SEMI-CENTENNIAL HISTORY
THE NORTHWESTERN MUTUAL
LIFE INSURANCE
COMPANY
LIBRARY
OF THK
UNIVERSITY OF CALIFORNIA.
GIFT OF
Class
to,
Home Office of the Company .
SEMI-CENTENNIAL HISTORY
OF
The Northwestern
Mutual Life Insurance Company
OF
MILWAUKEE, WISCONSIN
1859 1908
PUBLISHED BY AUTHORITY OF ITS EXECUTIVE COMMITTEE, UNDER THE
SUPERVISION- OF A SPECIAL COMMITTEE CONSISTING OF
GEORGE H. NOYES, GEORGE C. MARKHAM
AND FREDERICK C. WINKLER
MILWAUKEE
1908
BY
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
TO
THE POLICYHOLDERSOFTHE NORTHWESTERN MUTUAL
LIFE INSURANCE COMPANY
WHO CONSTITUTE THE COMPANY
THIS VOLUME IS RESPECTFULLY DEDICATED
BY THEIR TRUSTEES
196093
PREFACE
The purpose of this book is to present in permanent form
a statistical history of the records and events which have
chiefly contributed to the growth and development of The
Northwestern Mutual Life Insurance Company during the
first fifty years of its existence. The compilation is by
Henry Franklin Tyrrell.
A complete history of the company cannot be written.
Well-known facts relative to official management may be
compiled, but the potency of silent forces, which in manifold
ways have been at work, is not a matter of record. The
benefits, direct and remote, which the company has bestowed
upon the beneficiaries under its policies cannot be measured,
save, in part, by the lives of officers and agents whose years
were devoted to faithful service.
If the work done shall prove of interest and benefit in
preserving for the members many valuable records of the
past, and in cementing more firmly their loyalty to the com-
pany, all who have contributed to its preparation will be
fully rewarded.
July, 1908.
Life Insurance
"Life insurance comes in as a financial invention by
which capital in the shape of a productive life a life
controlling and directing some branch of the zvealth-
begetting or wealth-distributing machinery of the age
can perpetuate itself, or convert a part of its produc-
tive energy into a contingent fund, that will be im-
mediately available in case of death. It would be easy
to show that this is in fact a grand necessity of our
present civilization. While all other sorts of com-
munism interfere too much with individual liberty to
be widely or long tolerated, here is a form of it, which
allows unrestrained individualism, without the penalty
of beggary entailed upon dependents or descendants.
It gives to an energetic young man who has not a
spare dollar to bequeath, the power of making a will
good for several thousands in case of his death the
next day." Elizur Wright.
"I regard the institution of life assurance companies,
particularly on the mutual principle, as among the
JiigJiest and most beneficent of our Christian charities.
They are benevolent in their inception and administra-
tion; they are every way beneficent in their results."
Rev. Dr. Farley.
Early History of Life Insurance
THE first and strong impulse of the historian, especially if
he be an enthusiast, is to make the institution of life
insurance venerable, founding it away back in the dim old
ages, only to break it out impressively from amid the gloom of
ignorance into a grand affair having something of the form and
substance of the present system.
Writers on other kinds of insurance, be the same fire, marine
or indemnity, find authority for maintaining that these are primi-
tive practices, and their citation of ancient authorities in aid of
this contention is quite impressive, but the chronicler of life
insurance searches diligently, though vainly, for traditional data
on which to found a belief that this is one of the institutions the
passage of time has crowned with the glory of ages.
True, he finds mutual benefit revealed in the actions of the
early Christians who sold their earthly possessions and held
everything in common, for it is written "as many as were pos-
sessors of land or homes sold them and brought the price of the
things that were sold and laid them at the apostles' feet and dis-
tribution was made unto every man according as he had need."
And if life insurance of some description were not meant,
what could, forsooth, be the intent of the old precept: "He
that provideth not for his own, and especially for his own house,
hath denied the faith and is worse than an infidel?" Or what
meant St. Paul in his address to the men of Athens reported in
Acts 17-31 when he said He "hath given assurance unto all
men?"
Possibly one could justify his conscience by giving the
Romans credit for pioneer ship in one of the essentials of life
insurance the mortality table but when old Pagan life, with
its plagues, wars and habits, is recalled the preponderating pre-
sumption arises that the ancient Romans had little to do with
life insurance. Premiums would have been prohibitive in those
primitive days*
11
12 Early History of Life Insurance
However, in the development of their jurisprudence, they
were obliged to provide for life estates and some method of
fixing the values of such estates was necessary.
The one first adopted assumed that all persons who attained
to the age of thirty years would continue to live to be sixty and
then surely die. This was a purely arbitrary assumption, but, in
lieu of a more convincing theory or a practical table, it was
accepted as a simple solution of a difficult problem.
The Praetorian Prefect Ulpianus, an eminent Roman jurist,
seeing the fallacy in the former usage, perfected a mortality
table in which for the first time in history a distinction was
made between the different ages, and in which the probable
number of years of life for each was given. But the principle
of expectancy thus devised did not appeal to the Romans as
carrying an essential element of the scientific scheme of life
insurance, although, as has been written, the non-existence of
a scientific theory of probabilities cannot be accepted as a reason
for the unlikelihood of the early practice of life insurance
among them.
Be this all as it may the real facts are that whereas men
had insured their property against loss by fire and the elements
for centuries the idea of insuring their lives came slowly to
them.
One of the first reasonable examples of the exercise of the
principles of mutual insurance is found in the old Saxon guilds
in which "every freeman of fourteen, being bound to find
sureties to keep the peace, certain neighbors composed of ten
families, became bound for one another, either to produce any
one of the number who should offend against the Norman law,
or to make pecuniary satisfaction for the offense. To do this
they raised a fund by mutual payments which they placed in one
common stock. This was pure mutual assurance."
Following these guilds certain fraternities developed, in
which the members were required to "swear by the holy reliques"
that they would be faithful to each other in religious and worldly
matters; that when a member died the survivors would come
to the interment or "forfeit a sextarium of honey;" that assist-
ance should be rendered a member "standing in need of assist-
ance" and that in case one took the life of a member, "his
Early History of Life Insurance 13
reparafory fine should not exceed eight pounds," but it was
especially provided that if a member who was poor killed any
one, and compensation must be made, then if the deceased was
worth twelve hundred shillings each member should contribute
a half mark (a little over ten dollars) ; if the deceased was a
hind, each member had to contribute but two orse (ics. 4d.) but
if he was a Welshman, the assessment was only one!
The laws of these fraternities further provided that in case
a member killed a member he should make reparation to the
relatives and atone to his fellow-members in the sum of eight
pounds. He was disgraced to the extent that fellow-members,
except only in the presence of the king or bishop or an alder-
man, were forbidden to eat or drink with him under forfeiture
of one pound, unless able to prove by the evidence of two
witnesses on oath that they did not know the person.
The following rule is also interesting: "If any member shall
treat another member in an abusive manner, or call him names,
he shall forfeit a quart of honey; and if he be abusive to any
other person, who is not a member, he shall likewise forfeit a
quart of honey."
Amusing as these rules may appear today, the idea was
mutual aid and contribution, which after all, is a basic principle
of life insurance.
Following the line of development vagrant cases of practical
life insurance are found in the payment of money for the non-
return of a pilgrim or a sea- faring man, or even in the payment
of certain sums of money to the heirs of a deceased annuitant,
but the whole state of affairs domestic, legal and general in
early days was not conducive to life insurance as it has devel-
oped into the present magnificent system.
The first policy of life insurance of which there is any trace
was issued in London in 1538, insuring the life of one William
Gybbons for twelve months. This was written by thirteen per-
sons acting individually and the premium was eighty dollars
per thousand. However such occasional policies as this did not
seem to induce a suspicion of the wonderful possibilities of life
insurance as a business.
One of the germs to thought intimately connected with the
subject was early furnished by a Neapolitan adventurer named
14 Early History of Life Insurance
Tonti who came to Paris in 1563 and formed associations in
which members were to pay certain sums in a fund to be invested
awd divided among the survivors.
It was found to be a wonderfully productive as well as
attractive scheme and even governments adopted it to raise
money in stringent times, but it was a great many years after
Tonti had passed away that life insurance companies devised
the tontine policy, recalling his name for the innovation, although
it had little analogy to the schemes to which Tonti in his life-
time was a party.
It is quite possible, too, that Tonti was not the originator of
the idea he popularized. Historians contend there is reason to
assume that similar customs had been established in Italy long
before his time.
The publicity which attended Tonti's public and practical
exposition of the scheme above outlined may have later resulted
in the purchasing of life annuities in the Netherlands in the
early part of the sixteenth century and if this is the fact modern
insurers are under everlasting obligations to Tonti for having
made possible eminent writings which had their later effect on
the business of life insurance, which were, indeed, stepping-stones
in its slow development.
For the first time that essential element of life insurance, the
law of probabilities, began to attract attention and it is par-
ticularly interesting to note that the impetus for any considera-
tion of probabilities applied to human life, came from the gaming
table. This interest is augmented, too, when one considers that
the business of life insurance was founded by a clergyman.
The great French thinker, Pascal, was the first to lay down
the principles of the doctrine of chances but the first to apply
these principles to a practical subject was Jan de Witt, Grand
Pensioner of Holland and West Friesland, when commissioned
by the States-General in 1671 to devise a plan for making a
loan. He recommended life-annuities based on probabilities.
The real significance of probabilities had not yet dawned on
the unawakened minds of our forefathers and time went on
until terrific plagues took off so many thousands that in order to
disprove the resulting exaggerations as to the number of dead,
bills of mortality were ordered in England. These, with the
Early History of Life Insurance 15
registers required by command of Thomas Cromwell in 1538,
furnished the foundation for the first English work on the
subject, a book published in 1664 and written by John Graunt, a
plain tradesman in the eyes of his neighbors, but a philosopher
of the first water.
Graunt submitted many an erudite proposition to his readers
and while his ingenious deductions from novel premises were
wonderful then, they are in a measure now only diverting. One
of his serious efforts was to deduce a law of expectancy from
records of deaths without the ages of persons.
Even then the science of life insurance was not evolved and
it is with chagrin the recorder of facts is obliged to note that
the next step in its development was through the medium of
usurers men of the stripe of the notorious Audley and Judah
Manasseh Lopez who were shrewd enough to apply probabili-
ties to financial transactions in granting annuities, taking advan-
tage of the early estimates of longevity and trading on the
ignorance of their clients. But this period must be given credit,
nevertheless, since it quite probably resulted in calling the atten-
tion of Dr. Halley, the then Astronomer Royal of England, to
the question of life contingencies and resulting in the publication
by him in 1693, of the famous Breslau Table of Mortality.
"It is not a little strange," says Walford, "that while England
was the theatre destined for the correct development of life
assurance, she could not of herself furnish the data upon which
its practice was to be built." The unrecorded ages in the
English parish registers made them practically useless for scien-
tific purposes.
But even the Halley table gave no immediate impetus to life
insurance. His wonderful work was filed away only to be
unearthed and subsequently used by those who appreciated its
value, as were the works of numerous other distinguished writers
and philosophers.
A fund of speculation was indulged about this time by
learned men of all the principal continental countries, but it
failed to awaken a real appreciation of the wonderful business
into which life insurance afterward developed. For years,
strong men men of great business capacity, students and think-
ers saw nothing in the probabilities of life to presage or justify
1 6 Early History of Life Insurance
the magnificent system that now prevails as life insurance.
These writings, however, must have revived attention to the
early example of yearly insurance above noted, for another policy
was issued in 1697, on the life of Sir Robert Howard for one
year from the third day of September 1697, and it is most inter-
esting to note that on the same day in the following year the
insured died, but the merchant who had made the contract
refused to pay it on the ground that the policy had expired.
Then it transpires that this pioneer policy of life insurance
one of the first of which there is historical note was the subject
of litigation, and it may not be amiss to say that the foundation
was then laid for further traditions in the insurance business by
the prompt defeat of the insurer. Lord Holt, who presided at
the trial, held that the phrase "from the day of the date"
excluded the day itself.
A clergyman is entitled to the high honor of having really
started life insurance although the project he proposed did not
succeed. In 1698 Rev. William Assheton, D.D., Rector of Mid-
dleton in Lancashire, England, proposed an organization "for
the benefit of the widows of clergymen and others and for
settling of jointures and annuities." This led to the formation
of the Mercers' Company, in London, which undertook the
annual payment of 30 to any widow whose husband had, in his
health, subscribed 100 to the fund. The company soon discov-
ered that it had been formed on a poor foundation and it low-
ered the annuities. Later it could not meet its engagements and
finally sought royal relief.
The following year, 1699, another similar organization was
formed and called "The Society of Assurances for Widows and
Orphans." These two societies flourished for a short time, but
lacking correct data on which to operate, passed out of existence.
This brings the chronicle down to the first real life insur-
ance office ever opened in any country, to the establishment
of the Amicable Society, or Perpetual Assurance, in 1706.
The Amicable was well named. Professor de Morgan says
it was "originally founded rather on the principles of mutual
benevolence than of mutual assurance," but it went directly to
work under its charter, insured lives, paid annual dividends and
strenuously opposed the further chartering of competitors.
Early History of Life Insurance 17
The basis on which the Amicable did business was crude.
There seemed to be no sort of selection and an arbitrary premium
of 5 per hundred was charged irrespective of health or age,
probably because it was vaguely understood that the ratio of
annual deaths in London was one in twenty, which would have
been a reasonable proposition if the company could have insured
every person in London. It could then have used all the mem-
bership fee and interest for running expenses, and still have
money enough to pay losses, but its charter expressly limited it to
a membership of 2,000.
In the following year there began a period of speculative
insurance that ran rampant for years.
In 1707 one Charles Povey, who is the original of the modern
"promoter," projected a company for 4,000 healthy persons
between the ages of 6 and 55 under the name, "The Proprietors
of the Traders' Exchange House." Every subscriber was to pay
2 s. 6 d. per quarter, for which premium ^300 were to be equally
distributed to the nominees of the assured persons dying in the
quarter, with one half-penny from the clear profits of the printed
papers sold by the office; for it must be understood that here
originated the custom of publishing periodical papers in aid of
the business. As Walford says : "These publications have
proved a valuable addition to our historic literature and were
most likely conducted at a far less expense than many offices
now go to annually in advertising." Some of these papers
developed into thick octavo pamphlets, which were sold to the
public and thereby made a source of profit. His insurance com-
pany, however, died an early death.
Povey was a public poseur, for history next reveals him as
the author of a publication entitled "Unhappiness of England,
as to Trade," in 1708. Shortly thereafter he projected the Sun
Fire Office and sold it to persons who constituted themselves
into a company in 1710, that has since developed into the well-
known Sun Fire & Life Company. Francis says of Povey that
"not contented with establishing an office to insure against the
chance of fire, he invented also a scheme to extinguish it, and
'Povey's Fire Annihilator' was a feature of the time!"
It was about this time from 1708 to 1712 that what were
known as "the little goes" of insurance were in full sway, appeal-
i8 Early History of Life Insurance
ing to the speculative mania then epidemic in England and
finding thousands of easy victims. Everything involving a
chance was subject to insurance. As Francis says: "If one
company began to insure marriage portions, a second was sure
to follow to insure the portions of their children." Everything
and everybody were given some sort of opportunity to be
insured and the state of affairs may be appreciated when it
took but four years to so thoroughly run the public into all
manner of insurances that a stop had to be put upon them,
which was finally accomplished by exacting a penalty of 500
of their promoters.
"Unfortunate as the bubble insurance companies might be,"
says Francis, "uninformed and unintelligent as their conductors
proved, and ruinous as they were to the people who trusted
them, they were a movement in the right direction."
From 1712 to 1720 was one of comparative insurance
quietude. The Amicable had now a history of nearly fourteen
years behind it, and the experiences of the speculative period
were being fairly well forgotten. In 1720, however, some of the
first merchants in London met in Mercer's Hall to petition the
crown for a charter to make marine and other assurances. The
petition was well-timed, says Francis, as upward of one hundred
and fifty underwriters had recently failed, and many merchants
having fallen to the ground with them, there was every reason
in the public clamor for a safer and more secure mode of invest-
ment.
About the same time another company of "knights, merchants
and citizens of London" had petitioned with the same object.
One body was known as the Royal Exchange and the other the
London Assurance Corporation. A charter was granted each in
1720 and they wrote an immense marine insurance, it being a
fact that neither was authorized by its original charter to
write life insurance. Yet they were the first insurance com-
panies in the world to write life policies for a fixed sum payable
at death.
The "South Sea Bubble" hit these two companies hard in
the first year of their existence and they were unable to perform
some of the conditions under which their charter had been pro-
cured. They appealed to parliament for relief and got a modi-
Early History of Life Insurance 19
fieri charter permitting them also to write life insurance. Wai-
ford suggests that what had "so suddenly moved" these cor-
porations to take up life insurance may have been a project
suggested at or about that time by Sir James Hallett and one
hundred and thirteen others, for a company to insure lives.
The petition set out the advantages of life insurance in a manner
that embraced all the essentials and might well be used today in
soliciting. Its simplicity is diverting. It confidently maintained
that life insurance would be of great benefit to the subjects of the
realm, "especially such of them as are in trade, to use in such
their trade the greatest part of the fortunes they may receive
with their wives ; and which they might much the better do, could
they, by laying out some part of the said fortunes, receive a suffi-
cient competency for their wives to live and subsist upon, in case
they should, by the chance and hazard of trade, either fail or
die, without a capacity to make any other provision for them."
Further, "that it would also be very serviceable to his Majesty's
subjects could they safely and securely insure upon their lives,
which would encourage merchants to be more bold in their
undertakings, because in case of their death before schemes in
trade succeed, their widows and families might thereby receive
a benefit in a great measure to recompense the failure of such
their undertakings. That persons in good offices and employ-
ments for life may, for the same reason, be induced to make
provision for their families, who during their lives have an
opportunity of maintaining them in good credit, but at their
death very often leave them in slender circumstances."
The necessity for life insurance was at last apparent. Hal-
lett's insurance proposition, however, was denied by the crown
and the Amicable, Royal Exchange and London Assurance were
the only companies in the world in 1721.
Life insurance had now entered the investigative stage and
nearly every mathematician of note made research into the
science of life contingencies. One of the earliest of their works
was the "Doctrine of Chances" by Abraham de Moivre, first
published in 1718, wherein the chances applied to gaming only,
and the next, in 1725, applied to the valuation of annuities on
lives. De Moivre endeavored to show that the decrements of
life, for considerable intervals of time, were in arithmetical pro-
2O Early History of Life Insurance
gression and exhibited tables that tended to prove his conten-
tion. This was useful at the time, but later investigation proved
that it was not sound. In 1738 Kersseboom's tables, taken from
the records of life annuities in Holland for one hundred and
twenty-five years, were published, and in 1746, an essay on the
probabilities of the duration of human life by M. de Parcieux
was issued, based on mortuary registers of French religious
houses and nominees for tontines.
In the meantime and in 1742, Thomas Simpson, a mathemat-
ical genius, enlarged on the theories of Halley, de Moivre and
others and made a mortality table from London experiences.
This Simpson was an exotic. Francis says of him that before
he came to London his life had been a vagrant one. He had
cast rustic nativities, told fortunes, advanced courtships and
"occasionally raised his vagabondism by undertaking to raise
the devil!" But he published at least four different works that
were of great benefit.
James Hodgson in 1747 made the first effort to show the
value of annuities from London mortality and in Corbyn
Morris' book on the growth of London in 1751, a proposal was
made to reconstruct a mortality table. The first person, how-
ever, to point out the utility of such tables in calculating life
insurance premiums was James Dodson. In 1760, M. Buffon
published a table of probabilities based on French parish
registers.
Up to this time, as Hendriks says, "no plan of life insurance,
in its proper form of development, as an assured provision of a
fixed minimum amount of money payable at death, whenever
that may occur, the risk thus extending from the date of the
insurance, being effected, up to the expiration of the whole term of
life, had been contemplated by a company or society, or had been
considered by any legislature in Europe, prior to the year 1760."
The fact is, as Walford so tersely states it: "Notwithstand-
ing the brilliant array of names associated with the science, the
practice of life insurance had been left to a blindfold progres-
sion ; that chance reigned supreme where all things should have
been fixed and certain ; and that the improvements which from
time to time crept in, were rather the result of accident than
design."
Early History of Life Insurance 21
About 1760, a petition was presented to the Secretary of
State's office setting forth the subject for which a charter was
desired, substantially as follows: "That great numbers of his
Majesty's subjects, whose subsistence principally depends on the
salaries, stipends and other incomes payable to them during their
natural lives, or on the profits arising from their several trades,
occupation, labor and industry, are very desirous of entering into
a society for insuring the lives of each other, in order to extend
after their decease the benefit of their present incomes to their
families and relations, who may otherwise be reduced to extreme
poverty and distress by the premature death of their several
husbands, fathers and friends, which humane intention the peti-
tioners humbly apprehend cannot be effectually carried into exe-
cution without his Majesty's royal authority to incorporate them
for that purpose."
The charter was held up, however, by the attorney general.
One of the reasons urged against it \vas that success of the plan
must depend on the "truth of certain calculations taken upon
tables of life and death whereby the chance of mortality is
attempted to be reduced to a certain standard ; this is mere specu-
lation, never yet tried in practice, and consequently subject, like
all experiments, to various chances in the execution."
In 1762, however, objections and official difficulties were
overcome and a charter was granted "The Society for Equitable
Assurance on Lives and Survivorship," which became familiarly
known as the Old Equitable.
Manifestly there were defects in the system and practices
of this company, but it did all that could be expected of a life
insurance company at that early time. Francis says it assured
lives for any number of years or for the whole continuance of
life. It took the price of the assurance in one present payment
or it accepted annual premiums. It allowed annuities to the sur-
vivors if they preferred it; and though the scale might have been
too high for what we now know, it at least was more businesslike
than its contemporaries ; for so slow were the latter to profit by
experience that it was not until the commencement of the iQth
century that the Royal Exchange availed itself of the North-
hampton tables to compute its premiums.
The Old Equitable had not been formed many years when
22 Early History of Life Insurance
it had one of those experiences to which modern life insurance
companies have become accustomed, if not reconciled, which
may be the better described in the words of Francis in his
"Annals, Anecdotes and Legends of Life Assurance/'
"In 1765," says Francis, "one of those insolent attempts
occurred on the part of the state, which reminds the reader of
an absolute, rather than of a representative government. The
peace concluded in 1763, followed a war which cost upwards of
a hundred millions, and the bribery which was necessary to carry
the treaty through the House had contributed to exhaust the
treasury. Money was to be acquired, and the people grumbled
at the taxation necessary to raise it. In this dilemma it sud-
denly occurred to the ministers that there might be unclaimed
property in the assurance offices, and by some confusion of right
and wrong it was thought just to claim this private property for
the public good. Nothing could more decidedly approach con-
fiscation."
The companies vigorously contested the imposition of the
tax. The question became one of great moment and great
political interests were involved on both sides. Francis con-
tinues : "Pamphlets were issued, which distinctly asserted that
no one would trust a government acting so infamously; that con-
fiscation of private property to pay a nation's debts was only one
remove from bankruptcy; and that no citizen would lend money
to a government so unprincipled. The propriety and proper feel-
ing of the people aided the resistance of the offices, and the at-
tempt was only successful in proving to the state that all arbitrary
power had passed away, and that for the future an honest course
would be their best policy."
In the chartering of the Old Equitable, the real history of
modern life insurance begins, and it would, no doubt, be interest-
ing to follow the further English history of the institution, giving
due credit to Dr. Price, "the unsuccessful Unitarian preacher,"
his illustrious nephew Morgan, and other great geniuses of life in-
surance calculations, as well as depicting the various progressions
and corrections in mortality tables, but the scene must shift to
another shore and progress be noted there, for while England
developed the business of life insurance, the United States of
America perfected it. And there this history must be continued.
Province of Pennfylvania,
fPriaW by Aoi-rw Swsft fc SaflaaJbcebl
_ I Made this
in tKe Yea
...^ ., __- ....niftcrofthr Gofpcl, of the one Parr, andtheCaKTORATio* for Relief v of poor and
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Parr : "WITNESSETH, That ths faid &^>.n.C*i ^Mtjirns' ior and in Confiderarion of the Covenants ar.d
Mercby toarileand accrue to the \Viiow ar.d Children of tnc faid <^ ) 7vi^j^--"
her h.~ : : divers other gorx.LConCJeratio-5l-.im thereto moving," doth covenant, promise, grant, and agree ta
and with the laid Corporation for the Relief of poor and diftrefi". '. Presbyterian Slinifters, and of the poor and diftrefled \Vicowi
end Children of Prefbyteriin Miniflen, by chefe Prefenrs, in Manner and form following, That is to fay, THAT he t'ie faid
fii4tAi~c*4 ^4Ct^f^>^ fliall and vill during th: Tcnn of his natural Life, yearly, and every Year, psy, or caufs
to be paid on \!?&i<}erJQS J6C4Ti-rt' Day of ow<'^, in each Year, the Annuity or Sum ofV^tj^
tfafUfn.dd' cjlmait Money of the Province jsf BpursTTVAIlA, to the faid Corporation and tlicir Suc;eijor. rr '-;'/
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tii&Cjtt&sustM.^&d-e+ty cr.d 23 often S5 he ftail T.3rr.y4';s '::! ^^
.
**4&-r-i/ IhiUand will on 7ery fuch Marri:.:;?, pay, or cuifs to be paid unto th: faid Ccr- D
tl.e Sum of Jifi^- Pounds over sr.Ii -bjv> the faid Annuity. And^the faid Corporation, for t!:cmf;ivcs
and their Succeffbrs, do covenant, promlft, grant, and agree to i.-.d wit'.i the laid GFv-pr*^* *#C4-*f w+s hi? H:-:--,
.;ors, by thefc Prefects, That if' the faid cfrtut^, c**S ~-T<<**7-^<- Jhal{ well ana fisthi":
and perform hisflO.-fnaat af orefiid, by paying, or ciu.lng to be paid yorlj ani everylcar, at the Day. and Time 5
his natural Life, the laid Annuity or Sum of ^kf^yC. -jitfu/ndt^tri the faid Corpora:! -
Succeflbrs, or Order, according to the true Intent and Nfeaning of thefe Prcfer.rs; tfcen, and in fuch Ca!e,Lur r.ot
ind their Succeflbrs, lhall and will yearly and every Year from and after the Deceaii of the faid Sfv^+^Qt^f
f+J-o^i- - f well and truly~pay, or caufc to be paid to the "Widow acd Children, or Widow, or Children, ';"
id ^^L^^c^f t-^&V*-i_ t the Annuity or iurrj vf &Cir4n2% rv^, -iri^n.^Ct^ current Money a-'orc-
the faid ^L^^cf t-^V*-i_ t the Annuity .
faid, durirr, the Term, in the Proportions, and in the Manner an:l Form a#Ts expreCeo^ar.d p-.r::c-.:'.-.r!v' rn;r.r;oned and Jet forth.
ia. a Eisa af A^r^rr.jat bef.via U;d Cwrpouuoa, and the annual Cuniricutors, wjiidiibi tliisP^.'^ofiis n the!; Prsfcnh .
Ll Witnefs Whereof, 72ie Corporation for *eKef of poor aild-ftreflcdPitfl^t-run Miniilcrs, -.3 .ofiie poor ami
Widows and Chi'drea of Erdbyteriaa MioiHsCi a^rr put their common Sr^t to THZSS PZESZHXJ, the Day
>od Year fijft above-writUn,
Antique Form of Insurance Contract
Early Life Insurance in the United States
E r E insurance was founded in this country long before the
Revolutionary War, and indeed, the United States enjoys
the distinction of being the home of the oldest, continuous,
exclusive life insurance company in the world.
The career of that company must necessarily be attractive to
students of the science of life insurance and the historical data
connected with it will prove interesting to others.
In 1717 the Presbyterian Synod of Philadelphia created "The
Fund for Pious Uses" to be subscribed by friends and distrib-
uted according to the discretion of the Synod. This fund, it
develops, was appropriated for all manner of good and benevo-
lent purposes, including the relief of needy ministers and their
families and this suggested a separate fund for that special pur-
pose. In 1754 a proposal was consequently made to devise some
plan for the support of ministers' widows and on the 3Oth day of
May 1755 a plan was adopted providing for the annual payment
of a fixed sum by the ministers in consideration of the payment
of a stated annuity to their widows and children. This was called
"The \Yidows' Fund." Naturally a mutual insurance organiza-
tion like this could not long exist merely as a voluntary institu-
tion, and a committee was consequently appointed by the Synod
in 1756 to make application for a charter.
This being a solemn proceeding, the petition was made in a
becoming manner, involving all the dignity of those early days
and certainly following all their ceremonies.
The petition was addressed to "the Hon. Thomas Penn and
Richard Penn, true and absolute Proprietaries and Governors-in-
Chief of the Province of Pennsylvania and Counties of New
Castle, Kent and Sussex upon Delaware" and contained the fol-
lowing pathetic representation : "As our lot is cast among people
who are generally low in circumstances, and many of them form-
ing new settlements in the frontier counties, and, as we have no
other support but a small and very uncertain income from the
25
26 Early Life Insurance in the United States
good-will of our people, joined with our own labor, we have
always found it difficult to make any tolerable provision for our
families ; and have often, with sorrow and regret, seen the widows
and children of great and good men, who were once of our num-
ber, very much pinched and distressed by want and poverty, with-
out being able to afford them suitable relief."
But there was another side to the petition that was likewise
appealing. The petitioners had discovered that there were "bad
economists" in their society and represented that "these men
among us are most backward to pay their quotas whose families
will stand in most need of relief when they are dead."
They also called attention to the fact that as the society was
voluntary and without aid of the law to enforce its contracts, they
ought to be chartered and concluded as follows : "You will merit
the blessings of the widow and fatherless, and lay us under the
strongest obligations of gratitude and affection, if you be pleased
to make us a corporation by your charter."
The charter was duly granted and on the 6th day of February
1759 was "thankfully accepted" by the Synod. "The Widows'
Fund" of 1754 thus became, five years later by charter, "The
Corporation for the Relief of Poor and Distressed Presbyterian
Ministers, and for the Poor and Distressed Widows and Children
of Presbyterian Ministers."
The society began its operations immediately and a copy of
its first formal policy contract will be found reproduced in this
volume.
This society has kept up its beneficent work and preserved its
organization throughout varying vicissitudes and takes unto itself
the credit of being not merely the pioneer life insurance organiza-
tion, but the originator of the "non-forfeiture" principle of life
insurance in 1792 and the "cash surrender value" principle in
1852.
In 1856 the name of the corporation was changed to "The
Presbyterian Annuity Company;" in 1875 it was again changed
to "The Presbyterian Annuity and Life Insurance Company" and
in 1888 to its present title "The Presbyterian Minister's Fund for
Life Insurance."
As all these names indicate, the company is limited in its bene-
ficiaries to Presbyterian ministers, but at one time, from 1875 to
Early Life Insurance in the United States 27
1882, it did a general life insurance business. It is still in exist-
ence, a splendid witness to the permanency and stability of mutual
life insurance.
It is interesting to note, too, that Philadelphia was not only
the home of the first life insurance company, but that it led in
pioneership in the life insurance business. February 7, 1769
"The Corporation for the Relief of the Widows and Children of
Clergymen in the Communion of the Church of England in Amer-
ica" was incorporated and after suffering lapses and relapses
ultimately came to be a successful institution.
One of the best opportunities of life insurance was lost, how-
ever, by Boston in 1772 when one William Gordon wrote the
first pamphlet ever issued in America, giving the outline of a
"Plan of a Society, making Provision for Widows by Annuities
for the Remainder of Life, and for Granting Annuities to Per-
sons after Certain Ages."
Gordon's pamphlet is an intensely interesting document read
in the light of experience and shows him to have been a man of
most remarkable prescience, some of his ideas being positively
prophetic.
The preface to this pamphlet is especially noteworthy and is
in part, as follows : "The painful circumstances in which num-
bers are involved, when aged, or deprived of that or those on
whom their support chiefly depended, are too notorious to require
a recital. But that same Divine Wisdom, which allows and orders
the existence of these calamities, has mercifully, and in proof of
his providence, so directed its manner, as to admit of their being
greatly alleviated, by the joint endeavours of mankind. Casual-
ties, decays and death cannot be prevented, and separately con-
sidered appear to be under no particular regulation; and yet,
when viewed collectively, are in a certain proportion, as has been
confirmed by long and repeated observation ; so that many, by co-
operating with each other, may secure individuals from those
hardships they must otherwise experience; and that, on terms
with which a reasonable and humane person will readily comply,
for the relief it must afford him to recollect, that he and his fam-
ily are thereby insured, tho' in the other way they should never
be benefited.''
The author called attention to the existence of life insurance
28 Early Life Insurance in the United States
societies in England, particularly London, and desiring to con-
tribute his mite to the happiness of the colonists, outlined a plan
of a society much more comprehensive than any then existing.
Such societies, Gordon maintained, "besides being serviceable to
individuals, will, after a while, prove of great public utility ; not
only by encouraging matrimony, but by furnishing large sums of
money to be loaned out; through the help of which, young indus-
trious planters may push their improvements to the further en-
richment of the community ; others may be assisted in large and
profitable undertakings; and interest may be reduced to a more
moderate state, or the exacting usurer's methods of increasing it
beyond what is legal, be prevented."
William Gordon's genius rested not with his preface ; he went
into the minutest details of the management of the society he
proposed and suggested rules for the various exigencies that oc-
curred to him.
