and 
 quickening their kindly interest in its future career. 
 
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TABLES 
 
 EXHIBITING THE FINANCIAL PROGRESS AND CONDITION 
 
 OF THE NATIONAL FIRE INSURANCE 
 
 COMPANY OF HARTFORD 
 
 FOR TWENTY-FIVE YEARS, 1872-1896 INCLUSIVE 
 
 (INCLUDING PERIOD FROM ORGANIZATION NOV. 27, 1871 TO JAN. 1, 1872.) 
 
 AS SHOWN BY THE OFFICIAL ANNUAL STATEMENTS 
 OF THE COMPANY. 
 
FIRST ANNUAL STATEMENT. 
 
 December 31, 1871. 1 
 
 Cash Capital $500,000.00 
 
 Outstanding Losses 
 
 Reinsurance Reserve 11,091.67 
 
 All other Liabilities .... 500.00 
 
 Net Surplus 5,613.16 
 
 Total Assets . . . $517,204.83 
 
 l Commenced business Nov. 27, 1871. 
 
 118 
 
TWENTY-SIXTH ANNUAL STATEMENT. 
 
 December 31, 1896. 
 
 Cash Capital . $1,000,000.00 
 
 Outstanding Losses .... 171,762.23 
 
 Reinsurance Reserve . . . 1,806,990.03 
 
 All other Liabilities .... 103,927.90 
 
 Net Surplus 1,037,580.14 
 
 Total Assets . . $4,120,260.30 
 
 119 
 
TABLE SHOWING CAPITAL, ASSETS, AND 
 DIVIDENDS PAID. 
 
 Dec. 31. 
 
 1871-1872 
 
 1873 . 
 
 1874 . 
 
 1875 . 
 
 1876 . 
 
 1877 . 
 
 1878 . 
 
 1879 . 
 
 1880 . 
 
 1881 . 
 
 1882 . 
 
 1883 . 
 
 1884 . 
 
 1885 . 
 
 1886 . 
 
 1887 . 
 
 1888 . 
 
 1889 . 
 
 1890 . 
 
 1891 . 
 
 1892 . 
 
 1893 . 
 
 1894 . 
 
 1895 . 
 
 1896 . 
 
 Capital. 
 $500,000.00 
 500,000.00 
 500,000.00 
 500,000.00 
 500,000.00 
 500,000.00 
 
 600,000.00 
 
 600,000.00 
 600,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 1,000,000.00 
 
 Assets. 
 
 $742,166.08 
 
 831,850.28 
 
 943,353.14 
 
 1,003,201.65 
 
 1,040,523.77 
 
 1,040,072.97 
 
 1,104,005.64 
 
 1,140,057.64 
 1,228,509.91 
 1,704,803.52 
 1,733,281.29 
 1,774,504.65 
 1,770,302.96 
 1,853,727.97 
 1,958,506.83 
 2,006,857.34 
 2,326,581.16 
 2,443,937.33 
 2,620,213.19 
 2,904,796.80 
 3,153,454.07 
 3,244,455.98 
 3,597,530.67 
 3,860,141.74 
 4,120,260.30 
 
 Dividends. 
 
 $20,000.00 
 
 30,000.00 
 
 90,000.00 
 
 90,000.00 
 
 90,000.00 
 
 75,000.00 
 
 1 100,000.00 
 
 66,000.00 
 
 72,000.00 
 
 72,000.00 
 
 72,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 100,000.00 
 
 1 Stock dividend. 
 
 120 
 

 TABLE SHOWING AMOUNT AT RISK, 
 REINSURANCE RESERVE AND NET SURPLUS. 
 
 Dec. 31. 
 1871-1872 
 
 1873 . 
 
 1874 . 
 
 1875 . 
 
 1876 . 
 
 1877 . 
 
 1878 . 
 
 1879 . 
 
 1880 . 
 
 1881 . 
 
 1882 . 
 
 1883 . 
 
 1884 . 
 
 1885 . 
 
 1886 . 
 
 1887 . 
 
 1888 . 
 
 1889 . 
 
 1890 . 
 
 1891 . 
 
 1892 . 
 
 1893 . 
 
 1894 . 
 
 1895 . 
 
 1896 . 
 
 16 
 
 Amount at Bisk. 
 
 $24,127,445 
 
 28,491,151 
 
 28,812,370 
 
 30,050,151 
 
 28,280,260 
 
 27,905,804 
 
 28,452,179 
 
 29,641,108 
 
 32,980,559 
 
 38,504,561 
 
 42,914,290 
 
 45,350,312 
 
 47,426,668 
 
 50,875,090 
 
 53,546,236 
 
 58,413,731 
 
 110,258,971 
 
 119,544,476 
 
 131,726,941 
 
 174,145,268 
 
 222,267,452 
 
 245,390,228 
 
 275,602,462 
 
 293,053,406 
 
 298,749,606 
 
 Beinsuranee Beserve. 
 
 $163,101.67 
 
 219,131.90 
 
 218,753.91 
 
 210,775.26 
 
 182,570.42 
 
 167,521.16 
 
 161,447.38 
 
 156,676.47 
 
 173,346.41 
 
 210,195.58 
 
 241,296.66 
 
 267,890.58 
 
 293,889.70 
 
 319,377.27 
 
 341,677.92 
 
 374,858.38 
 
 724,429.03 
 
 785,058.87 
 
 883,165.47 
 
 1,105,184.68 
 
 1,406,936.11 
 
 1,542,127.59 
 
 1,772,530.50 
 
 1,825,152.38 
 
 1,806,990.03 
 
 121 
 
 Net Surplus. 
 $9,479.78 
 90,297.89 
 196,544.89 
 256,091.28 
 325,276.36 
 348,306.77 
 318,612.48 
 364,304.35 
 420,250.62 
 461,927.94 
 464,125.81 
 454,085.57 
 425,746.43 
 473,623.85 
 563,468.49 
 551,712.18 
 507,126.20 
 553,514.98 
 612,487.19 
 578,674.37 
 487,892.74 
 306,614.07 
 522,561.06 
 713,197.75 
 1,037,580.14 
 
TABLE SHOWING TOTAL INCOME AND TOTAL 
 EXPENDITURES: 
 
 Bee. 31. Total Income. Total Expenditures. 
 
 1871-1872 1 ' 2 $1 ; 037,032.14 $307,749.53 
 
 1873 469,019.70 363,224.80 
 
 1874 452,652.50 351,730.55 
 
 1875 425,920.91 377,191.35 
 
 1876 357,902.83 324,257.85 
 
 1877 323,111.68 318,036.22 
 
 1878 312,825.27 237,359.20 
 
 1879 314,201.49 296,235.19 
 
 1880 351,145.64 324,005.66 
 
 1881 3 816,301.69 356,558.12 
 
 1882 476,865.87 451,124.31 
 
 1883 510,355.46 464,208.61 
 
 1884 546,424.34 481,189.09 
 
 1885 585,114.14 527,054.55 
 
 1886 610,532.36 531,060.78 
 
 1887 668,851.71 604,564.62 
 
 1888 1,484,729.07 1,172,729.77 
 
 1889 1,132,957.65 1,021,223.03 
 
 1890 1,296,285.46 1,096,369.11 
 
 1891 1,663,166.60 1,401,140.07 
 
 1892 2,151,067.30 1,910,525.33 
 
 1893 2,120,468.04 1,965,357.52 
 
 1894 2,430,925.18 2,031,818.39 
 
 1895 • 2,522,635.03 2,250,236.91 
 
 1896 2,408,125.69 2,021,981.77 
 
 i Includes $500,000 cash capital. 
 2 Includes $150,000 cash capital supplied by stockholders for deficiency caused 
 
 by Boston fire. 
 3 Includes $400,000 additional cash capital paid in. 
 
 122 
 
TABLE SHOWING NET PEEMIUMS, FIEE LOSSES 
 
 INCUEEED AND EXPENSES OTHEE THAN 
 
 DIVIDENDS. 
 
 Bee. 31. 
 
 
 
 Net Premiums. 
 
 Fire Losses Incurred. 
 
 Expenses. 
 
 1871-1872. . $352,070.21 
 
 $244,319.25 
 
 $113,240.19 
 
 1873 . . . 
 
 
 412,377.90 
 
 168,644.84 
 
 117,415.82 
 
 1874 . 
 
 
 
 389,900.61 
 
 154,859.03 
 
 112,505.37 
 
 1875 . 
 
 
 
 354,646.11 
 
 187,636.48 
 
 108,520.84 
 
 1876 . 
 
 
 
 283,563.95 
 
 136,888.39 
 
 93,711.34 
 
 1877 . 
 
 
 
 257,865.86 
 
 146,795.41 
 
 88,458.86 
 
 1878 . 
 
 
 
 237,663.29 
 
 88,577.34 
 
 82,696.29 
 
 1879 . 
 
 
 
 235,937.51 
 
 134,653.97 
 
 84,712.26 
 
 1880 . 
 
 
 
 276,879.34 
 
 172,850.72 
 
 94,991.00 
 
 1881 . 
 
 
 
 341,472.66 
 
 176,185.86 
 
 106,139.38 
 
 1882 . 
 
 
 
 381,496.83 
 
 222,867.25 
 
 123,435.88 
 
 1883 . 
 
 
 
 410,667.52 
 
 257,080.42 
 
 131,797.87 
 
 1884 . 
 
 
 
 451,709.23 
 
 235,008.61 
 
 144,318.81 
 
 1885 . 
 
 
 
 490,453.20 
 
 281,581.07 
 
 155,533.50 
 
 1886 . 
 
 
 
 517,629.65 
 
 254,038.28 
 
 169,656.07 
 
 1887 . 
 