The design being to establish, as he wrote, "not a company of
a few members who shall make a particular advantage, and en-
rich themselves by insuring smaller benefits to others ; but a so-
ciety where all shall be joint proprietors * * * and have
equal rights and receive their full advantage in proportion to
their several payments: And as the Society should be large ; that
so the casualties, by being greatly divided, may the less affect its
capital, and the annual contingencies may come the nearer to an
equality; and yet not too large, lest its good government be pre-
vented; or the greatness of its stock in a distant period, should
induce persons of power, having no right to interfere in its con-
cerns, let it be agreed by Article I that the Society may consist of
two thousand persons who should at admission in point of age be
clear of either extreme, and inhabit within certain limits."
He proposed two classes of membership : Those desiring to
secure annuities to survivors and those who were purchasing an-
nuities for the remainder of their own lives, and he wisely ob-
served : "Prudence and equity require that they of the first class
should not be exposed, from their residence, calling or manner of
life, to peculiar dangers, beyond what belong to mankind in gen-
eral ; and yet, that no objection should arise from serving in the
militia, that being the constitutional defence of the whole com-
munity, and so implying the safety of the smaller societies."
Early Life Insurance in the United States 29
As no danger arose to the society from any increased hazard
to members of the second class, Gordon did not further pursue
his observations on this line, but immediately proposed the second
article relating to members, requiring them to be not younger
than twenty-one nor older than sixty years of age, and residing
within limits to be "specified as may be concluded on, after ma-
ture deliberation, by the first members."
That the society might be secured from frauds and imposi-
tions, the third proposed article was, in part, as follows : "Every
person, proposing to be a member, shall give in, his name, resi-
dence, age, title or profession : and mention whether married or
single : if married and intending to secure the benefit of a sur-
vivorship to his wife, her age, Christian and former name and
wherever such benefit is intended, the age, Christian and sur-
name, and residence of the party for whom it is designed to the
directors at one of their meetings, and at some subsequent one,
shall, if residing within twenty miles, appear personally to be
examined by them, as to the state of his health, readiness to con-
form to and be bound by the rules of the society. * * *
Should the person proposed live at a greater distance than twenty
miles, then the directors may be satisfied in any other way that
shall be agreed upon. The policy shall be invalidated where ob-
tained by fraud, deceit and imposition. 3 '
Looking comprehensively into the future Gordon foresaw
possibilities that caused him to write : "To rid the society of
such as may become offensive and scandalous: and to secure it
from being burthened with payments, before the natural course
of things require them: and from paying improper persons, it
may be stipulated by Article IV that "should it happen that a
member becomes -injurious, disgraceful or obnoxious to the gen-
erality, the expulsion of such a person shall be lawful. * * *
Should a member become a felon, die or have his death occa-
sioned in or by a duel: or feloniously make awa\ with himself;
or should go beyond the limits agreed upon without a license, and
there die" * * in any such case, the benefits under the
policy shall be forfeited.
After providing articles encouraging membership Gordon fur-
ther observes . "It's essential to the existence of the society, that
the payments should be both fully and regularly made: but, as
30 Early Life Insurance in the United States
experience abundantly proves, that whatever time is allowed,
many will delay performance to the last period, and if not com-
pelled by a forfeit, exceed; and yet as, should the time allowed
be very short, or the forfeiture large, there will be a perpetual
litigation; and as, after repeated refusal or neglect upon notice
given, as absolute exclusion should take place," he proposed, in
case of default in payment of premium for thirty days, a penalty
of sixpence per day up to two months, when the delinquent
should be served with personal notice of delinquency, if possible,
or a notice published in some paper, and should not the delin-
quency and charges be paid within three months, his policy was
to be forfeited and the member expelled.
Assuming that "the society is supposed to be actuated by
principles of honesty, honor and humanity, and to have no de-
sign, of inducing persons to secure advantages to themselves or
relations, by coming into it at the expense of creditors," an arti-
cle was proposed to cover this contingency and definite rules were
likewise suggested for proofs of death ; levying of assessments or
reducing the annuities in case of unusual mortality; apportion-
ment of the interest on the surplus annually to the raising of the
annuities; making the annuities non-transferable; requiring the
policy to be brought to the place appointed for payment ; equaliz-
ing the rights of policyholders in the business management of the
company; regulating the election of trustees; requiring them to
give security for the faithful performance of their trust ; provid-
ing for general meetings of the society ; directing that "so much
of the monies of the society as shall be judged necessary by the
directors to answer the current demands thereof, shall be kept in
the hands of the treasurer; the rest shall be paid at their order
into the hands of the trustees, to be by them invested in, or se-
cured upon or by, government or other public or real securities,
or laid out in the purchase of lands, tenements or hereditaments
in their names, in such manner as shall be directed, by order made
and confirmed at two general meetings of the society," and defin-
ing the powers and duties of officers.
The article proposed by this early writer, defining the duties
and powers of directors, before practical experience had shown
the necessity for many incidental features of the business that
time has developed, might well form the basis of a by-law for a
Early Life Insurance in the United States 31
modern and model life insurance company. His proposed pro-
vision was as follows: "The directors for the time being shall
have the care and management of all the Society's affairs, ac-
cording to the rules and orders contained in the deed, and here-
after to be made by the body; shall admit members; issue orders
for the signing of policies, the lending, calling in or paying of
monies ; shall appoint, and vary as needful, the time and place
of their own meetings, the choice, suspension, removal and gov-
ernment of the Society's servants, together with the salaries and
wages and all disputes or doubts concerning the same ; shall meet
at least once in every six weeks ; shall compose a legal board for
the transacting all business, when and while amounting to seven ;
shall declare a vacancy among themselves, when any one has
been absent from their meetings for four successive months,
without assigning a satisfactory reason for the same; shall grant
licenses for going and abiding beyond the limits allowed by the
deed ; shall receive the surrender of policies of members quitting
the Society ; shall examine claims and determine the same ; shall
compound, adjust and settle disputes relating to the policies and
the annuities intended to be secured thereby; shall see that the
accounts be carefully kept and all proceedings regularly entered
in proper books, all which books, excepting what contain the
loans of money to private persons, and the ages of the members
and annuity -receivers, wherein secrecy ought to be observed, may
be inspected by the several members at proper seasonable times ;
and shall give all needful directions for accommodating them-
selves and the Society at their respective meetings, and for secur-
ing their deeds, books of accounts, etc., and shall take care of the
regular and punctual payments of the annuities ; and every direc-
tor, who shall dissent from the proceedings of the Society or of
the directors, may have his dissent with his reason for the same
entered in the minute book of the Society."
As Part II of his remarkable pamphlet, Gordon published
tables showing "what a person must pay in purchasing a twenty
pound annuity, to be enjoyed in case of survivorship, by another
life, the latter not being younger than the former; what a pur-
chaser must pay, more than in the preceding table, upon every
year he is older than the intended annuity-receiver, supposing in-
terest to be at four and one-half per cent; what annuity the pur-
32 Early Life Insurance in the United States
chaser may become entitled to, after a certain period, for the re-
mainder of life, upon a given sum and what the purchaser must
give down, besides making a payment annually of five pounds
till he becomes entitled to the annuity."
The question of comparative longevity between male and fe-
male lives was also discussed and Gordon concluded that not-
withstanding current available colonist records tended to support
the general proposition that female lives were the better, the fact
in Massachusetts was that the males not only predominated in
number but were better risks than females. The pamphlet con-
cluded with an interesting letter from Rowley, Massachusetts,
dated March 12, 1772, showing the longevity of that community
at those times to have been away out of proportion to later and
general mortality experiences.
Everything considered the Gordon pamphlet was a wonder-
ful contribution to the literature of life insurance and that a
company founded on his propositions was not then formed, merely
shows the general lack of appreciation of insurance possibilities.
The purposes of the present undertaking will hardly support
a full history of the expansion of life insurance in the United
States. Doubtless, as in Wisconsin, many companies have been
organized containing a charter provision for the writing of in-
surance on lives, amounting in the aggregate to hundreds, per-
haps, and yet of which concerns nothing has ever been heard.
Besides, reliable data as to the organization of life insurance
companies are available in few states or cities. Fortunately, the
records as to Philadelphia have been preserved in the excellent
work of J. A. Fowler and from this a chronological exhibit of
the expansion of the business in that city in the early years can
be given.
On March 19, 1792 "The Universal Tontine" was there or-
ganized, but on April 14, 1794 it was chartered as a general
insurance company under the name of the "Insurance Company
of North America." It did little life business, writing no such
policies after 1800, but confined itself to fire and marine under-
writing in which it made a marked success.
The next Philadelphia life insurance corporation was char-
tered March 10, 1812 under the name "The Pennsylvania Com-
pany for Insurance on Lives and Granting Annuities," but it was
Early Life Insurance in the United States 33
not until March 17, 1836 that another was chartered. This was
the "Girard Life Insurance Annuity and Trust Company." Fol-
lowing this, however, came new companies in comparatively
rapid succession. On April 10, 1838 "The Berks County Insur-
ance Company" became "The Globe Insurance, Life Insurance,
Trust and Annuity Company" and whatever business it did, says
Fowler, "seems to have been as various as its title."
The "Mutual Life Insurance Company of Philadelphia" began
a career on April 23, 1844 that seems to have ended with its
incorporation, and in December of the same year the "National
Loan Fund Life Assurance Society of London" established an
agency in Philadelphia, advertising a local Board of Directors in
1846.
Real mutual life insurance began in Philadelphia by the in-
corporation February 24, 1847, of the "Penn Mutual Life Insur-
ance Company," which still exists. An "Equitable Life Insur-
ance Company" was incorporated March 28, 1848; "The Ameri-
can Life and Health Insurance Company," on April 9, 1850, suc-
ceeded by "The Philadelphia Life Insurance Company," and "The
United States Insurance, Annuity and Trust Company" April
26, 1850.
After this period many "mushroom" companies were organ-
ized but the companies that have endured are solely interesting.
In point of time, life insurance in Massachusetts follows with
the "Massachusetts Hospital Life Insurance Company," of Bos-
ton, chartered February 14, 1818, and terminated in 1893; the
"Xew England Mutual Life Insurance Company," chartered
April i, 1835; the "State Mutual Life Insurance Company," in
1844: the "Berkshire," in 1851 and the "Massachusetts Mutual,"
in 1851.
The domestic companies reporting to the New York insur-
ance department as of December 31, 1860, with their dates of in-
corporation, were as follow.s : "New York Life Insurance and
Trust Company," April i, 1830; "New York Life Insurance
Company," May 21, 1841 ; "Mutual Life Insurance Company,"
of New York, April 12, 1842; "United States Life Insurance
Company" (which absorbed the old "Howard Life Insurance
Company") February 25, 1850; "Manhattan Life Insurance Com-
pany," July 1 6, 1850; "Knickerbocker Life Insurance Company,"
34
Early Life Insurance in the United States
April 18, 1853 ; "Guardian Life Insurance Company," August 5,
1859; ''Equitable Life Assurance Society of the United States,"
July 26, 1859; "Washington Life Insurance Company," January
31, 1860; "Home Life Insurance Company," April 28, 1860, and
the "Germania Life Insurance Company," July I, 1860.
Other insurance companies of early days, with their dates of
organization, are noted as follows: "Aetna Life Insurance
Company," of Hartford, Connecticut, May 26, 1820, (began
business July I, 1850) ; "Mutual Benefit Life Insurance Com-
pany," of Newark, New Jersey, January 31, 1845; "Connecti-
cut Mutual Life Insurance Company," of Hartford, Connec-
ticut, June 12, 1846; "American Mutual Life Insurance Com-
pany," of New Haven, Connecticut, 1847; "Union Mutual Life
Insurance Company," of Portland, Maine, July 17, 1848; "Na-
tional Life Insurance Company of Vermont," of Montpelier,
Vermont-, November 13, 1848; "Charter Oak Life Insurance
Company," of Hartford, Connecticut; "American Temperance
Life Insurance Company," of Hartford, Connecticut, 1851, and
the "Massachusetts Mutual Life Insurance Company," of Spring-
field, Massachusetts, May 15, 1851.
The following table gives the name, place of the home office,
and the dates of incorporation and beginning of business of each
of the existing life insurance companies in the United States that
have attained to an experience of fifty years, the order being
based on the date of beginning business, not the date of incorpo-
ration :
Name of Company.
Home Office.
Incorpo-
rated.
Began
Business.
The Presbyterian Min-
ister's Fund
Philadelphia Pa
Jan 11 1759
Jan 11 1759
Mutual Life Ins. Co. of
New York
New York City
Apr 12 1842
Feb 1 1843
New England Mutual
Life
Boston Mass
Apr 1 1835
Feb 1 1844
Mutual Benefit Life
Ins Co
Newark N J
Jan 31 1845
Apr 1 1845
New York Life Ins. Co.
New York City.
May 21, 1841
Apr. 17,1845
Early Life Insurance in the United States
35
Name of Company.
Home Office.
Incorpo-
rated.
Began
Business.
State Mutual Life As-
surance Co
Worcester, Mass
Mar. 16, 1844
June 1 1845
Connecticut Mutual
Life Ins Co
Hartford, Conn
June 12, 1846
Dec 15 1846
Penn Mutual Life Ins.
Co
Philadelphia, Pa.
Feb. 24, 1847
May 25 1847
Union Mutual Life Ins.
Co
Portland, Me
July 17, 1848
Oct 1 1849
National Life Ins. Co.
of Vermont
Montpelier, Vt.
Nov. 13, 1848
Feb 1 1850
United States Life Ins.
Co
New York City
Feb. 25, 1850
Mar 1 1850
Aetna Life Ins. Co. . . .
Manhattan Life Ins.
Co
Hartford, Conn.
New York City.
May 26, 1820
July 16, 1850
July 1, 1850
Aug. 1, 1850
Phoenix Mutual Life
Ins Co
Hartford, Conn
May ..,1851
May ..,1851
Massachusetts Mutual
Life Ins Co
Springfield Mass
May 1, 1851
Aug 1 1851
Berkshire Life Ins. Co.
German Mutual Life
Ins Co
Pittsfield, Mass.
St Louis, Mo
May ..,1851
Nov. 23, 1857
Sept. 4,1851
Apr. 12, 1858
The Northwestern Mu-
tual Life Ins. Co
Milwaukee, Wis.
Mar. 2,1857
Nov. 25, 1858
Life Insurance in Wisconsin
THE Northwestern Mutual Life Insurance Company, al-
though fifty years old, is not the first Wisconsin company
whose charter authorized the writing of life insurance.
The records and indices relating to life insurance in this state
are poorly preserved, owing to fire and early official carelessness
and it is therefore impossible to present an absolutely true his-
tory of the business, but available data discloses many more com-
panies having the right to engage in the life insurance business
than most persons would believe. Indeed, the charter of almost
every insurance company organized in Wisconsin in an early day
had provisions covering the three great insurance features fire,
marine and life. It was the fire and marine that most strongly
appealed to incorporators and the right to "make all kinds of in-
surance upon life or lives" was merely granted because it was a
part of the English form that was being followed.
Life insurance was so uninviting from a business point of
view that it was seldom considered in the corporate name. The
following from the New Orleans Courier of February 8, 1836
shows something of the early state of mind in this country with
reference to it: "If we are not misinformed the charters of
some of our insurance companies grant them the power of insur-
ing lives, but the fact is never published, the reason we know not ;
surely there can be no greater risk upon insurance of this kind
than upon any other subject!"
Green Bay, that Wisconsin hot-bed of history, has the dis-
tinction of having organized the first insurance company in the
state The Wisconsin Insurance Company at Green Bay, incor-
porated by Act No. 29, Laws of 1838, approved January 9, 1838.
This company had the most liberal powers, with full right to en-
gage in all manner of insurance business, including life, but
either that feature did not appeal to its incorporators or they
never tried for the business, for it never attained to any prom-
inence as a life insurance institution. 36
Life Insurance in Wisconsin
39
The early opportunity that was lost to Wisconsin in the life
field was in the incorporation of the Wisconsin Marine and Fire
Insurance Company, created by Act No. 36 of the territorial laws
of 1839, with headquarters at Milwaukee. This company which
became famous in another line was permitted by its charter to
do a life insurance business, but so lightly did the incorporators
hold this grant that they omitted reference to it in the corporate
name. Had this feature appealed a little more strongly to them,
it might have become one of the foremost institutions of the
country, in view of its liberal charter. In addition to the usual
powers of an insurance company, says Wisconsin in Three Cen-
turies, it was authorized to receive deposits; to issue certificates
therefor and to loan money; but was expressly prohibited from
exercising banking privileges. This prohibition was disregarded
by the managers of the corporation who at the very outset issued,
in exchange for the notes of its customers, certificates of deposit
payable on demand, of the appearance of ordinary bank bills and
in denominations of one, three and five dollars, with the intention
that they should circulate as money. The territorial legislatures
made vigorous protests against such use of its charter privileges
by this corporation and finally in 1846 repealed the statute au-
thorizing its existence. This had no practical effect as the com-
pany continued to do a general banking business and to issue its
certificates of deposit until 1853, when it was reorganized as a
bank under the constitutional laws of the state.
Other Wisconsin companies in whose charters was included
the right to do a life insurance business up to 1871, when the last
company under special charter was incorporated, are as follows:
Date of
Incorpora-
tion.
Name of Company.
Headquarters.
1839
Mississippi Marine and Fire Insurance
Company
Sinipee,
Grant Co
1850
Globe Insurance
Company
Southport
(now Kenosha)
1851
Rock River Insurance Company, after-
ward American Insurance Company
and Wisconsin State Insurance Com-
pany. .
Watertown
and Beloit
Life Insurance in Wisconsin
Date of
Incorpora-
tion.
Name of Company.
Headquarters.
1852 Union Protection Insurance Company... Madison
1853 Marine, Fire and Life Insurance Com-
pany, afterward Commercial Insurance
Company Milwaukee
1853 Phoenix Marine, Fire and Life Insurance
Company of Wisconsin Manitowoc
1853 Wisconsin Lumbermen's Fire and Marine
Insurance Company, afterward Wis-
consin State Insurance Company Madison
1853 Mercantile Insurance Company Beaver Dam
1853 Winnebago Lake Insurance Company... Fond du Lac
1853 Portage City Protection Insurance Com-
pany Portage
1853 Northwestern Insurance Company, after-
ward Merchants' and Traders' Insur-
ance Company Milwaukee
1853 Racine Marine and Fire Insurance Com-
pany of Wisconsin Racine
1853 Fire Insurance Company of Berlin Berlin
1853 Dodge County Fire and Marine Insur-
ance Company, afterward Wisconsin
State Fire and Marine Insurance Com- Beaver Dam
pany and Madison
1854 United States Insurance Company Milwaukee
1855 Racine Marine and Fire Insurance Com-
pany of Wisconsin Racine
1855 Outagamie Marine, Fire and Life Insur-
ance Company, afterward Appleton
Insurance Company Appleton
1856 The Mercantile Insurance Company Milwaukee
1856 Northwestern Insurance Company of Ra-
cine, afterward the Commercial Insur-
ance Company Racine
1857 The Mutual Life Insurance Company of the
State of Wisconsin, now The Northwestern
Mutual Life Insurance Company Milwaukee
1857 Capitol Fire and Marine Insurance Com-
pany Madison
1859 The Mutual Life Insurance Company of
the .City of Madison Madison
1865 National Insurance Company Elkhorn
Life Insurance in Wisconsin
Date of
Incorpora-
tion.
Name of Company.
Headquarters.
1865
Union Insurance Company .
Janesville
1856
Commercial Insurance Company
Waterloo
1868
1868
Superior Mutual Life Insurance Company
Lumbermen's Insurance Company...
Madison
La Crosse
1869
The Wisconsin Odd Fellows' Mutual Life
Insurance Company
1869
1869
Wisconsin Mutual Benefit Company
Northern Wisconsin Mutual Life Insur-
ance Company
Portage
Waupaca
1869
1859
Alma Mutual Life Insurance Association
Mutual Contribution Life Insurance
Company
Alma
Beloit
1870
Rock County Co-Operative Life Associa-
tion
Janesville
The constitutional amendment prohibiting the legislature
from granting corporate powers and privileges, having been duly
ratified by the people, became operative in November 1871 and
consequently cut off the further creation of companies by special
statute, but before the same went into effect, and by chapter 189,
Laws of 1871, approved March 3, 1871, the "Mutual Life Insur-
ance Company of the Order of Herman's Sons of Wisconsin" or
as it is called in the German "Gegenseitiger Versicherungs Verein
O. d. H. S. von Wisconsin," was organized. This was the last
company contracting to pay a stated sum of money at the death
of an insured, created by a special act of the legislature of Wis-
consin.
Taking 1871, therefore, as a starting point, further considera-
tion of the Wisconsin life insurance business will be confined to
old line companies, there being far too many assessment, mutual
benefit and stipulated premium companies to mention in this con-
nection.
Examination shows that all companies organized since 1871,
with one or two exceptions, were organized under chapter 86 of
the Revised Statutes of 1878, providing for the formation of
corporations "for the mutual support of the members, their fam-
ilies, or kindred, in case of sickness, misfortune, poverty or
42 Life Insurance in Wisconsin
death." One company organized as an assessment company later
became an old line company and will, therefore, be here men-
tioned.
This was "The Natural Premium Mutual Life Insurance
Company" incorporated and licensed to do business on April 9,
1895, under chapter 418, Laws of 1891, as amended by chapter
175, Laws of 1895.
It issued its first policy June 10, 1895. On February 14,
1896 it filed its articles of incorporation with the Secretary of
State as required by chapter 175, Laws of 1895. In 1899 tne
legislature passed a law (chapter 270) relating to insurance com-
panies operating on the stipulated premium plan under the terms
of which then existing companies might qualify and change their
corporate names. This the company decided to do and on Feb-
ruary 7, 1900 its name was changed to "The Wisconsin Life In-
surance Company." At the annual meeting of the members held
July 2, 1902 the following resolution was adopted: "Resolved
that the company shall reorganize as an Old Line Life Insur-
ance company, as soon as practically can be so done." The
officers were also instructed to take the necessary steps to carry
out this resolution. The directors decided on October I, 1902 to
make and place the company on the basis and do its business
thereafter as an old line mutual life insurance company and to
retain the corporate name, with headquarters at Madison, Wis-
consin. The company is still in business.
Having now fully considered the organization of companies
in the state, incidental features of the business as they developed
may be considered with promise of interest.
Aside from special acts relating to the incorporation of in-
surance companies, the first statute written into the books in
Wisconsin with reference to the business of life insurance was
one attempting to regulate it. This was chapter 232, Laws of
1850, approved February 9, 1850, providing for the incorpora-
tion of all manner of insurance companies with regulations as to
the observance of preliminary steps thereto, and requiring agents
of foreign companies, as a condition precedent to soliciting busi-
ness in the state, to file with the Secretary of State a verified
statement showing the amount of capital of his company, the
manner in which it was invested and whether the capital was
Life Insurance in Wisconsin 43
unpaid or not. This law also required a Wisconsin deposit to
protect policyholders and made special requirements in case of
loss. As to domestic companies it gave various directions con-
cerning their affairs and methods of doing business.
The Secretary of State was, ex-officio, in charge of the then
small department of insurance, but it was not until 1853 that any
special mention was made of the business in his reports. Sec-
tion 23 of chapter 72, Laws of 1853 required that official to em-
brace within his annual report a condensed statement of the re-
ports made to him by insurance companies in compliance with
the requirements of the same chapter. Consequently in 1853 the
Secretary of State made such report, but his comments on the
business were confined to deploring the fact that agents were
ignoring the provision of law requiring financial statements. In-
deed, this was the principal burden of all reports up to 1855,
when Alexander T. Gray, then Secretary of State, recommended
an amendment to the law of 1850 "providing more stringent regu-
lations and also suitable penalties for the government of the busi-
ness of insurance, so far as it relates to foreign companies."
His successor, David W. Jones, in his report of January 5,
1857 repeated this recommendation and on March 5, 1857 chapter
89, Laws of 1857, was approved, providing for revocation of
licenses on neglect or refusal of companies to file the required
statement. The Secretary of State was also required to make a
condensed statement in his annual reports of the financial show-
ing made by companies. This was followed by chapter 103,
Laws of 1858, requiring all companies doing business in Wis-
consin, domestic and foreign, to annually file with the Governor
a more comprehensive statement showing the amount of their
paid-up capital and the accumulations of which they were pos-
sessed and specifying the particular securities in which they were
invested, with the amount of each; the number of policies and
the amount of outstanding risks thereon ; the several amounts
received in premiums and from other sources for the current
year; the amount of losses and the expenses severally for the
same period ; the amount of claims unpaid ; the amount offered
for re-insurance ; the amount of premium notes, if any, held on
account of policies upon which the risk had terminated ; the whole
number of policies issued or continued through their officers or
44 Life Insurance in Wisconsin
agents; the amount of risks thereon, and the gross amount of
premiums received therefor, in the year preceding their report;
the number and amount of losses paid through their agencies,
and by their officers during the same period.
All these early laws made no distinction between fire and life
insurance; all statutes were general.
By the terms of this last law the Governor was authorized to
appoint some person to examine companies when deemed neces-
sary and provision was made for action in case insolvency was
disclosed. Agents were also required to procure certificates of
authority before soliciting business.
In 1858 began the practice of filing official reports in the fall
of the year and the next reference to insurance was embraced
in the annual report of Secretary of State Jones, filed October
9, 1858. He gave a complete list of companies complying with
the law, but of all those created up to that time with a right to
do the business of life insurance only the Commercial and
Phoenix, of Milwaukee, reported under it. The Merchants and
Traders; the Marine, Fire and Life, and the United States, all
of Milwaukee, filed reports under chapter 232, Laws of 1850.
None reported any life business.
In the report of October 10, 1859 the following companies
appear : The Commercial ; Merchants and Traders ; Mutual Life
Insurance Company of Wisconsin, and the Phoenix, all of Mil-
waukee. The Marine, Fire and Life of Milwaukee failed to
report.
The same companies are shown to have reported in 1860.
In the next report on insurance, dated October 10, 1861,
made by Louis P. Harvey, then Secretary of State, it clearly
appears for the first time, in the absence of other data and rec-
ords, that companies reporting under chapter 103, Laws of
1858, although many were clearly entitled to write life insur-
ance, failed to take advantage of the grant, for the Mutual Life
of Wisconsin was the only domestic insurance company that
reported any life business.
And so perhaps it will be uninteresting to further follow the
rise and fall of domestic companies who failed of the oppor-
tunity to do a life business. It may be interesting, however, to
note that the general subject of insurance engaged the thought
Life Insurance in Wisconsin 45
of officials in reports of 1864-5 an d 6, but with this difference:
Only abstracts of statements filed by foreign companies were
given ; those of domestic companies were omitted.
Thomas S. Allen, Secretary of State, in his report of 1866
called attention to the fact that the "business of insurance was
becoming one of great magnitude and one in which all classes
of citizens of the State are interested." He urged that all com-
panies doing business in the state, under special charter or
organized under the general law, should be compelled to report
to the Secretary of State. He also suggested that "the Secre-
tary of State should be empowered to close the business of any
company, foreign or domestic, when in his judgment their securi-
ties are not such as the law prescribes."
"In view of the magnitude of the interests involved," he
wrote, "I trust this subject will receive the early attention of the
legislature and that the formation of insurance companies by
citizens of this state to be under the control of the state legis-
lature will be encouraged by liberal legislation. Large sums of
money are annually taken out of the state for premiums on poli-
cies of insurance which can and should be retained in the
state."
Chapter 158, Laws of 1867, again required annual state-
ments of domestic and foreign companies and limited the time
of filing to February first of each year. Here for the first time
in the history of insurance in Wisconsin a tax was imposed on
the business one per cent on the cash receipts from all sources
in the state. This was in lieu, however, of other taxes and the
property of insurance companies was expressly exempted from
taxation for all purposes.
In the 1867 report of the Secretary of State the condensed
statements again appear.
Secretary Allen called attention to the discrepancy between
the date of filing statements and that of their annual publication
in his report of 1868 and suggested that "if the reports were of
any value to the public they should be published as soon as prac-
ticable after their reception in proper form for distribution."
He therefore recommended that these reports be printed separ-
ately and distributed by the first of April.
In 1869 he recommended, in view of the growth and impor-
46 Life Insurance in Wisconsin
tance of the business, that a system more in accord with that of
Massachusetts, New York, Illinois and California be arranged.
These recommendations so earnestly urged in 1868 and 1869
came to fruition in 1870 when chapter 59, Laws of 1870, ap-
proved March 14, 1870, was adopted. This was the first
insurance code in the State of Wisconsin. It imposed a legal
standard of solvency; its provisions governing investments have
at all times prevented stock or speculative dealings with the
funds of policyholders and it safeguarded the organization of
life insurance companies in Wisconsin, imposing conditions pro-
tective of insurants.
This original law, which was all Wisconsin had or needed, has
since guarded the interests of the people of the state.
Among other things it required the Secretary of State annu-
ally on or before the first day of May, to prepare and print in a
single document, the information contained in the statements
made under the new code; and on May I, 1870 the first annual
report of the Insurance Department of the State of Wisconsin
was issued.
Here began the state's supervision of insurance. From 1870
to 1878 the reports were confined merely to extracts from filed
statements and there is little of historical value in them.
The business was developing rapidly, however, and by chap-
ter 214, Laws of 1878, the Department of Insurance as a separate
institution was created, the governor being empowered to
appoint a Commisioner. Philip L. Spooner, Jr., of Madison,
was commissioned April i, 1878 and issued the first report as
Insurance Commissioner. He was also elected to the office when
it was made elective by chapter 300, Laws of 1881, and held
office until January 3, 1887, when Phil Cheek, Jr., of Baraboo,
took the office. Wilbur M. Root, of Sheboygan, was Mr. Cheek's
successor and held the office from January 5, 1891, to January
7, 1895, when Dr. William A. Fricke, of Milwaukee, was in-
augurated. Dr. Fricke introduced forms, blanks and records
into the department which have been retained ; the first gain and
loss exhibit employed was used by him in 1895 in the examina-
tion of the Northwestern and the first policy valuations made in
the Wisconsin department were made under his administration.
He was particularly vigilant against assessment companies and
Life Insurance in Wisconsin 47
occupied an advanced position in relation to rebating, retaliation
and unjust taxation. He resigned to accept a position in New
York City.
Emil Giljohann, of Milwaukee, succeeded Dr. Fricke, taking
the oath of office on October 15, 1898 and continuing to January
5, 1903, when Zeno M. Host, also of Milwaukee, was made
Commissioner. Mr. Host brought to the department a zealous
earnestness that reveals itself in the records. He was succeeded
by George E. Beedle, of Embarrass, January 7, 1907.
General Johnston and Charter Members
THE story of the incorporation of the company that has
since attained to international fame under the name, The
Northwestern Mutual Life Insurance Company, has
enough side-lights to relieve it from the commonplace.
To begin properly and to write down exact justice, one must
credit the organization of the company to General John C. John-
ston, a unique character even in the pioneer days.
Comparatively little is known of the early history of General
Johnston, although tradition has it that he was a schoolmaster
about the time the United States was engaged in its second
material difference of opinion with England. Whether he then
entered the army and there gained his title is not settled, but from
his activity in local affairs at Catskill, New York, where he lived,
and his penchant for heading parades on gala-days, there are
those who incline to the belief that the distinction was more the
gratuitous offering of an admiring community than the authentic
commission of a duly constituted authority.
However this may be, there are those who report that in 1842
he was engaged in manufacturing invalid chairs which he shipped
all over the country and sold by means of personal solicitation.
Illustrative of his methods it is pointed out that he once sent a
consignment of his chairs to Charleston, South Carolina, whence
he proceeded in person, hired four white horses, a negro driver,
a footman in livery and began to peddle his wares in this some-
what dramatic way.
He had a persuasive manner and plenty of enthusiasm. Mani-
festly tiring of the manufacturing life and its limitations. Gen-
eral Johnston removed to New York City, having been attracted
by an advertisement of the Mutual Life Insurance Company of
New York, then recently organized. He quite probably saw in
the science of soliciting an opportunity for his genius. In any
event he got a contract with that company and served as agent
from the years 1847 to l8 54- Some interesting, if not strictly
JAMES R. DOOLITTLB
HOEL H. CAMP
LUKE STOUGHTON
JAMES H. K.VOWLTON
JAMES BIXTLIFF
JOEL ALLEN BARBER
MATTHEW H. CARPENTER
LEONARD J. FARWELL JOHN P. DICKSOX
General Johnston and Charter Members 51
authentic, stories of his connection with the Mutual Life are
reported, one of the most characteristic being that after his con-
tract had been signed, he planted his desk near the main entrance
to the office and "wrote" nearly every person who entered the
door. Indeed, so effectually did the General take advantage of
his genius and the technicalities of his contract, that when the
Catskill school-master retired, he took with him a small fortune.
It has also been written that when General Johnston left his
little home in Greene County, New York, he took with him to
the country's great metropolis two former pupils, Henry Hazen
Hyde and Henry Baldwin Hyde, pere et fils, the one destined to
ultimately become general agent of the Mutual Life at Boston
and the other the noted president of the great Equitable of New
York.
General Johnston could not have been far from seventy years
of age when he came west with the proceeds of his engagement
with the Mutual Life. He bought an immense farm near Janes-
ville, Wisconsin, and erected thereon a stone mansion that stands
today an object of interest to visitors in its locality. He had
hoped to found a fancy stock farm that would bring him wealth
and fame, but his hopes failed of materialization and his active
brain sought other diversion. It was men, not brutes, with
whom General Johnston could best deal.
The year 1857 was memorable in the financial history of the
nation and Wisconsin was affected by the prevailing panic, but
undaunted, General Johnston chose that identical year in which
to interest the state legislature in the organization of a life insur-
ance company. He had theretofore been talking the plan over
with friends and acquaintances at Whitewater and Janesville and
finally enlisting the names and services of prominent men, he
caused a bill to be drafted incorporating the Mutual Life Insur-
ance Company of the State of Wisconsin.
This was introduced into the legislature by Judge David
Noggle, one of the charter members, and was duly passed as
chapter 129, of the Private and Local Laws of 1857 and ap-
proved March 2, 1857.
The company thereby created was restricted to this specific
grant : The power to insure the lives of its respective members
and to grant and purchase annuities. It was a purely mutual
52 General Johnston and Charter Members
institution and persons insuring therein became members when
their policies issued, continuing so long as they remained insured.
The thirty-six trustees were required to be residents of Wiscon-
sin and were divided into four classes. The real estate the com-
pany might hold was restricted to that which is now permitted a
national bank, and the investments were limited to mortgages on
unincumbered Wisconsin real estate, and government, state and
municipal bonds. Every five years a balance was required to be
struck and an equitable share of the profits credited to members.
A preliminary $200,000 of insurance was necessary before begin-
ning business and Janesville, Wisconsin, was designated as the
company headquarters.
Included within the act incorporating the company was the
so-called Magna Charta of Life Insurance authorizing a married
woman to insure the life of her husband and at his death receive
the proceeds free and clear of the claims of his creditors, limiting
the annual premium, however, to $300.
The names appearing in the act of incorporation constitute a
roll of honor worthy of perpetuation. Most of them are familiar
to citizens of Wisconsin as those of men who accomplished things
in those sturdy old times in the pioneer days whose handicaps
required more brains to make success than do modern times.
There were thirty-six men who stood sponsors for the new
organization and as such are entitled to credit but it is, indeed,
true that few of these showed any active interest in the company
after it was incorporated. Of the total number of thirty-six the
records show that policies were issued on- the lives of but eleven.
Of these, three failed to pay the first premium and the policies
were canceled "not taken" ; one paid premiums for two quarters ;
another for one year; one for two, and but five became perma-
nent policyholders. These five were Edward Lothrop Dimock,
Benjamin Franklin Pixley, Simeon Mills, James H. Earnest and
John Hawkins Rountree.
Hoel Hinman Camp, of Milwaukee, is the sole survivor of the
original incorporators.
The names, with brief biographical data, of the company
charter members follow :
JO^L ALLEN BARBER born January 17, 1809, at Georgia,
Franklin County, Vermont; admitted to bar in 1834; located at
CHARLES KUEHN
EDWAED McKEY
JOSEPH A. SLEEPER
WILLIAM WARD HOLDEN GEORGE W. LEE
MORRIS C. SMITH JAMES H. EARNEST
JAMES NIEL EDWARD L. DIMOCK
General Johnston and Charter Af embers 55
Lancaster, Wisconsin, in 1837; during more than forty years' resi-
dence there, held public office two-thirds of the time, serving in
state Assembly and Senate and national House of Representa-
tives; was one of the founders of the Republican party; died at
Lancaster in June 1881.
JAMES BIXTLIFF born November i, 1824, at Salterhabble,
near Halifax, Yorkshire, England; came to America in 1842,
locating in New York State ; located on farm near Monroe, \Yis-
consin, in 1851 ; later went into dry-goods business; then Register
of Deeds, Green County; admitted to bar in 1859; in 1860 bought
an interest in Monroe Sentinel ; went into the army in July 1862,
serving gallantly throughout ; located in Janesville, Wisconsin, in
1870, and became interested in the Janesville Gazette; prominent
Odd Fellow; died at Chicago, Illinois, March 16, 1901.
HINMAN CAMP was born at Derby, Orleans County,
Vermont, January 27, 1822. At the age of fifteen went to Mont-
pelier where he entered the employ of a mercantile institution,
remaining there four years, when he went to Boston, staying
there two. Returning to Vermont located at Montpelier and later
at Northfield. He came to Milwaukee in 1853, an d in about a
year became cashier of the Farmers and Millers Bank, organ-
ized under the state law. When the national law went into effect
he organized the First National Bank of Milwaukee and was
made its first cashier, remaining in that capacity until its charter
expired in 1882, when on its renewal he was elected president,
acting eleven years.
Mr. Camp retired in 1893, after forty years' service in behalf
of the bank that still exists as one of Milwaukee's leading finan-
cial institutions.
In 1894, he organized the Milwaukee Trust Company, of
which he became president.
Mr. Camp is public-spirited and prominent in charitable work.
He was the organizer of the Charity Relief Association of Mil-
waukee; was for years a trustee of the Chamber of Commerce
gratuity fund; a trustee of Milwaukee College; the County In-
sane Asylum and was connected with the Associated Charities.
MATTHEW HALE CARPENTER born at Moretown, Washington
56 General Johnston and Charter Members
County, Vermont, December 22, 1824; in 1843 appointed a cadet
at West Point, but resigned after two years because of ill-health ;
studied law and admitted to the bar in 1847, m Vermont; went
to Boston and continued studies under Hon. Rufus Choate;
located at Beloit, Wisconsin, about 1848; came to Milwaukee
about 1858; was originally a Democrat in politics but affiliated
with the Republican party during the war ; was elected United
States Senator from Wisconsin in 1869, defeated in 1875 and re-
elected in 1879; died February 24, 1881.
JOHN PEAT DICKSON born April 18, 1808 at Danville, Ver-
mont; arrived in Milwaukee in 1836, and in 1838 settled on a
farm near Janesville, Wisconsin; in 1842 was elected justice of
the peace in Janesville and served seven years; in 1859 elected
to state legislature ; was a Republican in politics ; died at Janes-
ville April 25, 1884.
EDWARD LOTHROP DIMOCK, who held policy numbered 9 and
was the second Secretary of the company, was born in Genesee
County, New York, October 13, 1819; lived on a farm until he
was thirteen years old ; removed to Rochester, New York, at
fourteen and clerked in a dry-goods store there ten years ; re-
moved to Janesville, Wisconsin, in 1845, en a m g fast in the
mercantile business and then in banking, losing all his accumula-
tions in the panic of '57 ; in 1859, turned his attention to insur-
ance and remained in that business many years. Mr. Dimock
was mayor of Janesville in 1855; was a director in the old Mil-
waukee and Missouri Road and was interested in the Janesville
Gas Works. He was a Mason, an Odd-Fellow and at one time
chief officer in the Temple of Honor. Mr. Dimock died at
Janesville, July 3, 1899.
JAMES ROOD DOOLITTLE born January 3, 1815, at Hampton,
Washington County, New York; studied law in New York and
admitted to bar there in 1837; removed to Racine, Wisconsin, in
1851; was elected Judge First Judicial Circuit of Wisconsin, in
1853, but resigned 1856; elected United States Senator from
Wisconsin, 1857, an< ^ re-elected 1863; after retirement from
Senate, practiced law in Chicago, Illinois; died in Rhode Island
July 23, 1897.
General Johnston and Charter Members 57
HERCULES L. DOUSMAN born on Mackinac Island in 1800;
when he became of age entered employ of American Fur Com-
pany under management of John Jacob Astor; went to Prairie
du Chien, Wisconsin, in 1826 as confidential agent of the com-
pany and in 1834 became a partner in the business ; was a man of
business genius and had wonderful control over the Indians ; died
at Prairie du Chien, September 12, 1868.
JAMES H. EARNEST, insured under policy numbered 364, was
born at Bowling Green, Kentucky, in the year 1818. He received
his schooling in that town and when but seventeen years of age
came to Wisconsin, locating in the little village of New Dig-
gings, Lafayette County, where he immediately engaged in min-
ing. This proved to be a most successful venture for him and
a few years later he opened a general merchandise store, con-
tinuing in that business for several years.
Thereafter, Mr. Earnest purchased one of the largest and
finest stock farms in Lafayette County, located about three miles
northwest of Shullsburg, Wisconsin, which he worked success-
fully. He also kept up his interest in mining and had shares in
mines on his own and surrounding lands.
Mr. Earnest was a staunch Democrat and took great interest
in politics. He served in the Assembly in 1852, 1854, 1855,
1857, 1858 and 1877 and in the Senate in 1863, 1864, 1867 and
1868.
True to the traditions of his native state, he was genial and
social, broadminded and generous in his views and his hospitality
was boundless. Mr. Earnest died June 12, 1900.
ANSON ELDRED born April 14, 1820 at Detroit, Michigan,
came to Milwaukee in 1842, and engaged in lumber business;
operated mill at Stiles, Wisconsin, in 1849, employing Indians;
was instrumental in construction of first railroad in Wisconsin
and founder of first bank at Prairie du Chien, Wisconsin; was
in business at Little Suamico, Oconto and Fort Howard, Wis-
consin; died January 14, 1895.
LEONARD J. FAR WELL born January 15, 1819, at Watertown,
New York; moved to Lockport, Illinois, in 1838, engaging in
hardware business; located in Milwaukee in 1840, and amassed a
58 General Johnston and Charter Members
fortune in hardware; bought largely of Madison, Wisconsin,
property in 1847 and moved there in 1849, investing largely
in local enterprises; elected Governor of Wisconsin in 1851; lost
heavily in panic of '57; elected to legislature in 1859; was patent
examiner at Washington from 1863 to 1870; then removed to
Chicago and office destroyed by fire ; located in Grant City, Mis-
souri, opening a banking and real estate office; died April n,
1889.
Lucius G. FISHER born at Derby, Vermont, August 17, 1808;
taught school until 1833, when he was appointed sheriff for
Derby and vicinity; went to Chicago in 1837 an d not liking its
prospects, moved on to Milwaukee, Janesville and New Albany
(now Beloi.t.) Wisconsin, where he located; he engaged in vari-
ous large and successful enterprises and held many public offices ;
in 1861-1866 was postmaster of Beloit; then moved to Chicago
and died there March 6, 1886.
JOHN HACKETT born at Tunbridge, Vermont, January 25,
1808; settled in Beloit, Wisconsin, then called Turtle and after-
ward New Albany, in 1836; invested in real estate and became
wealthy; was first postmaster of Beloit and one of its early
mayors; was a member of Wisconsin Territorial Assembly in
1840 and constitutional convention of 1846; admitted to bar in
1841 ; died February 5, 1886.
WIIXIAM WARD HOLDEN born at Pittsfield, Massachusetts,
March 16, 1818; located on farm in Walworth County, Wiscon-
sin, about 1840; went to Janesville, Wisconsin, in 1845, opening
its first drugstore; continued in business until 1861 ; was a promi-
nent Odd-Fellow ; a Democrat and Congregationalist ; died Octo-
ber 7, 1871.
SOLOMON HUTSON born at Orby, Lincolnshire, England, in
1819; came to America in 1838, locating at Goshen, Indiana;
moved to Janesville, Wisconsin, in 1840; first conducting a tailor-
ing business and afterward engaging in the hotel business at
Janesville and Prairie du Chien, Wisconsin; died July 30, 1872.
JOHN M. KEEP born January 26, 1813, at Homer, Cortland
County, New York, graduated from Hamilton College in 1836;
DAVID NOGGLE
LUCIUS G. FlSHEB
BEX JAM IX F. PlXLET
THOMAS LAPPIX
GEORGE C. NORTHROP
JOHX HACKETT
SIMEOX MILLS
ARABUT LUDLOW
JAMES B. MARTIN
General Johnston and Charter Members 61
studied law and was admitted to bar; removed to Beloit, Wis-
consin, in 1844; was elected Judge of First Wisconsin Judicial
Circuit in 1856; was a Republican in politics and in religion a
Congregationalist ; died March 2, 1861.
JAMES H. KXOWLTOX born at Canandaigua, New York, Au-
gust 22, 1813; came to Wisconsin about 1839 and located at
Janesville, whence he removed to Mineral Point and afterward
to Shullsburg, where he was admitted to the bar; in 1856 he
again located in Janesville where he practiced his profession until
1861 when he located in Chicago ; was the first probate judge of
Lafayette County, Wisconsin, and served in the Wisconsin As-
sembly in 1854 and 1856; died in Chicago, January 29, 1879.
CHARLES KUEHN born in Saxony; came to America in the
4o's and settled at Milwaukee, Wisconsin ; opened a general store
and bank at Two Rivers, Wisconsin, in 1847; was State Treas-
urer of Wisconsin in 1857-8; afterward opened a bank at Mani-
towoc, Wisconsin, but invested most of his funds in southern
bonds which the war rendered practically worthless and he
became bankrupt; he committed suicide in 1867.
THOMAS LAPPIX born in the County Mead, Ireland, May 12,
1812; immigrated to America in 1825; located in New York for
two years and then went to Detroit, Michigan, learning the
printer's trade; started for Milwaukee in 1838 with stock of
general merchandise but boat was wrecked and only a part of the
stock saved; started a general store in Janesville in June 1839;
died in Janesville, March 29, 1891.
GEORGE W. LEE born in Spring Hill, Fairfax County, Vir-
ginia, October 25, 1820; was a grand nephew of Gen. Robert
E. Lee ; educated in Xew York State where his family had
located about 1838; graduated in medicine and moved to White-
water, Wisconsin, where he remained but one year; moved to
Shullsburg, Wisconsin, in 1844, and practiced his profession; was
one time Superintendent of Schools of Lafayette County, Wis-
consin; also tried surgery in Milwaukee, but failing health
caused his removal to Darlington, Wisconsin, and in 1878, to
Monroe, Wisconsin ; he returned to Darlington in 1879 and died
there March 26, 1889.
62 Gene- al Johnston and Charter Members
ARABUT LUDLOW born June 21, 1818, at Burlington, Ver-
mont; in 1838 went to Lyons, Michigan, where he was a mail
carrier; in 1839 went to Chicago and engaged to pack goods
through to Green Bay, Wisconsin, in exchange for furs; shortly
thereafter began a similar undertaking for himself and sold
goods by wagon from Chicago to Madison, Wisconsin, for years ;
in 1846, settled at Monroe, Wisconsin, and started general mer-
chandise; later engaged in banking; died April 5, 1896.
JAMES BAYNARD MARTIN born August 10, 1814, at Baltimore,
Maryland ; educated at St. Mary's, Baltimore ; entered large com-
mission house there to learn the business; settled in Milwaukee
in 1845, en g a g m g in merchandising and real estate and later, in
milling ; was pre-eminently a business man ; he was a Democrat in
politics and a member of the Protestant Episcopal Church; he
died January 18, 1878.
EDWARD McKEY born in Crossmolina County, Ireland, Sep-
tember 1 8, 1821 ; with twin brother, Michael, began mercantile
business in their native town in 1843, an d continued until panic
of 1846; located in Little Falls, New York, in 1847, remaining
there two years; then moved to Wisconsin conducting stores in
various places with headquarters at Janesvillc; was a Democrat
in politics; attended the Protestant Episcopal church and was a
Knight Templar; died August 14, 1875.
SIMEON MILLS, to whom policy numbered 201 was issued, was
born in Norfolk, Litchfield County, Connecticut, February 14,
1810; in 1811, removed to Ohio; worked on a farm and received
a common-school education; engaged in teaching district school
at twenty, but soon abandoned this and engaged in mercantile
pursuits for several years; in 1836 visited Wisconsin, and in 1837
located at Madison, erected a small building of hewed logs, pur-
chased a small stock of goods and opened the first store at the
capital city of Wisconsin ; also made a contract in 1837 to carry
the mail between Madison and Milwaukee until the first of July,
1842, and accomplished this task without the loss of a single trip
during the life of the contract a feat rarely performed at the
present time, though the distance is spanned by iron and trav-
ersed by powerful locomotives. In August 1837, Mr. Mills was
General Johnston and Charter Members 63
appointed the first justice of the peace in Dane County; in 1839,
was elected one of its county commissioners, and appointed clerk
of the court, which latter office he held about nine years; held
the office of territorial treasurer when the state government was
organized, and was elected the first senator from Dane County,
afterward renominated and declined; in 1848 was appointed one
of the regents of the University of Wisconsin, and took an active
part in the organization and commencement of the institution,
purchasing its site and superintending the erection of its first
buildings; in 1860 appointed one of the trustees of the State
Hospital for the Insane and was an active member of thatt board
for fifteen years. Simeon Mills died June I, 1895.
JOHN MITCHELL born Christmas Day 1803, near Attlebor-
ough, Bucks County, Pennsylvania; began the study of medicine
in 1819, but in 1821 was obliged to go to clerking in a dry-goods
store; in 1824 went into business for himself at Scottsville, New
York; located in Buffalo, New York, in 1834, but the panic of '37
terminated his commercial career ; took his degree in medicine in
1842 and began practice at Buffalo; removed to Janesville, Wis-
consin, in 1844; was president of State Medical Society in 1855
and mayor of Janesville 1864-5; was a prominent Democrat and
Mason; died May 23, 1885.
PETER MYERS born near Paris, France, February 8, 1819;
after coming to the United States learned the butcher's trade in
Buffalo, New York; removed first to Rockford, Illinois, and in
1845 settled at Janesville, Wisconsin, where he engaged in busi-
ness and became identified with large interests ; built the Myers
Opera House and Hotel, and owned much valuable property in
Janesville; died March 13, 1888.
JAMES NiEL born in New York State; spent early years in
Troy, New York, and New York City; was admitted to the bar
and while a young man located in Janesville, Wisconsin; left
Janesville about 1868, and went to St. Louis; returned to New
York City in 1888 and practiced his profession there until he
died, April 28, 1891, at Brooklyn, New York; was a Democrat
in politics and attended the Protestant Episcopal Church.
DAVID NoGGLE born in Franklin, Franklin County, Pennsyl-
64 General Johnston and Charter Members
vania, October 9, 1809; left home in 1828 and was employed in
a manufacturing plant for four years; after marrying and in
1836, moved to Winnebago County, Illinois, and in 1838 was
admitted to the bar; located in Beloit, Wisconsin, in 1839, and
was postmaster from 1840 to 1845; was a member of the state
constitutional convention of 1846; moved to Janesville about
1850; served in the state legislature 1854, 1856 and 1857; elected
Judge of the First Wisconsin Judicial Circuit in 1858 and held
office eight years; moved to Iowa in 1866, but soon returned to
Beloit, where he remained until 1869, when he was appointed
Chief Justice of the Territory of Idaho, resigning on account of
ill-health in 1874; returned to Janesville in 1875, and died there
July 1 8, 1878.
GEORGE CHESTER NORTHROP born in Galway, Saratoga
County, New York, April I, 1819; was admitted to the bar and
began practice at Medina, New York; moved to Wisconsin in
1849 and located in Racine; in 1854 organized the Racine County
Bank and became its cashier; was also interested in the bank of
B. B. Northrop & Company for many years; was mayor of
Racine in 1861 and 1863 and in 1864 was elected to the legisla-
ture; died July 15, 1874.
BENJAMIN FRANKUN PIXLEY, insured under policy num-
bered 12, was born September 16, 1815; worked on farm and
educated at district schools ; made two or three trips west
between 1842 and 1848, at one time driving flock of sheep from
Oneida County, New York, to Janesville, Wisconsin, passing
through Chicago, the whole of which he could have bought for
the value of his flock of sheep ; bought land near Janesville and
located there in 1848, and engaged in many enterprises, farming,
milling, merchandising, etc., keeping all the time in touch with
the wool industry of the country, becoming widely known as an
expert buyer of this commodity, which led to his being induced,
in 1863, to locate in Chicago; in 1871 bought a peach farm in
St. Joseph, Michigan, thinking to retire and devote most of his
time to outdoor pursuits, but the great fire occurring, he lost
all his possessions except the Michigan home; was also a heavy
loser in the Boston fire and was seriously affected by the panic
of 1873. He kept at business for a number of years more, show-
HERCULES L. DOUSMAN SOLOMON HUTSON ANSON ELDRED
HEXRY J. ULLMANN PETER MYERS JOHN M. KEEP
JOHN H. ROTJXTREE JOSIAH FLIXT WILLARD JOHN MITCHELL
General Johnston and Charter Members 67
ing an amount of grit that is not usual, finally retiring to his
Michigan home, where he made a success of growing fancy fruit
for the Chicago market. Mr. Pixley died June 23, 1901.
JOHN HAWKINS ROUNTREE, who held policy numbered 204,
was born in Warren County, Kentucky, March 24, 1805 J moved
to Wisconsin in May 1827, locating at Platteville, where he re-
sided continuously to the date of his death, June 27, 1890.
Mr. Rountree was the first postmaster of Platteville and was
re-appointed several times. In 1832, he was made captain of a
company of volunteers to serve in the Black Hawk war; in 1834
he was appointed Justice for Iowa County by the Governor of
Michigan, which office he held until the Territory of Wisconsin
was organized in 1836; was appointed in 1837, judge of the pro-
bate court of Grant County; in 1838 was elected a member of
the Territorial Council for four years, and was re-elected in
1842; was then elected a member of the constitutional conven-
tion, rendering valuable service on several important committees ;
in 1850 he was elected to the State Senate; in 1851 he was ap-
pointed a regent of the State University ; in 1855, Major General
of the State Militia; in 1863 he was elected a member of the
lower branch of the legislature and in 1866 he was the second
time sent to the State Senate. He was also an incorporator of
the Grant County Fire Insurance Company organized April 6,
1867.
Mr. Rountree was not only one of the original incorporators
of the company, but he was continuously a Trustee to the date of
his death. Indeed, for many years he was the only member serv-
ing of the original board.
He joined the Masonic bodies in Galena, Illinois, before there
were any lodges in Wisconsin, and subsequently helped organize
Melody Lodge at Platteville, Wisconsin, and the Grand Lodge
of the State. He was a Knight Templar. In religion Mr. Roun-
tree was a Methodist.
JOSEPH ALONZO SLEEPER, nominally the first President of the
company, was born at Bennett's Bridge, New York, October 15,
1818. His early education was acquired in the country schools
with the exception of several short terms in Alexander Seminary.
At the age of nineteen he taught school. In the winter of 1839-
68 General Johnston and Charter Members
1840, he began to study law and was admitted to the bar in
Genesee County, New York, in 1844. From that moment, the
practice of the law was the only business he followed to the day
of his death.
The first business partnership entered into by Mr. Sleeper was
with Hon. Seth Wakeman, but in 1848 this was dissolved and
Mr. Sleeper came to Milwaukee. He remained there but a short
time and finally located at Janesville, Wisconsin, where he re-
mained until 1863, when he went to Chicago to live. He died
April 17, 1903.
MORRIS CLARK SMITH born December 4, 1820, at Riga, Mon-
roe County, New York; graduated at sixteen from Churchville
Academy; in 1847 settled at Janesville, Wisconsin, and began
merchandising, gradually extending his business to large propor-
tions ; was a Democrat in politics and held minor offices ; was
also a Mason and Odd-Fellow, and attendant upon the Protestant
Episcopal Church; died February 13, 1886.
LUKE: STOUGHTON born December 10, 1799, at Weathersfield,
Windsor County, Vermont; after working at mechanical trade in
Boston, Massachusetts; Mobile, Alabama; and Brooklyn, New
York, he returned to Vermont in 1836 and married; in 1838,
moved to a farm seven miles north of Janesville, Wisconsin ;
in 1840, he left the little farm and went to Janesville where he
engaged in mercantile business and real estate ; located at Stough-
ton, Wisconsin in 1847; was originally a Democrat but affiliated
with the new Republican party, but never held office ; he was also
a Mason; died August 15, 1874.
HENRY J. ULLMANN born June i, 1827, at Buffalo, New
York ; while young, moved with parents to White Pigeon, Mich-
igan, where he received his education ; located in Racine, Wiscon-
sin, in 1843 an d became interested in banking, continuing there
until 1871 when he removed to Chicago to take an active part in
the banking house of Wrenn, Ullmann & Company; was a con-
sistent Republican but never cared for political office ; was a ves-
tryman of St. Luke's (Protestant Episcopal) Church of Racine,
Wisconsin, and at one time treasurer of Racine College; lost his
life in the great Chicago fire of October 9, 1871.
General Johnston and Charter Members 69
JOSIAH FLINT WILLARD born at Churchville, New York, in
1804; his father dying at forty-two, the care of the family de-
volved on him at the age of twenty; he had charge of a store at
Churchville, and was a successful merchant; married in 1836 and
lived on the old homestead for ten years, when the family moved
to Oberlin, Ohio, where he hoped to study; ill-health prompted
him to seek a change and in 1846, he located on a farm near
Janesville, \Yisconsin; was at one time president of the State
Agricultural Society and served in the State Assembly in 1846;
was a member of the Methodist Episcopal Church; in 1858
removed to Evanston, Illinois, for the education of his daughters,
one of whom was the eminent Frances \Yillard ; engaged in the
commission and banking business in Chicago, but in 1868, he
and his wife returned to the old home in Churchville, New York,
down in the Genesee Valley where he died January 23, 1869.
Organization and Removal to Milwaukee
WHILE the act of incorporation of the company was an
essential detail, it was equally important that the re-
quired $200,000 of insurance should be procured before
any policies could be issued. General Johnston was active in this
behalf and the magnitude of the work he had before him may be
appreciated when it is recalled that the year 1857 was marked
with financial difficulties; that people were in a
state of political unrest; that the resources of the
country were awaiting development and that gen-
eral conditions in Wisconsin were unfavorable for
the selling of life insurance.
Those interested in the company met at Janesville, February
23, 1858, and adopted the following resolution:
"RESOLVED that the incorporators accept the trust reposed and
all the rights and franchises created by the act of the legislature of the
State of Wisconsin entitled An Act to incorporate the 'Mutual Life
Insurance Company of the State of Wisconsin.' "
Up to this time General Johnston had kept out of the Board
of Trustees, but John Mitchell resigning, he was elected to fill the
vacancy. At the same meeting Charles Norton was named in
place of Thomas Lappin, resigned.
The Trustees divided themselves into the four classes of nine
each prescribed by the articles of incorporation as follows :
First class: George W. Lee, Shullsburg; Josiah F. \Villard,
Janesville; Charles Kuehn, Madison; John P. Dickson, Janes-
ville; George C. Northrop, Racine; Morris C. Smith, Janesville;
Matthew H. Carpenter, Beloit; Solomon Hutson, Janesville; and
James H. Knowlton, Janesville.
Second class : James Bintliff, Monroe ; H. L. Dousman,
Prairie du Chien ; H. J. Ullmann, Racine ; Charles Norton, Janes-
ville; Edward McKey, Janesville; Leonard J. Farwell, Madison;
Lucius G. Fisher, Beloit ; J. Allen Barber, Lancaster ; and William
W. Holden, Janesville. 70
First Officers of the Company
JOSEPH A. SLEEPER,
President
H. W. COLLINS,
Secretary
ALEXANDER GRAHAM,
Vice President
JOSIAH FLINT WILLARD,
Treasurer
Organization and Removal to Milwaukee 73
Third class : John Hackett, Beloit ; David Noggle, Janesville ;
John C. Johnston, Janesville ; James R. Doolittle, Racine ; Simeon
Mills, Madison; Joseph A. Sleeper, Janesville; Edward L. Dim-
ock, Janesville; Anson Eldred, Milwaukee; and H. H. Camp,
Milwaukee.
Fourth class: Benjamin F. Pixley, Janesville; Arabut Lud-
low, Monroe; James B. Martin, Milwaukee; John M. Keep,
Beloit; Peter Myers, Janesville; John H. Rountree, Platteville;
Luke Stoughton, Stoughton; James H. Earnest, Shullsburg; and
James Xiel, Janesville.
Xo working organization was perfected for over six months,
but General Johnston and H. W. Collins, whose services he had
enlisted, were trying hard to procure signatures representing the
necessary $200,000 of insurance.
In the meantime and on April 24, 1858, chapter 169 of the
Private and Local Laws of 1858 was approved providing for a
common seal ; granting power to make re-insurance of any risks
taken and to make such by-laws as were necessary. Officers,
agents or Trustees were made amenable to a fine and imprison-
ment for abstracting or taking away any money, evidence of debt
or property belonging to the corporation and disposing of it or
placing it beyond the reach of the officers without the authority
of the Board of Trustees or the Finance Committee. Here for the
first time members of the company were given the right to vote
by proxy as well as in person.
A meeting of the Trustees of the company was held on August
1 8, 1858, and General Johnston reported progress in obtaining
applications for insurance.
At this meeting the following Trustees resigned : Peter Myers,
Edward McKey, James Bintliff, Arabut Ludlow, \Yilliam W.
Holden and John M. Keep, and the following were elected in
their places: John J. R. Pease, Janesville; Henry W. Collins,
Janesville; R. H. Scoville, Whitewater; S. C. Hall, Whitewater;
M. S. Prichard, Janesville; and W. A. Lawrence, Janesville.
It will be noted that representatives of Whitewater, Wiscon-
sin, were on the Board. This was in anticipation of the terms of
a contract hereinafter mentioned, which was entered into on be-
half of the company, and subsequently ratified, looking to the
ultimate location of a branch of the business at Whitewater.
74 Organization and Removal to Milwaukee
The organization of the company was also perfected that day
by the election of Joseph A. Sleeper, President ; Alexander Gra-
ham, Vice President; and Henry W. Collins, Secretary.
A biographical sketch of Mr. Sleeper has been given in con-
nection with the incorporators of the company.
Alexander Graham, the first person to be elected Vice Presi-
dent, was born at Utica, New York, April 6, 1816, of Scotch and
German ancestry; received an academic education in New York;
in 1841 married Abigail M. Keep, sister of Judge John M. Keep,
one of the incorporators of the company; held many positions
of trust in York State; lived at Whitewater in 1858, and shortly
thereafter moved to Janesville ; being declared ineligible for war
duty on account of age, he furnished a substitute at his own ex-
pense who served through the war ; was several times in the legis-
lature from Janesville, and in 1872, introduced the so-called Gra-
ham bill, to "provide against the evils of intoxicating drinks." He
died May I, 1895.
Henry W. Collins, the first Secretary and destined to soon be-
come President of the company, was born in 1826 at Oswego,
New York. At one time he was principal of the state normal
school at Albany, New York, and removed to Janesville in 1853,
where he was also connected with schools. Later, he built up a
large business in the manufacture of perfumes and was promi-
nently identified with local industries and undertakings. He died
in 1876 after a confining illness of eleven years.
Although the by-laws had not yet been adopted the following
standing committees were appointed :
Finance Committee : John P. Dickson, chairman ; M. C. Smith,
J. F. Willard and J. H. Knowlton, the President and Secretary to
be ex officio members.
Agency Committee : Alexander Graham, chairman ; John P.
Dickson, L. F. Patten, J. H. Knowlton and Edward L. Dimock.
Insurance Committee : Josiah F. Willard, chairman ; Morris
C. Smith and James Niel, the President and Secretary to be ex
officio members ; and
Committee on By-Laws : James H. Knowlton, chairman ; J. A.
Sleeper, David Noggle, Solomon Hutson and M. S. Prichard.
Possibly the most interesting business at this early meeting,
in view of the commercial transactions since had by the company
Organization and Removal to Milwaukee 75
transactions which if totalled for fifty years would reach almost
incomprehensible figures was the following:
"RESOLVED that the President and Secretary be and they are
hereby authorized to borrow money on the credit of the company to
an amount not exceeding the sum of $300, the same to be borrowed
from time to time as the same may be needed in sums of $100 each;
and for this purpose the President and Secretary are hereby author-
ized to make the notes of the company."
There is an interesting sequel to this resolution that will ap-
pear in due time.
The next progressive feature in the life of the company as
revealed by the records was a meeting held on October 18, 1858,
called for the purpose of approving proposed by-laws and for the
transaction of such other business as might be necessary.
The Committee on By-Laws reported, and the by-laws then
adopted were so well adapted to the needs of the company that
the essential features of many are retained to this day.
At this same meeting consideration was also given one of the
most important incidentals in the life of the company the pro-
posed contract presented by General John C. Johnston as General
Agent. This contract held the destiny of the new organization.
Had it been adopted as submitted, it would likely have been its
ruination. General Johnston had seen, or heard of, a similar con-
tract in the east and his hope was builded high for a like one in
his family. It was the incentive he had for planning the com-
pany, securing its charter and interesting people in it. That it
was not confirmed in toto was a great disappointment to the gen-
eral, leading to feeling between him and the Trustees and later
to the removal of the company to Milwaukee, the city of its great
Opportunity !
The proposed contract was as follows :
"The Agency Committee of the Mutual Life Assurance Company
of the State of Wisconsin, consisting of Alexander Graham, of White-
water; L. F. Patten, John P. Dickson, James H. Knowlton and Edward
L. Dimock of Janesville, duly elected by the Trustees of the said life
assurance company aforesaid to contract for and with all the necessary
agents and servants to carry forward the said business of life assur-
ance, do hereby contract with John C. Johnston and John Henry
Johnston, his grandson, as follows:
"John C. Johnston shall act as the General Agent of the company
76 Organisation and Removal to Milwaukee
and shall be governed by the by-laws of the company and be directed
by the President and Secretary of said company when and where to
establish agencies for said company and to perform all such needful
services for the said company as he may be required to do; provided
always that he shall not be required to perform services which his age
and ability will not allow of his performing. John Henry Johnston
shall devote all his time and attendance to the business of said com-
pany and in case of his neglect or refusal to perform said duties the
said John C. Johnston shall have the right to substitute some other
member of his family to perform the duties assigned to or intended to
be performed by John Henry Johnston. The compensation to be
allowed to John C. Johnston for his services shall be a salary of two
thousand dollars per annum payable in monthly installments, his time
of service to commence on the 1st Nov. 1858 and to continue during
his natural life. The payments to be made in all cases on the Saturday
preceding the last day of each month. The Trustees are to pay John
Henry Johnston for his services such sum as they may deem his
services to be worth, and the same allowance shall be made to the
person substituted by J. C. Johnston for his grandson John Henry
Johnston.
"It is further agreed, that upon the decease of John C. Johnston,
John Henry Johnston or his substitute appointed as hereinabove men-
tioned shall receive five per cent upon the cash received upon the
premiums upon the policies issued by said company up to the time of
the death of John C. Johnston so long as such policies shall continue
to be paid and the said John H. Johnston or his said substitute shall
continue in the service of the said company, which five per cent shall
be full payment for the service of the said John H. Johnston or his
substitute, except insofar as said company shall deem more should be
paid, and in case the payment of any greater sum should be deemed
just, the said company shall have the right and power to fix the
amount of said excess.