 
 
 565,003.43 
 
 342,906.99 
 
 184,083.99 
 
 1888 . 
 
 
 
 1,376,155.93 
 
 593,992.64 
 
 476,750.25 
 
 1889 . 
 
 
 
 1,013,840.29 
 
 566,701.79 
 
 355,925.84 
 
 1890 . 
 
 
 
 1,178,477.31 
 
 587,290.06 
 
 423,852.26 
 
 1891 . . 
 
 
 
 1,537,524.24 
 
 815,377.79 
 
 558,094.75 
 
 1892 . 
 
 
 
 2,012,515.26 
 
 1,088,035.78 
 
 736,550.00 
 
 1893 . 
 
 
 
 1,989,302.51 
 
 1,302,147.41 
 
 666,140.76 
 
 1894 . 
 
 
 
 2,300,583.72 
 
 1,110,636.05 
 
 804,259.31 
 
 1895 . 
 
 
 
 2,378,538.52 
 
 1,249,746.82 
 
 849,685.53 
 
 1896 . 
 
 
 
 . 2,254,240.76 
 
 1,039,425.60 
 
 843,744.71 
 
 123 
 
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THE COMPANY'S 
 HOME OFFICE BUILDING. 
 
 OCCUPIED SEPTEMBER 1, 1893. 
 
HE beautiful new building of the Na- 
 tional was designed by W. C. Brock- 
 lesby, of Hartford, who has been sin- 
 gularly successful in combining simple 
 elegance with practical usefulness. It stands on the 
 southwest corner of Pearl and Lewis streets with a 
 frontage of seventy-one feet on Pearl Street and a 
 length of one hundred and thirty-four feet on Lewis 
 Street. The main building, designed in Italian Re- 
 naissance, is three stories in height above a high base- 
 ment, with a large extension in the rear on Lewis 
 Street, built in one lofty story, containing the Com- 
 pany's main working office and smaller connecting 
 rooms. 
 
 The material used is Milford pink granite for the 
 base course, with Kibbe Quarry Longmeadow stone 
 for the first story, and above that Roman or mottled 
 brick with a finish of terra-cotta. The different 
 materials are harmoniously combined with a very 
 pleasing effect. 
 
 127 
 
128 THE NATIONAL FIRE INSURANCE COMPANY 
 
 The Pearl Street facade is characterized midway 
 in its length by a projection extending through the 
 several stories, forming at street level the arched en- 
 trance porch, having supporting columns of Maine 
 granite, with molded bases and carved capitals of 
 Longmeadow stone. The jambs of the archway are 
 carved, and upon the frieze of the porch above, the 
 name of the Company appears, while over the central 
 window, and carefully executed in terra-cotta, is seen 
 in relief the Company's coat of arms. 
 
 At the roof line is an ornate balustrade of terra- 
 cotta extending around the main building, and a simi- 
 lar finish is seen upon the Lewis Street extension. 
 The chimneys are of Roman brick with a finish of 
 terra-cotta. The general expression of the exterior of 
 the building is that of dignity, elegance, and repose, 
 attained by careful selection of materials, strict atten- 
 tion to the architectural details of the design, and 
 good workmanship in execution of the plans. Fire- 
 proof construction has been used, the floors being 
 made of iron beams and flat arches of hollow tile and 
 partitions either of brick or porous terra-cotta. 
 
 From the porch a flight of granite steps leads 
 
Main Entrance. 
 
THE COMPANY'S HOME OFFICE BUILDING 129 
 
 through the outer vestibule, whose sides are finished 
 with panels of Lake Superior red sandstone up to the 
 main entrance, passing which one is admitted to a 
 large central hall flooded with light from the roof 
 down through wells on each floor. Upon the right 
 is the office of the local agency, looking toward Pearl 
 Street, and opposite is the directors' room, having a 
 frontage on Pearl Street, and also lighted from Lewis 
 Street. In the rear of the directors' room and con- 
 nected by a small private office is the president's 
 room, facing to the east and south. An expensive 
 vault equipped with the latest inventions opens from 
 this room. It is of burglar-proof construction, made 
 of chrome steel and contains boxes similar to those 
 of safe deposit companies. Both inside and outside 
 doors to the vault are six inches thick and furnished 
 with Dexter combination locks and Sargent and 
 Grreenleaf s time-lock. 
 
 The beautiful central hall or vestibule is wains- 
 coted with Sienna and American marbles, the door 
 casings of the same material, and above, the walls 
 are decorated in harmonious tints. The cornice is 
 done in papier-mache. In the rear of and opposite 
 17 
 
130 THE NATIONAL FIBE INSUEANCE COMPANY 
 
 the street entrance this vestibule opens into the main 
 office. This office is forty-five feet wide by seventy 
 feet long with a lofty ceiling twenty-four feet high, 
 and is finished in quartered oak. The walls on the 
 south and west are divided into a series of shallow 
 bays arched above, the lower portion of these bays, 
 or alcoves, being filled with steel cases with rolling 
 shuttered fronts, above which the walls are pierced 
 with windows admitting ample light. 
 
 These metallic cases for documents and records 
 form an interesting study, and with additional steel 
 counters for maps and daily reports, also having roll- 
 ing shutters, are sufficiently commodious to contain 
 all the live records of the Company. They are so 
 accessible and conveniently arranged that any paper 
 desired can be produced at a moment's notice, and 
 being fireproof, obviate the necessity of separate vault 
 room, excepting only for the more valuable securi- 
 ties, for which the steel vault before mentioned is 
 designed. 
 
 Upon the east side of the main office its height is 
 divided by a mezzanine floor, giving below suitable of- 
 fices for the secretary, stenographers, and for supplies, 
 
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THE COMPANY'S HOME OFFICE BUILDING 131 
 
 and above a gallery for special agents' desks, also a 
 room which may ultimately be used for a dining-room. 
 Over the dining-room, in the tower portion, is a well- 
 appointed kitchen. 
 
 This arrangement of connecting rooms and gallery 
 with intervening arches adds greatly to the architect- 
 ural beauty of the main office. The decoration of the 
 main office in mellow tints of warm yellow and olive 
 relieved by subdued ornament is in good taste, and the 
 result is a pleasing harmony of color effects through- 
 out. The furniture of the office is of quartered oak, 
 stained to match the finish, and at the entrance is a 
 vestibule divided by a screen of plate glass and oak. 
 By a thorough system of ventilation the air is changed 
 several times every hour. 
 
 The directors' and president's rooms are finished 
 and furnished in San Domingo mahogany. 
 
 Under the main office the high basement is well 
 lighted and furnishes generous space for supplies of 
 every kind, and also for the filing of accumulating 
 records, which are systematically arranged and pre- 
 served. The building can be heated by steam or hot 
 air, the boilers, ample in size, being located in the 
 basement. 
 
132 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 The second and third stories of the front building 
 have also spacious apartments conveniently adapted 
 for offices, and the entire building, except the second 
 story front, which is rented for office purposes, is 
 occupied exclusively by the Company. 
 
 While the office presents a fine appearance through- 
 out, there is nothing which is over-elaborated. It is a 
 working office for a working Company, and its ad- 
 vantages for the purpose are unsurpassed. 
 
 (The above description appeared in part in the 
 "Hartford Courant" September 1, 1893.) 
 
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BIOGRAPHICAL 
 SKETCHES. 
 
BOAED OF DIEECTOES. 
 
 HOMER BLANCHARD. 
 
 Homer Blanchard was born in Delhi, N. Y., April 1, 1806. At 
 the age of twenty-one he engaged in the business of hatting and 
 furs in Kinderhook, N. Y., which he soon enlarged to that of a 
 general dry-goods establishment. In 1846 he established a wool 
 commission-house and was the first in America to introduce a sys- 
 tem of wool classification by carefully assorting the fleeces in qual- 
 ities and quantities to suit the demands of the different manufactur- 
 ers. In 1855 Mr. Blanchard came to Hartford, continuing in the 
 wool business as a member of Ives, Hooker & Co., afterwards Ives, 
 Blanchard & Co. In 1858 he was elected president of the Broad 
 Brook Co., which position he ably filled for thirty-five years, until 
 1893. Mr. Blanchard was also president of the Weed Sewing 
 Machine Co. from 1876 to 1886, and has served continuously as a 
 director for forty years, first of the Merchants' Insurance Company 
 from 1857, then of the National since 1871. 
 
 JAMES BOLTER. 
 
 James Bolter was born in Northampton, Mass., June 27, 1815. 
 Coming to Hartford in 1832, he entered the wholesale grocery es- 
 tablishment of Charles H. Northam as clerk, in which house he 
 afterwards became partner 1843-60. In the year 1860 he was 
 chosen cashier of the Hartford Bank, an institution ranking first 
 in the State of Connecticut and in its antiquity fifth in the United 
 States. For this position Mr. Bolter was preeminently fitted, and 
 has conducted its affairs through every financial crisis with success. 
 
 136 
 
136 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 In 1874 he was elected president, which position he still retains. 
 In 1849-50 he was aide-de-camp to Governor Trumbull, and has 
 held various municipal offices of responsibility. Mr. Bolter was 
 one of the original members of the Board of Directors of the Mer- 
 chants' Insurance Co., then of the National Fire, and has given 
 forty years of constant service as director of these companies. 
 
 WILLIAM BUEL FRANKLIN. 
 
 William Buel Franklin is a native of Pennsylvania, born at 
 York, February 27, 1823. He entered the United States Military 
 Academy at West Point in 1839, graduated in 1843, and for gal- 
 lant conduct at Buena Vista was promoted to a first lieutenancy. 
 Serving through the Civil War in fields of widening command 
 from brigade at Bull Run to the left wing of the Army of the 
 Potomac, he was wounded at Sabine Cross Roads, Texas, in 1864, 
 and in March, 1865, breveted major-general in the regular army. 
 