"And Whereas the said John C. Johnston has got up this company
at his own risk and charge and he has obtained for it a large subscrip-
tion, now know ye all whom it may concern, that on the 1st day when
this company shall issue its first policy they shall issue to John C.
Johnston a paid up policy of $5000, which policy shall be made payable
in two years from the day when the first policies shall be issued pro-
vided said John C. Johnston dies within that time but in case said
John C. Johnston survives the time named then the policy to be paid
at his decease as other policies are made payable.
"This contract can only be abrogated for malfeasance, nonfeasance
or misfeasance as the agents of this company. The travelling expenses
of John C. Johnston to be paid by the company in addition to the
$2000 per annum as before stated, not exceeding $3 per day when
travelling on the business of the said company."
Organization and Removal to Milwaukee
77
This contract was dated October 16, 1858, and was signed on
behalf of the company by four of the Agency Committee, Messrs.
Knowlton, Dickson, Patten and Dimock.
The Trustees, however, disapproved the contract so far as any-
thing therein contained mentioned or related to John Henry
Johnston and his substitute, but it was in all other respects, ap-
proved, ratified and confirmed.
General Johnston accepted this action in disappointment and
with regret, but diligently continued his quest for the required
$200.000 of insurance. It was the only thing that connected him
with the business he loved so well.
Xor was the Johnston contract the only important business
transacted at this meeting. It seems the officers had availed
r^jjHlEyi^
^.s FEB 2 #
THE WISCONSIN NATIONAL BANK
//>. .
..
Check for ipo? ll'isconsin Taxes
themselves of the opportunity covered by the resolution of August
18, 1858, to "borrow a little money," and had given a note to the
banking house of John P. Hoyt & Co. This was to become due
November 21, 1858 and there was no cash on hand with which
to meet the obligation. The President and Secretary were author-
ized to make a new note for $100 to take up the one about to
become due.
Contrast this action with that of the officers who on the 29th
day of February 1908, sent the treasurer of the State of Wis-
consin, a check for $365,303.61 as taxes for the privilege of do-
ing business in that one state for the year 1908 an act that cover-
ed the payment of tax-money to the state that gave the company
Organization and Removal to Milwaukee
life to the amount of $1,000 for every day in the year. Think of
a development from the extension of a $100 note, to the payment
of $1,000 per day in taxes to one single state!
Necessary forms of application and physician's certificates
were adopted and provision was made for the preparation of suit-
able premium rates and policy contracts to be issued.
The records of the company do not show what rates were
then adopted, but they appear in the first piece of "literature" ever
issued by the company a little pamphlet which because of its
age and unique character is here given in full. The cover page
is as follows:
FIRE
INSURANCE
LIFE ASSURANCE
CONSIDERED.
Janesville, W^is., 1858.
DEMOCRATIC STANDARD
PRINT.
Organization and Removal to Milwaukee 79
The following is the subject matter of the pamphlet:
Fire Insurance and Life Assurance Considered
"We call upon all men dispassionately to consider a subject, the
vital importance of which is paramount to almost all other earthly
considerations, and from which the beneficial effects are appreciated
and acknowledged by others, when he, who has been the happy cause
of their bestowal, shall have sunk into the silent tomb.
"In contrasting the almost universal cases of Fire Insurance with
the comparatively few policies of Life Assurance, a fact is deduced
which proves but too truly and too plainly the love of self and self's
comforts over near and dear ties.
"On the occurrence of a fire, when a man is insured, he finds him-
self in a short space of time, again in possession of his stock in trade,
his furniture and every article which contributes to his happiness and
comfort; he is perfectly delighted when he reflects upon the prudence
and the forethought which had enabled him thus to retrieve his loss,
and thanks God while he contrasts what is, with what might have
been.
"Personally, he has reaped the benefit. Thus much for insurance
against fire.
"How then for Life Assurance?
"Take the same man and place before him the advantage of Nay,
the absolute duty of effecting Life Assurance, tell him that at death;
whenever it may occur, in an hour, a day or a month, a year or any
number of years; his widow and children would receive a certain stip-
ulated sum.
"Although it amounts to a hundred times the amount expended in
premiums; simplify the question; cite cases upon cases, when from
the neglect of this precaution, whole families have been reduced at
one blow, from affluence to poverty he still argues and objects.
"He says he is young and strong, and healthy, and may live for
many years; in vain you will point him to the bills of mortality. Show
him that out of every 5000 persons in the prime of life, 600 will die in
ten years; and before another ten years have passed away 700 more
will have ceased to live; and for the third term of ten years, which
makes the 30th year 850 more will have gone to their resting place.
Add these three sums together, and tell him that in 30 years, 2150 out
of every 5000 will be dead, and our fears are, that he will still object
and say, 'what possible good can result to me for having insured my
life?'
"Xow friends it is a fixed fact that all men must die; the young, the
healthy, the vigorous are suddenly cut off; no time having been allowed
them to accumulate a hoard; and with these, goes from their home,
comfort and independence.
8o Organization and Removal to Milwaukee
"But had these assured their lives for even a moderate sum, the
widows and the orphan's tears of love and gratitude would again and
again gush forth, long after the heart that loved them had ceased to
beat.
"Permit us now, in conclusion, to urge upon every father whose
income depends solely on his individual exertion, to lay aside a small
portion of his earnings in securing to his family a life Policy, against
that day when the hands that have procured the family meal, shall
have ceased their toil forever.
"At 20 years of age a man may assure $1000 for life, at a premium
of $17 30 per annum, at 30 the premium will be $23 02 on $1000, at 40
the premium will be $31 73 on $1000.
"The average of time which all life policies have run up to this
time, has been 30 years. Every Policy made in the Mutual Life Assur-
ance Company of the State of Wisconsin, which, if it be kept up for
thirty years, will at maturity, be worth at least three times the sum
assured; thus the $1000 would be worth $3000.
"Let every man consider his circumstances, and make provision for
his family by a life Policy, he will then have the proud satisfaction of
knowing that he has performed an important duty to himself, his
family and the community, and his mind will be at ease during life,
and when he has been consigned to his narrow house, his grave will
be hallowed with the grateful tears of his surviving relatives.
WHAT IS LIFE ASSURANCE?
"Have our citizens any interest in this matter?
"The duration of life among large bodies of men is subject to laws
as exact as those which regulate the occurrence of the seasons or other
natural events, and the number of deaths to be expected yearly at each
particular age, may be anticipated with such precision as to be entirely
relied on.
"It is the observation of this law of nature that has given rise to
the establishment of Life Assurance Companies, whose calculations
are founded upon it; and these institutions, with perfect confidence in
the uniformity of the results which follow, grant their obligations for
sums to be paid when death occurs, the persons assured, paying them
a small annual sum during life.
"Out of 1000 men at 35 years of age it is calculated that about 10
die annually in the United Kingdom of Great Britain; in this country,
we feel confident that longevity is better; we find by the report of the
Mutual Life Assurance Company of New York for the year 1857, that
their loss predicted during the last 15 years, was 918, whereas, their
actual loss was only 747, showing a difference of 171, leaving a net
profit to the company of $556,000; 31 per cent of which was derived
from the company's last two years business.
"Suppose that 1000 individuals subscribe one dollar each, this will
Organization and Removal to Milwaukee 81
give the sum of $1000; and then suppose that this one dollar pays
assurance upon each life for one hundred dollars, and suppose that
during the year, 10 of these die, the company will be able to pay each
ones heirs the $100 assured; and thus, by this small payment all are
protected.
"The above is a simple case showing the application of the prin-
ciple for one year, but in the practice of Life Assurance, persons gen-
erally make an agreement with a company to assure them at a fixed
rate for the whole of life; thus the annual payment required for a fixed
sum of $1000 to be payed them at death and not varying with increased
age is:
If 25 years old at entry, $19 89
If 30 " 23 02
If 35 " " " " 26 87
If 40 " 31 73
If 45 " 38 04
If 50 r 46 42
"The Mutual Life Assurance Company of the State of Wisconsin
assures persons at every age, from 14 years of age to 56, the premium
at 14 being $14 71 on $1000; while at 56 it is $60 25 on $1,000, showing
the great advantage which young persons have over those more
advanced, by entering into contracts of this sort early.
"The sum stipulated to be paid at death to the heirs of each one
assured, being secured to be paid without reference to other indi-
viduals dealing with the company; it being the business of the com-
pany to obtain a sufficient number of members to secure what is called
an average, that is, such a number as will give complete regularity in
the results.
"From the moment the first payment is made by an individual to a
Life Assurance Company, his peace of mind, as regards the welfare of
dependents is secured, and how selfish must that man be, who will not
set apart so comparatively trifling a sum, to secure comfort and hap-
piness to those he leaves behind him. - Any man having others depend-
ent upon him, who neglects to seek such protection, neglects one of
the first duties he is bound to perform."
The pamphlet also contained the Life Table shown on the fol-
lowing page.
82
Organisation and Removal to Milwaukee
Table i Life Table
The Rates of Assurance of One Thousand Dollars on a Single Life,
for the Whole Continuance Thereof
Age
Quarterly
Payments
for Life
Semi-arm.
Payments
for Life
Annual
Payments
for Life
Annual
Payments
for 10 yrs.
Annual
Payments
for 5 yrs.
In One
Payment
Age
14
3 77
7 48
14 71
33 49
57 68
254 59
14
15
3 88
7 68
15 11
34 18
58 86
259 69
15
16
3 98
7 89
15 52
34 89
60 05
264 88
16
17
4 09
8 11
15 94
35 62
61 27
270 16
17
18
4 20
8 33
16 38
36 35
62 51
275 53
18
19
4 32
8 56
16 83
37 11
63 78
280 99
19
20
4 44
8 80
17 30
37 87
65 07
286 56
20
21
4 56
9 05
17 78
38 66
66 38
292 23
21
22
4 69
9 30
18 28
39 45
67 72
298 00
22
23
4 82
9 56
18 80
40 27
69 08
303 88
23
24
4 96
9 84
19 34
41 10
70 48
309 87
24
25
- 5 10
10 12
19 89
41 95
71 89
315 97
25
26
5 25
10 41
20 47
42 82
73 35
322 20
26
27
5 41
10 72
21 07
43 71
74 83
328 55
27
28
5 57
11 04
21 70
44 62
76 34
335 03
28
29
5 73
11 37
22 35
45 55
77 88
341 64
29
30
5 91
11 71
23 02
46 51
79 46
348 38
30
31
6 09
12 07
23 73
47 48
81 07
355 26
31
32
6 28
12 45
24 47
48 48
82 72
362 29
32
33
6 47
12 84
25 23
49 50
84 41
369 46
33
34
6 68
13 24
26 03
50 55
86 13
376 78
34
35
6 89
13 67
26 87
51 62
87 89
384 26
35
36
7 12
14 12
27 75
52 72
89 70
391 90
36
37
7 36
14 59
28 67
53 86
91 55
399 71
37
38
7 61
15 08
29 64
55 02
93 44
407 70
38
39
7 87
15 60
30 66
56 21
95 38
415 87
39
40
8 14
16 14
31 73
57 45
97 37
424 23
40
41
8 43
16 72
32 86
58 72
99 41
432 79
41
42
8 74
17 32
34 05
60 03
101 51
441 54
42
43
9 06
17 96
35 30
61 38
103 66
450 49
43
44
9 40
18 64
36 63
62 78
105 87
459 66
44
45
9 76
19 35
38 04
64 24
108 15
469 03
45
46
10 14
20 11
39 53
65 74
110 49
478 62
46
47
10 55
20 92
41 11
67 31
112 91
488 41
47
48
10 98
21 77
42 78
68 92
115 39
498 37
48
49
11 43
22 66
44 55
70 59
117 92
508 49
49
50
11 91
23 61
46 42
72 31
120 51
518 75
50
51
12 42
24 62
48 39
74 08
123 15
529 15
51
52
12 95
25 69
50 49
75 91
125 85
539 68
52
53
13 52
26 82
52 71
77 81
128 61
550 36
53
54
14 13
28 02
55 07
79 78
131 44
561 17
54
55
14 77
29 29
57 58
81 84
134 34
572 12
55
56
15 46
30 65
60 25
83 98
137 32
583 19
56
Organization and Removal to Milwaukee 83
The back cover of the little pamphlet contains the wonder-
fully pathetic picture here reproduced
Back Cover of First Piece of Literature
The next meeting of the Trustees was held on November 8,
1858, and the resignation of Joseph A. Sleeper. President, having
been tendered, Henry \V. Collins was elected in his place. This
election leaving a vacancy in the office of Secretary, E. L. Dimock,
of Janesville, was chosen. W. A. Lawrence, one of the Trustees,
tendered his resignation.
By this time General Johnston had enlisted the valuable as-
sistance of Milton Rowley of Whitewater, H. G. Wilson of Mil-
waukee and E. L. Dimock of Janesville. Working together they
finally procured the desired $200,000 of insurance and on No-
vember 25, 1858, the necessary policies of life insurance were
issued thereon.
These were as follows :
Organization and Removal to Milwaukee
Policy.
Date of
Issue
Amount
Solicitor.
1 Johnston, John C
Nov 25,
$5,000
J. C. Johnston
2 Johnston, John Henry
1858
5,000
3. Thomas, John L. V
4 Barrows, Lyman J
2,000
5,000
a
5 Hall, Edward
,.
1,000
6. \Vilson, Hiram G
K
2,000
7. Plimpton, Chas. O
IS
2,500
8. Wright, Conrad E
it
2,000
9 Dimock Edward L
(I
5000
10. Spaulding, Stephen C
11 Johnston, Wm H .
((
5,000
5000
;;
12. Pixley, Benj. F
13. Graham, Alex
14. Scoville, Augustus H
15 Not issued
((
tc
2,500
5,000
5,000
Milton Rowley
16 Miller, Ezra.
5000
J C Johnston
17 Patten, La Fayette F
ft
5,000
18. Eyclesheimer, Platt
2,000
ct
19. Hollister, Rufus M
2000
20. Norris, Albion K
tt
5000
tt
21 Pratt Alex M
((
5 000
u
22 Hall, Sheldon C
((
5 000
Milton Rowley
23. Rann, Hannibal L
(1
2500
24. Hempel, Henry T. J
25. De Wolf, Wm
"
2,500
5,000
26 Kellogg Edson
(S
3000
M
27. Wenzel, Gottlieb Heinrich
28 McKnight, Lewis.
"
1,500
3,000
H G Wilson
29. Darrow, Merritt S
K
2000
E L Dimock
30. Hanson, Moses P
31. Norton, Leverett J
(t
3,000
1,000
J. C. Johnston
H G. Wilson
32 Brown Daniel T
tt
2000
33. Cross, Nelson.. . ..
il
2000
u
34. Collins, James H
it
1 000
M
35. Cogswell, Thomas
2000
a
36. Elmore, M. Gage
tt
3000
< (
37 Vaux Thomas
1 000
J C Johnston
38 Newcomb, Saxton B
5000
Milton Rowley
39 Booth, Sherman M
tt
5000
40. Harvey, Louis P
41 Drysdale Wm
"
2,500
2000
"
42 Collins, Henry W
(t
5000
u
Organization -and Removal to Milwaukee
No. of
Policy Name
Date of
Issue
Amount
Solicitor
43. Hamlin, Everlin B
44. Gorham, Wm
Xov. 25,
1858
a
a
<(
Nov. 29,
Nov. 30
Dec. 1.
1,000
1,500
2,500
5,000
2,000
2,000
3,000
1,000
5,000
5,000
5,000
1,000
5,000
1,000
2,000
3,000
2,000
2,400
5,000
2,500
5,000
5,000
3,000
3,000
H. G. Wilson
u
Milton Rowley
J. C. Johnston
Milton Rowley
J. C. Johnston
it
H. G. Wilson
E. L. Dimock
J. C. Johnston
u
H. G. Wilson
u
J. C. Johnston
Milton Rowley
H. G. Wilson
J. C. Johnston
E. L. Dimock
J. C. Johnston
45. Rowley, Milton.
46. Cheney Jr., Rufus
47. Shiells, Robert
48. Burgess, Jas M.. ..
49. Xot issued
50. Willard, Oliver A
51. Hislop, Thomas..
52. Knowlton, James H
53. White, Delos M
54. Ayres, Mark.. ..
55. Jones, Jno. \V
56 Ogilvie Jas H
57. Griswold, Jos W
58. De Witt, Jacob T. B
59. Bingham, James M
60 Turner, Peter H
61. Card, Wm Warren
62. Staughton, Neville
63 Miltimore Ira
64-65-66. Hoyt, John P.
67. Norton, Isaac M
68. Lane, F. Mortimer
)69. Stevens, Chas. E
The first policy ever issued by the company, it will be observ-
ed, went to General John C. Johnston, who had labored so dili-
gently to get it organized. For years, this first policy was
"mourned as lost" at the home office and the copy of the substitute
policy hereinafter referred to, reproduced on pages 94 and 95,
has been given prominence. In searching for other papers relating
to the company's history, however, a fire proof drawer in the
steel vault in the Secretary's office, which drawer had not been
opened for years, was unlocked, and there, covered with dust so
thick as to make it almost indistinguishable, was found the origi-
nal first policy issued to General Johnston the first policy ever
issued by the company. The reproduction here given is from
a photograph of the original.
Policy No. i of The Northwestern Mutual Life Insurance Co.
(Signatures and Endorsement on Opposite Page)
A
\
88
Organization and Removal to Mihvaukee
Of all those insured by the original lot of policies issued on
November 25, 1858, but two survive Leverett J. Norton, then
and now of Chicago, Illinois, and Joseph W. Griswold, formerly
of Milwaukee, but now of Chicago. Mr. Norton's policy is num-
bered 31 and Mr. Griswold's 57, although it must be understood
that most of the policies representing the foundational $200,000 of
insurance were issued the same day. Policy numbered i was
courteously issued to General Johnston.
The history of this policy numbered 31 issued to Leverett J.
Norton is exceedingly
interesting. It is for
$1,000, Life plan, is-
sued November 25,
1858, but the renewal
date was changed to
May 25, to accommo-
date the insured. Mr.
Norton was twenty-
nine years old when
the policy was issued
and his annual pre-
mium is $22.35. The
dividends, except the
first, have been applied
to purchase p a i d-u p
participating additions
to the original amount
of insurance and these
additions amount at
the time of writing, to
$1,494.55, making the
insurance carried nearly $2,500. Assuming that the dividend of
1908 will be applied in the same way, the amount carried under the
policy will be $2,528.55, or a little more than two and a half times
the original sum insured. If the first dividend had been used
to purchase additional insurance the result would be even more
favorable. For many years, in fact since 1889, the annual divi-
dend, with only three exceptions, has been larger than the annual
premium, and in each of the exceptional cases the difference is
Leverett J. Norton
Chicago, 111. Policy No. 31.
Organization and Removal to Milwaukee 89
small, so that if Mr. Norton preferred to use the dividends to pay
premiums instead of to increase the insurance, the policy would be
continued in force without cost to him.
The policy numbered. 57 issued to Joseph W. Griswold at age
twenty-eight, was a $1,000 Ordinary Life, but was changed in
November 1864 to a full-paid.
And so on November 25, 1858, the company was organized
in the face of difficulties that would have deterred men less active
and persistent than those back of this middle-western invader and
contender. These beginning-days were reconstruction days, too.
Some had merely loaned
their names to the enterprise
perfunctorily, or perhaps
diplomatically, without any
personal interest in the con-
cern, and they were of little
value, if not a handicap to a
working organization. So
the meetings thereafter held
in 1858, were marked with
resignations and elections.
At the Trustees' meeting
of December n, 1858, Alex-
ander Graham resigned as
Vice President and Augustus
H. Scoville, of Whitewater,
was elected to fill the va-
cancy.
Augustus H. Scoville was
Joseph W. Griswold born in l8 9 ** Montreal,
chica&o, ill. Policy No. 57. Canada. His first business
venture was in grain and
commission at Buffalo, New York ; later he engaged in banking at
Gallipolis, Ohio, and Kokomo, Indiana ; moved to Whitewater in
August 1846, and became identified with the banking and other
early-day enterprises of that place ; removed to Oak Park, Illinois ;
later to California, where he died in the year 1877. He acted as
Vice President of the company from December n, 1858, to March
7, 1859, when his term as Trustee expired.
90 Organisation and Removal to Milwaukee
Luke Stoughton, Matt. H. Carpenter, Charles Kuehn, George
W. Lee and Leonard J. Farwell also resigned as Trustees at the
meeting of December n, 1858. Alexander Graham was nominat-
ed for Trustee at Whitewater and the following at Milwaukee:
S. S. Daggett; Lester Sexton; Eliphalet Cramer; C. D. Nash; M.
S. Scott; John Bradford; E. B. Wolcott and Henry L. Palmer.
In furtherance of the reconstruction idea, a resolution was adopt-
ed to the effect that the corporators at Milwaukee who refused
to act with the Board and to take policies be requested to resign.
A contract heretofore referred to and which had been made
with the Whitewater Trustees of the company November 25, 1858,
was brough up for consideration. This so-called Whitewater con-
tract, concerning which there has been a difference of recollec-
tion in company official circles, was supposed to have been lost
with the first policy and other early important documents, but
was found at the same time and place with the others. In effect,
it split the company in two parts, one with headquarters at Janes-
ville and the other at the "Village of Whitewater." It provided
that there should always be three Trustees of the company
from Whitewater, one of whom should be Vice President; the
Whitewater Trustees were empowered to open books, employ
persons to keep the same and to appoint agents in the
counties of Walworth and Jefferson ; to solicit insurance, approv-
ing applications for final consideration at Janesville ; were author-
ized to keep the moneys received by them in a safe place and were
empowered to loan and invest in the name of the company a per-
centage thereof under certain regulations ; whenever any pay-
ments for losses and the like were made from Janesville, which
was made the disbursing headquarters, the amount was required
to be apportioned to and paid out of the funds of the company at
Whitewater in a pro rata proportion; the Whitewater Vice Presi-
dent was authorized to sign loan checks and drafts ; monthly re-
ports from that branch were required, and the only saving pro-
vision of the contract, as it is now viewed, was the one expressly
providing that the Whitewater Vice President and Trustees should
be personally responsible for the Whitewater assets.
Such a contract would have been disastrous if kept in force
and still, when it was considered by the men then interested, it
was ratified by but one dissenting voice, that of James Niel.
Organization and Removal to Milwaukee 91
December 18, 1858, S. S. Daggett was elected Trustee instead
of Luke Stoughton ; M. S. Scott, of Matt. H. Carpenter ; E. B.
Wolcott, of G. W. Lee and Henry L. Palmer, of Charles Kuehn.
This date may, therefore, be given special mention since it
introduced three men who attained to official prominence Henry
L. Palmer, S. S. Daggett and E. B. \Yolcott. Their connection
with the company will appear in the progress of this history.
At a meeting of the Finance Committee held December 22,
1858, the gratifying information was disclosed that business was
looking up, for within the month policies had been written as
follows : At Milwaukee, twenty-six ; Whitewater, fourteen and
Janesville, seven.
The reconstruction still proceeded. At the last meeting of
the Trustees in 1858, held on the final day of that year, Daniel
Xewhall, of Milwaukee, was elected Trustee in place of Leonard
J. Farwell, resigned ; "William J. Whaling, of Milwaukee, in place
of James R. Doolittle; Ezra Miller, of Janesville, in place of
David Xoggle, and S. C. Spaulding, of Janesville, in place of W.
A. Lawrence.
The Trustees seem to have become impressed with the prob-
able ultimate necessity for a Treasurer of the institution and the
office was accordingly created, Josiah Flint Willard being elected.
Just how they reconciled this proceeding with the one taken by
the Finance Committee the same day authorizing the President and
Secretary to issue a 60 day note of $150 to apply on General
Johnston's agency account, is not shown.
In procuring the preliminary insurance required to begin busi-
ness, the services of Hiram G. Wilson had been enlisted in Mil-
waukee, and he was largely responsible for the subsequent removal
of the head office to Milwaukee.
Mr. Wilson was an ideal insurance solicitor. He
had character, health, education, youth and enthu-
siasm. He was also a good business man. He saw
the possibilities of the institution. Better still, he made others
see them and believe in them.
Indicative of the trend of affairs, the Trustees met February
7, 1859 and nominated two men from Milwaukee and four from
Janesville as Trustees, but on February 23, 1859, chapter 35, Pri-
vate and Local Laws of 1859, was approved striking out the
92 Organization and Removal to Milwaukee
words "in the City of Janesville" where they occurred in the
act of incorporation, and on March 4, 1859, Lester Sexton,
George B. Miner and C. D. Nash, all of Milwaukee, were elected
Trustees to succeed H. H. Camp, of Milwaukee ; George C.
Northrop, of Racine and Simeon Mills, of Madison.
Thus was the road prepared for the eventful meeting of Mon-
day, March" 7, 1859. The place for holding the annual meeting
of the company and of transacting its business had been regulated
by law so as not necessarily to be in Janesville and the presence
of the Milwaukee Trustees in the city was premonitory.
The meeting was held in the evening and after the resigna-
tion of Charles Norton and John J. R. Pease as Trustees had been
accepted, the most fateful resolution ever presented to the insti-
tution was offered by Secretary Dimock as follows :
"RESOLVED That from and after the close of this meeting the
office of this company be located in the City of Milwaukee and the
operations and business of this corporation shall be carried on in
said City of Milwaukee so far as the same can be done at a principal
office, and that the President and Secretary be authorized to remove
the books and papers and property of the company to Milwaukee,
and to do whatever may be necessary to carry into effect this reso-
lution."
Surely records are cold-hearted yea, lifeless sort of things.
Here was a resolution that meant existence to the institution just
beginning, as it also meant the sacrifice of the fondest hope of a
man whose long life had culminated in the establishment of the
infant company, and yet the indifferent records merely give the
names of those who voted in favor of the adoption of the resolu-
tion, adding : "Those voting in the negative were John C. John-
ston, Esq., one." Pathetic, when one remembers that the old gen-
eral's ambition was bound up in the company, but prophetic of
its future greatness.
Provision was also made at this meeting for the next election
of Trustees to be held at Milwaukee ; a committee to revise the by-
laws was appointed and a reorganization was effected by the elec-
tion of S. S. Daggett as President, in place of H. W. Collins,
resigned, and the choice of Dr. E. B. Wolcott as Vice President.
And so, the Mutual Life Insurance Company of the State of
Organization and Removal to Milwaukee 93
Wisconsin, went out from its place of birth to the metropolis of
the state where its home office has since remained.
Samuel Slater Daggett, who had become insured in the com-
pany on December 10, 1858, by policy numbered 116, was born
in Attleboro, Bristol County, Massachusetts, April 19, 1812, and
located in Milwaukee about 1844, where he successfully engaged
in commercial business until 1849, when he was elected president
of the Milwaukee Mutual Fire Insurance Company. In 1858 he
gave up the presidency of that company and became interested
in the Mutual Life of Wisconsin. He was possessed of abundant
common sense ; a good general business experience ; was ruggedly
honest and an ideal man for the presidency of the company.
Those who remember Mr. Daggett describe him as about six
feet two inches high, of large frame, carrying no superfluous flesh,
with a finely shaped head covered with gray-white hair a man
whose physical lines made him conspicuous. Mr. Daggett was of
limited book-knowledge, but held a degree in practical education.
His incumbency extended from March 7, 1859, to May 23,
1868, when he died. He was buried with Masonic rites, being a
prominent member of that order.
Erastus B. Wolcott was born at Benton, Yates County, New
York, October 18, 1804; took his degree in medicine in 1833;
appointed surgeon in the United States army in 1836; resigned
in 1839, an d located in Milwaukee; was appointed surgeon of
the state militia of Wisconsin in 1842; commissioned colonel of
militia in 1846, and later in the same year major-general of the
first division; during war of rebellion was surgeon-general of
\Yisconsin and in 1866 was appointed manager of the national
home for soldiers at Milwaukee. Dr. Wolcott was one of the big
men of Wisconsin and his history is written closely into that of
the state. Aside from his connection with the company as Vice
President, Dr. Wolcott was for a long time its Consulting Physi-
cian and a Trustee to the date of his death, January 5, 1880.
~
Copy of Substitute for Policy No. i
(Receipts tor Settlement and Printed Copy ot Policy on Opposite Page)
tnsSi..
Receipts Showing Payments on Johnston Policy
(Copy of Policy)
THE MUTUAL LIFE INSURANCE COMPANY OF THE
STATE OF WISCONSIN
This policy of assurance witnesseth that the Mutual Life Insur-
ance Company of the State of Wisconsin in consideration of the
representation made to them in the application of John C. Johnston
for policy No. 1, issued to him on the 25th day of November, A. D.
1858, and which application is made the basis for this policy and of
the canceling of the said policy so issued to the said John C. John-
ston on the 25th day of November 1858, and in further consideration
of the contract made by said John C. Johnston to the said company,
bearing even date herewith, by which a contract made between the
said John C. Johnston and the said company, dated the 16th day of
October, A. D. 1858, is abrogated;
Do assure the life of the said John C. Johnston of Madison in
the County of Dane, State of Wisconsin for the sole use of Ruth
Johnston, wife of the said John C. Johnston, in the amount of
$5,000 for the term of his natural life. And the company do hereby
promise and agree to and with the said assured well and truly to
pay or cause to be paid the sum assured to the said assured, her
heirs, executors, administrators or assigns for her sole use in con-
formity with the charter of the Mutual Life Insurance Company of
the State of Wisconsin in such case made and provided in ninety
96 Organisation and Removal to Milwaukee
days after due notice and proof of interest (if assigned or held as
security) and of the death of the said John C. Johnston payment to
be made in ninety days after due notice and proof of the death of the
said John C. Johnston as aforesaid. Provided always and it is
hereby declared to be the true intent and meaning of this policy
and the same is accepted by the assured upon these express condi-
tions that in case the said John C. Johnston shall without the con-
sent of this company previously obtained and endorsed upon this
policy pass beyond the settled limits of the United States (except-
ing into the settled limits of the British Provinces of the two Can-
adas, Nova Scotia or New Brunswick) or shall without such previous
consent thus endorsed, visit those parts of the United States which
lie west oi: the 100th degree of west longitude or between the first
of July and the first of November those parts which lie south of the
southern boundaries of the states of Virginia and Kentucky or shall
be or reside within ten miles of the Mississippi or Missouri Rivers
between the parallels of 3630" and 40 degrees of north latitude
(except while journeying) or shall enter upon a voyage on the
high seas or as a mariner, engineer, fireman, conductor or laborer in
any capacity upon service on any sea, sound, inlet, river, lake or
railroad, or into any military or naval service whatsoever (the militia
not in actual service excepted) or in case he shall die by his own
hand or the hands of justice, or in consequence of a duel or of the
violation of any laws of these states or of the United States or of
the said Provinces or of any other country which he may be per-
mitted under this policy to visit or reside in, then this policy shall
be null, void and of no effect. And it is also understood and agreed
by the within assured to be the true intent and meaning hereof that
if the declaration made by the said John C. Johnston in the applica-
tion heretofore mentioned or any part thereof and upon the faith
of which this policy is made shall be found in any respect untrue
then and in such case this policy shall be null and void and pro-
vided further that in case of the death of the said John C. Johnston
within two years from the date of this policy the said sum of $5,000
shall not be due and payable until the expiration of two years from
the date hereof. In witness whereof the said The Mutual Life
Insurance Company of the State of Wisconsin have by their presi-
dent and secretary signed and delivered this contract this 12th day
of March, A. D. 1859.
S. S. DAGGETT,
Prest.
E. L. DIMOCK,
Secty.
Laying a Strong Foundation
THE official procession that left Janesville the next morn-
ing might have been impressive to residents of the city
had they realized its import, but it could not have been
half so inspiriting as it was to the new President and Vice Presi-
dent, to say nothing of the Trustees who had accomplished the
desired result.
They carried with them not merely the hopes of wondrous
accomplishments for the new concern but all of its goods, chat-
tels, books, papers and things, neatly done up in a little black,
leather-covered trunk about 30x20x14 inches in size.
That little black trunk was carefully guarded for quite a long
time but in the many after-removals and constant demand for
space, it gradually lost the homage due it and was finally finished
by a vandal hand. Its historical value was swallowed up in com-
mercial progress.
The first meeting of the Trustees in Milwaukee was held on
March u, 1859 at Mr. Wilson's office on the southwest corner
of Wisconsin street and Broadway where now stands the Rail-
way Exchange building. Henry A. Nichols was elected a Trus-
tee in place of John J. R. Pease and James Bonnell in place of
Charles Norton.
A storm that had been brewing for days broke at this meet-
ing. General Johnston had known that he was no longer in favor
with the Trustees and their action in moving to Milwaukee was
the last straw. His disfavor was largely due to the agency con-
tract he held. It was a menace to the welfare of the institution.
It must be rescinded, they said.
General Johnston by this time was not on speaking terms with
most of his fellow Trustees, so negotiations were difficult. He
did talk to Henry L. Palmer, however, who realized the danger of
such an oustanding instrument and the necessity for some com-
promise. After talking the matter over with Mr. Johnston, who
was made to realize the futility of proceeding under the old con-
97
98 Laying a Strong Foundation
tract, Mr. Palmer secured enough concessions to warrant formal
action by the Board and even had Mr. Johnston, himself, offer a
resolution that whereas the old contract was a source of dissatis-
faction, a committee be appointed to arrange its abrogation and
recommend an equitable recompense in return.
The committee, which consisted of S. S. Daggett, Henry L.
Palmer and C. D. Nash, arranged to pay General Johnston seven
hundred dollars in cash, in full of all services and disbursements,
and in full of all claim against the company to date, and also to
issue a full paid policy for $5,000 on his life, to Ruth Johnston,
his wife, in consideration of which General Johnston entered into
a contract dated March 12, 1859, to relinquish the contract of
October 16, 1858 and "to release and discharge the said company
of and from all liability thereon and of and from all and every
claim and demand whatsoever, which I now have or might have
against the said company by reason of or growing out of said
contract, or on any other account whatsoever; and the said con-
tract is hereby terminated and from henceforth declared to be
null and of no force or effect."
The required seven hundred dollars were paid; the policy, a
copy of which is produced on pages 94 and 95, was delivered and
General Johnston passed out of the company.
One hesitates to attempt a description of the venerable pro-
moter's emotions on that day. He parted from his contempora-
ries in deep disappointment ; went to Madison, Wisconsin, to live
and there died about one year after this incident. The photgraphic
copies of receipts here reproduced show how payment was ulti-
mately made of the Johnston policy.
The process of localization was still going on within the com-
pany for on March 18, 1859, Mitchell Steever, of Milwaukee,
was elected Trustee in place of M. S. Prichard, of Janesville ; J.
F. Willard resigned as Treasurer and Trustees Willard, Sleeper,
Knowlton, Hutson and Niel, all of Janesville, withdrew from the
committees on which their names appeared.
C. D. Nash was elected Treasurer to fill the vacancy and held
that office until October 19, 1892, when he resigned; Milwaukee
men were named on committees in place of those from Janes-
ville and directions were given to procure suitable office rooms and
furniture.
Laying a Strong Foundation
99
C. D. Nash
Charles Dennis Nash was born at New Haven, Vermont,
April 19, 1819; spent his youth on his father's farm and was
educated at Castleton Seminary ; entered the Bank of Middlebury,
of which his father was president,
and for two years was its teller;
located temporarily in Milwaukee
in 1843 an d for several years
bought and sold land and sheep;
located permanently in Milwaukee
in 1853 and engaged in the bank-
ing business; elected Trustee of
the Northwestern on March 4,
1859; appointed Treasurer of the
company March 18, 1859, and held
that office thirty-three years; be-
came a member of the Executive
Committee on January 30, 1878,
and a member of the Finance
Committee at the time of its or-
ganization, October 19, 1887; re-
signed as Treasurer October 19, 1892, but remained as Trustee
and committeeman to the day of his death, March 21, 1897.
The Milwaukeeans back of the company were earnest for they
met again on March 26, 1859; accepted the resignation of E. L.
Dimock as Secretary; provided for the giving of bonds by the
President, Secretary, Treasurer and all local agents ; requested the
Committee on Insurance to prepare a system of rules and instruc-
tions for agents and appointed a committee to recommend a plan
for operating the company.
On March 28, 1859, the President was authorized to rent the
rooms occupied by agent Wilson at the corner of Broadway and
Wisconsin street for $200 per annum and to furnish them in a
fitting manner. A committee of three was also appointed with
full power to purchase a safe. This was important and the meet-
ing proceeded to such minor details as the continuation of city
agent H. G. Wilson in his employment; the naming of Doctors
O. P. Wolcott, Lewis McKnight and D. T. Brown as Medical
Examiners, for the company and the appointment of Dr. E. B.
Wolcott as Consulting Physician.
ioo Laying a Strong Foundation
The Trustees met at the noon hour of April 2, 1859, in spe-
cial session, for the purpose of electing a Secretary of the com-
pany, but the new safe had been installed in the meantime and
this took precedence over all other matters. The committee re-
ported that it had purchased a safe for $90 and had paid $10 to
have it put into the office. This formal report was accepted and
an order was voted to pay the bill. President Palmer as he daily
looks at the mammoth steel, time-lock Diebold, holding its eight
double combination steel safes, all enclosed within a fire-proof
vault may doubtless feel no more pride than he did that day as
one of the members of the original Committee on Safe, when the
first company strong-box was duly installed and paid for.
Manifestly some electioneering had been done in the interest
of candidates for Secretary, for the first ballot showed no choice,
eleven votes being cast and divided among three candidates. On
the second ballot, however, A. W. Kellogg received seven votes
and was declared elected.
This meeting may be said to have completed the establishment
of the head office at Milwaukee, with residents of that city in
control. The Daggett-Kellogg administration was a foundational
one and on its wisdom and caution was builded much of the later
success of the company.
Amherst Willoughby Kellogg, the new Secretary, was born
in Goshen, Litchfield County, Connecticut, November 13, 1829,
and now lives in the city of Milwaukee, in good health and mental
alertness. He came to Wisconsin with his parents in 1836 and
located in Milwaukee the first day of the following year; went
to school in the old Court House to Eli Bates and others ; studied
two years and a half in Rock River Seminary at Mount Morris,
Illinois ; worked for five years in a general store ; studied again
six months at Lawrence Institute, Appleton, Wisconsin; was
bookkeeper in a lumber office; was in the lumber business for
himself for three years and then graduated at Wesleyan Uni-
versity at Middletown, Connecticut, in 1858, receiving there the
degree of Bachelor of Arts. Mr. Kellogg was also elected to
membership in the Phi Beta Kappa fraternity.
He brought to his duties as Secretary an abundant ability and
a surprising aptitude. He entered into the details of the business
with enthusiasm and made the perfunctory work of the office a
Laying a Strong Foundation
101
A. W. Kellogg
vital force. Mr. Kellogg remained with the company until April
13, 1870, when he resigned to accept a position with an insurance
company in Chicago promising more remuneration. This ven-
ture did not prove a success and
Mr. Kellogg thereafter followed
a business career for himself.
In entering on his duties as Sec-
retary, Mr. Kellogg found a pe-
culiar state of affairs. The com-
pany owned a few books which
were unposted and unique of en-
try; a few of the first pamphlets
were still on hand ; a small num-
ber of blank policies and applica-
tions were available ; there were
some unpaid bills and no cash.
The officers had been acting gra-
tuitously and the only man finan-
cially benefited and he merely
in a negotiable instrument was
General Johnston. More than a month elapsed before the Secre-
tary had money enough in hand to make a deposit with the Treas-
urer and then the amount was $269.83.
Little by little, the Secretary planned a system with the help
of the President and Trustees and gradually built up business on
the munificent salary of $600 per annum. But even genius for
office system could not thrive .without something substantial on
which to apply itself, and the energetic Acting General Agent
Wilson supplied the vehicle. He went out into various parts
of Wisconsin, picked out, with consummate skill, those men whose
personalities promised results and turned in business while the
Secretary studied up ways and means of doing something more
with the aid of circulars, letters and pamphlets. For nearly two
years this plan prevailed and the Secretary was the only man in
the office. If he wanted to bank any money or see a "prospect,"
he was obliged to lock the office door.
About the first of June 1859, the officers awoke to the fact
that the laws of the state required an annual statement, although
its purpose is not exactly apparent. Surely it could not have
IO2 Laying a Strong Foundation
been for any protective purpose as the laws then permitted the in-
corporation and beginning of business by an institution that had
no semblance to solvency. Indeed, at no time in the first year or
two of the existence of the company was there sufficient legal
responsibility back of it to spell unquestioned solvency, but the
moral support of its officers gave it prestige.
Obedient to law, however, the company made its following
modest first report:
"To His Excellency,
Alexander W . Randall,
Governor of Wisconsin.
"The President and Trustees of the Mutual Life Insurance
Company of the State of Wisconsin on this 6th day of June 1859,
in accordance with a special act of the legislature, would respect-
fully report:
"This Company commenced operations by issuing policies in
accordance with its charter on the 25th clay of last November.
After three months' business it was deemed advisable to remove
the principal office of the company to Milwaukee, which removal
was made by an amendment to the charter and a vote of the Trus-
tees in March last. On the second day of April new officers were
elected, since which time a large share of the business of the com-
pany has been transacted.
Whole amount of paid-up capital A mutual company
" accumulations $9,334.52
ASSETS
Cash on hand $ 967.81
Bills Receivable, Due on Call 4,825.95
Due in 3, 6 and 9 months 419.81
Amount in agents' hands 2,623.88
Accounts 214.69
Office Furniture 282.38 $9,334.52
Whole number of policies at risk 137
Amount of Risks thereon $408,800.00
received for premiums and policies 12,622.80
Number and amount of losses None
Laying a Strong Foundation 103
Amount of Expenses Agents' commissions, etc $ 3,688.28
reserved for re-insurance None
of claims unpaid, Bills Payable $ 400.00
of losses adjusted and unpaid None
" unadjusted and unpaid None
" premium notes on expired policies (2) $ 201.35
Whole number of policies issued 190
amount of risks thereon 555,200.00
of premiums received thereon 12,622.80
of losses None."
This was a simple, but sufficient, statement, giving as satis-
factory information as later laws required, though in a less be-
wildering mass of figures.
A meeting of the Trustees was held June 28, 1859, and the
process of reconstruction was practically completed by the adop-
tion of new by-laws, the most imporant section of which covered
the creation of an Executive Committee, possessing all the power
and authority of the Board of Trustees when not in session, but all
acts of this committee being subject to confirmation by the board.
The Executive Committee thus created has been the mainspring
of the entire works, and just the moment it was provided for,
the committee appointed at a former meeting to devise a "plan
of operations" for the company was relieved of that responsibil-
ity. The same day the Sub-Committee reported the adoption of
any plan as inexpedient and further consideration of the subject
was dismissed.
Immediately on the adoption of these by-laws, the Trustees
proceeded to the election of an Executive Committee, resulting in
the choice of Henry L. Palmer, James Bonnell and Charles F.
Ilsley, all of whom later became more intimately connected with
the official life of the institution, Mr. Palmer in various capacities,
Mr. Bonnell as Vice President and Mr Ilsley as a member of
various important committees for many years.
The committee went to work, and the records it was required
to keep, show diligent application and wise discretion. On July
5, 1859, it entered into a renewed contract with Henry G. Wil-
son to travel all about the state instituting agencies and soliciting
business, but his commission was limited to not exceed ten per
cent of the premium for the first year with a salary of $100 per
month and traveling expenses.
IO4 Laying a Strong Foundation
Questions of concessions began to arise and it is noted that
by a resolution adopted July 30, 1859, it was voted to take risks
on railroad conductors, express messengers and mail agents at
ordinary rates with one-half of one per centum added and on
October 4, 1859, it was decided to charge one per cent in addi-
tion to the usual rates, for permission to visit any point in Cali-
fornia, Oregon, Washington Territory, and Kansas and Nebraska
west of the one hundredth parallel of west longitude.
Carl Schurz, then a resident of Watertown, Wisconsin, was
elected a Trustee on Septembr 6, 1859, and served until 1861,
when his services were tendered to and accepted by the Union.
It is quite possible that this distinguished citizen would have
otherwise continued many years a Trustee of the company, but
as it was, his connection with the institution was helpful to it
among the Germans of the state and nation.
A great scare came to the officers of the young company on
November 2, 1859, when the news reached the office that an ex-
cursion train bearing a large number of prominent citizens of
Wisconsin to celebrate the opening of the Chicago, Northwestern
road from Janesville to Fond du Lac, had met with a serious
disaster at Johnson's Creek and that fourteen lives had been lost.
The excursion was made up of passengers from Watertown,
Fond du Lac and Oshkosh where there were already quite a
number of policyholders, and a few a very few deaths meant
absolute disaster to the company.
Fortunately but one man instantly killed, was a policyholder,
Charles Petersilia, a prominent merchant of Oshkosh, and but
one, V. B. Smead, of Fond du Lac, was fatally injured. Mr.
Petersilia had taken out a policy for $2,500 within three months
and Mr. Smead's policy of $1,000 had been running about seven
months when he died.
President Dagget saw in the disaster, notwithstanding it was
full of embarrassment to the company owing to the fact it lacked
sufficient funds to liquidate the losses, an opportunity to do a good
deed and one that would redound to the benefit of the company.
He favored an immediate settlement of the Petersilia claim, waiv-
ing the ninety-day privilege, and calling a meeting of the Execu-
tive Committee to consider the proposition. There was no ques-
tion of means with him; the whole problem was one of expe-
Presidents
JOHN H. VAN DYKE HENRY L. PALMEB
1869-1874 1874
SAMUEL S. DAGGETT JOSEPH A. SLEEPER
1859-1868 Aug. 1858-Nov. 1858
LESTER SEXTON
Jan. 1869-Mch. 1869
H. W. COLLINS
1858-1859
Laying a Strong Foundation 107
diency. He already knew the methods he would pursue to raise
the money ; what he wanted was authority. The Executive Com-
mittee met November 9, 1859, and authorized the President to
borrow sufficient money, with the amount on hand, to pay the
loss, and immediately a sixty-day note for $1,500 endorsed by S.
S. Daggett, personally, and by C. D. Nash, as Treasurer, was dis-
counted and the claim paid.
This, then, is the brief history of the first loss ever sustain-
ed by the company a loss paid promptly even with the aid of
personal credit. And President Daggett did not overlook the op-
portunity the sad accident gave for calling attention to life in-
surance. He had a pamphlet prepared on the subject and sent
solicitors to the towns that had suffered loss to take applications.
Each one of the thirty- four agents then employed by the company
in Minnesota and Wisconsin was also well supplied with the pam-
phlet, and it was productive of good results.
The Whitewater branch contract was unsatisfactory to the
new regime and even some of the Whitewater Trustees were con-
vinced that the objects for which that contract had been made
could not be attained under existing conditions. As
a matter of history, on August 27, 1859, Rufus
Cheney, Jr., and Sheldon C. Hall, two of them,
endorsed on their contract "that the interest of all
parties herein interested will be promoted by the canceling of
this contract. \Ve hereby resign and relinquish all our right,
title and interest herein."
It was not until January 9, 1860, however, that the Executive
Committee declared the contract r..ull and void and discontinued
the branch. Complete settlement of the affairs took until April
1 8, 1860, when a resolution was adopted releasing the White-
water Trustees from all further liability on account of said con-
tract, and the branch went out of business. All future transac-
tions of the company emanated from and were supervised by of-
ficers at the home office.
In these modern days of splendid equipments and small dan-
gers, one reads with interest that on March 3, 1860, the Executive
Committee decided that the extra rate for a round trip to and
from California each way should be one-half of one per cent with
no extra charge for residence there, except for those engaged in
io8 Laying a Strong Foundation
mining, who were required to pay one per centum per annum.
The extra rate for Pike's Peak and vicinity was also established
at one-half of one per centum per annum.
The company had been operating in Minnesota without any
official sanction from the state for some time, but now the ques-
tion of further extension came up for consideration. The Presi-
dent was instructed to ascertain on what terms a suitable agent
could be employed there, it being deemed expedient that the terri-
tory should be included within the operations of the company.
On June 16, 1860, the first resolution with reference to the
loan feature of the company's business was adopted, when with
due solemnity the Executive Committee voted that "it was ex-
pedient to loan, on unincumbered real estate at ten per cent inter-
est, $3,000 of the funds of the company" and on July 9, 1860,
the first real estate loan ever made by the company was voted
Charles Horning, of Milwaukee, Wisconsin, in the sum of $600.
On this as a nucleus, the company has builded a real estate loan
business that on the first day of January 1908 showed an out-
standing total of $121,740,637.11 worth of mortgages on hand.
One of the most crushing disasters that ever occurred to the
city of Milwaukee came on the morning of September 8, 1860,
when the Lady Elgin, a lake steamer carrying an excursion party
of Milwaukee military companies, collided with the schooner
Augusta off Winnetka Point in Lake Michigan, and sank, in-
volving a loss of about 400 lives. The appalling disaster cast a
gloom over Milwaukee, the state and, indeed, the nation. When
the first shock of the calamity wore away, the officials took time
to investigate the company's loss, to find that Milton Townsend
was the only policyholder. Again the company promptly paid the
claim, continuing its early policy of the promptest payment con-
sistent with safety that has always characterized the company's
dealings with losses.
The Northwestern may now be said to have learned to stand
alone. Business was coming in right along; the organization was
on a systematic basis ; it had been lucky and there was every
pleasant prospect ahead. Naturally, there were still crudities in
some of its ways, but the injection of business methods into its
affairs, was having its good effect.
One of the undesirable legacies that fell to the new manage-
Laying a Strong Foundation 109
ment was the method of taking part cash and part note for pre-
miums. On December 31, 1860 the Executive Committee posi-
tively decided that on all policies issued after the first day of
February 1861, the whole amount of the premiums should be re-
quired in cash and that no notes should be taken for any part of
the premiums on insurance effected after that date. This was to
the point, emphatic and business-like.
The year 1861 was a trying one for managers of life insur-
ance companies, particularly the old ones of the east that had
southern agencies. The difficulties which surrounded them, says
the compiler of the semi-centennial history of the
New York Life Insurance company, "were no less
perplexing than those which confronted the Gov-
ernment at Washington. Their contracts were of
a peculiar kind; they required periodical payments, and the haz-
ard of them was increased by a state of war. * * * Trade
and commerce were almost at a standstill ; exchange was held at
ruinous rates ; communication between the north and south was
frequently interrupted, and finally cut off altogether.
"Looking back upon these troublous times, it is easy to see
now what course would have been consistent and easy; but then
the future was a sealed book, and every new leaf, as it was turn-
ed, brought new surprises and perplexities."
The new and small, but thriving, Wisconsin company was
probably not as largely concerned with the war news that then pre-
vailed as the older and larger companies, but it had many serious
questions in common with them and was wise enough in those
troublous times to profit by their example.
The day after the first gun of the war was fired the Executive
Committee met to discuss the plan of a non- forfeiting policy, the
premium of which should be "payable all up for life" in ten years.
The war news disturbed them, and one can imagine that the
minds of the officers were filled with apprehension of the excit-
ing events that followed in rapid succession.
It will be recalled that on April 15, 1861, President Lincoln
issued a proclamation calling for 75,000 volunteers for three
months service, and this brought the war as an actuality square-
ly before the Executive Committee. Something had to be done.
A meeting was held April 16, and the subject was discussed, but
no Laying a Strong Foundation
it was decided to await more definite information before taking
any decisive action. That information came more rapidly than
was anticipated and it was only a few days later, April 27, 1861,
that the Executive Committee voted to adopt the same plan of
action recommended by the committee of eastern companies
about that time, to-wit : To grant war risks to those insured re-
maining north of the 34th parallel of north latitude for five per
cent extra annual premium to be paid in advance, and to those
going south of the 34th parallel for five per cent additional extra
premium. And this remained the policy of the company with
such incidental additions as special circumstances required. Na-
turally, the Mutual Life of Wisconsin, being a new company and
operating in but a comparatively limited field, had not nearly as
many perplexing questions to solve as older companies, but it had
enough of them.
By the time the annual statement was ready in June 1861, the
company had something substantial to report. It had outstand-
ing insurance in force to the amount of $1,554,000 and assets of
$28,494.06. Elizur Wright, the greatest insurance genius this
country has ever known, had examined the statement and valu-
ed the policies, and he congratulated the company as well as "the
whole of Central North America on a commencement so auspi-
cious."
The Trustees felt so elated over the showing that they sent
out a circular to policyholders in which they said : "In presenting
the annual report to the policyholders, the Trustees take occasion
to congratulate them upon a success already achieved which in
the language of one peculiarly qualified to judge would, under
ordinary circumstances, be indeed 'remarkable' and which under
the circumstances of the present case is much more so. Com-
mencing at a time when business was prostrated by a financial
revulsion and when confidence in western institutions had receiv-
ed heavy and almost fatal shocks from the action of some of the
prominent corporations of the state, the company has had to con-
tend against and overcome widespread and deep-seated prejudice
against any institution incorporated and managed in Wisconsin."
Special attention was also called to the action heretofore re-
ferred to in restoring the business to the basis of cash premiums
and the hope was expressed that the wisdom of the movement
Laying a Strong Foundation in
would be apparent in the rapid accumulation of interest and the
stability and confidence which such assets would give the com-
pany. Experience shows that this confidence was well-founded.
This first official talk from home office to policyholders closed
with an admonition just as forceful today as it was away back
on that June day of 1861 when it was written. This was : "Allow
us to remind you that every policyholder is a member of the com-
pany, and thus directly interested in increasing its business, and
you will, therefore, labor for your personal interest and confer
a favor upon your friends by persuading them to join us."
By the middle of 1861, the company had a fine corps of solici-
tors in the field and was issuing three kinds of policies; those
for the whole term of life, payable together with the declared
profits after the death of the assured to the beneficiary; those
on which the premiums ceased at a given age and endowment
policies, payable at a given age or at death. The officers had been
talking for a long time about a new policy and finally on June 4,
1 86 1, the company departed on its long and still continuing jour-
ney over the road of liberalization in policy-contracts, by the adop-
tion of a new contract described in the first manual to agents of
1 86 1 as "Non- Forfeiting Policies."
That a comprehensive idea of the extent of the liberalization
may be gained, a chapter will be devoted to the general subject
of the development and liberalization of policy contracts, obviat-
ing special mention, each year, of the changes.
The business now warranted help for the Secretary, and on
September 6, 1861, the first non-official employee of the company,
John D. Peck, was employed. He remained for about two years
when he went into business for himself, returning, however, in
1867 to stay several more years.
With applications for real estate loans carrying interest at the
rate of ten per centum per annum coming in, it required consider-
able business fortitude and more patriotism to start the year 1862
with a resolution adopted February 21, 1862, to
suspend until further action, the making of real
estate loans for the purpose of accumulating a fund
to invest in United States stocks or state bonds, but
either the resolution was not strictly enforced or money was com-
ing in slowly, as it was not until April 19, 1862, that it was voted
H2 Laying a Strong Foundation
to invest $4,000 in United States 7-30% those old form of bonds
popularized by Jay Cooke.
At the meeting of February 21, 1862, a permit was issued to
William Strickland to accompany the Butler expedition to Mobile
on payment of a ten per cent additional rate, payable three months
at a time in advance. This action is particularly interesting when
one knows that Mr. Strickland had, about two years prior to this
date, been driven out of Mobile for keeping on sale in his book-
store copies of Mrs. Stowe's "Uncle Tom's Cabin," and that he
was quite probably delighted at the prospect of returning there
in the particular manner in which he proposed to go.
On March 12, 1862, an agency contract was made with John
G. McKindley, then principal of a school at Kenosha and sub-
sequently Superintendent of Agencies of the company. He was
a splendid man; a successful solicitor and a fine executive. His
administration of the Agency department was eminently satisfac-
tory and productive.
The lease of the offices of the company having expired, and
more space being necessary, on May i, 1862, they were removed
to the ground floor of the building known as the Iron Block, in
Milwaukee, located on Wisconsin street, at what was then No.
14, but now No. 87.
The annual meeting of the Trustees held on June 2, 1862, com-
pleted the practical reorganization of the company. Of all the
original incorporates and Trustees, John H. Rountree alone re-
mained to be re-elected at the meeting, which was further memor-
able because it introduced into the board, John H. Van Dyke, of
Milwaukee, who afterward became President of the company
and remained a Trustee for forty-two years.
The annual statement presented at this meeting by the Execu-
tive Committee was most encouraging to members and the cir-
cular which was issued at the time shows that during the year the
company more than doubled its membership, nearly doubled the
assets, all at a less ratio of expense than any other company of
equal age, and invited the comment from Elizur Wright that "the
policy adopted and the success attained seem to promise the
Northwest, at an early date, an institution which will combine all
the advantages of breadth of basis and home- control." Time
proved that he was right in all save his territorial restriction.
Laying a Strong Foundation 113
Having now become thoroughly established and working on
a splendid business basis, the affairs of the company ran smooth-
ly. The excitement accompanying the war naturally had its ef-
fect, but the band of splendid agents which had been attracted
to the company kept right on writing business which is the basic
necessity for all irsurance companies. Now and then practical
questions emanating from the presence of war arose and the gen-
eral policy of insurance companies then existing was followed in
the main.
On August 7, 1862, the Executive Committee decided to grant
war permits to any of its members who volunteered or were draft-
ed in the United States service on the same basis as in 1861, but
a question arising as to whether or not this applied to future, as
well as past, business, it was definitely determined on August 26,
1862, that it referred merely to business written before August
7, 1862.
In the estimation of the two active workers in the office of
the company at that time, this particular year was memorable
because it provided for the second helper on the staff, Avery S.
Willey, an efficient bookkeeper who remained in the employ of
the company until July 1869.
The year 1863 was destined to be in every respect an active
one. New territory was being constantly opened; agents were
successful in their quest for business; novel questions involving
definite business policies were constantly arising
and the officers were kept busy attending meetings
and considering essentials.
The Secretary of the company who had been
absent from the office two months on account of ill-health super-
induced by overwork, returned about January and from that
time on to the end of the year many important questions arose
and were decided.
Before considering them, however, it must be noted that on
March I, 1863, the company made an agency contract with Heber
Smith, of Watertown, who afterward became an officer of the
company.
In this connection it may be well to understand that the limita-
tions of space will not permit a reference to all agency appoint-
ments. A complete history of the Agency department would re-
ii4 Laying a Strong Foundation
quire a volume by itself. Only those whose names have become
linked with the management of the company will be specially
mentioned, except in the exhibit of General Agents hereafter
shown. It may be said in passing, however, that no life insurance
company ever had a more able and earnest corps of agents than
has been connected with this organization beginning away back
in the early years of the state and continuing down to this semi-
centennial anniversary.
The success of the agency work of the company has been
largely due to the caliber of the men employed, but the company's
system of agency organization and supervision has had much to
do with the grand accomplishments of the department.
War questions came up early in the year, for on March 9,
1863, the Executive Committee decided that service in an organ-
ized company of the militia not in the service of the United States
but temporarily called out by competent authority to suppress a
riot, was not military service such as would vitiate a policy, and
that whenever a person insured in the company should be drafted
into the military service of the country under the Conscript Act,
the company would give a war permit to applicants when desired
on the usual terms.
Chapter 323, of the private and local laws of 1863, approved
March 23, 1863, was the most important piece of legislation that
had been enacted with reference to the company and its affairs,
and standing alone, without any explanation, would today give
one a fair opportunity to judge that the young Wisconsin life in-
surance company was expanding and meeting success.
This act removed the restriction requiring all Trustees to be
residents of Wisconsin ; provided that the President should be a
Trustee ; changed the time of holding annual meetings to the sec-
ond Wednesday in June ; enlarged the earning possibilities of the
company by permitting it to loan on real estate mortgages outside
the state and authorized the loaning to policyl:olders of an amount
not exceeding one-half the annual premium on their policies. Not
only this, but the act further provided that the dividend period
might be changed from five years to annual, biennial, triennial or
five year periods and permitted the application of dividends to-
ward the payment of premiums or to the purchase of additional
insurance.
Laying a Strong Foundation 115
Here was, indeed, progression. Five years of age and a na-
tional institution equipped with rights some of which have not
been changed nor improved with years.
The same spirit of patriotism that was manifest in a former
resolution was shown in one adopted by the Executive Committee
April 1 8, 1863, directing that thereafter all funds subject to loan
should be invested in Government 5~2o's until otherwise ordered.
On June 30, 1863, there arose a condition which, in the light of
their experience, looked important to the officials. A borrower
had made default in his interest and this was a formidable mat-
ter in those days. The interests of the company were considered
paramount, naturally, and the Executive Committee adopted an
elaborate resolution, preceded by explanatory preambles, that
covers two full pages of the record book, electing to exercise its
option to declare the whole sum due on the default made, and
providing for the transmission of a copy of the resolution to the
delinquent borrower. In later days, defaults were not always so
seriously considered; at least, there was not so much formality
connected with the consequences.
At the annual meeting of policyholders held June 10, 1863,
among the Trustees elected was Charles Scheffer, of St. Paul,
Minnesota, who had the distinction of having been the first man
outside of Wisconsin to be elected to the office.
The annual report presented at that time carried renewed con-
gratulations of the Executive Committee to the policyholders and
showed a gain of 53 per cent in assets. It also told of the per-
sonal examination of the company by Elizur Wright and its sub-
sequent entry into Massachusetts, as well as expansion into other
fields. Again the committee called attention to the basic fact
that company officials have always sought to have policyholders
realize: This is your company. That was the burden of official
information in early days and the changes and successes of after
years have not altered the principle in any way. This is the policy-
holders' company. What makes for its success, adds value to
policies ; what mulcts the company and involves it in unnecessary
expense, the policyholders pay.
At the election of officers at this meeting, Dr. Wolcott having
determined to retire as Vice President, John H. Van Dyke was
chosen his successor on the first ballot, but on his positive de-
n6 Laying a Strong Foundation
clination to serve owing to pressure of other business, James
Bonnell was elected. Mr. Bonnell remained in office but a single
year and was not actively identified with the executive work of
the company.
It may be interesting to note that the salaries for the en-
suing year were set as follows: President, $1,200; Secretary,
$1,600 and General Agent, $2,500. The two clerks were each
to be paid $600 per annum.
The business of the company being by this time well ground-
ed and all prospects for the future bright, the ultimate necessity
for a company office building became apparent. At a meeting of
the Executive Committee held July 23, 1863, therefore, the Presi-
dent was instructed to purchase twenty by sixty-six feet at the
northwest corner of Wisconsin and Main streets, Milwaukee, for
the purpose. Main street has since been named Broadway.
Here, afterward, the first home office of the company was built.
In September 1863, the office force was increased by the hir-
ing of William H. Farnham. Mr. Farnham was born at Water-
ville, Oneida County, New York, July 9, 1841 ; removed to the
west early in life and came to the company from Horicon, Wis-
consin, in response to an advertisement. He enlisted in Com-
pany "A" 48th Wisconsin Volunteers, February 25, 1865, and
served until January 12, 1866, when he returned to the company
and met promotion in his work, being elected Assistant Secretary
July 1 8, 1883, which position he held until March 6, 1890, when
he gave up his life as a result of hard work on behalf of the com-
pany. He was an unceasing worker and his name is held in high
regard by the officials.
The original charter provided that at the expiration of five
years from the time the first policy was issued, a balance of the
affairs of the company should be struck and each member should
be credited with an equitable share of the profits. This first divi-
dend period was fast approaching and definite action was neces-
sary.
In preparation for this event, Elizur Wright was induced to
visit the offices, make a scientific investigation of the company
and advise the officers. He was present at the meeting of the
Executive Committee held September 23, 1863, at which the fol-
lowing was adopted :
Laying a Strong Foundation 117
"RESOLVED, That a dividend of the surplus earnings of this
company for the five years ending on the first day of January A. D.,
1864, be and the same is hereby declared and directed to be made
among the assured, pursuant to the provisions of the act of incorpo-
ration upon the following basis, viz.:
First: A reserve above the net valuation by the actuary's table of
mortality at four per cent interest, of ten per cent shall be retained.
Second: A division of the surplus shall be so made that each mem-
ber may share in the surplus in the ratio of his contribution thereto.
Third: The payment of the dividend shall be made by endorse-
ment of the amount on the notes of those having given notes and
by the allowance thereof on the next premiums to those who have
paid cash, or applied to the purchase of additional insurance on such
as are insurable, at the option of the company."
A week later the dividend period was changed to December
i, 1863.
As a result of the visit to the company by Mr. Wright, the
Executive Committee on November 24, 1863, concluded to receive
notes in part payment of annual premiums from all persons insur-
ing who should give them in accordance with a table then adopted.
A circular was issued giving the rate of premium, the cash and
note payments, and explaining the new system.
Change of Name and General Expansion
A THOUGH the first dividend of the company had been
declared, the exact figures and amounts were not yet as-
certained and the data had been sent to Elizur Wright
to ascertain and report. It was a long and involved operation
and it was not until late in February that the computations were
made and consultations had with the great actuary. It was found
that the standard reserve was sufficient without the
added ten per cent provided in the resolutions of
September 23, 1863, especially as the average rate
of interest was over six per centum, and a resolu-
tion was therefore adopted by the Executive Committee that forty
per centum of the estimated dividend be added to itself and that
this amount be allowed to each policyholder at the settlement of
his next premium.
In the meantime, however, the year 1864 had not gotten fair-
ly started before the necessity for a Cashier of the business being
made apparent, Edward Ilsley, afterward Actuary of the com-
pany, was appointed. Mr. Ilsley remained with the company
until January 25, 1871.
A provision having been made for quarterly meetings of the
Board of Trustees, the first quarterly meeting of 1864 was held
March 7, at which the resignation of H. G. Wilson as General
Agent was reluctantly accepted. Mr. Wilson had been largely
responsible for the removal of the home office of the company to
Milwaukee and he had worked hard in its expansion. Nothing
but a desire to benefit the health of his family induced him to
sever official relations with the company and he left with the good
wishes of all the officers following him. As a token of apprecia-
tion, at the Executive Committee meeting on March 10, 1864, he
was given an allowance for extra expenditures and services. Mr.
W r ilson died at St. Louis, Missouri, August 20, 1901.
J. G. McKindley was on March 19, 1864, appointed General
Agent in his place.
118
JAMES BONXELL
1863-1864
WILLARD MERRILL
1894-1905
ALEXANDER GRAHAM
Aug. 1858-Dec.
LESTER SEXTOX
1866-1869
1858
Vice-Presidents
GEORGE C. MARKHAM
1905
AUGUSTUS H. SCOVILLE
1858-1859
OREN E. BRITT
1874-1876
ERASTUS B. WOLCOTT
1859-1863
MATTHEW KEEXAX
1876-1894
WILLIAM M. SIXCLAIB
1864-1866
HEBEB SMITH
1869-1874
Change of Name and General Expansion 121
The dividend declaration by the young company had created
any amount of interest among policyholders and agents, and the
officers were prompted by inquiries with reference to its future
course in that regard to adopt a definite plan. At a meeting of
the Executive Committee held March 31, 1864, the following was
adopted :
"RESOLVED, that the books be balanced for the next dividend
on the first of December 1866, and thereafter annually, and that a
dividend be made on the first day of March 1867 on the business of
the year ending December 1, 1864, and thereafter annually upon the
business of each year succeeding December 1, 1864."
This was supplemented at the meeting of April 5, 1864, by the
following :
"RESOLVED, that all members who die before the dividend is
declared shall receive (through their representatives) full benefit of
the dividend when made upon all the premiums they have paid.