 Removing to Hartford he became vice-president and general 
 manager of the Colt Fire Arms Co., in which capacity he remained 
 until 1888. Among other high positions of responsibility and trust, 
 General Franklin is president of the National Home for Disabled 
 Soldiers, was one of the incorporators of the National Fire Insur- 
 ance Co., and a member of the original Board of Directors. 
 
 FRANK WARD CHENEY. 
 
 Frank Ward Cheney, son of Charles Cheney, one of the founders 
 of the silk industry in Hartford and Manchester, Conn., was born 
 in Providence, R. I., June 5, 1832. Graduating from Brown Uni- 
 versity in 1854, he came to Hartford to assist his father in the 
 management of their new silk-mill. In 1858 he commenced a 
 three years' tour of the world, devoting studious attention to all 
 methods of silk culture and manufacture. Upon his return he 
 joined the Union army, and as lieutenant-colonel of the Sixteenth 
 Connecticut engaged in its battles, falling at Antietam severely 
 
BOABD OF DIBECTOBS 137 
 
 wounded. Afterward he resumed the management of the Hartford 
 mill, but in 1874 removed to Manchester. Colonel Cheney is now 
 president of the corporation of Cheney Brothers, and has been a 
 director of the National Fire Insurance Company since its or- 
 ganization. 
 
 JAMES NICHOLS. 
 
 James Nichols, President, is a native of Connecticut, born at 
 Weston, December 25, 1830. Removed to Newtown when about 
 four years old, he spent his minority as a farmer's boy, receiving a 
 fair education in public and private schools. Preferring a profes- 
 sion, he studied law, and in the spring of 1854 was admitted to the 
 bar, commencing practice at Thompsonville, Conn. 
 
 In July of the same year he removed to Hartford, having been 
 appointed assistant clerk of the Hartford County Superior Court, 
 which position he filled until he formed a law partnership with 
 Julius L. Strong (afterward member of Congress), as Strong & 
 Nichols. In 1862 he was elected judge of probate, reelected in 1864, 
 and again in 1865. In 1867 Judge Nichols accepted the position of 
 general agent of the Merchants' Insurance Company, and in 1870 
 became its secretary. In 1871, upon the organization of the Na- 
 tional Fire Insurance Company, he was appointed Secretary ; was 
 made a member of its Board of Directors in February, 1874, and in 
 1887 elected President. 
 
 Judge Nichols is also a director of the Phoenix Mutual Life In- 
 surance Company, trustee of the Society for Savings, and vice- 
 president of the Charter Oak National Bank. 
 
 JONATHAN FLYNT MORRIS. 
 
 Jonathan Flynt Morris, born at Belchertown, Mass., March 20, 
 1822, commenced his business career as clerk in a mercantile house 
 in New York; visited Hayti in 1843, and, returning to that island 
 in 1844, accepted the chief clerkship of an English house at Fort de 
 la Pais, and afterward at Gonaives. Upon a return passage from 
 
 18 
 
138 THE NATIONAL FIKE INSUKANCE COMPANY 
 
 New York lie was shipwrecked, and made a perilous voyage from 
 Turk's Island to Hayti in a small open boat. Coming back to New 
 England in 1847, he became accountant for the Western Railroad 
 at Springfield, Mass.; three years later teller in Tolland County 
 Bank, Tolland, Conn.; in 1853 cashier of the Charter Oak Bank of 
 Hartford ; and in 1879 its president, retiring in 1894. Mr. Morris 
 is treasurer of the Connecticut Historical Society, a vice-president 
 of the Society for Savings, and was elected a member of the 
 National's Board of Directors in February, 1880. 
 
 JOHN R. BUCK. 
 
 John R. Buck was born in East Glastonbury, Conn., December 6, 
 1836. Upon completion of preparatory studies for college, he en- 
 tered Wesleyan, and afterward was instructor in several schools and 
 academies in Connecticut. Coming to Hartford in 1859, he studied 
 law, and in 1862 was admitted to the bar. In 1863-'67 he first 
 became assistant, then clerk of the House, and later clerk of the 
 Senate; 1863-'81 treasurer of Hartford County; 1880-'81, State 
 Senator. In 1880, as the Republican nominee, he was elected mem- 
 ber of Congress, and was also reelected in 1884. Declining re- 
 nomination, he returned to his home in Hartford, resuming legal 
 practice, and has been many years prominent in counsel as a mem- 
 ber of the Board of Directors of the National Fire Insurance Com- 
 pany, to which he was elected in February, 1880. 
 
 JOHN L. HOUSTON. 
 
 John L. Houston was born in Thompsonville, Conn., June, 1833. 
 At eighteen he became a teacher and for a brief period studied law. 
 In 1852 he engaged with a partner in managing the woolen mills 
 of Governor Buckingham near Norwich. In 1854 he accepted the 
 position of assistant superintendent of the Hartford Carpet Com- 
 pany's works at Thompsonville, a few years afterward became super- 
 intendent, and in 1878 was chosen president, which position he still 
 
BOAED OF DIEECTOES 139 
 
 retains. Mr. Houston has many times been elected to the legisla- 
 ture, serving four terms in the House and three in the Senate, 
 between the years 1859 and 1878. He is a member of the National 
 Wool Growers' Association, has been upon its executive committee, 
 and became a director of the National Fire Insurance Company in 
 February, 1882. 
 
 HENRY CLAY JUDD. 
 
 Henry Clay Judd, a native of Massachusetts, was born at North- 
 ampton, April 12, 1827, upon the fiftieth anniversary of the great 
 statesman, Henry Clay, and is son of John Flavel Judd, one of 
 the National's original Board of Directors. In 1832 the family 
 removed to Hartford. At the age of eighteen he engaged in the 
 wool business with his father as partner, and the harmonious ef- 
 forts of father and son built up a large and prosperous business. 
 In 1869 a new partnership, as H. C. Judd & Co., was formed, and 
 in 1875 the present firm of H. C. Judd & Root was organized. 
 Mr. Judd is a director of the Hartford Bank, is officially connected 
 with other important corporations, and in February, 1884, was 
 elected to the position made vacant by the death of his father upon 
 the National's Board of Directors. 
 
 FRANCIS TAYLOR MAXWELL. 
 
 Francis Taylor Maxwell, son of the late Hon. George Maxwell, 
 who was a member of the National's Board of Directors, was born 
 in Rockville, Conn., January 4, 1861. He commenced business life 
 by taking a subordinate position in the office of the Hockanum 
 Company, of which corporation he subsequently became and is 
 now treasurer. Mr. Maxwell is a director of The New England 
 Company, The Springville Company, The Rockville National Bank, 
 The People's Savings Bank, and other institutions. He is also 
 president of the Public Library, and actively engaged in muni- 
 cipal affairs. Mr. Maxwell was elected a director of the National, 
 January 1, 1895. 
 
140 THE NATIONAL FIBE INSUEANCE COMPANY 
 
 ELLIS GRAY RICHARDS. 
 
 Ellis Gray Richards, Vice-President and Secretary, was born in 
 Worcester, Mass., December 16, 1848. Graduating from the public 
 schools, he commenced his business career in 1866 as clerk in a 
 manufacturing establishment. In 1874 he entered the employ of 
 the Commercial Union Assurance Company, in its Boston office, 
 and was soon after made secretary and surveyor of the Worcester 
 County Board of Underwriters, under direction of the National 
 Board. In 1877 he was appointed special agent for New England 
 of the Royal and Pennsylvania Insurance Companies under Foster 
 & Scull, managers. In 1881 he became special agent of the Queen 
 Insurance Company, for the same field, and in the organization of 
 the New England Insurance Exchange two years later, and its 
 subsequent progress, he was an active participant. In April, 1887, 
 Mr. Richards was elected Secretary of the National, July 1, 1895, 
 was chosen a director, and in December, 1896, was also made Vice- 
 President of the Company. Mr. Richards is a member of the Board 
 of Directors of the Phoenix National Bank. 
 
 OTHER MEMBERS OF HOME-OFFICE STAFF 
 (OFFICE AND FIELD). 
 
 BENJAMIN R. STILLMAN. 
 
 Benjamin R. Stillman, Assistant Secretary, was born at Adams, 
 N. Y., March 31, 1852. Upon his graduating year at the Oswego 
 High School in 1868 he won as a prize for highest standing in the 
 college examination, a clerkship in the office of Mollison & Hast- 
 ings, shippers, flour merchants, and insurance agents. The position 
 was accepted by Mr. Stillman, and after three years he was given 
 an interest. In 1875 he formed a new partnership as Shepard & 
 
OTHEE MEMBEES OF HOME OFFICE STAFF 141 
 
 Stillman; in 1877 became special agent for the Watertown Fire 
 Insurance Company; and in 1882 assistant general agent for the 
 Sun. In 1883 he accepted the appointment of general agent of 
 the Springfield Fire and Marine Insurance Company ; in 1889 was 
 president of the New England Insurance Exchange ; and in March, 
 1891, was elected Assistant Secretary of the National Fire Insur- 
 ance Company. 
 