"RESOLVED, that the additional insurance which can be pur-
chased by the dividend shall not become forfeited by any non-pay-
ment of premium on the policy after the dividend has been so
credited."
The steady growth of the company made it apparent that it
would soon need a home of its own and a proposition having been
received on April 12, 1864, to sell the company nineteen feet and
two inches additional to its twenty feet front on Wisconsin
street, the offer was accepted and the transaction consummated.
The office building was not erected until later, but as the acquired
property was productive of rent, the company lost nothing by
holding it.
At the annual meeting of the policyholders held June 8, 1864,
the usual report on the election of new Trustees was received and
officers were elected. It is well in this connection to explain that
a table will be found on later pages giving the names and dates of
service of all Trustees of the company, obviating the need of not-
ing who were chosen at each annual meeting.
The only change in officers at the meeting of the Trustees held
that same day, was the election of William M. Sinclair, who had
been elected a Trustee in 1863, as Vice President.
William M. Sinclair was born in Ireland November 18, 1819;
established a wholesale grocery business in Milwaukee in 1861 ;
122 Change of Name and General Expansion
was elected a Trustee in 1863, serving until 1867, when he re-
moved to Philadelphia; was Vice President from 1864 to 1867;
was again elected a Trustee in 1890 and died at Philadelphia
July 31, 1891.
As indicating the spirit actuating the company in dealing with
losses in those pioneer days a case that was presented to the Exec-
utive Committee on July 5, 1864, may be cited. Captain M. G.
Townsend was reported dead but no proof of death could be
made. Circumstances surrounding his disappearance and sub-
sequent non-appearance pointed strongly toward his death, but
direct testimony was not available. The officers might easily and
reasonably have asked for positive evidence or waited until legal
presumption of death had arisen, but instead voted to pay the loss
on receiving a bond of indemnity. True, this action involved no
chance on the part of the company and it would not have been
justified had it done so, but it manifested a spirit of fairness and
liberality.
In August 1864, there came in to the office a man who is now
one of Milwaukee's most venerated citizens, Samuel R. Kem-
per, son of the great first missionary bishop of Wisconsin of the
Protestant Episcopal Church. Mr. Kemper has at different times
served the company in various positions.
In October 1864, the system of medical supervision over ap-
plications for insurance then in vogue, not being entirely satis-
factory, it was decided that an Examiner should be appointed who
would give sufficient time each day from his regular practice to
attend to the growing needs of this department. Dr. Lewis Mc-
Knight was named for the position at a salary of $1,000 per year
and his appointment was the primary cause of the later establish-
ment of a Medical department unrivaled in efficiency in the coun-
try. Further reference to Dr. McKnight and the department will
be made in the course of this history.
In the latter part of 1864, began consideration of a proposed
change in the name of the company that would better indicate its
comprehensiveness. Its existing name carried an implied limita-
tion. The subject was informally considered by the Executive
Committee at a meeting held December 5, 1864, and the name then
suggested was The Northwestern Life Insurance Company, but
no definite action was taken. At a later meeting, the subject
Change of Name and General Expansion 123
again came up and it was decided to ask the legislature to change
the corporate name to one of the following: The Northwestern
Life Insurance Company; The Northwestern Mutual Life Insur-
ance Company or The Mutual Life Insurance Company of
the Northwest. At this same meeting the Executive Committee
resolved to recommend to the Trustees that they ask the legisla-
ture to exempt the company's accumulations from taxation.
The Trustees met on December 14, 1864, and the question of
the proposed change in name came up in a formal way. Judge
Palmer stated that in order to bring the question before the board
he would move that the Executive Committee be authorized to
apply to the legislature for an amendment to the charter changing
the name to The Mutual Life Insurance Company of the North-
west, but explained that he would probably vote against the
motion, himself. Mr. Van Dyke moved to substitute The North-
western Life Insurance Company, and this was carried "after
quite a lengthy and spirited discussion," as the records note.
The strict letter of the resolution was not observed, how-
ever, as the word "Mutual" was incorporated in the name which
was changed by chapter i, Laws of 1865, approved January 20,
1865, to The Northwestern Mutual Life Insurance
Company. The same act also changed the date of
the annual meeting of the company from June to
January.
The change in name which was made effective by the law on
March i, 1865, involved a tremendous amount of work. All
the applications, policies, circulars, pamphlets, letterheads and
envelopes had to be changed arid everything had to be adjusted in
a couple of months. But it was a desirable change. The new
name was more comprehensive and indicative of the enlarged
usefulness of the organization.
The year 1865 may be written down as an expanding one in
the history of the company. The \vell-grounded foundation work
of the earlier years manifested itself in the smoothness and ease
of further development. On March 27, 1865, the company made
arrangements to renew for five years the contract of General
Agent McKindley, who had the field force splendidly organized.
The growing business required more room for office pur-
poses and a resolution was adopted April 24, 1865, authorizing
124 Change of Name and General Expansion
the President to procure suitable offices. Lewis Blake had a room
at No. 294 Main street that was wanted, but he refused to rent,
making a proposition, however, to sell the company his build-
ing No. 416 Main street, now Broadway, nearly opposite the old
insurance building. April 29, 1865, it was concluded to buy Mr.
Blake's building and on May 15, 1865, the purchase was con-
summated. The removal soon followed.
The first annual meeting under the new name and in the new
building was held June 14, 1865, and following the policyholders'
meeting, the Trustees convened and elected the incumbents of the
several offices. During the course of the meeting another of those
"spirited and lengthy discussions" that are so frequently noted in
the records, occurred, the subject being the loan of $50,000 voted
by the Executive Committee on January 28, 1865, on the Newhall
House property, the site of the company's present office building.
It must be understood that the company did not have the whole
amount of the loan then on hand but the borrowers understood
it was to be paid in installments. The relative merits of this sort
of loan and investments in government securities were brought
into the discussion and the talk culminated in the introduction of
a resolution instructing the Executive Committee thereafter to in-
vest in government or state bonds in preference to all other se-
curities. Fortunately, it now appears, the resolution was lost by
a tie vote.
At this same meeting the time for holding the quarterly meet-
ings of the Trustees was changed to correspond with the change
in time of holding the annual meeting, to the second Wednes-
days of October, April and July.
The annual report for the year showed an increase of over
$4,000,000 in new policies, in force and total assets of $593,-
461.84. The Executive Committee reported that the direct war
losses had been more than covered by the extra premium received
and added the following: "Now that the war with its dread-
ed conscriptions and its demoralizing influences upon business
permanence and stability is over, we trust forever, we look for
such a rapid and widespread growth in the business of Life As-
surance as has never before been known."
Attention was also called in this annual report to the fact that
the company's field of operations had been extended into new
Change of Name and General Expansion 125
districts in Minnesota, Iowa, Nebraska, Illinois and Michigan and
that work had started in Indiana.
The records of the company begin at this point to tell the
silent story of the company's financial strength, as meeting after
meeting of the Executive Committee was devoted to the purchase
of bonds or the making of real estate loans. The difference of
opinion as to the merit of these two forms of investment still
continued, but the trend of opinion was disclosed by the adoption
of a resolution at a meeting of the Executive Committee held De-
cember 6, 1865, to the effect that the funds of the company then
in the bank should be invested in government securities.
Subsequent to the date of the annual meeting the company
had entered Pennsylvania and the latter part of the year began
business in Massachusetts, after a correspondence with Elizur
\Yright in which he again complimented the company on its
"magnificent success." In his letter to the Secretary, he took
occasion to say that he saw no way by which Massachusetts
companies could resist the claims of the Northwestern, but sug-
gested that the law of Massachusetts with reference to forfeitures
might be the better. Secretary Kellogg responded that the North-
western was more liberal to Massachusetts policyholders than the
law required, for instead of giving them four-fifths of the sur-
render value and requiring them to take it in temporary insur-
ance, the Northwestern gave them five-fifths, with the option of
taking it in temporary or full-paid insurance or in cash.
At the meeting of December 6, 1865, a communication was
received from Tennessee asking the company to establish an
agency there, but no definite action was then taken. It will be
noted, though, that the fair fame of the company was spreading
and that even as early as 1865, a good foundation was laid for
an expansion that was ultimately to embrace nearly every State
in the Union.
It is interesting to note that at the Executive Committee meet-
ing held on the evening of January 2, 1866, at the home of the
President, who was ill, applications for $82,000 of
real estate loans were considered and it was also de-
cided to invest $20,000 in government compound
interest notes providing they could be purchased to
net 7.3 per centum per annum.
126 Change of Name and General Expansion
At the meeting of the Trustees held January 10, 1866, the in-
cumbent officers were re-elected, but Mr. Sinclair explained that
he was about to remove from the city and could not accept the
office of Vice President, whereupon Lester Sexton was elected.
Mr. Sexton, it will be recalled, became a Trustee of the com-
pany in 1858 and had continuously evinced an interest in the de-
velopment of the business. He served faithfully and ably as Vice
President until January 13, 1869, when he was elected President.
The ever recurring question of investment of funds came up
again at this meeting and it was decided that the surplus funds
might be invested in either government bonds or real estate se-
curities or both, a liberal and sensible resolution.
The further expansion of the company continued in 1866. On
February 2, -1866, at another evening meeting of the Executive
Committee, nearly the entire time was taken up with consideration
of the advisability of entering Tennessee, Kentucky and Missouri.
April 4, 1866, it was definitely decided to put up the deposit of
$20,000 then required by Tennessee, and on the same day, a
resolution was passed appointing a local attorney in Missouri on
whom process might be served.
The seventh annual report of the company was issued March
I, 1866, showing that it had reached the million-mark in ac-
cumulation; had increased materially the amount of insurance
written and, indeed, had met, as the report itself states, a success
almost unparalleled in the history of life insurance.
The Trustees met April n, 1866, for a quarterly review of
progress and to make a change in the by-laws so as to provide
for a meeting of the Board the day preceding the annual policy
holders' meeting. The Trustees also fixed the annual compensa-
tion of the members of the Executive Committee, excepting the
President, at $250 and provided for a deduction of $5 for non-
attendance at each meeting.
The Executive Committee met April 12, 1866, and found over
$84,000 of applications on hand for real estate loans. But a
small part of these were voted at this meeting, however, as the
question of interest-rate was beginning to be an important factor
in such loans. At this meeting a resolution was actually intro-
duced to fix the rate at eight per centum per annum, but definite
decision on the question was abandoned until April 19, 1866,
Change of Name and General Expansion
127
Edgar C. Jennings
when the motion prevailed, after a motion to make the rate nine
per centum had been practically withdrawn. It was also decided
at this meeting to insert the existing clause in company real estate
mortgages requiring mortgagors
to furnish duplicate tax receipts
each year.
One of the old guard of the
company entered its employ on
^^ July i, 1866, when Edgar C. Jen-
nings, up to that time connected
with the auditor's office of the
Milwaukee road, was appointed
J^Nfe Cashier to relieve Mr. Ilsley, who
/ k was also acting Actuary. Mr.
^^fl^^ktgf^f^^lH^^ Jennings continued from that time
'-'ff% -/-> .- in the faithful and uninterrupted
'' A* / discharge of his increasing du-
9HBfHk ^HHBl ties and responsibilities, until the
date of his death, February 17,
1897.
On October i, 1866, there came to the employ of the company
a penman of note in those days, George F. Austin, who was given
a position in the policy department of the company where he re-
mained for many years.
The Executive Committee had been negotiating for an addi-
tion to the company's holdings at the northwest corner of Main
and Wisconsin streets for an office site and on November 12,
1866, the committee decided to buy twenty feet and ten inches
immediately adjoining on the west, thereby making a frontage
of sixty feet on Wisconsin street and sixty-six on Main street.
It appeared at that time as though this ought to be ample for a
building to meet the demands of the company for all time.
The balance of 1866 was characterized by that same steady
growth that was being constantly noted, and yet, on December
27, 1866, an application for a loan in Minnesota having been re-
ceived, the Executive Committee voted, after much discussion,
that for the present and until further orders, all applications for
loans on property outside the state of Wisconsin must be de-
clined.
128 Change of Name and General Expansion
The first meeting of the Board of Trustees in accord with the
change in by-laws for that purpose, was held on the evening pre-
ceding the annual policyholders' meeting in 1867 and nominations
for Trustees were made. These nominees were all
elected the following day and that same afternoon,
after the polls closed, the Board met.
The annual report to policyholders showed that
the assets of the company now reached the "very creditable sum"
of $1,748,759.14 with 10,749 policies aggregating $15,041,082 of
insurance in force.
A new dividend had just been declared on the basis of dis-
tributing the surplus in proportion to each policyholder's contri-
bution thereto, and it was eminently satisfactory, ranging from
fifty-three per cent of the premiums on certain forms of policies
to forty per cent on others.
No changes were made in the official staff, but the office of
Actuary was formally created at this meeting and Edward Ilsley
was elected to the position, which he held until January 25, 1871.
Edward Ilsley was born at Portland, Maine, April 8, 1798;
moved to Eastport shortly after his marriage November 7, 1822
and was cashier of a bank there until 1847, when he moved to
Framingham, Massachusetts ; moved to Madison, Wisconsin, in
1850 and to Milwaukee in 1864; after retiring from the office of
Actuary, was employed as bookkeeper and accountant in the
Marshall & Ilsley Bank of Milwaukee. Mr. Ilsley died May 3,
1886.
The salaries of the President and Secretary were each fixed
at $3,500 per annum and those of other employees in the office
were left to the Executive Committee, which was further charged
with the duty of procuring plans for a new office-building, to be
submitted at the next quarterly meeting of the board in April.
The record of the preliminary meeting of the Trustees held on
the evening of January 8, 1867, bears a foot-note to the effect
that the new proprietors of the Newhall House had extended an
invitation to the Trustees of the company to attend a "supper"
at that house Wednesday evening January 9, 1867, which invita-
tion was duly accepted. That time having arrived it was voted
to adjourn to the Newhall House.
The supper turned out to be a banquet and aside from its so-
Change of Name and Genera! Expansion
129
Edward Ilsley
cial success is noteworthy because it suggested the custom that
has since developed into an established usage of annually getting
the agents together at the home office for the purpose of consider-
ing the general welfare. These
annual meetings have been most
helpful to the mutual interests in-
volved and their beginning, away
back in 1867, was creditable to the
f ^B^ company.
In connection with the banquet,
Air. Kellogg, who acted as toast-
master, recalls with pride that
appreciating the value of tem-
perance to life insurance men,
whether policyholders, agents or
officers, he held up a luscious
bunch of grapes and said: "Gen-
tlemen, in response to toasts, we
will take our wine tonight from
the 'original package.' '
Agreeable to the instructions of the Trustees, the Executive
Committee considered the adjustment of salaries at its meeting of
January 10, 1867, and from the committee's report it appears that
Dr. E. B. Wolcott was to be paid $650 per annum as Consulting
Physician ; Dr. Lewis McKnight, Medical Examiner, $2,000 and
Henry L. Palmer, Counsel, $500 retainer. The following were the
total number of employees in the office at that time: Edward
Ilsley, Actuary; E. C. Jennings, Cashier; A. S. Willey, book-
keeper ; L. Schuchardt, report clerk ; G. F. Austin, policy clerk ;
Patrick Geraghty, J. W. Skinner, W. H. Farnham, F. H. Smith,
George Young and C. D. Skinner, clerks.
At the meeting of the Executive Committee held on February
4, 1867, it was decided that Mr. Palmer should visit the state li-
brary at Madison, look up the laws respecting the taxation of
mutual life insurance companies in the several states and either
draw an amendment to the charter of the company, or a bill to
exempt from taxation the personal property of domestic insur-
ance companies. Before this could be done, however, the then
Secretary of State of Wisconsin, caused bills regulating foreign
130 Change of Name and General Expansion
and domestic life insurance companies to be introduced which
proposed to tax domestic companies three per centum on their
premium receipts. In the meantime, the state senator from the
fifth Milwaukee district having died, Henry L. Palmer was elect-
ed to the office and was enabled by his efforts and the help of
others to get this rate reduced to one per cent of the premium re-
ceipts in Wisconsin with an exemption from all other taxation.
(Chapter 158, Laws of 1867, approved April n, 1867.) But the
bill regulating foreign companies passed and carried a provision
for a license fee of $500 for the first year, with a tax of three
per centum per annum thereafter on all Wisconsin premiums.
(Chapter 179, Laws of 1867, approved April n, 1867.)
By an act of the legislature of Wisconsin, approved April 12,
1866, (chapter 100, Laws of 1866) the State Treasurer was re-
quired to hold such securities as insurance companies might care
to deposit with him and to give such certificates with relation
thereto as might be required by the laws of other states. The
practical effect of this law was to permit the company to operate
anywhere in the country and at the meeting of the Executive
Committee held February 25, 1867, a comprehensive resolution
was passed authorizing the President and Secretary to appoint
agents in any state or territory of the United States, and to do
every necessary act in this regard to perfect the agency work,
protect the company and obey the laws of the several juris-
dictions.
In April 1867, there came to the company, George H. Roun-
tree, son of John H. Rountree, of Platteville, Wisconsin, who has
the distinction of having remained on the Board of Trustees
longer than any of the original incorporators of the company
from 1857 to 1890. George H. Rountree was first employed as
a policy clerk, but in 1870 was made purchasing agent of sup-
plies and remained in that capacity to the date of his death in
May 1893.
The absorbing topic of official consideration was now the
erection of an office building. The Executive Committee was
busily engaged with the details and the project was the principal
subject of the Trustees' meeting held April 10, 1867. Indeed, the
Trustees were manifestly disappointed because in response to
their previous direction the Executive Committee submitted noth-
Change of Name and General Expansion
ing more substantial for consideration than a working room for
the company in a building proposed to be built by it. The Trus-
tees, after much discussion, requested the Executive Committee
to present the plan of a building at their next meeting, which the
committee proceeded to do.
It appears that J. G. McKindley, general agent of the company,
had tendered his resignation on May 20, 1867, but it was not until
the meeting of May 28 that it was accepted by the Executive
Committee with formal resolutions of regret, which embraced
best wishes for success.
Although it will be remembered, the company had bought
property on which to erect an office-building, the Trustees were
beginning to think on October 9, 1867, that the site already owned
was too small and consequently they authorized the Executive
Committee to purchase forty by sixty feet more or sell that site
and buy elsewhere.
In accordance with this action, the Executive Committee con-
sidered two propositions: The enlargement of the site already
purchased at the northwest corner of Main and Wisconsin streets,
or the purchase of the northeast corner of Main and Michigan
streets, opposite the present home office. At the meeting of Nov-
ember 28, 1867, architects presented sketches of a ground plan
for buildings on both sites and the corner of Main and Wiscon-
sin streets was thereafter chosen.
The remarkable growth of the company each year since its or-
ganization in respect of number of policies written is shown by
the accompanying table :
Years
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Total
1859
18
15
5
16
40
27
23
15
12
20
48
36
275
1860
27
46
37
40
36
31
20
29
29
25
54
68
442
1861
65
24
32
40
48
80
71
38
65
62
108
126
759
1862
100
73
119
79
159
118
126
94
33
58
59
60
1078
1863
70
81
150
121
216
166
201
142
186
183
187
338
2041
1864
302
322
368
389
355
305
345
297
253
325
309
446
4016
1865
398
405
427
369
400
432
504
510
558
467
410
451
5331
1866
510
500
561
409
505
576
502
507
506
481
446
538
6041
1867
573
708
727
713
703
604
709
816
819
912
1177
1405
9866
132 Change of Name and General Expansion
Naturally enough, in keeping with this development, was the
continued and constant applications for loans, consideration of
which engaged the greater part of the time of the Executive Com-
mittee.
On October 28, 1867, the company received an enthusiastic
letter from Messrs. Martin & Hopkins, agents at Indianapolis,
proposing the formation of what they called a local "Board
of Reference" to consist of influential citizens to meet two or
three times a year; examine the statements of the company;
satisfy themselves of its solvency and progress and allow their
names to be used in connection with soliciting. The members of
the board were to be paid a small sum for attendance upon meet-
ings. Later, in the 8o's, the company became committed to a
similar proposition in a modified way but soon abandoned it,
long before legislation was directed against such arrangements.
An incidental, albeit important, feature of the latter part of
1867 and related to the general business of life insurance, but not
directly connected with the personal history of the Northwestern,
was the meeting of the Chamber of Life Insurance in New York
City November 5-8 to consider the question of national super-
vision. As early as this in the history of the institution, the ex-
istence of this great question was recognized and something of
its importance realized. All the leading companies of the coun-
try were members of this Chamber, and Secretary Kellogg of the
Northwestern was appointed one of a committee to prepare a bill
for enactment by congress to establish a National Department of
Insurance with a Commissioner, whose certificate of valuation and
solvency should be universally received. Mr. Kellogg made some
practical suggestions as to campaign and publicity methods in aid
of the proposition, but the companies themselves failing to agree
on a definite plan to procure the desired results, the project failed.
The decision of the Supreme Court of the United States in
the case of Paul vs. Virginia rendered the next year seemed
strongly antagonistic to the power of national supervision. (See
page 139, post.)
The absorbing topic of interest to the company at the begin-
ning of 1868 was its new building. The Executive Committee
had expedited the consummation of official hopes by buying the
thirty-four feet adjoining the former site on the north, and this
Clianye of Name and General Expansion 133
arrangement gave the company sixty by one hundred feet on
the northwest corner of Broadway (formerly Main street) and
Wisconsin street one of the best corners at the
time in the city of Milwaukee. The Trustees rati-
fied the purchase at their meeting of January 7,
1868, and the coveted project was fairly launched.
The old site at 416 Main street was sold.
It might possibly be interesting to follow through the records
and with the aid of side-lights the development of the new build-
ing. Certain it is that the company had its full share of build-
ers' troubles, but the purpose of history will be sufficiently serv-
ed by recording that the plans of E. T. Mix, architect, for the
semi-Gothic stone structure shown in the illustration on page 135
were duly accepted ; James C. Spencer was appointed and served
as superintendent of construction on behalf of the company; S.
A. Harrison was awarded the contract for the stone work, the
carpenter work being done under direction of the company's
superintendent. After labor troubles and other interruptions the
building was finally finished.
The intention had been to celebrate the removal to the new
building in some substantial and appropriate form, but officials
were then too busy to think of such things and consequently on
April 28, 1870, the goods, chattels and effects of the company
were carted across the street by the working force and the North-
western took possession of the new building of which it was
justly proud.
At the meeting of the Trustees on January 7, 1868, the day
before the annual meeting, a large number of the agents, being in
the city, were invited to participate.
The company had paid the railroad fare one way of these
agents and the officers felt that the money was well invested.
They thought the action warranted, and continued so to think for
many years until it was suggested that it might possibly conflict
with some state law forbidding bonuses or the like, when the prac-
tice was abandoned.
At the meeting next day, January 8, 1868, the annual report
showed a gratifying increase in general business. The company
then had 21,380 policies in force, insuring $36,539,333 and the
assets were more than $3,000.000.
134
Change of Name and General Expansion
Augustus Gaylord
Aside from the re-election of all the old officers, no business
of great importance was transacted except to make the salaries
of the principal officers equal for the first time $5,000 each for
the President, Secretary and Gen-
eral Agent and to create the of-
Pfice of Assistant Secretary, which
officer was to be elected by the
L* ^j. Executive Committee.
The Executive Committee met
January 27, 1868, and elected
General Augustus Gaylord as As-
sistant Secretary. General Gay-
lord had been Adjutant General
of Wisconsin throughout the war
and was well known in the state.
He began work at once, and
found so much to do that at the
end of his first month's service,
he employed Major James M.
Lynch, to aid him. Major Lynch
had served under him in the Adjutant General's office and was
known to be a competent office man. He was also a genial com-
panion and his kindly disposition made him a general favorite.
He served the company in various capacities and was Assistant
Actuary at the date of his death, June 23, 1882.
General Gaylord was born in Torringford, Litchfield County,
Connecticut, February 27, 1826; came to Wisconsin in 1856, set-
tling at St. Croix Falls; went to Madison as Adjutant General,
serving until 1866; located in Milwaukee in 1867; served as As-
sistant Secretary until July 13, 1870, when he was elected Secre-
tary; resigned October 15, 1872; removed to New York State
and died March 30, 1901.
About this time the officers of the company realized that the
corporate seal they had been using for ten years had never been
formally adopted, so a resolution was passed by the Executive
Committee at a meeting held February 17, 1868, providing that
the seal theretofore used and bearing the corporate name of the
company surrounding a banyan tree and the motto "We Spread
to Protect," be formally adopted.
Offices Occupied by the Company
1. Exchange Block, Janesville 4. S. W. Cor. Main and Wisconsin Sts.,
2. Lappin Block, Janesville Milwaukee
.'I 416 Main St. (now Broadway), 5. Iron Block, Milwaukee
Milwaukee 6. Old Insurance Building, Milwaukee
7. Present Home Office
Change of Name and General Expansion 137
The act passed by the legislature of Wisconsin, chapter 100,
Laws of 1866, approved April 12, 1866, to enable domestic com-
panies to do business in other states without making a deposit
therein, required the State Treasurer to hold such bonds or other
securities as \Yisconsin companies might offer, and in order to
avail itself of this privilege, on March 30, 1868 it was voted to
buy sufficient bonds to make the total $100,000, the required
amount.
The meeting of the Trustees held April 8, 1868, was one
of the most interesting disclosed by the early records of the com-
pany. John Lawler had resigned as Trustee after a service of six
years. James C. Spencer had been named as a candidate for his
successor in the notice of election and was under the then by-
laws of the company the only one eligible at that meeting.
His friends, therefore, were anxious to have the election
proceed, but there were others who preferred to have the choice
postponed, that other nominations might be made. The question
was important on account of the consequences involved. Presi-
dent Daggett was in poor health and a resolution had been pre-
sented to the meeting that in case of the absence or disability of
the President, a President pro tempore might be appointed by
the Trustees, with full presidential powers. It will be observed
that this resolution ignored the Vice President. It was lost, but
finally the idea prevailed in this form :
"A President pro tempore may be appointed by the Trustees, who
in case of the absence or inability of the President and Vice Presi-
dent to attend to their duties, shall exercise the powers and perform
the duties of the President during the continuance of such absence or
inability."
This having been settled, the friends of Mr. Spencer moved
to proceed to a ballot for Trustee to fill the Lawler vacancy, but
a motion to postpone the election prevailed. Later in the meet-
ing, however, this was reconsidered and Mr. Spencer was elected.
Immediately, Mr. Spencer was nominated for President pro
tempore, but the name of S. D. Hastings, being presented, a ballot
was necessary. There was no choice on the first, but on the sec-
ond, Mr. Hastings was chosen by a vote of ten to nine.
Attention is called to this incident merely to show that the
proceedings of the company's Trustees have by no means been
138 Change of Name and General Expansion
perfunctory. Business has been transacted at their meetings and
friendly contests indulged just as often as business reasons justi-
fied them.
The illness of President Daggett continued until May 23,
1868, when he died, aged fifty-six years. On that day the Execu-
tive Committee met and adopted the following resolutions :
"RESOLVED, that the members and officers of this company
entertain a profound sense of the loss which in common with the
community they have sustained in the death of their late President,
Mr. Samuel S. Daggett, so long known for the purity of his private
character and the honesty and integrity with which he discharged
the responsible duties of President of this company with which his
name has been honorably associated since the commencement of its
business in this city;
"RESOLVED, that the Secretary of the company transmit a
copy of these proceedings to the family of the deceased, and at the
same time tender to them the sincere sympathy of its members in the
affliction with which they have been visited by a wise and merciful
Providence;
"RESOLVED, that as a token of our respect for the deceased,
the company's office be closed on the day of his burial."
A special meeting of the Trustees was immediately called to
be held June 17, 1868, to fill the vacancy in the office of President
and such other vacancies as might then exist in the Board or in
any office of the company. John Plankinton of Milwaukee, was
elected Trustee, but on the two ballots taken for President there
was no choice, Lester Sexton receiving 14; S. D. Hastings 13 and
A. W. Kellogg I. These gentlemen were requested to retire
from the room while the rest consulted, and on their return the
election of President was postponed to the next annual meeting
of the Trustees.
A liberal ruling of the Executive Committee was made April
27, 1868. Following is the statement of facts from the records:
"Papers were presented in the case of Charles Standish of Cali-
fornia, insured January 9, 1868, for $2,000, by policy No. 30169.
Reported missing and supposed to have perished in the snow, or
what is yet more probable, have wandered during the furious storm
in which he was overtaken, over the river bank and been drowned,
as one of his snow-shoes and the pole which he was known to have
carried with him, were found in the water. The sworn evidence of
Change of Name and General Expansion 139
parties engaged in searching for the unfortunate man appears so con-
clusive that the committee voted to pay the loss, firmly believing that
he is dead."
Manifestly the officers of the company had not yet had ex-
perience with those ingenious persons who soon learned to ex-
periment with life insurance frauds; and it may be well to add
their confidence in this particular case was not shattered.
Without attempting to write a contemporaneous history of life
insurance in this volume, a record of the events of 1868 may
properly be closed with a reference to the leading case of Paul
vs. Virginia, reported in 8 \Yallace,. 168, and decided by the
Supreme Court of the United States at the December 1868 term
of that court, wherein the important doctrine was established
that issuing a policy of life insurance is not a transaction of
commerce. The decision has ever since kept insurance without
the benefit of national supervision, and made possible the speckled
legislation that has followed to hamper and harass companies
from coast to coast. It is exceedingly regrettable that this vital
question came up so early in the history of the jurisprudence of
this country inasmuch as it is possible that at a later date changed
conditions and enlarged views, might have prompted a different
result. At any rate, had the decision been different, the whole
history of the supervision and control of life insurance in the
United States might have been radically changed.
The company was now large enough to attract attention and
the record of the first Trustees' meeting in 1869 shows that there
was an incipient contest for office.
It will be recalled that the Trustees were accus-
tomed to convene just prior to the annual meeting
and nominate Trustees. Accordingly they came to-
gether January 12, 1869, and named all the men
whose terms were about to expire, but when the votes were count-
ed the next day, two of the old names were missing and new
ones were added, those of S. S. Merrill, general manager of the
Milwaukee railroad, and Heber Smith, a man destined to be prom-
inentjy identified with the company. S. D. Hastings who had
been growing in prominence was one of the defeated.
This action had a material effect on the election of a President
to succeed S. S. Daggett, deceased. Had Mr. Hastings been
140 Change of Name and General Expansion
elected a Trustee, he would quite probably have been a candidate
for the office, his appointment as President pro tempore, already
noted, indicating that fact. His defeat meant almost a clear field
for Lester Sexton and he was elected on the first ballot, receiv-
ing twenty out of the twenty-nine votes cast. Heber Smith, the
new Trustee, was then elected Vice President by a sufficient vote,
and a new administration was in charge of the company. Mr.
Kellogg, Secretary, and Mr. Nash, Treasurer, still retained their
positions.
Lester Sexton, the new President, was born in Somers, Tol-
land County, Connecticut, April 28, 1807; was reared on a farm
and received a common-school education; on attaining to his
majority went to Hartford and entered the mercantile trade; in
1837 went to New Orleans and engaged in dry goods business;
located in Milwaukee in 1847 an< ^ became a prominent merchant.
Mr. Sexton was possessed of great energy and remarkable busi-
ness capacity. Besides his mercantile business and his official con-
nection with the company, he was Vice President of the Milwau-
kee National bank and a prominent stockholder in the Gas com-
pany.
His advent to the executive office promised a prosperous ad-
ministration but he died March 15, 1869 two months after his
election.
Heber Smith, the new Vice President, was born at Bastard,
Upper Canada, December 21, 1817; settled in Watertown, Wis-
consin, in 1845, engaging in the milling business; served in the
Wisconsin legislature of 1860 and was at one time sheriff of
Jefferson County; in 1863, became a general agent of the com-
pany in Wisconsin and was elected Vice President January 13,
1869, serving until January 28, 1874. Mr. Smith died at Salina,
Kansas, July 14, 1888.
The annual report of the Executive Committee presented at
this meeting contains a proud reference to the first ten years of
the company's growth, and the following pardonable statement:
"Aiming to make it the company of the people, its managers have
promptly adopted real improvements suggested by the growing
intelligence of the age; it having been the first, we believe, to
make the first payment secure its proportion of a ten year policy,
to make dividend additions non-forfeitable, the second to adopt
Change of Name and General Expansion 141
the contribution system of dividends, and among the first to make
policies non-forfeiting; to take off the extra premium for insur-
ance on the lives of women ; to remove unnecessary restrictions
upon travel and residence and to make popular endowment poli-
cies, until the company stands today abreast or ahead of any
other in its many provisions to secure equity and safety for all
its members."
At the meeting of the Executive Committee held January 18,
1869, it was decided that the duties of the General Agent should
be thereafter performed by the Vice President and the salary was
fixed at $5,000 per annum. This continued to be the rule for
many years and until the business increased to such an extent
that separate offices were necessary.
In February 1869, Joseph Lewis entered the service of J. W.
Skinner, who then had charge of the Collection department of the
company, doing the work under contract and hiring his own as-
sistants. January i, 1870, Mr. Lewis was assigned by the Secre-
tary to help Mr. Stover, the bookkeeper, whose retirement soon
thereafter gave the books to Mr. Lewis, who remained with the
company until August 1873. He subsequently studied medicine
and is now a practitioner in Milwaukee.
Joseph Lewis probably gave to the company the unique dis-
tinction of being the first institution to use the card-system.
Dr. Lewis recently sent the compiler an interesting letter re-
lating to his early connection with the company, in which he, says :
"During the time I was with the company I took up the work of
writing up the loan note account, General Lynch having been trans-
ferred to the actuarial department. I introduced the card-system
and so far as I know, was the first to apply it to the keeping of
general accounts. (Slips had however previously been used for
minor purposes, as for instance, transient memorandums on hook
files.) I was led to this by the fact that our old 'ticklers' were con-
tinually in need of re-writing and that as the office force multiplied,
reference to them increased and everybody was in everybody else's
way! It then occurred to me that a system of bookkeeping in which
every account had its separate 'book,' so to speak, would be of
advantage; so I ruled off a sample card and presented it to the
officers of the company, who speedily saw the benefit it would be to
the company; and with the help of several of the clerks, we trans-
ferred the policyholders' accounts to the cards as you now have them.
(I think Mr. Hooley and Mr. Austin were the ones who took part
142 Change of Name and General Expansion
with me in the work.) I will say that General Gaylord advised me to
have the system patented but I never did. The chief change I made
in the 'general books' was in regard to the journal, in which I re-
versed the sides, the items now appearing on the right side at that
time being on the left, with no cash column."
The system thus conceived and introduced by Dr. Lewis has
been of great practical utility to the company.
During the year 1869, the company had its first disturbing ex-
perience with legislation. A bill had been introduced to impose
a county and city tax on the property of the company in addition
to the state tax already required, but this was so manifestly un-
fair that it was ultimately defeated. A modification of the ex-
isting taxation law was passed, however, which excepted the real
estate of domestic companies from the old law, thereby leaving
the subject of the taxation of such real estate for future legisla-
tive action. (Chapter 181, Laws of 1869.)
Another bill introduced at the same session provided that in
case of an unsuccessful defence by an insurance company to a
suit on a policy, the plaintiff's costs, disbursements and "other
reasonable expenses" should be taxed against the defendant.
This, too, appealed even to a majority of the legislators as going
a step too far and it was not enacted.
The legislature, however, passed chapter 93, Laws of 1869,
approved March 5, 1869, requiring the company to furnish a copy
of his application to each insured person and in complying with
the requirements of the law, which has since become almost uni-
versal, letter-press copies were furnished if the applicant had
been good and thoughtful enough to use copying-ink, but if he
had failed in this respect, hand copies were made, for many years.
Finally, on October 6, 1891, a photographic process was in-
stalled and an exact copy of the application in the fullest sense
of the word, has since been attached to every policy issued.
Policy No. 241,358 issued to H. D. McGuire of Portland, Ore-
gon, bears the first photographic copy of application. The details
of the plant which photographs the application, or anything else
requiring photographic reproduction, were arranged by T. E.
Hutchings who has been in the employ of the company since 1885,
and he had charge of its installation.
Outside legislation began to make itself felt as a factor in
Change of Name and General Expansion 143
the company's affairs about this time. On or about March 15,
1869, information was received at the home office that the legis-
lature of Alabama had just passed a law, that has since become
a perennial favorite, requiring the company to deposit Alabama
bonds with the State Treasurer of the state to protect Alabama
policyholders. Believing this sort of legislation to be unwarranted
a view to which the officers have ever since consistently and
persistently held instructions were given to contest it in the
courts of law in a friendly suit to be instituted for that purpose,
but when a representative of the company visited Alabama, the
questions at issue were settled without suit and without the pur-
chase of the bonds.
On the afternoon of March 12, 1869, occurred one of those
tragic visitations that punctuate the history of all institutions
whose experiences go back a number of years. President Sexton
was stricken down to death without a moment's warning and
while seemingly in good health. He had been at the office of the
company as usual and had just finished his mid-day meal when
he suffered a stroke of apoplexy, immediately becoming uncon-
scious and so remaining until his death, Monday March 15, 1869.
Coming, as it did, within two days of two months after he had
been elected President, his demise was particularly untimely.
Resolutions respecting his death were adopted by the Execu-
tive Committee on March 19, 1869, as follows:
"RESOLVED, by the Executive Committee of The Northwest-
ern Mutual Life Insurance Company that we hear of the death of our
President, Lester Sexton, Esq., with sincere sorrow;
"RESOLVED, that in the death of Mr. Sexton this company
has lost one of its staunchest supporters and earliest friends, and
the city of Milwaukee a citizen known throughout the whole country
as a leading merchant and business man whose commercial integrity
inspired confidence, and whose enterprise in business kept pace with
the unprecedented growth of the Northwest, with which he was fully
identified in interest and sympathy;
"RESOLVED, that we deeply sympathize with the family and
relatives of the deceased in this severe dispensation of Providence;
"RESOLVED, that the office of this company be closed and all
business in its office be suspended during the day of the funeral."
The minutes of the meeting of the Executive Committee of
April 12, 1869, show that A. C. May had been declined as an
144 Change of Name and General Expansion
applicant for insurance by the Medical Director. Surely there
is nothing in this simple entry to attract more than the merest
attention and still, this bare statement meant much to all con-
cerned, for A. C. May was the candidate for President of the
same forces that had been back of the Hastings candidacy in
January.
Mr. May was afterwards accepted as a member and at the
meeting of the Trustees of the company held April 14, 1869, was
elected a Trustee. He failed, however, of election as President.
There had been a well-defined and growing sentiment among
the members of the board in favor of John H. Van Dyke, of Mil-
waukee, for that office but he had steadfastly declined to be a
candidate, until at a recess taken just before it was time to vote
on a successor to Mr. Sexton, his friends again pressed him to
allow his name to be presented and he finally consented.
He was chosen on the first ballot.
Here, then, was a trained, able man brought to the head of
the company one who added to inherent traits, the finish of
education and the breadth of experience; a man of the times,
but in advance of them.
Mr. Van Dyke gave to the company as its chief executive of-
ficer the benefit of his talents until 1874, and on retiring left a
splendid record. He was subsequently re-elected a Trustee of
the company; served for a time as special Counsel of the Loan de-
partment and was a member of the Executive Committee for
years. He still lives in Milwaukee, moving into the shadow
through an ideal life cultured, artistic and charitable.
John Henry Van Dyke was born of Dutch and Scotch an-
cestry, in Mercersburg, Franklin County, Pennsylvania, October
17, 1823; graduated at eighteen from Marshall College; immedi-
ately moved to Detroit, Michigan, and studied law with his
brother, James A. Van Dyke ; was admitted to the bar in April
1846, and located in Milwaukee the same month. His law busi-
ness was always successful and his general business eminently so.
Though successful as a lawyer and business man, Mr. Van
Dyke has taken time to thoroughly enjoy the refinements of life.
He is a noted art connoisseur and his collection is nationally
known. He was the first president of a literary society that de-
veloped the Milwaukee Library; was a member of the board and
Change of Name and General Expansion 145
for some time has been president of the board of visitors of the
Milwaukee Hospital; interested in the board of the Orphan
Asylum of that city ; a trustee of the old Milwaukee Female Col-
lege; a trustee of Lawrence University, Appleton, Wisconsin,
and a trustee of the Layton Art Gallery.
April 22, 1869, ought to go down in the history of the com-
pany as the day on which its largest loan, up to that time, was
voted. This was one of $100,000 to the Young Men's Christian
Association of Chicago, Illinois, negotiated by J. V. Farwell in
person and a double increase of the $50,000 already held by the
company on the property. In connection with this loan it was
voted to deposit the sum of $20,000 in the Union National Bank
of Chicago the first outside deposit ever made by the company
so far as the records show.
Xew premium rates established by the company went into effect
May I, 1869, and in connection with their promulgation and use,
a brochure of thirty-nine pages on life insurance was issued,
which for contents and method of treatment make it a little
classic.
At or about the same time, an agent's rate book copyrighted
by George H. Rountree was issued, fully explaining all changes
and methods in respect of applications, policies, dividends and the
like, up to the date of issue. This new rate book and the pam-
phlet which was entitled "Life" were so well thought of by the
Agents' Association that at the meeting held in April 1870, a
resolution was proposed requesting the Executive Committee to
make this one of the principal canvassing documents of the com-
pany in the place of the manual theretofore used.
As early as 1869, a somewhat elaborate office organization
was planned, composed of officers and committees, to each of
whom special duties were assigned, which organization was too
cumbersome and full of minutiae, however, to be practical, but
the duties then specifically prescribed still remain within the
province of the officers named, although, naturally, the increased
business has materially enlarged the scope of the duties of all
officers.
Of general interest is the fact that on May I, 1869, a com-
mittee resolved that inasmuch as New York was a special field in
which it was desirable to work and which required experienced
146 Change of Name and General Expansion
and successful agents, a contract be made with H. M. and James
Munsell, the former a general agent for Massachusetts, to open
up the field; and thus simply, but bravely, was the foundation
laid for the invasion of the east with its great life insurance
Goliaths by the brave young David from out the budding west.
It required faith, confidence and that specially condensed
American characteristic perhaps inelegantly known as "nerve" to
pass a resolution of that description, but the company's subse-
quent splendid New York business, founded upon merit, has long
since justified the action.
Five Years of Eventful History
NO five years in the history of The Northwestern Mutual
Life Insurance Company were more important than those
included between 1870 and 1875 ; indeed, the historian
who views the whole experience of the company with something
more than mere passing interest, justifies himself in writing that
this half -decade was the crucial period in the life of the organ-
ization.
The new year, 1870, opened with an annual
statement of which officers and members were
proud. The company had on the first day of Janu-
ary a total of 31,807 policies in force covering insurance to the
amount of $59,619,267.52, with assets of $6,757,532.36. Besides,
it had taken a prominent place in the insurance world and was
already one of the foremost companies of the times.
When the Trustees met in annual session on January 12, 1870,
the merest suspicion of a contest over the selection of Trustees
appeared and a weak minority developed to oppose some of the
administration measures. The old officers were all re-elected but
when a small minority objected to the salary of the President
being put at a figure which would engage the services of Mr.
Van Dyke, not compensate him, he promptly resigned and was
as promptly re-elected.
Early in 1870 the company considered the propriety of adopt-
ing a higher standard of policy reserve than that previously em-
ployed, and Elizur Wright was consulted. He came to the home
office; spent several days examining into the company's condi-
tion and finally advised in favor of the then existing Massachu-
setts standard, the Actuaries' Table of Mortality and four per
cent interest.
The company coincided with his views and thereupon the
Executive Committee, on March 17, 1870, adopted the following
resolution :
"Resolved, that The Northwestern Mutual Life Insurance Com-
149
150 Five Years of Eventful History
pany adopt for its premium reserve * * * * the legal standard
of the State of Massachusetts, namely, the Combined Experience or
Actuaries' rate of Mortality, at 4 per cent interest."
In increasing the company reserve to the new standard, the
surplus remaining was found insufficient for payment of a divi-
dend and so the dividend otherwise payable for 1870 was omitted.
Prof. Wright strongly commended the action of the commit-
tee on the ground that it best served the interests of policyhold-
ers. He did not contend that the business might not be success-
fully conducted under the New York rule permitting a lower rate
of reserve, but maintained that any company should not be satis-
fied with a bare sufficiency of reserve. "It should," he wrote,
"keep a barrier of reserve between it and future insolvency, ever
on the increase and as impregnable as Gibraltar."
At the Trustees' meeting of April 13, 1870, Secretary Kellogg
resigned, after eleven years' service, to take the position of Vice
President of the Republic Life Insurance company, of Chicago,
which was successor to the Great Western Mutual Life Insurance
company. The company subsequently met reverses and Mr. Kel-
logg went into business for himself.
Augustus Gaylord was unanimously elected Secretary at a
meeting of the Trustees held July 13, 1870.
Bearing on important events to come, reference must be
made to an appealing communication to the Trustees at this
meeting by Vice President and General Agent Smith concerning
his salary. He called attention to the compensation paid by
other companies for similar services and wrote:
"I believe that the funds of the company are sacred trusts, and
not to be squandered, but at the same time I believe that the North-
western is able to do by its manager as well as any other company in
the land and that the true interests of the company will be best pro-
moted by paying the men who have the burden of the labor to per-
form such a compensation as will give them to feel that they may
unreservedly consecrate themselves to their work and that their
labors are being appreciated.
"Should the trustees after full deliberation fix my compensa-
tion at $7,000 per year I should feel that that matter is settled, and
the company entitled to my best efforts, but should they place it at
any lower figure, I should be compelled to regard my position as un-
settled and that I am at liberty to receive any more favorable over-
tures."
Five Years of Eventful History 151
A special committee to whom this letter was referred recom-
mended that Mr. Smith resign as Vice President and continue as
General Agent under a salary of $6,000 per annum, but when
this recommendation was disclosed to Mr. Smith, he resigned
both places. Later in the meeting, however, the rough places
were smoothed and he continued to act in both capacities until
a later date.
Having passed successfully through the early events of 1870,
nothing serious obtruded itself on the company the rest of the
year. An examination of the records discloses the interesting
fact that money was being loaned in large sums at ten per cent;
that the time for holding annual meetings of Trusteees was
changed to the last \Yednesday in January and that questions
incidental to the healthy growth of the company were constantly
arising.
The availability of life insurance as a financial convenience
was demonstrated, by a letter received August 27, 1870, which
proposed that the company should retain in its hands the proceeds
of a policy when it matured by the death of the insured until the
beneficiary children should attain to the age of twenty-one
years, and inquiring what rate of interest the company would
allow on the fund. The business committee voted to issue the
policy payable to the children at twenty-one, allowing five per
centum per annum from the date of the death of assured.
The year 1871 began with 35,107 policies in force insuring
$65,186,706.98 and showed assets amounting to $8,991,766.48.
When the Trustees of the company met January 24, 1871,
they were confronted with one of those troublesome conditions
that happily have come to the company but a few times in its
career. The adoption of the new reserve rate had
made the General Agents and others, apprehensive
of the actuarial system in the office and, justly or
not, they openly showed dissatisfaction at the
retention of the incumbent officer. The Trustees appointed a
committee to examine the work of the Actuary and to make
such recommendations in regard to the office as they might deem
for the best interests of the company. This committee reported
at the annual meeting of the Board that they had been unable to
go into such examination as was satisfactory, but said that dis-
152 Five Years of Eventful History
satisfaction manifestly existed. They recommended the em-
ployment of an experienced actuary to go over the work and
make a scientific report. The committee stated that nothing
had transpired with reference to the office that could possibly be
construed into any lack of confidence in the personal character of
the Actuary for rectitude and integrity.
Further consideration of the subject was left to the Executive
Committee and on April 13, 1871, the President had an interview
with Emory McClintock looking to his employment as Actuary.
May 29, 1871, Mr. McClintock was duly appointed by the Execu-
tive Committee and soon thereafter entered upon the duties of the
office. He remained with the company, giving it the benefit of
his splendid ability, until January 2, 1889, when he resigned to
accept a similar position with the Mutual Life Insurance company
of New York, of which he is now Vice President and Actuary.
Mr. McClintock is the son of the late Dr. John McClintock,
president of a theological seminary at Madison, New Jersey;
graduated at Columbia College, New York; completed his educa-
tion at Gottingen, Germany ; subsequently appointed American
Consul at Bradford, Yorkshire, England, serving three years ;
joined the Asbury Life, organized in 1868, leaving it to come to
the Northwestern, where he remained eighteen years.
It is pertinent to note here that at the Trustees' meeting held
January 25, 1871, Charles F. Ilsley and John A. Dutcher were
not re-elected and that two men who afterward became officers
of the company were : O. E. Britt, who was Vice President from
January 28, 1874, to January 26, 1876, and Matthew Keenan
who succeeded him as Vice President and remained as such until
July 1 8, 1894, when on account of failing health, he declined
re-election.
Mr. Keenan was another of the strong men of the company.
He was born at Manlius, Onondaga County, New York, January
5, 1825; came to Milwaukee with his parents in 1837; engaged
successfully in various business ventures and, step by step,
climbed to the front as one of the city's prominent men. He
was possessed of great ability and energy, and his integrity was
unquestioned. Mr. Keenan was elected a Trustee in 1871 and
was appointed Superintendent of Agencies January 31, 1874. In
his official capacities he had to do at different times with the
Five Years of Eventful History 153
agency and investment features of the company's business, to
both of which he brought great earnestness of purpose and
marked ability. Mr. Keenan died August 19, 1898.
At this time, also, Edwin Hyde, of Milwaukee, was elected
Trustee and has so remained during the thirty-seven years that
have elapsed. Mr. Hyde enjoys the distinction of having served
longer than any other living Trustee except President Palmer.
At a meeting held July 25, 1871, the Executive Committee
authorized the President to withdraw the United States regis-
tered bonds deposited with the State Treasurer of Wisconsin as
required by law and substitute therefor the amount in bonds and
mortgages held by the company. At the same time, the President
was authorized to deposit with the proper officer in the Dominion
of Canada, bonds to the amount of $100,000 for the purpose of
enabling the company to get a license to transact business in the
Dominion. On August 28, 1871, a general agency of the com-
pany in Canada was established at Brockville, Ontario, and
William A. Schofield was appointed agent and attorney upon
whom process could be served.
Although doing a fine business there, the company withdrew
March I, 1878, because the Canadian law was changed so as to
require a deposit of securities with the proper officers of the
Dominion for the exclusive benefit and security of policyholders
of the Dominion. It was thought a mutual company could not
properly comply with a law which provided for a special security
for the benefit of a particular class or body of policyholders.
So tenaciously have the officers of the company since maintained
this position that it has publicly announced on other occasions
that the company simply could not comply with such a law.
Officers, agents and employees of the Northwestern will be
interested to note that the salary adjustment at the Executive
Committee meeting of November 13, 1871, embraced the names
of four who subsequently became intimately associated with the
home office, namely, Julius N. Proeschel, a man of great execu-
tive ability, head of the Claim department for thirty-six years,
when in August 1907 advanced age and a desire for rest
prompted his resignation ; C. A. Loveland, now Actuary ; J. O.
Martin, present head bookkeeper, and C. H. Watson who served
diligently in a clerical capacity, but with increasing responsibili-
154
Five Years of Eventful History
ties, until July 16, 1890, when he was elected Assistant Secretary.
He was promoted to Secretary July 19, 1905, holding that office
until April 14, 1906, when he died. Mr. Watson was born at
Elizabeth, New Jersey, April 22,
1843, an d removed with his pa-
rents to Milwaukee in 1845, was
educated in the public schools and
at college and was admitted to the
bar. He gave thirty-five years of
active and able service to the com-
pany in the several capacities in
which he was called upon to act.
Most readers of this history
know of the great Chicago fire
that started October 9, 1871, and
involved millions of dollars of
damage. Notwithstanding the
fact that the company was doing
a large loan business, luckily it had
but eight loans upon property
and these were made in 1868 and
1869, before the expansion of landed values in that city, and
the then land values without the buildings were largely in excess
of the loans when made. The company did not lose a dollar by
the Chicago fire either on account of a real estate loan or death
losses.
The year 1871 closed with a flutter of excitement over an
occurrence then magnified into a sensational matter, but now
viewed with comparative complacency by the surviving actors in
the drama.
On the morning of December 21, 1871, an ex-Trustee of the
company and another person soon to become an ex-Trustee, pre-
sented a request to the Executive Committee either for a list of
the policyholders of the company or for permission to have a list
made from the books. At a meeting of the Executive Commit-
tee held that afternoon it developed that a young clerk employed
by the company had been detected in removing two of the policy
registers from the office and that names were being obtained
therefrom surreptitiously for the purpose of circularizing the
C. H. Watson
within the burned district
Five Years of Eventful History 155
policyholders against the then existing management. Being ar-
rested, he disclosed the names of the persons implicated.
A meeting of the Trustees resident in Milwaukee held that
evening came to the conclusion that it would be unwise and
prejudicial to the best interests of the company to make public
the names of its policyholders. This has been the consistent rule
of the company ever since.
The men back of the rebellious movement persisted in their
efforts to discredit the management and sent circulars broadcast
manifestly for the purpose of influencing the approaching elec-
tion of Trustees. /
There was much interest taken in the affair at the home office
and circulars and cartoons were distributed in behalf of both
parties, but so effectually has time obliterated the memory of
those bellic days that most of the details of the campaign have
been forgotten.
No person interested in the company in any way could fail to
get genuine satisfaction out of the annual report submitted by
the Executive Committee on January 31, 1872. It showed con-
tinued prosperity and substantial progress with
reduced expenditures in management, and fully
justified confidence and support.
There were issued during the year 1871, a total
of 5,662 policies amounting to $12,694,852, which brought the
aggregate outstanding policies of the company to 34,349 covering
$62,425,187 of insurance. The total assets were $10,658,169.80.
It may be pertinently added, too, that the receipts from interest
on investments in 1871 largely exceeded the entire death losses
during that period.
The annual Trustees' meeting held January 31, 1872, was
watched with great anxiety by those personally connected with
or interested in the company. The administration ticket was
elected by a vote of 11,000 to 600 and the new Trustees took
their places on the Board. Among these was Hon. David J.
Brewer, of Leavenworth, Kansas, who was appointed an associ-
ate justice of the Supreme Court of the United States in 1890.
Justice Brewer is still a Trustee of the company and his appoint-
ment as justice never interfered with his attendance upon the
annual meetings of the Trustees of the company, few of which
156 Five Years of Eventful History
Judge Brewer has missed in his thirty-six years of service on the
Board.
At this meeting, the resignations of A. C. May and J. C.
Spencer as Trustees were filed and accepted.
With a view to stimulate the work of agents in aid of busi-
ness the Trustees at their meeting of January 31, 1872, requested
the Executive Committee of the company to act as a committee
of conference with the agents, resulting in resolutions being
adopted February 26, 1872, as follows:
"RESOLVED, that in order to create a spirit of well directed
emulation throughout the agencies of the company, whereby to in-
crease the percentage of new business for the year, the officers be
and hereby are authorized to offer four sets of prizes to be competed
for by agents."
A year later, viewing the practical working of this resolution,
Vice President Smith stated that the plan had been instrumental
in increasing business materially and that because of the incen-
tive created, agents worked harder and procured results on
reduced expenditure of money, thereby justifying the plan from
an economical point of view. Several years after that, however,
legislators looked upon the idea differently and in many states
prohibited the practice.
At a meeting of the Executive Committee held on March 18,
1872, James W. Skinner was elected Assistant Secretary. More
extended reference to Mr. Skinner will be made in later pages of
this work.
For many years prior to 1872 the company permitted its mem-
bers to apply dividends to the purchase of temporary additional
insurance for a single year. In 1872, notice was given that when
one thousand members should join in applying their dividend for
that purpose, a separate account would be made of the actual
cost of such temporary insurance, making of that class a small
mutual company, so to speak. This plan would have afforded the
cheapest possible form of insurance but it did not prove popular,
not more than a total of two hundred persons accepting it. Pos-
sibly the reasons for this lack of success were, the fluctuating
amount of insurance secured, the fact that the extra insurance
did not begin until two years after the issue of the policy and
that the premium was required to be paid in full every year.
Five Years of Eventful History 157
These difficulties were all obviated by the Addition Plan then
perfected and introduced.
If an examiner into the records and files of the Northwestern
should be asked to name the single thing that was paramount in
the successful building up of the great institution it has come
to be, the chances are he would reply : Attention to details.
Nothing which really appertained to or affected the interests of
the company seemed too insignificant for official attention and
the earnestness which has been continuously applied to all the
company's affairs has been a marked characteristic. A diverting
example of this may be found in a letter dated September 25,
1872, from the Vice President to an agent in Georgia who, call-
ing attention to the nicely furnished offices of his competitors,
implored an appropriation for like purposes. After assuring
the applicant that the company always stood ready to aid agents
who had proven their ability, he wrote that any agent just begin-
ning can succeed in working up quite a business without any
office, whatever. "But," he continued, "the way to do this is to
start out and talk insurance, being first fully posted on the sub-
ject. By and by, when success is assured, the company always
stands by its working agents and appreciates their value in pro-
portion to the work they may do. No doubt the companies you
have mentioned have started their agents as you intimate and
if you will look at the expense ratios of those companies you
will see how favorably ( ?) they compare with that of ours, and
in this relation we may add that our low ratio of expense is
brought about by pursuing the conservative course and by avoid-
ing all extravagances of any nature. In a mutual company like
the Northwestern, we do not believe the officers have any right
to expend the funds of the company in expensive experiments ;
and by adhering strictly to this idea we have been able to reduce
the expenses of the company to the low figures shown in the
reports. We should be glad, indeed, if we could coincide with
your views on this matter and it would give us great pleasure to
know that you had a pleasant and well-fitted office, but we do not
believe (and the best authorities agree with us in this) that an
office ever directly influenced a single policy, and any agent who
imagines that the existence of his office will attract insurers, is as
likely to find his hopes realized as would a modern army who
158 Five Years of Eventful History
expected to take a fortress by parading in front of it. We have
been somewhat lengthy in giving you our views on the matter
and will now say if you will furnish us with evidences of your
ability (which we think you possess) to write insurance, by for-
warding a good line of applications, we will do all we can to
assist you in forwarding your work, but we appeal to your own
judgment if we should be expected to go to several hundred
dollars expense in the uncertainty as it now stands?"
This letter is typical of the company. Hundreds voicing the
same careful conservatism may be found on the books. Each
unconsciously sounds the key-note of company success.
One finds in the early years of life insurance in this country
a diverting line of advertisements, and one of the most popular
methods of the times was the acrostic. Most companies were ad-
dicted to the use of this archaic form to attract attention and the
Northwestern, particularly, got the habit.
In September, 1872, George H. Rountree, Superintendent of
the Supply department of the company, issued a paper called The
Pantograph, dedicated to the advancement of the great industrial
enterprises of the west and hopeful of its mission. It did not
last long but the first issue contained the subjoined acrostic, the
authorship of which has been attributed to editor Rountree, him-
self.
Some, kindly disposed, have said it is "pretty good/' The
reader will judge:
"Not what men gain but what they save
O! this the secret is of wealth;
Read, ponder well, for oft the grave
Takes all the future years by stealth.
He then is wise who lays up store,
Who harvests while the day is bright,
Ever the future conning o'er
Sad future which comes as the night
To the dear ones for whom he lives,
Each one of whom his heart holds dear;
Ready, for them his life he gives
Nor takes his counsel of his fear.
"Men read the future in the past;
Urged by the ghastly wrecks they see,
Five Years of Eventful History 159
The fortunes spent the misery
Unspeakable, and that must last
Ah! well it is from out the strife
'Life, Life!' they cry. 'Insure the life!'
"Lo! then the hearthstone still keeps bright
Its store of food the table bears;
Fed, warmed and clothed they know no night
Engulfing with its flood of cares.
"Inquiring men would seek the best,
Nor place their hopes on broken reeds;
So let their minds be set at rest
Upon what's suited to their needs,
Read, then, the letters which we pen,
And let the same be clothed with power;
NORTHWESTERN! will suit all men
Coming to seek a certain dower;
Enduring name, to Time's last hour.
"Combining every feature known
Of what is liberal, true and just;
Men wonder not that it has grown
Powerful and popular, and trust
All of their future to its care
Nor doubt the glory it will wear
Years hence, when they are turned to dust."
The annual statement issued by the Executive Committee on
January 20, 1873, showed that the preceding year had been a
gaining one for the company, .5,772 new policies, representing
$13,196,279 insurance, having been issued, swelling
the outstanding total to nearly $65,000,000. The
assets of the company were $12,434,527.71.
At a meeting of the Executive Committee held
January 18, 1873, attention was called to the famous Colvo-
cor esses case and on that date the company became one of an
association to investigate it. This case is one of the famous
insurance mysteries.
Just about eleven o'clock on the night of June 3, 1872, Cap-
tain George M. Colvocoresses, a retired naval officer, was discov-
ered in a dying condition on the streets of Bridgeport, Connecti-
cut, having been shot. He was a resident of Litchfield and sub-
160 Five Years of Eventful History
sequent developments showed that he was on his way from his
home to New York when he received what proved to be his
death wound. The peculiar circumstances surrounding his
demise led to an investigation. The investigation showed that
on the first day of January 1872, Captain Colvocoresses had in-
surance to the amount of $19,000 on his life, divided among
three companies. About this time an insurance broker of New
York became interested in the Captain and soon thereafter policies
were issued on his life in twenty different companies for an ag-
gregate of $179,500, which with the $19,000 mentioned, made a
total of $198,500, the greater portion of which was taken in four
months or less. Among the first policies issued, after the broker
had Captain Colvocoresses under his influence, was No. 65,371
in "the Northwestern, for $10,000, issued January 22, 1872, or four
months and twelve days before his death.
The private life and acts of the Captain, with the circum-
stances surrounding his death, indicated suicide and a deliberate
intent on the part of the insured to defraud the insurance com-
panies. Other circumstances tended to combat this theory, for
while the Captain had taken out, seemingly, more life insurance
than he could pay for, his income as a retired naval officer was
sufficient for living purposes ; he was not known to have any
enemies; the medical examinations for his insurance showed he
was in good health and his domestic relations were said to be
happy.
On the other hand it was shown that he hardly had means
enough to carry the policies and besides had, seemingly, mis-
represented his condition.
At any rate, the case attracted widespread attention and the
following companies formed themselves into an association to con-
test payment of their policies: The Manhattan Life Insurance
Company; the Mutual Life of New York; the Commonwealth
of New York; the Connecticut Mutual; the Berkshire, of Pitts-
field, Massachusetts; Charter Oak; Phoenix Mutual; John Han-
cock Mutual ; the Mutual Benefit ; the Atlantic Mutual ; the
North America Life, and the Northwestern.
A fund was raised for investigation, and detectives and other
agents were set to work on the details of the case. After a time,
the Phoenix was sued, but before the case came to trial, realizing
Five Years of Eventful History 161
that the expense of investigation and litigation, if continued,
would soon amount to more than the executor of Captain Col-
vocoresses's will would accept in settlement, the companies agreed
to pay fifty cents on the dollar, and thus the case came to an end.
Willard Merrill was elected Secretary of the company on Jan-
uary 29, 1873, and immediately began an official connection with
the Northwestern that only terminated by his declination in 1905
to accept further office on account of prolonged ill-health.
Mr. Merrill was a lawyer by profession but fate directed his
way to the Northwestern where he may have missed that fame
which legal and forensic ability would probably have brought him,
but where he made a success that is impressed upon the minds of
thousands of agents and policyholders who came in contact with
him, and stands clearly out in the growth of the company to
which he contributed as largely as any other man.
Mr. Merrill was born in Rome, New York, January 16, 1831,
and was admitted to the bar in 1856. He immediately proceeded
west and settled at Prairie du Chien, Wisconsin, remaining there
until 1860, when he removed to Janes ville, and became a law
partner of the late J. B. Cassoday, afterwards Chief Justice of
the Supreme Court of Wisconsin. It was then that he became
interested in the Northwestern and occupied leisure hours solicit-
ing members for it with great success. When the position of
Secretary was offered him, he felt that he had received a call
and accepted. He served as Secretary until the office of Second
Vice President was created January 28, 1885, to which he was
elected, being promoted to the office of Vice President July 18,
1894. His failing health caused him to forego the honor of fur-
ther election to office in July 1905 and he died at Pasadena, Cali-
fornia, August 8, 1905.
Mr. Merrill was essentially an insurance man and knew how
to get business. By virtue of his office, Superintendent of
Agencies, he brought to the work the system of a trained lawyer
and the business judgment of an experienced layman. To both he
added a personality that made his agents enthusiastic, tenacious
and loyal. It may be said of him that his department produced
the business upon which the administrative talents of others were
exercised and is therefore, entitled to co-equal praise in the up-
building of the Northwestern. It is written of him in the records
1 62 Five Years of Eventful History
of the company : "Mr. Merrill has * * served the company
as an officer for over thirty-two years. His work has been of
great value to the company. He was faithful to every duty, just to
every man. He was firm in the discharge of duty, but always
kind in enforcing his authority. Thus he gained not only the
respect and high regard but the warm affection also of his as-
sociates and subordinates. The Executive Committee makes this
record in token of its appreciation of his distinguished worth."
At a meeting of the Trustees of the company held January 29,
1873, several matters of importance were considered, among
which were resolutions defining the exact powers and duties of
the Vice President and the Actuary, granting to the former au-
thority to act fully as President whenever that officer was absent
or unable to discharge the duties of his office; specially defining
the duties of the Actuary, and a committee from the agents sug-
gested a change from January to July in the time of holding the
annual meeting of the company.
About this time, however, the most important feature of of-
ficial consideration was the investment side of the business. The
receipts had attained to large proportions and their productive
investment called for some definite system. Thoroughly character-
istic of the Northwestern idea, was the manner in which the sub-
ject was considered. Every detail was threshed over time and
time again, and there were naturally many differences of opinion.
The freedom with which these were expressed openly in meet-
ings and through formal resolutions introduced, shows the care-
fulness and conservatism of officers. It also shows that there
was not one person nor set of persons arbitrarily deciding busi-
ness policies for the Northwestern that every official had the
right to speak and be heard, a tolerance of opinion that has always
been practiced in company affairs.
The main difference of opinion, however, arose over the pro-
posed policy to make the loan and life end of the business de-
pendent upon each other. There were those in the Board of Trus-
tees and among the official force who thought these two branches
of the work, while separate and distinct in personal character,
were so naturally associated as to be mutually helpful and they
proposed to make them so. Others deemed it best to make them
independent and thus the friendly issue was joined.
OF THE
UNIVERSITY
OF
Five Years of Eventful History 165
For example, at the meeting of the Trustees held January 31,
1872, a resolution had been introduced to the effect that the funds
of the company ought to be loaned in the states from which they
were received, as far as practicable, provided satisfactory secur-
ity was given, and that applicants should insure their own lives or
the lives of others in the company for an amount equal at least to
the amount of the loan, keeping such insurance in force during the
life of the loan. At the meeting of January 29, 1873, a resolution
was offered providing that the funds ought to be loaned at the
uniform rate of ten per centum per annum and that while keep-
ing in view the character and sufficiency of securities, the funds
ought to be loaned in such amounts and localities as would bring
the greatest amount of insurance, paying due regard to the rights
of the existing members of the company and, as such, contrib-
utors to its funds.
The underlying idea, it will be noted, was to make the in-
vestments produce insurance, but the Trustees and other officers
were hardly ready to declare a system of compulsory insurance
as a condition precedent to loans and neither of the resolutions
noted was adopted.