 J. F. HASTINGS. 
 
 J. F. Hastings is a native of Massachusetts, born in Boston, April 
 18, 1855. He entered the fire insurance business in 1873, in the 
 Boston office of the Liverpool & London & Globe Insurance Com- 
 pany, and three years thereafter the home office of the Common- 
 wealth Insurance Company of Boston, where he remained until 
 the company retired from business in 1882, when he accepted the 
 position of special agent of the Boylston Insurance Company of 
 Boston for New England and New York State. In 1889 Mr. Hast- 
 ings became New England special agent for the Continental In- 
 surance Company of New York, and in 1890 accepted a similar 
 position for the Southern New England field with the National. 
 In 1892 he was promoted to the position of general agent at the 
 home office. 
 
 CHARLES S. LANGDON. 
 
 Charles S. Langdon was born in Downers Grove, 111., November 
 16, 1846. His early business experience was in the dry goods es- 
 tablishment of his uncle, Joseph Langdon, in Hartford, Conn. In 
 1870 he became local agent of the Merchants' Insurance Company, 
 and the following year special agent and adjuster. Upon the or- 
 ganization of the National Fire Insurance Company of Hartford, in 
 November, 1871, he was appointed one of its first special agents, and 
 also conducted the local agency until 1892. Since then he has had 
 charge of the Department of Sprinklered Risks at the home office. 
 
 The first policy issued by the National, November 29, 1871, was 
 written by Mr. Langdon. 
 
142 THE NATIONAL FIEE INSUBANCE COMPANY 
 
 F. E. STONE. 
 
 F. E. Stone, whose birthplace was in Warren, Conn., and date of 
 birth, February 19, 1867, was educated in Hartford. In 1884, shortly 
 after graduating at the Hartford Public High School, he entered 
 the employ of the National Fire Insurance Company, and during 
 the ten years following familiarized himself with the business by 
 occupying with various promotions nearly every clerical position 
 in the Company's office. In January, 1895, he was appointed 
 special agent for the Western New England field. 
 
 W. A. R. BOOTHBY. 
 
 W. A. R. Boothby was born at South Paris, Me., November 3, 
 1851. At the age of seventeen he entered the general office of the 
 Maine Central Railroad at Waterville, Me., as clerk and telegraph 
 operator. In 1873 he went into the fire insurance agency of his 
 father, the following year became a member of the firm of L. T. 
 Boothby & Son, at Waterville, and for several years was general 
 insurance adjuster. He was a member of Gov. Robie's staff from 
 1883 to 1887. In October, 1887, Col. Boothby entered the ser- 
 vice of the National Fire Insurance Company of Hartford, and is 
 now special agent for eastern New England, with headquarters at 
 Boston. 
 
 H. A. SMITH. 
 
 H. A. Smith was born May 24, 1869, in Springfield, Mass. He pre- 
 pared for college at Williston Seminary and Cayuga Lake Military 
 Academy; entered Amherst College, 1885, and graduated 1890. 
 Immediately thereafter he engaged in the local agency insurance 
 business at Rochester, N. Y., and in 1891 was appointed special 
 agent of the National Fire Insurance Company of Hartford, having 
 charge of the New York State field. 
 
J. F. Hastings, 
 Genl. Agt. 
 
 Chas. S. Langdon. W. A. R. Boothby. F. E. Stone. 
 
 3& ^^ y^ 
 
 
 V^ 
 
 H. A. Smith. R. M. Wickham. C. H. Dillingham. J. M. Cotton. 
 
 Office and Field Men — Home Department. 
 
 /m*< 
 
 wk 
 
 4A' 
 
 B. B. Broomell. H. H. Lee. L. H. Lord. Jno. C. Dornin. 
 
 Field Men — Pacific Department. 
 
#, 
 
OTHEE MEMBERS OF HOME OFFICE STAFF 143 
 
 ROSS M. WICKHAM. 
 
 Ross M. Wickham was born in Orange County, N. Y., in 1850. He 
 entered the employ of the Continental Insurance Company at its 
 New York office in 1866, and later of the Yonkers and New York 
 Insurance Company. In 1877 he succeeded to the local business of 
 the Paterson Insurance Company, Paterson, N. J., and opened the 
 Newark office in 1881. Mr. Wickham was special agent for many 
 years of the Queen Insurance Company, and in 1887 was appointed 
 by the National Fire Insurance Company of Hartford as special 
 agent for New Jersey. 
 
 Mr. Wickham likewise conducts a large and prosperous local 
 agency at Newark. 
 
 C. H. DILLINGHAM. 
 
 C. H. Dillingham was born in Columbus, Ga., August 13, 1866. 
 His first business experience was obtained in the office of the Georgia 
 Home Insurance Company, of Columbus, of which his father was 
 an officer and director. With this Company he remained for four- 
 teen years, filling through promotion and otherwise every clerical 
 position in its office, including the banking department. In July, 
 1894, Mr. Dillingham was appointed special agent of the National 
 Fire Insurance Company of Hartford for South Carolina, Georgia, 
 and Alabama. 
 
 J. M. COTTON. 
 
 J. M. Cotton is a native of .Georgia, but went to Texas in 1862 and 
 began as a fire insurance agent in 1870 at Jefferson, removing to 
 Houston in 1875, where he has since been actively engaged as local 
 and general agent for a number of leading companies. The firm 
 of which he is senior member are general agents in Texas of the 
 St. Paul Fire and Marine Insurance Company. In 1888 Mr. Cotton 
 was president of the Association of Fire Underwriters for Texas, 
 and in 1896 he was appointed special agent of the National Fire 
 Insurance Company for the State of Texas. 
 
144 THE NATIONAL FIKE INSUBANCE COMPANY 
 
 H. L. MOSS. 
 
 H. L. Moss was born March 23, 1819, in Oneida County, N. Y. He 
 graduated at Hamilton College in 1840 and commenced practice as 
 attorney at law in Sandusky, Ohio, in 1843. Removing to Platte- 
 ville, Wis., he became in 1846 local agent of the Protection Insur- 
 ance Company of Hartford. Upon the organization of the Mer- 
 chants' Insurance Company in 1857 he was appointed local agent 
 for St. Paul and vicinity, and subsequently special agent. In 1871 
 he became the National's agent at St. Paul, and was afterward 
 appointed special agent for Minnesota, northern Wisconsin, Iowa, 
 and Dakota Territory, which position he held until 1888. Since 
 1872 Mr. Moss has had charge and still continues oversight of the 
 National's financial interests in Minnesota. 
 
 WESTERN DEPARTMENT. 
 
 FREDERICK SINCLAIR JAMES. 
 
 Frederick S. James, general agent, was born in Barrington, 111., 
 February 20, 1849. At the age of twelve he entered the High 
 School of Chicago, at fifteen began his insurance career in the 
 office of Alfred James & Co., and five years thereafter was ad- 
 mitted to membership in the firm. Shortly after the Chicago con- 
 flagration he established a local agency for himself, which after 
 twenty years of steady growth has become one of the foremost in 
 the city. In the Western field Mr. James has had a wide experience. 
 As manager of the Fire Insurance Association of London, also of 
 the Boston Underwriters, and later as general agent of the Wash- 
 ington Fire and Marine Insurance Company of Boston, he conducted 
 their Western business with marked success. In January, 1888, 
 
WESTERN DEPARTMENT 145 
 
 upon the reinsurance of the Washington with the National Fire In- 
 surance Company of Hartford, and the establishment by the latter 
 of a Western department, Mr. James was appointed general agent 
 of the National. 
 
 GEORGE W. BLOSSOM. 
 
 George W. Blossom, assistant general agent, was born at Du- 
 buque, la., October 1, 1854. At sixteen years of age he entered as 
 clerk the local insurance office of Smith & Plaister, Iowa State 
 agents of the Aetna Insurance Company of Hartford. In 1873 he 
 removed to Chicago and obtained a position with Eugene Cary, 
 then manager of the Imperial of London, afterward manager of the 
 German-American Insurance Company. In 1884 he was tendered 
 the position of assistant to Manager A. Williams, of the Connec- 
 ticut Fire Insurance Company, remaining in that capacity till 1887, 
 when he entered the firm of Fred. S. James & Co., also becoming 
 assistant general agent of the Washington Fire and Marine Insur- 
 ance Company of Boston. In 1888, upon the reinsurance of the 
 Washington, Mr. Blossom was appointed by the National to the 
 position he now holds. 
 
 CHARLES RICHARDSON. 
 
 Charles Richardson, second assistant general agent, was born 
 near Columbus, Ind., July 19, 1853, and in 1877 graduated from 
 the Indiana University winning one of the honors of his class. 
 Studying law with Judge A. C. Capron at Plymouth, Ind., who was 
 also engaged in insurance, he became a partner in 1880, devoting 
 especial attention to the insurance branch. In 1883 he was ap- 
 pointed special agent of the Franklin Insurance Company of In- 
 dianapolis, and in 1884 accepted a similar position with the Fire- 
 men's Insurance Company of Dayton, Ohio, making his headquarters 
 at Chicago. In 1888 he was elected secretary of that company. 
 Upon the reinsurance of the Firemen's in January, 1892, by the 
 National, Mr. Richardson received his present position upon the 
 staff of the Department. 
 
 19 
 
146 THE NATIONAL FIBE INSURANCE COMPANY 
 
 THEODORE GARDNER. 
 
 Theodore Gardner, a native of Indiana, was born in Wayne 
 County, November 13, 1844. Removing to Kansas in 1857, he en- 
 gaged in farming until the outbreak of the Civil War, when he 
 enlisted in the Federal army, serving three years. At the close of 
 the war after a varied mercantile experience he entered the local 
 insurance business at Lawrence, Kan., and in 1887 became special 
 agent for the National. 
 
 W. A. LYON. 
 
 W. A. Lyon is a native of Scotland, born in Aberdeen, January 8, 
 1840. After coming to this country he engaged in farm work and 
 teaching school in Jefferson County, Ind., and in 1861 enlisted in the 
 Federal army, and was promoted to a first lieutenancy. He was 
 severely wounded at the battle of Chickamauga. At the close of 
 the war he became engaged in mercantile business until 1871, when 
 he entered the service of the Franklin Insurance Company of Indi- 
 anapolis, Ind. Later he was appointed special agent of the Wash- 
 ington Fire and Marine Insurance Company, and since 1888 has 
 served in a similar capacity with the National for the States of 
 Illinois and Indiana. 
 
 SAMUEL H. ROW. 
 
 Samuel H. Row's early life was spent on a farm ; he was engaged 
 in teaching school between the ages of seventeen and twenty-one ; 
 enlisted in the Michigan infantry in 1862, being promoted later to 
 the rank of first lieutenant. Upon retiring from the service, he en- 
 tered the office of the Secretary of State of Michigan, and later was 
 appointed in 1867 as commissioner of insurance for Michigan, which 
 office he filled for twelve years. In 1884 he became the State agent 
 of the Washington Fire and Marine Insurance Company, and in 
 January, 1888, accepted a similar position in the service of the 
 National. 
 Mr. Row was born March 10, 1840, in Washtenaw County, Mich. 
 
W. H. Snider 
 
 J. M. Wallace. 
 
 Saml. H. Row. 
 
 %* 
 
 =( 
 
 Theo. Gardner. 
 
 i 
 
 W. A. Lyon. 
 
 U. F. Moss. 
 
 L,. B. Colby. 
 
 Chas. A. Bainter. 
 
 
 C-. 
 
 Chas. T. Chandler. Chas. A. Keith. H. F. Espenscheid. 
 
 Field Men — Western Department. 
 
"?SfTY 
 
WESTEEN DEPAKTMENT 147 
 
 J. M. WALLACE. 
 
 J. M. Wallace was born in Camden, Delaware, April 10, 1839. 
 After serving several years in the Federal army during the Civil 
 War, he entered the insurance business at Germantown, Ohio, in 
 1866, subsequently becoming connected with the Washington Fire 
 and Marine Insurance Company, and later, in January, 1888, with 
 the National as State agent and adjuster for Ohio. 
 
 W. H. SNIDER. 
 
 W. H. Snider entered the insurance business in 1868 in the local 
 office of the Franklin Insurance Company, of St. Louis; subse- 
 quently engaged in field work in the Western States for the same 
 company ; moved to Davenport, Iowa, in 1874, where he established 
 a local agency, which has now grown to be the leading agency of 
 the city. He entered the service of the National in January, 1888, 
 as special agent and adjuster for Missouri, Iowa, and other States. 
 Mr. Snider was born in Canada, May 21, 1848. 
 
 CHARLES T. CHANDLER. 
 
 Charles T. Chandler was born at Galena, 111., September 2, 1856. 
 He entered the insurance business in 1877 at Chicago, serving the 
 North British and Mercantile Insurance Company, the Phenix In- 
 surance Company, the Niagara Fire Insurance Company, and later 
 became superintendent of the Cook County, 111., Compact. In Sep- 
 tember, 1889, he was appointed special agent for Cook County of 
 the National Fire Insurance Company. 
 
 U. F. MOSS. 
 
 The early life of U. F. Moss was spent on a farm until December, 1872, 
 when he became connected with the Aurora Insurance Company, of 
 Cincinnati, afterwards with the Kenton Insurance Company, of 
 
148 THE NATIONAL FIKE INSURANCE COMPANY 
 
 Kentucky, as special agent, and later as secretary of the same com- 
 pany. He filled the latter position until December 31, 1890, when 
 he entered the service of the National as special agent. 
 
 Mr. Moss was born in Hart County, Ky., January 25, 1836. 
 
 CHARLES A. BAINTER. 
 
 Charles A. Bainter was born in Brownsville, Ohio, July 19, 
 1845. His first business experience was in a mercantile establish- 
 ment, and in 1865 he entered the insurance business, becoming con- 
 nected with the Cooper Insurance Company, of Dayton, as special 
 agent, in 1881, later in the same capacity with the Aurora, of Cincin- 
 nati. In December, 1891, he accepted a position as special agent of 
 the National for Ohio. 
 
 H. F. ESPENSCHEID. 
 
 H. F. Espenscheid was born November 5, 1872, at St. Louis, Mo. 
 After finishing his school education, he entered the local agency of 
 his father at Sedalia, Mo., later occupying an office position with 
 the National at Chicago. In August, 1893, he was appointed 
 special agent for the National in Illinois. 
 
 LUCIEN B. COLBY. 
 
 Lucien B. Colby was born September 9, 1837, in Oswego, N. Y. 
 In 1857, he went with the wholesale dry-goods house of Richards, 
 Crumbaugh & Shaw, Chicago, 111., remaining six years, when he 
 accepted a more responsible position with Bowen Bros., with which 
 firm and their successor he remained while they continued business. 
 For two years thereafter he published the Chicago " Evening Post." 
 In 1876 he conducted a local insurance agency in Iowa, and in 1878 
 accepted a position in the general agency office at Chicago of the 
 Phenix, of Brooklyn, doing office and field work until 1889, when 
 he went with the Liberty, remaining with that company until its 
 
PACIFIC DEPAETMENT 149 
 
 retirement, and satisfactorily closing up the business of its Western 
 and Southern Department. In 1893 he became special agent for 
 the National. 
 
 CHARLES A. KEITH. 
 
 Charles A. Keith was born in McGregor, Iowa, January 16, 18G2. 
 His early manhood was spent in various mercantile pursuits, and 
 in 1890 he entered the local insurance business at Lincoln, Ne- 
 braska. He became connected with the National as special agent in 
 July, 1894. 
 
 V 
 PACIFIC DEPARTMENT. 
 
 GEORGE D. DORNIN. 
 
 George D. Dornin, Manager, Pacific Department, was born in New 
 York City, December 30, 1830. He commenced his business career 
 in the office of a Wall Street broker, and February 3, 1849, em- 
 barked on the ship Panama, sailing around the Horn for California. 
 In 1852 he engaged in mining, and later in merchandising. Moving 
 to North San Juan in 1855 he became postmaster, express and tele- 
 graph agent, stage proprietor, and mail contractor; and in 1863, 
 local agent for the Phoenix of Hartford. In 1865 he was elected to 
 the legislature, and shortly thereafter removing to San Francisco 
 became special agent for the Aetna and Phoenix Insurance Com- 
 panies. In 1877 he was appointed secretary of the Fireman's Fund 
 Insurance Company ; in 1884, Pacific Coast manager of the Wash- 
 ington Fire & Marine Insurance Company, of Boston, and in 1887 
 of the Lion Fire Insurance Company, of London. In 1888, upon the 
 reinsurance of the Washington, Mr. Dornin was appointed manager 
 of the Pacific Department of the National Fire Insurance Company, 
 of Hartford, and also in 1895 of the Springfield Fire & Marine 
 Insurance Company. 
 
150 THE NATIONAL FIKE INSUBANCE COMPANY 
 
 GEO. W. DORNIN. 
 
 Geo. W. Dornin was born in Grass Valley, Cal., December 19, 
 1854. He graduated from the High School of Oakland, Cal., and, 
 after a term in the State University, entered the Mechanical De- 
 partment of the Central Pacific Eailroad, serving four years as 
 draftsman and mechanic. In 1879 he entered the service of the 
 Fireman's Fund Insurance Company, of which his father was then 
 secretary, and in 1881, on the appointment of the latter as manager 
 of the Lion and Imperial Insurance Companies, followed him in 
 the service of those companies and their subsequent associate com- 
 panies as chief clerk. On the dissolution of the alliance between 
 the English and American companies in 1891, he was made 
 assistant manager of the National. 
 
 B. B. BROOMELL. 
 
 B. B. Broomell is a native of Pennsylvania and was born July 30, 
 1857, at Columbia. In 1878-79 he commenced the study of law, 
 then became reporter for Lancaster papers; subsequently book- 
 keeper at the Danville Furnaces, and in 1883 accepted the position 
 of bookkeeper for the Washington Fire Insurance Company of 
 Tacoma, Wash. He then became local agent for several companies, 
 and in 1886 cashier of the State Insurance Company of Salem, Ore. 
 The following year he was appointed special agent for the Lion, 
 Imperial, Orient, and Washington Fire and Marine Insurance Com- 
 panies by Geo. D. Dornin, manager at San Francisco, and in 1888 
 became special agent for the National. 
 
 HIRAM H. LEE. 
 
 Hiram H. Lee for several years was teacher and principal in the 
 public schools in Des Moines. His early insurance experience was 
 in the office of Cook, Welling & Company ot Des Moines, of which 
 firm his father was a member. In 1881 he accepted a position in 
 
PACIFIC DEPAETMENT 151 
 
 the insurance agency of Streeter & Lee, at Leadville, Colo. During 
 1882 and 1883 he engaged in the local business with his father at 
 Des Moines, and entered the employ of the State Insurance Com- 
 pany of Des Moines as special agent. In 1888 he went with Geo. D. 
 Dornin, manager at San Francisco, and is now special agent for the 
 National with jurisdiction over Colorado, "Wyoming, New Mexico, 
 and Arizona, with headquarters in Denver. 
 Mr. Lee was born March 25, 1853, in Washington, Iowa. 
 
 LESLIE H. LORD. 
 
 Leslie H. Lord was born December 6, 1867, in Lowell, Mass. In 
 November, 1884, upon graduating from business college, he became 
 engaged in the insurance agency of Oliver Hawes at Oakland, Cal., 
 and in 1886 entered the employ of Geo. D. Dornin, manager at San 
 Francisco, as statistical clerk. Two years thereafter he was trans- 
 ferred to the accountant's position, and in September, 1891, was ap- 
 pointed special agent for the National Fire Insurance Company. 
 
 JOHN C. DORNIN. 
 
 John C. Dornin, born at San Juan, Cal., April 10, 1864, graduated 
 from the University of California in the class of '87, taking his 
 degree in the College of Mines, and is a member of the Beta Theta 
 Phi fraternity. He was two years attached as surveyor and drafts- 
 man, to the United States Coast Survey (steamer Pattison) on the 
 coast of Alaska, and subsequently located in Everett, Washington, 
 in 1891, where he represented, as local agent, the National, Spring- 
 field, and other leading companies. After four years of service 
 as local agent, he was appointed special agent for the companies 
 represented by his father. 
 
IN MEMORIAM. 
 
 MARK HOWARD. 
 
 Mark Howard, first President of the National, was a native of 
 England, born in the town of Maidstone, Kent County, but came 
 when a youth to this country and settled in Michigan. He studied 
 and practised law and afterwards established a newspaper in Ann 
 Arbor. Mr. Howard's first important position as a member of the 
 Insurance profession was his connection with the old Protection of 
 Hartford, which at that time was the leading company, when as 
 special agent he established and supervised agencies in the West. 
 Later as general agent he managed the fire insurance branch of the 
 company, promoting success in that department. The unfortunate 
 management of the marine department, however, in which Mr. How- 
 ard had no authoritative voice, and its disastrous losses finally cul- 
 minated in the Protection's failure in 1854. In 1 857 the Merchants' 
 Insurance Company was chartered and Mr. Howard was chosen 
 president. Under his management the company was eminently 
 successful for fourteen years and up to the date of the great Chi- 
 cago fire, which disaster swept away with scores of other compan- 
 ies, the entire assets of the Merchants'. In 1871 Mr. Howard was 
 elected President of the National, in which capacity he remained 
 until the date of his death, at the age of seventy years, January 
 24, 1887. 
 
 From early manhood to the close of his career Mark Howard was 
 deeply interested in American politics, and was prominent among 
 the organizers of the Republican party in Connecticut. In his busi- 
 ness relations and public life he became widely known as a man of 
 sterling integrity, with unflinching tenacity in upholding the right 
 and boldness in condemning the wrong, and to him as an under- 
 writer thoroughly versed in his science, and earnestly laboring for 
 its advancement upon principles of soundness and honesty, the 
 entire profession owes an acknowledged debt of gratitude. 
 
 152 
 
IN MEMOBIAM 153 
 
 JOHN FLAVEL JUDD. 
 
 John Flavel Judd was born in South Coventry, Conn., September 
 6, 1798, and died December, 1883. In 1832 he removed to Hartford, 
 and became teller of the Connecticut River Banking Company. In 
 1844 Mr. Judd engaged in the wool business, and for twenty-five 
 years devoted his energies toward building up a large and prosper- 
 ous wholesale trade, when in 1869 he retired from active manage- 
 ment, having amassed a considerable fortune. Mr. Judd was a man 
 of high moral standing in the community, esteemed alike for his 
 urbane and gentlemanly bearing, and his Christian excellence. He 
 was a member of the National's original Board of Directors, being 
 a regular and punctual attendant at its meetings. 
 
 JAMES PHELPS FOSTER. 
 
 James Phelps Foster came to Hartford in 1837, and started the 
 widely-known wholesale grocery house of Foster & Co., which is 
 still prominent among Hartford's oldest business establishments. 
 As an investor he was eminently successful, and in 1875 retired 
 from business, having acquired an ample fortune. He was born in 
 Manchester, Conn., January 31, 1800, and died May 14, 1878. Mr. 
 Foster was a member of the National's original Board of Directors, 
 and its first Vice-President ; also first president of the Mechanics' 
 Savings Bank, and a director of the Phoenix Mutual Life Insurance 
 Company. 
 
 TIMOTHY SHELDON. 
 
 Timothy Sheldon was born in New Britain, Conn., in 1804, and 
 died in February, 1879. Orphaned in childhood, he was brought 
 up by an uncle in Windsor, Conn. Removing to Hartford, when a 
 young man, he became a builder, and after many years of energetic 
 service, having accumulated a comfortable fortune, retired from 
 
 20 
 
154 THE NATIONAL FIRE INSURANCE COMPANY 
 
 active business in 1864. Mr. Sheldon was a director of the Mer- 
 chants' Insurance Company, and also one of the original members 
 of the National Fire Insurance Company's Board of Directors, and 
 of its Auditing Committee. 
 
 WAREHAM GRISWOLD. 
 
 Wareham Griswold was born in East Granby, Conn., January 22, 
 1808, and commenced his business career in Hartford as clerk in a 
 dry-goods establishment. He became in 1844 member of the firm 
 of Day, Griswold & Company (afterward Griswold, Seymour & 
 Company), and established a large and successful wholesale busi- 
 ness. In 1870 he was elected president of the Hartford Life and 
 Annuity Insurance Company. Mr. Griswold was a gentleman whose 
 generosity, kindliness, and affability won for him an enviable posi- 
 tion among Hartford's leading citizens. He was an original mem- 
 ber of the Board of Directors of the National Fire Insurance 
 Company and highly esteemed by all his associates. His death 
 occurred January 14, 1876. 
 
 WM. STEWART PIERSON. 
 
 Wm. Stewart Pierson was born in Durham, Conn., March 28, 
 1815, and died April 18, 1879. Graduating at Yale in 1840 he then 
 studied law and began practice in New York, but suffering from 
 ill-health journeyed West and engaged in enterprises of that rapidly 
 developing country. In 1861 he became Mayor of Sandusky, O. 
 Entering the Union army, he commanded the Johnson Island Post 
 of Confederate prisoners during the war, and at its close was bre- 
 vetted brigadier-general. Returning to Windsor, Conn., he became 
 one of its leading citizens. General Pierson was financially inter- 
 ested in many important corporations, among them the National 
 Fire Insurance Company, and of its Board of Directors was an 
 original member. 
 
IN MEMOEIAM 155 
 
 ELIJAH HUNTER OWEN. 
 
 Elijah Hunter Owen was born in Otis, Mass., November 30, 1811. 
 At the age of nineteen he came to Hartford as clerk in the whole- 
 sale establishment of Win. H. Imlay ; soon became a partner, form- 
 ing in 1842 the well-remembered firm of Day, Owen & Company, 
 which for twenty years did a large and successful business. As 
 Owen, Day & Root, and Owen, Root & Childs, he remained with the 
 firm until 1872, but thereafter continued his business with H. C. 
 Judd & Root, wholesale dealers in wool, of which firm he was an 
 original partner. In politics he was one of the early abolitionists 
 with Sumner and Garrison. Well known as a man of wide business 
 ability, he achieved a fortune, and, prominent in affairs both re- 
 ligious and secular, was for many years one of Hartford's leading 
 citizens until his death, April 14, 1881. Mr. Owen was one of the 
 original directors of the National Fire Insurance Company and 
 a member of its Finance Committee. 
 
 RICHARD DUDLEY HUBBARD. 
 
 Richard Dudley Hubbard, one of Connecticut's most distinguished 
 citizens, was born in Berlin, Conn., September 7, 1818. He grad- 
 uated at Yale College in 1839, became a member of the bar and the 
 legal firm of Waldo, Hubbard & Hyde, served in the Connecticut 
 Legislature, was elected member of Congress 1867-69, and Governor 
 of Connecticut, 1876-78. In the legal profession his chief aim was 
 justice, and in his unsought positions of political honor he was the 
 statesman, never the partizan. Respected, honored, and loved by 
 all who knew him, not excepting his political enemies, his loss was 
 deeply mourned throughout our commonwealth. Governor Hub- 
 bard was one of the incorporators of the National Fire Insurance 
 Company, and also a member of its original Board of Directors. 
 His death occurred February 28, 1884. 
 
156 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 DANIEL FOOTE SEYMOUR. 
 
 Daniel Foote Seymour was born in Hartford, Conn., July 7, 1831, 
 and died April 10, 1891. Entering as clerk the wholesale dry goods 
 establishment of Day, Griswold & Company, he was a few years 
 later admitted to partnership. During his connection with the 
 house as Griswold, Whitman & Welch, and Griswold, Seymour & 
 Company, it conducted an extensive and successful business. For 
 many years a director of the Hartford Life and Annuity Insurance 
 Company, he was appointed vice-president and afterward president 
 of that company, in which position he remained until failing health 
 compelled him to retire. Mr. Seymour was a man of kindly in- 
 stincts and genial disposition, liberal in his hospitalities and chari- 
 ties, and was one of the original Board of Directors of the National 
 Fire Insurance Company. 
 
 ELISHA NILES WELCH. 
 
 Elisha Niles Welch, one of Connecticut's citizens who has helped 
 to make the State famous for its manufactures, was born in East 
 Hampton February 7, 1809. In 1826 he removed to Bristol, and a 
 few years thereafter engaged in the manufacture and sale of clocks, 
 and from year to year enlarged his works until they were among 
 the foremost in the country. Upon acquiring wealth he invested in 
 other branches of manufacture, including brassware, silverware, 
 hosiery and woolen goods, and to these industries nourishing under 
 his personal care, the growth and prosperity of Bristol and Forest- 
 ville are largely due. Mr. Welch served in the State Legislature 
 both as representative and senator, held many official positions with 
 various corporations, and was one of the original directors of the 
 National Fire Insurance Company, which position he retained until 
 his death in August, 1887. 
 
IN MEMOEIAM 157 
 
 GEORGE MAXWELL. 
 
 George Maxwell was born in Charlemont, Mass., July 30, 1817, 
 and died April 2, 1891. He became a clerk in a mercantile house 
 in Greenfield, Mass., where he remained for ten years. Removing 
 to Rockville, Conn., in 1843 he engaged in business for himself, and 
 afterward in woolen manufacture, in which industry he became 
 eminently successful. He served in the State Legislature both as 
 representative and senator. Among the many companies and insti- 
 tutions in which Mr. Maxwell held high positions were the Hocka- 
 num Company, the Rockville Bank, the Gas Light Company, and 
 Rockville Railroad, of all of which he was president. He was also 
 trustee of the Society for Savings in Hartford and a director of the 
 National Fire Insurance Company. 
 
 HENRY AUGUSTUS WHITMAN. 
 
 Henry Augustus Whitman was born in Farmington, Conn. At 
 the age of nineteen he came to Hartford and entered the wholesale 
 dry goods establishment of which Mr. Wareham Griswold was the 
 senior. In 1857 he went into partnership under the firm name of 
 Griswold, Whitman & Welch, and continued in the commission dry 
 goods business until 1888 as Whitman & Welch, and Whitman & 
 Company, when he withdrew from mercantile pursuits, having be- 
 come president of the Hartford Life and Annuity Insurance Com- 
 pany, with which company he had formerly been connected as 
 director and vice-president. Mr. Whitman was also a director of 
 the First National Bank, and after the death of Mr. Wareham Gris- 
 wold, his father-in-law, was elected in February, 1876, to fill the 
 vacancy occasioned thereby in the National's Board of Directors. 
 He died July 10, 1894, at the age of 62 years. 
 
 WILLIAM HENRY LEE. 
 
 William Henry Lee was born in New Britain, Conn., May 19, 
 1818, and died in Hartford, Conn., April 9, 1895. He was senior 
 
 21 
 
158 THE NATIONAL FIKE INSUEANCE COMPANY 
 
 member of the dry goods importing and jobbing house of Lee, 
 Tweedy & Company, New York, established in 1845 ; charter mem- 
 ber of Union League Club, and originator of the Individual Under- 
 writers of New York. Mr. Lee was also a director of the Hanover 
 Fire Insurance Company of New York, and one of the original 
 Board of the National Fire Insurance Company. 
 
 EBENEZER ROBERTS. 
 
 Ebenezer Roberts was born October 28, 1819, in Westfield, Conn., 
 and died March 7, 1896. At the age of fifteen he entered as clerk 
 the wholesale grocery establishment of H. and W. Keneys, and after 
 twenty-one years became a partner in that ancient and honorable 
 house, and under the successive titles of H. & W. Keneys, Keneys 
 & Roberts, and Roberts, Tucker & Goodwin, was chief in its active 
 management. Among positions of importance held by Mr. Roberts, 
 he was director of the Hartford Bank, the Travelers' Insurance 
 Company, was also upon the National Fire Insurance Company's 
 original Board of Directors, and for many years one of its auditors. 
 
 JASPER MARVIN DRESSER. 
 
 Jasper Marvdst Dresser was born May 17, 1838, at Litchfield, 
 Mich. He was educated at Hillsdale College, Mich., studied law, 
 removed to Lafayette, Ind., and was there admitted to the bar in 
 1859. He served in the Union army during the Civil War as cap- 
 tain of artillery, was wounded at the battles of Bull Run and Stone 
 River, and promoted to the rank of lieutenant-colonel. In 1866 he 
 was appointed Western general agent of the Merchants' Insurance 
 Company of Hartford, and in 1871 general agent of the National, 
 serving in that capacity for eleven years, when he resumed the 
 practice of law, in partnership with William C. Mitchell, at Lafay- 
 ette, Ind., doing also a general insurance business, and in 1886, 1887, 
 and 1888 served as senator in the Indiana Senate. Colonel Dresser 
 died at Jacksonville, Fla., February 25, 1894. 
 
IN MEMOEIAM 159 
 
 WALTER L. FAY. 
 
 Walter L. Fay was born in Worcester, Mass., January, 1865, and 
 died June 27, 1894. After graduating from the Worcester High 
 School with honors he commenced his business career in 1884 as 
 clerk and assistant to E. G-. Richards, then special agent of the 
 Queen Insurance Company, No. 30 Congress Street, Boston. In 
 July, 1888, he entered the employ of the National Fire Insurance 
 Company, in its Hartford office, where, after four years of faith- 
 ful service, he was promoted, in July, 1892, to the position of special 
 agent for the western New England field, which position he held 
 at the time of his death. 
 
 • C. M. MASON. 
 
 Major C. M. Mason was born in New York, May 14, 1832. Re- 
 moving South in early manhood he engaged in mercantile pursuits, 
 and after services in the war on the Confederate side entered the 
 local insurance business at G-alveston, Texas. In 1872 he became 
 member of the firm of Anderson & Mason, later Mason & Beall, 
 representing the National at Galveston, and in 1878 was appointed 
 special agent of the Company for Texas. Major Mason was also 
 President of the local Board at Galveston, and at the time of his 
 death was the oldest field man in the State. His death occurred 
 December 26, 1894. 
 
INDEX 
 
 Agency, Hartford local, 95-96 
 Agents, Honorary list of, 17 
 Agents, character of the National's, 111 
 Assessment upon stockholders, 23 
 Atlantic Fire & Marine Ins. Co., 81 
 Atlas Ins. Co. of Hartford, 32 
 Aurora Fire & Marine Ins. Co., 89-90 
 Automatic sprinklers (see S) 
 Average clause (see Co-insurance) 
 
 Bainter, Chas. A., 148 
 Batterson, James G., 15 
 Biographical Sketches, 133 
 Blanchard, Homer, 5, 14, 135 
 Blossom, Geo. W. — 
 Appointed Asst. Genl. Agent of 
 
 Western Dept. in Jan., 1888, 68 
 Biographical sketch, 145 
 Bolter, James, 5, 15, 135 
 Boothby, W. A. R., 142 
 Boston — 
 Conflagration Nov. 9, 1872, 21 
 Reconstruction of burnt district, 28 
 Extracts from early laws, 28 
 Schedule rating and its effect on wooden 
 
 mansards, 29 
 Conflagration May 30, 1873, 30 
 " Nov. 28, 1889, 81 
 
 " Jan. & March, 1893, 97 
 
 Boston fire, Nov. 9, 1872, 21 
 Losses of National and other compa- 
 nies, 22 
 Lessons derived from, 25 
 Broomell, B. B., 150 
 Buck, John R., 138 
 Building, Home Office — 
 Decided upon in 1889 and building site 
 
 purchased, 80 
 Additional land purchased, 1892, 90 
 Plans completed and building com- 
 menced, 91 
 Completed and occupied Sept. 1, 1893, 101 
 Full description, 125 
 
 Capital — 
 Fixed at $500,000, 14 
 Impaired by Boston fire, 22 
 Increased in 1881 to $1,000,000, 48 
 
 Chandler, Chas. T., 147 
 
 Charter secured, June 4, 1869, 8 
 
 Cheney, F. W., 15, 136 
 
 Chicago — 
 Reconstruction of burnt district, 28 
 Schedule rating introduced, 29 
 72 Companies withdrew, 1874, 35 
 Rate war, 58 
 
 Chicago fire, 1871 
 Created demand for stronger companies, 
 
 14. 
 Effect on Fall business, 16 
 Lessons derived from, 25 
 
 Chicago Fire Underwriters' Union, 59 
 
 Classification — 
 Need of better system, 105 
 Little or no progress in 25 years, 105 
 Its importance, 105 
 
 Colby, Lucien B., 148 
 
 Co-insurance or Average — 
 As a principle, 91 
 Adopted by N. E. Ins. Exchange and 
 
 other associations, 92 
 Opposition aroused, and cause, 93 
 Legislation in Maine, 93 
 Principle of co-insurance, 94 
 Its universal use justified, 94-95 
 Essential factor in determining cost of 
 insurance, 105 
 
 Commission Compact, 99 
 
 Commissioners, Insurance — 
 Important Reports, 27 
 Massachusetts Report, 1874, 36 
 Call attention to results of severe com- 
 petition, 42 
 
 Conflagration hazard, 26, 113 
 
 Conflagrations, large — 
 Chicago, 111., Oct. 8, 1871, 4 
 Boston, Mass., Nov. 9, 1872, 21 
 " " May 30, 1873, 30 
 
 Portland, Ore., Aug. 1873, 30 
 Oshkosh, Wis., April 28, 1874, 34 
 Chicago, 111., July 14, 1874, 34 
 St. John, N. B., June 20, 1877, 43 
 Galveston, Tex., Nov. 13, 1877, 43 
 Haverhill, Mass., Feb., 1882, 49 
 Lynn, Mass., Nov. 26, 1889, 81 
 Seattle, Wash., June 6, 1889, 81 
 
 161 
 
162 THE NATIONAL FIEE INSUEANCE COMPANY 
 
 Conflagrations, large — (continued) 
 Spokane Falls, Wash., Aug. 4, 1889, 81 
 Boston, Mass., Nov. 28, 1889, 81 
 Milwaukee, Wis., Oct. 28, 1892, 90 
 Camden, Me., Nov. 10, 1892, 90 
 Boston, Mass., Jan. & March, 1893, 97 
 Fargo, N. D., June, 1893, 98 
 Minneapolis, Minn., Aug. 13, 1893, 98 
 
 Cooperation between companies necessary 
 to the progress of the business, 102 
 
 Cotton, J. M., 143 
 
 Department, Pacific — 
 
 Established in 1884, 55 
 
 Change in management in 1888, 69 
 Department, Western — 
 
 Established in 1887, 68 
 Dillingham, C. H., 143 
 Directors, First Board of, 14 
 Dividends — 
 
 Stock dividend in 1878, 44 
 
 Increase Jan. 1, 1897, 111 
 Dornin, Geo. D. — 
 
 Appointed Manager Pacific Dept., 69 
 
 Biographical sketch, 149 
 Dornin, Geo. W., 150 
 Dornin, John C, 151 
 Dresser, J. M., 158 
 
 Elevators, Open — 
 
 As conflagration breeders, 25 
 Espenscheid, H. F., 148 
 
 Factory Insurance Association — 
 Organized in Feb., 1890, 82 
 Origin and history of movement, 82-83 
 Object of the association, 83 
 Its methods, 84 
 Its office at Hartford, 85 
 The Western at Chicago, 85 
 Fay, Walter L., 159 
 Field Men — 
 Effect of non-tariff period upon, 41 
 Cooperation upon rates in N. E., 50-51 
 Organized the N. E. Ins. Exchange, 51 
 " " S. E. T. A., 51 
 
 " " Underwriters' Assn. of N. 
 
 Y. State, 53 
 Organized the Underwriters' Assn. of 
 
 Middle Dept., 54 
 Their relations to boards and tariffs, 52 
 Organized the Inspection Bureau and Li- 
 brary Association in New England, 65 
 Character of the National's, 111 
 Biographical sketches of the National's, 
 141 to 151 
 Financial panic — 
 
 Effect of, on moral hazard, 31, 109 
 Financial tables of Company, 117-123 
 Fire Underwriters' Union, 99 
 Firemen's Ins. Co. of Dayton, 89-90 
 
 First National Fire Ins. Co., 108 
 Foster, James P., 5, 14, 15, 153 
 Franklin, W. B., 15, 136 
 Franklin Ins. Co. of Louisville, 106 
 Freeman, Harrison B., 15 
 
 Gardner, Theo., 146 
 
 German Fire Ins. Co. of Phila., 89-90 
 
 Griswold, Wareham, 14, 154 
 
 Hagan, Mannheim & Co. — 
 
 Appointed Genl. Agts. Pacific Dept., 56 
 Hartford's fire insurance, Origin of, 10 
 Hartford Marine Ins. Co., 4 
 Hartford Bank, 11 
 Hastings, J. F. — 
 
 Appointed General Agent, 96 
 
 Biographical sketch, 141 
 Home Office Building (see B) 
 Honorary list of Agents, 17 
 Houston, John L., 138 
 Howard, Mark — 
 
 President Merchants', 4 
 " National, 15 
 
 His conservative policy, 39 
 
 His death, Jan. 24, 1887, 62 
 
 Biographical sketch, 152 
 Hubbard, Richard D., 5, 14, 155 
 
 Inspections and inspection bureaus — 
 Importance of bureau inspection, 65 
 Bureaus organized, 65, 106 
 
 Insurance Library Association — 
 Organized in 1887, 65 
 
 James, Fred S. — 
 
 Appointed Gen'l Agent Western Dept., 
 Jan., 1888, 67, 68 
 
 Biographical sketch, 144 
 Judd, H. C, 139 
 Judd, John F., 14, 153 
 
 Keith, Chas. A., 149 
 Kenton Fire Ins. Co., 86 
 
 Langdon, C. S., 141 
 
 Laws and legislation, unfavorable and 
 
 oppressive, 44-45, 57, 93, 114 
 Lee, Hiram H., 150 
 Lee, William H., 15, 157 
 Lloyds in Hartford, 11 
 Lobdell, E. Thomas — 
 
 Originator of the Merchants', 3 
 Lord, Leslie H., 151 
 Lyon, W. A., 146 
 
 Mansard roofs, wooden — 
 
 As conflagration breeders, 25-29 
 Mason, C. M., 159 
 Maxwell, Geo., 157 
 Maxwell, F. T., 139 
 
INDEX. 
 
 163 
 
 Merchants' Ins. Co. — 
 
 Brief history of, 3 
 Miami Valley Ins. Co. of Dayton, 109 
 Middle States Inspection Bureau, 65 
 Moral hazard — 
 
 Affected by financial panics, 31, 109 
 
 Condition in 1892-93, 97 
 Morris, Jonathan P., 137 
 Moss, H. L., 144 
 Moss, U. F., 86, 147 
 Mutual competition, 50, 72 
 
 Attention called to, by N. E. Insurance 
 Exchange, 77 
 
 Factory Ins. Assn. organised to check, 
 82-83 
 Mutual union, 82 
 
 National Board of Fire Underwriters — 
 The chief rating organization, 20 
 National joined in 1872, 20 
 Rates advanced by, 20 
 Rates again advanced in 1873, 27 
 New companies refused to join, 34 
 Members withdrew from Chicago, 35 
 Difficulty in maintaining rates. 41 
 Rates abandoned in April, 1877, 42 
 Effort to restore rates in 1879, 46 
 Extract from President's address, 47 
 Report upon Automatic Sprinklers in 
 1875, 74 
 New England Bureau of United Inspection, 
 
 65 
 New England Insurance Exchange — 
 Organized Jan. 6, 1883, 51 
 Attention called to automatic sprinklers, 
 
 77-78 
 Valuable report upon same, 77 
 Factory Improvement Committee or- 
 ganized, 78 
 Co-insurance adopted 1892, 92 
 New Hampshire compact, 56 
 New York City — 
 Effect of schedule rating, 29 
 Demoralized condition of business, 54 
 National withdrew from, 55 
 " returned to, 88 
 New York Tariff Association, 88 
 Nichols, James — 
 Elected Secretary Merchants', 5 
 " " National, 15 
 
 " President " Jan., 1887, 62 
 One of National Board Committee re- 
 porting on automatic sprinklers, 74 
 Biographical sketch, 137 
 
 Organization, National, Nov., 1871, 8 
 Origin of Hartford's Fire Insurance, 10 
 Owen, Elijah J., 5, 14, 155 
 
 Pacific Coast — 
 
 Department established, 55 
 
 Rate war, 102 
 Pacific Insurance Union, 104 
 People's Fire Ins. Co. of N. Y., 87 
 Philadelphia — 
 
 Branch Office established, 89 
 Pierson, Wm. S., 15, 154 
 Policy, First issued, 15 
 Policy, Standard form of, 
 
 Adopted in Massachusetts, 1873, 32 
 " " New York, 1886, 61 
 Prophecies, 112 
 Protection Ins. Co., 4 
 
 Rates — 
 
 High-water mark reached in 1873, 33 
 
 Increased demoralization in, 36-40 
 
 Suspended in 1877, 42 
 
 Generally reestablished by 1885, 59 
 
 Rate War in Chicago, 58 
 " " on Pacific Coast, 102 
 Re-insurance reserve — 
 
 New York law, 1874, 35 
 Richards, E. G. — 
 
 Elected Secretary, April, 1887, 63 
 
 Also Vice-President, Dec, 1896, 140 
 
 Biographical sketch, 140 
 Richardson, Chas. — 
 
 Appointed 2d Asst. Genl. Agent, 90 
 
 Biographical sketch, 145 
 Roberts, Ebenezer, 5, 15, 158 
 Row, Saml. H., 146 
 
 St. John, N. B., fire, 43 
 Schedule rating — 
 
 Prevents use of wooden mansards, 25, 29 
 
 Universal mercantile schedule, 100 
 Seymour, Daniel P., 14, 156 
 Sheldon, Timothy, 5, 15, 153 
 Smith, H. A., 142 
 Snider, W. H., 147 
 South-Eastern Tariff Association — 
 
 Organized August 16, 1882, 51 
 
 Co-insurance adopted 1893, 92 
 Southern States — 
 
 Business extended therein, 80 
 Special agents (see Field Men, F) 
 Special reserve fund law, N. Y., 37 
 Sprinklers, Automatic, and Sprinklered 
 Risks — 
 
 Origin and History of the automatic 
 sprinkler, 71 
 
 Automatic sprinkler endorsed by Na- 
 tional Board, 1875, 76 
 
 The Parmelee, 73-77 
 " Grinnell, 77 
 
 Sprinklered Risks in New England, 78 
 
164 THE NATIONAL FIBE INSUKANCE COMPANY 
 
 Sprinklers, Automatic, and Sprinklered 
 Risks — (continued) 
 The National a pioneer in, 79 
 Work of underwriters' bureaus of N. E. 
 and N. Y., 106-107 
 Stillman, Benjamin R. — 
 Elected Asst. Secy., Feb., 1891, 87 
 Biographical sketch, 140 
 Stone, Prank E., 142 
 
 Transatlantic Fire Ins. Co., 107 
 Underwriters' Association of New York 
 State — 
 Organized Sept. 12, 1883, 53 
 Co-insurance failed of adoption, 93 
 Underwriters' Bureau of New England, 106 
 Underwriters' Bureau of the Middle States, 
 107 
 
 Underwriters' Association of the Middle 
 Department — 
 Organized in May, 1883, 53 
 Co-insurance failed of adoption, 93 
 
 Universal mercantile schedule, 100 
 
 Union, Fire Underwriters, 99 
 
 Union, Western, 48 
 
 Union, Mutual, 82 
 
 Union, Pacific Insurance, 104 
 
 Wallace, J. M.. 147 
 
 Washington Fire & Marine Ins. Co., 67 
 
 Welch, Elisha N., 15, 156 
 
 Western Factory Ins. Assn., 85 
 
 Western Union, 48 
 
 Whitman, H. A., 157 
 
 Wickham, Ross M., 143. 
 
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