The subject was revived at a meeting of the Trustees held
July 9, 1873, by a letter from the Vice President, a member of
the Executive Committee, in which he said that inasmuch as the
others of the committee differed from him as to the method of
making loans he acceded to their ideas, but desired to be relieved
of future responsibility on that account. The Vice President was
an insurance man, primarily, and he wanted to make every fea-
ture of the business produce insurance results. He thought every
loan applicant should be a member of the company. The rest of
the Executive Committee were willing to place money at ten per
centum per annum on gilt-edged security disregarding life insur-
ance and the attendant necessity of a physical examination.
The general subject engrossed the attention of the Trustees at
this meeting, and resulted in a resolution being presented to the
effect that the funds of the company ought to be loaned in the
western states at a uniform rate of ten per centum per annum,
but that if the legal rate in any desirable locality were less, the
funds might also be loaned there ; but so careful were the Trustees
that they deferred action until the January 1874 meeting when a
1 66 Five Years of Eventful History
committee of five was appointed to examine into all features of
the loan business and report recommendations.
This committee reported January 28, 1874, that the Executive
Committee should be left free to exercise its best judgment in re-
gard to the loans made and the rates of interest to be charged.
It should be governed by the financial condition of the country
and the amount of loanable funds to be invested.
The committee discontinued the policy of seeking high rates
of interest by investments in small amounts in out-of-the-way
places which might not be available in cases of emergency; and
considered the linking of life insurance with loans of very doubt-
ful advisability. In fine, it recommended immediate investment
of the sum of $100,000 in government bonds and as soon as the
funds would justify it, without interfering too largely with the
usual loans on real estate, to invest the further sum of $150,000,
making an aggregate of $250,000 in government bonds, believing
this course to be necessary to guard against the result of a panic
such as was experienced in the autumn of '73, and to provide
available means to pay any extraordinary demands.
Later experience has proven the wisdom of this course.
The year 1873 will be remembered as one of industrial depres-
sion and commercial disaster, but the climax of the panic did not
come until so late that the business of the Northwestern was not
vitally injured by it, although undoubtedly affected.
However, all departments showed material gains
over the business of 1872.
During 1873, 4,660 new policies were issued
covering risks to the amount of $11,061,361, and on January i,
1874 there were 35,226 policies in force, the total amount at risk
being $64,692,003. The assets of the company increased $1,659,-
051.45 in 1873, reaching a total of $14,093,579.16, and the amount
loaned on bonds and mortgages was $7,986,335.38. The receipts
from interest alone were more than a quarter of a million dollars
in excess of the death losses in 1873.
The year 1874 was a momentous one in the history of the
Northwestern and important incidents developed early. The
agents had not yet fully learned that there was an inseparable
community of interest between themselves and the officers and
some of them were led into an attempt to change the existing
Five Years of Eventful History 167
order of things. They had hopes of controlling the election
of 1874 and purposed to establish a new administration. The
program was carried out in part. When the election of Trustees
took place on January 28, 1874, President Van Dyke was not
chosen and consequently could not be re-elected President, but
the plans of the agents failed to go further, for Henry L,. Palmer
was elected President and O. E. Britt, Vice President. The re-
tiring Vice President, Heber Smith, remained as a Trustee until
November 23, when he resigned.
Henry L. Palmer, the newly elected President, became a Trus-
tee December 18, 1858, less than one month after its organization.
From that time until his presidential election he had been continu-
ously Counsel for the company and a member of its Executive
Committee.
Henry L,. Palmer was born in Wayne County, Pennsylvania,
October 18, 1819; received a common school education; went
to live in West Troy, New York, in 1836; was admitted to the
bar; located in Milwaukee in 1849, practicing law until elected
probate judge of Milwaukee County in 1873, which office he re-
signed on being elected President ; in the meantime he had been
president of the school board, city attorney and served several
terms in both branches of the Wisconsin state legislature. He is
still President of the company.
Judge Palmer has been prominent in Masonic circles for many
years. During his connection with the order he has at different
times been the presiding officer in all the different branches of
Masonry. In 1879 he was chosen Sovereign Grand Commander
of the Supreme Council of the 33 A.-. A. . S. '. Rite for the
Northern Jurisdiction of the United States and he has held that
position continuously since that time and is still its presiding of-
ficer.
Judge Palmer is also a member of the Milwaukee Club, the
Craftsman Club of New York, and the Iroquois Club of Chicago.
It would be interesting to readers of this volume were an
estimate of the character and services of Judge Palmer here pre-
sented, but official instructions confine comments to the limits
noted.
A glance backward in this volume, however, will show that
on the first day of the year in which Judge Palmer was elected
1 68 Five Years of Eventful History
President, the company had outstanding insurance in force to the
amount of $64,692,003 ; its income in the preceding year was
$3*906,252. 13; the total amount loaned on bonds and mortgages
was $7,986,335.38 and the total assets were $14,093,579.16.
A glance forward will show that on the first day of January
1908, covering an administration of thirty- four years, the out-
standing insurance in force was $881,563,592; the company's in-
come in the preceding year was $43,642,590.68 ; the total amount
loaned on bonds and mortgages was $121,740,637.11 and the total
assets were $232,819,246.07.
Oren E. Britt, the new Vice President, was born in Medina,
Orleans County, New York, October 12, 1826; settled in Mil-
waukee in 1850, engaging in grain business; was a charter mem-
ber of the Milwaukee Chamber of Commerce; from 1869 to 1877
was general freight agent of the Chicago, Milwaukee and St. Paul
Railway company, and from 1880 to 1887, consulting freight
agent; joined commission firm of E. P. Bacon & Company in
1877, but retired in 1880; was severely injured in Ashtabula dis-
aster; left Milwaukee in 1888, moving to Morristown, New Jer-
sey, where he died March 21, 1901.
John H. Van Dyke, the retiring President, did not long re-
main outside the official fold of the company nor was it intended
that he should. Nathaniel M. Jones of Memphis, Tennessee,
resigned as a Trustee July 8, 1874, and Mr. Van Dyke was im-
mediately chosen in his stead. On October 2, 1874, the Executive
Committee approved and confirmed his appointment as Counsel
in the Loan department with a desk in the office for the then
current year and on October 14, 1874, he was made a member
of the Executive Committee in place of E. P. Allis, resigned. He
remained a Trustee until July 1904, when his son William D. Van
Dyke was elected.
The Executive Committee appointed Matthew Keenan Gen-
eral Agent January 31, 1874, but at their meeting of February
9, 1874, designated him Superintendent of Agencies, which title
was and is self-explanatory. Mr. Keenan's full official connec-
tion with the company has, it will be recalled, been outlined earlier
in this volume.
The Chamber of Life Insurance, reference to which has here-
tofore been made, renewed its career of co-operation about this
OF THE
UNIVERSITY
OF
<\LIFOR^
Five Years of Eventful History 171
time and extended an invitation to the Northwestern to join. As
this was an organization which by its articles was designed to
attract the favorable attention of the community to life insur-
ance; to promote by all proper means such just and equitable
legislation as might be in the interest of the policyholders and
by like means to oppose such proposed legislation as might be pre-
judicial to such interests; to obtain repeal of harsh laws, particu-
larly those relating to the unfair taxation of life insurance; to
diminish the expense of life insurance by co-operation and gen-
erally to promote and protect the interest of policyholders, the
Northwestern accepted the invitation on February 9, 1874 and
continued a member of the Chamber for some time.
It is always interesting to note the diverse questions some
of which were frivolous, while others were vital that continu-
ally arose in these early times while the customs and usages of the
company were being settled, and the year 1874 had its full share.
To illustrate, Mr. McCHntock, the Actuary, appeared before the
Executive Committee on January 31, 1874, with reference to
southern risks and presented facts and figures which resulted in
the adoption of a resolution that an extra premium of ten per
centum per $1,000 of insurance should be required on all con-
tinued premium life and endowment policies and a proportionate
charge should thereafter be fixed by the Actuary on other forms
of policies issued in Arkansas, Louisiana, Texas, Mississippi and
in any part of Tennessee west of the Cumberland mountains and
south of the latitude of Clarksville; February 9, 1874, the Execu-
tive Committee was called upon seriously to consider a com-
munication from an enterprising Milwaukee firm that solicited
permission to place a sign on the telegraph pole in front of the
office ; March 14, 1874 the committee received earnest communica-
tions from two of the officers asking that their rank might be
clearly defined. Here diplomacy was required and the report
which was adopted, fairly bristled with it. The committee re-
ported that they had consulted the publications of other com-
panies and found no fixed and uniform rule to guide them in
determining priority of rank of either officer over the other.
A law which was passed in California March I, 1874 went
into effect July I, 1874 requiring foreign companies to appoint
an agent there who should practically have all the powers of
172 Five Years of Eventful History
executive officers, for every act, statement, representation or
agreement made by him was to have the same force and effect
as if done by the company. The officers could do no less than
withdraw from the state.
Virginia having passed a law requiring the deposit of $10,000
from foreign companies as a condition precedent to doing busi-
ness there, on July 20, 1874, the President and Secretary were
authorized to make the required deposit in bonds with the State
Treasurer. This is the only state or country in which the com-
pany maintains a deposit for this specific purpose. Deposits in
Wisconsin and Canada are mentioned elsewhere.
The character of questions that were continually arising in
the development of the business will be realized without further
comment, but perhaps the most important one that came up in
1874, next to the election, was that calling upon the company to
decide a method of charging its taxes. The records show that
Mr. McClintock, the then Actuary, had a decided opinion on the
subject. He appeared before the Executive Committee November
25, 1874, in that behalf, with the result that it was decided that
all taxes exacted on and after January i, 1875, by any state in
the nature of a percentage upon premium receipts, should, so far
as practicable, be levied upon the policies in said states respec-
tively and deducted from the dividends payable the same year
upon such policies. This followed the general rule adopted by other
companies and in 1875, an agreement was arrived at and adopted
by the Northwestern, all the leading New York companies, and
several elsewhere, the principle of which was to charge taxes
wherever levied against the dividends of those who pay their
premiums in the taxing states.
Thus the policy remained for many years, the Northwestern
attempting in good faith to comply with a rule that seemed to be
in accord with strict equity, but which the other companies to the
compact in a short time abandoned.
The question came up again in 1893, and was referred to a
committee composed of the Actuary, Second Vice President and
Counsel.
The conclusion of the committee was that the existing plan
in practice failed of its purpose of bearing equally and without
discrimination on those members only who ought to pay the tax.
Fire Years of Eventful History 173
It gave it as its opinion that a nearer approach to perfect equity
would be accomplished by charging the whole tax to the general
fund, relieving individual members from a specific charge against
their annual dividends, and recommended action accordingly.
October 23, 1893, the Executive Committee rescinded the action
of November 25, 1874, to take effect January i, 1894, since which
time taxes have been charged to the general fund, in accord with
universal practice.
Comparisons between the business of 1873 and 1874 show the
gratifying fact that the panic of the former year, which came to
a climax in September, had not so thoroughly depressed affairs
that the business of 1874 was alarmingly affected.
On the contrary, the annual report showed that
during the year 1874 there was an actual increase
in the number of policies written and the amount
of risk assumed.
The totals for 1874 were 4,858 policies issued covering an in-
surance of $11,072,737 as against 4,660 in 1873, insuring $n,-
061,361. The whole number of policies in force January I, 1875,
was 35,402 and the total amount at risk on that day, $65,301,021.
Xot only this, but the loan feature of the business showed
an increase over 1873, the amount invested in bonds and mort-
gages on January i, 1874 having been $7,986,335.38 as against
$9,498,388.90 on January i, 1875. The assets of the company
also increased $1,433,952.79 in 1874, reaching the total of $15,-
5 2 7o3i-95 on January i, 1875.
The loan feature was now looked upon as most important and
the Trustees' meeting of January 26, 1875, was largely devoted to
its consideration. A comprehensive statement of the then existing
loans was made and the Examining Committee's report was ana-
lytical of the investment feature. In order to facilitate the work
of investment and to insure due attention to it, the Executive
Committee was increased from five to seven members and the
suggestion was made, for the first time, that the amount and
importance of the company loans warranted separate divisions for
checking and supervision of the taxes and fire insurance appurte-
nant to mortgages to the company. These separate divisions
were subsequently created and are now in operation, important
adjuncts to the loan end of the company's business.
174 Five Years of Eventful History
One of the important transactions of the year was the taking
over of the outstanding insurance of the Minnesota Mutual Life
Insurance company.
This company was originally organized in 1856 but was later
re-organized and had a line of business established by 1875 which
it desired to re-insure in the Northwestern. Negotiations were
opened between the two companies, Hon. H. H. Sibley, the Presi-
dent of the Minnesota Mutual who had been elected a Trustee of
the Northwestern January 26, 1875, and its Secretary, H. Knox
Taylor, representing the Minnesota institution, and the Actuary
and Medical Director representing the Northwestern. After a
careful examination of the books and other records of the ap-
plicant company by the Northwestern officers, the small business
controlled by the Minnesota company appearing excellent, the
Executive Committee on June 22, 1875, decided to conclude an
agreement for the assumption of the risks upon terms named in
a contract signed on behalf of the companies in interest on July
2, 1875.
By the terms of the instrument, the Northwestern took over
some 1,096 policies aggregating $1,305,775 of insurance.
Notwithstanding the fact that the business then acquired
was, measured by the ordinary and accepted standards, quite de-
sirable, the company ultimately found that the mortality exper-
ience did not come up to the Northwestern standard, and the
company thenceforward refused to consider propositions of that
character. Adherence to its own careful selection of risks has
secured the unique position of the Northwestern among life in-
surance companies as regards its mortality experience.
Depression and Recuperation
IF OXE were writing an analytical history of life insurance he
would set down the period from 1876 to 1880 inclusive, as
one of general depression, with recuperation toward the end.
As to the Northwestern, it can only be conjectured that its busi-
ness was affected by the prevailing dullness, notwithstanding the
fact that the records disclose a continuing increase in results.
The report of January 21, 1876, showed that during the
previous year 6,054 policies covering risks to the amount of $12,-
757,501 were placed on the books, and that the whole number of
policies in force on January I, 1876, was 36,428,
the whole amount at risk being $67,124,215.
The assets of the company on January I, 1875,
it will be recalled, were $15,527,531.95, and the in-
crease during the year 1875 was $1,591,280.16, making the assets
on January i, 1876, $17,118,812.11. At that date the amount
loaned on bond and mortgage was $10,601,468.53.
Especially noteworthy is the fact that the interest receipts
for 1875 exceeded the death losses and expenses by $200,391.62.
The Examining Committee, appointed under the by-laws to
make an examination of the affairs and assets of the company,
gave careful attention to the subject of the investments in its
report to the Trustees of January 21, 1876, and recommended
the continued loaning of the funds of the company on bonds
and mortgages as long as the fullest and most approved security
was offered, but that in case the available loan engagements could
not be consummated fast enough to keep the balance in the banks
down to $200,000, the excess be invested in government bonds.
The committee also recommended that additional help be em-
ployed in the Loan department and that the important questions of
rate, interest and kind of security be left entirely to the Execu-
tive Committee.
At this meeting of Trustees, the only change in the official
staff was the election of Matthew Keenan as Vice President to
succeed Oren E. Britt. ]77
178 Depression and Recuperation
The agents at the preliminary annual meeting formed a tenta-
tive association at this time, which crystallized into a permanent
organization the following year. Edward J. Smith was elected
temporary President and E. S. Walker, Secretary. Its first of-
ficial act was to thank the officers and Trustees for their kind
treatment and to make the assurance that as its members went
back to their respective fields of work, it would be with renewed
vigor and enthusiasm and with the determination to increase the
business two-fold for the coming year.
In making its annual report to the Trustees on the business of
1876, the Executive Committee under date of January 27, 1877,
noted that notwithstanding the unsettled and depressed financial
condition of the country, under which all business
interests had suffered during the year, the com-
pany had continued to advance and challenged com-
parison with all its rivals in the character of assets,
the strength of its reserve, the proportion of its surplus, and the
magnitude of its dividends.
It was shown that the year 1876 was the third in succession
during which the interest receipts of the company exceeded the
combined disbursements for death claims and expenses, thus fur-
nishing a practical proof of economy of management, favorable
mortality experience and the income-producing power of its in-
vestments.
On January I, 1877, the total assets of the company were
$18,062,825.02. The total amount then loaned on mortgages was
$11,605,627.99 and invested in United States and other bonds,
$375,259.08. The average annual rate per centum on the com-
pany's investments was 8.94.
During 1876, 4,968 policies of life insurance were issued for
$11,404,726 making the grand total of 36,456 in force with the
amount at risk, $67,493,191. The income of 1876 was $3,925,
372.25, while the death claims paid amounted to $872,865.51.
The report of the Examining Committee to the Trustees at
the meeting of January 31, 1877, was again devoted largely to com-
ments on the loan feature and was generally commendatory of
the system and the character of the loans. One of the interesting
incidentals of the report was the finding that the average security
on all loans then in force was $3.68 for every dollar invested.
Depression and Recuperation
179
William P. McLaren was elected a Trustee of the company at
the annual meeting of January 31, 1877, and so continued to the
date of his death. He also held other official positions.
William Pratt McLaren was born in Scotland, June 19, 1834.
He was educated in parochial schools at Glasgow until fourteen
years of age after which he spent two years at a grammar-school
in Perth. In 1853, he came to the United States, and after view-
ing business prospects, settled in Montreal, Canada, in 1856, en-
gaging in the grain and flour business. He came to Milwaukee
in 1864 and went into
the commission busi-
ness, retiring in 1884
to look after private
interests and those of
financial institutions
with which he became
connected.
On January 29,
1879, Mr. McLaren
was elected a member
of the Executive
Committee ; on July
19, 1893, Third Vice
President and on July
1 8, 1894, Second Vice
President, which po-
sition he held at the
time of his death,
March 2, 1904.
He was a very
able and valued officer. The Executive Committee, in a tribute
to his memory, after reviewing his services in various capacities
during a period of twenty-seven years, said : "More than that,
and in greater measure than can be said of most men, he gave to
the company, in an unstinted and devoted way, the best work of a
singularly clear, discriminating and well-trained mind, a remark-
able memory and untiring industry.
"He literally put his life and all its energies into his work,
with intelligent and rare fidelity.
Wm. P. McLaren
]8o Depression and Recuperation
"The company loses an efficient guiding hand in some of its
very important fields of endeavor and accomplishment ; and his
associates will always hold in affectionate remembrance his un-
failing courtesy and his qualities of cultivated and genial compan-
ionship."
The Agents' Association already noted, effected a perma-
nent organization by the adoption of a constitution and by-laws on
January 31, 1877 aiming thereby to become better acquainted with
each other, with the officers and Trustees and with the resources
and methods of the company, to represent and communicate the
wishes and suggestions of policyholders in their several districts,
to consult together as to common interests and to act together and
in harmony with the officers and Trustees on all matters relating
to the benefit of the company.
The association thus formed has continued uninterruptedly
from that date. Annual meetings have been held at the home of-
fice and the best thought of earnest men has been directed to its
affairs. The papers presented at various times before this associa-
tion are insurance classics and the practical results it has ac-
complished cannot be over estimated.
The association has a distinct history of its own which can-
not be outlined here. It has its records ; its distinctive literature
and its traditions. Only such features of its work and proceed-
ings, however, as may be classed with important historical events
in the life of the company can be noted in these pages.
Following is a list of those who have served as officers of the
association :
PRESIDENTS
Edward J. Smith, Boston, Mass January 31, 1877 to January 25, 1881.
Col. John B. Gary, Richmond, Va January 25, 1881 to July 19, 1898.
E. W. Poindexter, Topeka, Kas July 19, 1898 to July 18, 1899.
M. J. Mack, Cincinnati, O July 18, 1899 to July 17, 1900.
J. Carlton Ward, New York City July 17, 1900 to July 16, 1901.
Isaac Kaufman, Minneapolis, Minn July 16, 1901 to July 17, 1901.
A. W. Kimball, Chicago, 111 July 17, 1901 to July 15, 1902.
H. D. Rodman, Louisville, Ky July 15, 1902 to July 14, 1903.
D. E. Murphy, Milwaukee, Wis July 14, 1903 to July 19, 1904.
John I. D. Bristol, New York City July 19, 1904 to July 18, 1905.
Louis E. P. Smith, Boston, Mass July 18, 1905 to July 17, 1906.
R. J. Woods, Sioux Falls, S. D July 17, 1906 to July 16, 1907.
William T. Gage, Detroit, Mich July 16, 1907
Depression and Recuperation 181
VICE PRESIDENTS
Lindsey Webb, Minneapolis, Minn July 17, 1888 to July 15, 1890.
(first incumbent)
L. W. Moody, New Haven, Conn July 15, 1890 to July 18, 1893.
E. W. Poindexter, Topeka, Kas July 18, 1893 to July 17, 1894.
John Mallaney, Sioux Falls, S. D July 17, T894 to July 16, 1895.
Isaac Kaufman, Minneapolis, Minn July 16, 1895 to July 14, 1896.
George Pick, Milwaukee, Wis July 14, 1896 to July 20, 1897.
E. W. Poindexter, Topeka, Kas July 20, 1897 to July 19, 1898.
M. J. Mack, Cincinnati, O July 19, 1898 to July 18, 1899.
J. Carlton Ward, New York City July 18, 1899 to July 17, 1900.
Isaac Kaufman, Minneapolis, Minn July 17, 1900 to July 16, 1901.
Charles D. Norton, Chicago, 111 July 16, 1901 to July 17, 1901.
H. D. Rodman, Louisville, Ky . . . July 17, 1901 to July 15, 1902.
D. E. Murphy, Milwaukee, Wis July 15, 1902 to July 14, 1903.
John I. D. Bristol, New York City July 14, 1903 to July 19, 1904.
Louis E. P. Smith, Boston, Mass July 19, 1904 to July 18, 1905.
R. J. Woods, Sioux Falls, S. D July 18, 1905 to July 17, 1906.
William T. Gage, Detroit, Mich July 17, 1906 to July 16, 1907.
Charles E. Albright, Milwaukee, Wis July 16, 1907 :
SECRETARIES AND TREASURERS
Edwin S. Walker, Springfield, 111.. January 31, 1877 to January 25, 1881.
J. W. Howell, Scranton, Pa January 25, 1881 to January 24, 1882.
Edwin S. Walker, Springfield, 111 January 24, 1882 to July 20, 1886.
Geo. E. Copeland, then Davenport, la. . . July 20, 1886 to July 18, 1893.
C. D. Van Vechten, Cedar Rapids, la. .. July 18, 1893 to July 16, 1895.
Mills Whittlesey, Trenton, N. J July 16, 1895 to July 14, 1896.
J. F. Schindler, then Milwaukee, Wis July 14, 1896 to July 14, 1903.
A. W. Stevens, then Chicago, 111 July 14, 1903 to July 18, 1905.
W. K. Murphy, Milwaukee, Wis July 18, 1905 to July 16, 1907.
Franklin Mann, Chicago, 111 July 16, 1907
Of the Presidents, Edward J. Smith, Col. John B. Gary, A. W.
Kimball and D. E. Murphy have passed away.
Edward Johnson Smith was born at Hollister, Massachusetts,
October 22, 1838. He began soliciting life insurance in 1864
and came to the Northwestern in 1869, taking the general agency
for New England, and died in Boston July 17, 1886.
Col. John B. Cary died at his home in Richmond, Virginia,
January 13, 1898, in the seventy-ninth year of his age, after serv-
ing continuously since January 25, 1881 to the date of his death
as President of the association.
While he lived, no other man could take his place and on his
182 Depression and Recuperation
death the association honored his memory by the adoption of the
following resolutions :
"WHEREAS, on the 13th day of January 1898, death removed from
us our beloved President and co-worker Col. John B. Gary, of Rich-
mond, Va., and
"WHEREAS, for twenty-one years he was a General Agent of The
Northwestern Mutual Life Insurance Company for the States of Vir-
ginia and North Carolina, and
"WHEREAS, for sixteen years he has been by unbroken series of
annual elections chosen President of this body, always manifesting a
leadership which we have delighted to follow and year after year
gladly honored as we may perhaps never honor another, and
"WHEREAS, we feel that his gracious presence, his thoughtfulness,
and comprehensive grasp of our needs, his inspiring eloquence, as well
as his superior, parliamentary leadership, have contributed immeasur-
ably to the high and profitable character of the meetings of our asso-
ciation for many years; therefore, be it
"RESOLVED, That in the death of our beloved President we have
suffered a grievous personal loss, our association has lost a model
officer, our company an advocate to whom it owes much, one whose
devotion was characterized by a never-flagging zeal in spreading its
choicest blessings, and the business of life insurance has lost one of
its most conspicuous as well as purest, exponents; and
"RESOLVED, That not the least among the rich legacies he has
left us in the unmistakable testimony of his long and eventful life, is
the gentleness, scholarship, integrity, true culture, high character and
noble endeavor, as well as love to God and man, which illustrate the
truest type of the life insurance agent."
Owing to the otherwise intimate connection of Messrs. Murphy
and Kimball with the company, more extended reference to them
will be made in another part of this work.
The year 1877 brought to the company its first experience with
official examinations. In the summer of that year, the Insurance
Commissioner of Maryland and his actuary called on President
Palmer and informed him that they had come to investigate the
company. The President felt that if the investigation was to be
a real one such a one as would be of benefit to all concerned
other departments ought to be called in and he suggested that
those of Wisconsin, Illinois, Massachusetts and New York be in-
vited to participate. This was arranged and the five departments
with their corps of experts began the examination.
Depression and Recuperation 183
As A. W. Kimball described it in a speech before the Agents'
Association in 1891 :
"They pulled off their coats and rolled up their sleeves, and put
on their spectacles and took out their knives, and they got up on step-
ladders and down on their hands and knees, and they went through
every vault, drawer, shelf and pigeon-hole of the company, from attic
to basement, examining every record and paper on both sides, with
a deadly determination to find out what was 'wrong' about this com-
pany, and to discover those black spots on the planet Jupiter which
the astronomical gentlemen from Maryland were so sure were there.
They actually camped out with the Northwestern for over six weeks,
until one morning in the fall, exhausted with their long labors, they
all came together and sat down on a bench, and rolled down their
sleeves, and put on their coats and tooks off their spectacles, and
put their knives back in their pockets and looked lugubriously at one
another and whispered 'I-guess-we-came-to-the-wrong-place.' The
mountains had labored and brought forth not even a ridiculous
mouse!"
This investigation, however, was extremely valuable, since the
commissioners and investigators in their report gave the com-
pany a bill of health which invoked commendatory comment all
over the United States.
They found that the assets of the company on July I, 1877,
were $18,408,523.95, with liabilities of $15,521,238.33, leaving a
surplus as regards policyholders of $2,887,285.62.
The investments of the company in mortgages at that time,
amounted to $11,546,404.52 or nearly two-thirds of the assets and
the security in every loan largely exceeded that required by
law. The examiners were not satisfied with the company's
figures in this regard, but made a special appraisal of their own
and found, that even under the depressed state of the real estate
market, the mortgage loans of the company were secured by
values amounting to more than three times the total of the loans.
They also found that only reasonable salaries were paid of-
ficers and employees and that no officer received any compensa-
tion whatever contingent on the business done by way of commis-
sion on surplus or in any other manner than by fixed salary estab-
lished annually by the board of Trustees.
In brief, in every detail of the business they found much to
commend and nothing to condemn or criticise. The public press
184 Depression and Recuperation
throughout the country took up their report and commented freely
on the magnificent showing of the new institution in the grow-
ing west. The following excerpt, taken at random from the press
comments of the times, is from the Brooklyn Catholic Review of
October 16, 1877:
"We print on the last page of this paper the report of the Com-
mission of Insurance Superintendents who have lately concluded an
examination of The Northwestern Mutual Life Insurance Company.
It is a very remarkable testimony from well-known and efficient public
officers, and their unqualified recommendation, coming as it does from
a source which is beyond question, must carry with it a weight to
which it would be difficult to add. From those who have been
acquainted with the Northwestern, its management and method of
business, we are glad to hear that the report of the commission is
only a confirmation of what has already been patent to them. The
company has during the past seven or eight years, owing to a series
of causes which have accompanied it from the beginning, advanced
with gigantic strides, until today it holds a foremost place in the very
front rank of life insurance companies. And with a true Northwestern
spirit it sounds no timorous challenge, parades no confusing figures,
or makes no obscure comparisons with the very oldest and greatest
of its rivals, but in the plainest and boldest key asserts its 'superiority
in every element which serves to make up the strength, security and
prosperity of a life insurance company. Its ratio of surplus to liabili-
ties is greater than that of any similar organization; its interest re-
ceipts have for years more than paid all its death losses and expenses
a showing no other company in the world can make; and its per-
centage of dividends to policyholders is largely in excess of that paid
by any other company; so that in these most vital elements of great-
ness it stands pre-eminent/ All this must have been the result of a
management prudent, able, honest and far-seeing, coupled with causes
which the Northwestern alone has been able to take advantage of."
In concluding their report the commissioners said it was also
due the company to state that its books and accounts in every de-
partment showed a degree of accuracy not easily surpassed; in
the actuarial department, the record books and all details of ac-
count could not be more satisfactorily kept and the system of
accountability and accuracy throughout found unqualified ap-
proval. The report was signed by Jesse K. Hines, Insurance
Commissioner for Maryland; Peter Doyle, Secretary of State
and Ex-Officio Commissioner of Insurance of Wisconsin; S. H.
Rhodes, Insurance Commissioner of Massachusetts ; John F.
Depression and Recuperation 185
Smyth, Superintendent of Insurance, of New York, and T. B.
Needles, Auditor and Ex-Officio Insurance Commissioner of
Illinois.
The assets of the company on the first day of January 1878,
were $18,173,756.90; the total amount loaned on real estate secur-
ity was $12,193,014.83 and the whole number of policies in force
was 34,766, the whole amount at risk being
$64,416,847.
During the year 1877, the company issued 3,650
policies covering risks to the amount of $7,859,542.
The income for the year was $3,711,087.11, and the death losses
paid were $763,844.86, distributed in twenty-nine states and terri-
tories. Notwithstanding the continued pressure of financial dis-
tress throughout the country, the interest actually received by the
company in 1877 was largely in excess of that of any previous
year and, for the fourth successive time, the company was enabled
to pay all its disbursements for death claims and expenses out of
the interest receipts.
The growth of the company made a separate Law department
a requisite in place of referring its multiplied legal matters to
an outside law office, and it was resolved to appoint a Counsel
who was to have the general charge and responsibility of all the
law business of the company and who should devote his entire
time to its service. David G. Hooker who had done much of its
law business in the past and was thoroughly familiar with the
affairs of the company was elected Counsel on February n, 1878,
and held the position until his death March 24, 1888.
David G. Hooker was born in Poultney, Vermont, September
14, 1830. He graduated from Middlebury College in 1853, and
in 1856 was admitted to practice law. He came to Milwaukee
in 1856, and at different times was associated with some of the
most eminent members of the bar in Wisconsin. He was city at-
torney of Milwaukee from 1867 to 1870 and its mayor in 1872
and 1873. After being appointed Counsel of the company, he
was elected a Trustee on July 10, 1878, to fill the vacancy on
the board created by the resignation of Henry B. Sherman, of
Milwaukee, and later was appointed a member of the company's
Executive Committee.
No better testimonial of Mr. Hooker's ability and worth need
186 Depression and Recuperation
be given than to repeat the words of the Judge of the Superior
Court of Milwaukee County, in presenting a memorial of the bar
of Milwaukee, to the Supreme Court of Wisconsin. He said:
"Mr. Hooker excelled in safe and judicious counsel. Deliberate
in coming to his conclusions, he expressed them when formed
with brevity and great precision and adhered to them with the
tenacity of strong conviction. Reflection and firmness were pre-
dominating qualities. With these tendencies of mind, there were
no hasty opinions or ill-considered advice given by him. In his
specialties of real estate and insurance law, to which in later life
he devoted himself, he became a master. On questions of title
and investment, ranging through an almost limitless field of in-
quiry, and involving the statutes and decisions of many states,
he became an unquestioned authority. It will be to his imperish-
able credit that the vast securities of that great insurance com-
pany which he so ably counseled and faithfully served are with-
out a flaw in title, and will stand secure as adamant whether in
periods of panic and depression or amidst the fluctuations of time
and credit."
In recording his death the Executive Committee
"RESOLVED that in the death of D. G. Hooker, The Northwestern
Mutual Life Insurance Company has lost a thoroughly efficient and
faithful officer, whose long experience, integrity and devotion to its
interests will never be forgotten; the city has lost an upright, pure and
useful citizen and all his associates have lost a true and valued friend."
Formal resolution withdrawing from the Dominion of Canada,
for reasons heretofore stated, was adopted by the Executive Com-
mittee on March 18, 1878.
It was early in 1878 that the company had one of its periodi-
cal experiences with legislative attempts at excessive taxation.
A bill was introduced in the legislature of Wisconsin to levy a tax
of one per centum on the gross assets of the company, together
with a tax of two per centum on its annual receipts for premiums
and interest. The proposition was too repellant to the sense of
justice of legislators to meet with favor. A new basis was adopt-
ed, however, which doubled the existing rate, making it two per
centum on the cash premium receipts in the state, with the real
estate of the company still subject to taxation. This continued to
Depression and Recuperation 187
be the law for twenty years. (Chapter 256, Laws of 1878, ap-
proved March 18, 1878.)
In the course of the year it was found difficult to make satis-
factory real estate loans of all accumulating funds and the Execu-
tive Committee authorized the president to buy $500,000 of
United States bonds of such issues as he might deem best for the
purpose of investment.
The year 1878, marked by shrinkage of values, many business
failures and general financial distress, proved an unfavorable one
also in the business of the Northwestern.
The records show that on the first day of Janu-
ary 1879, the company had less insurance in force
than the year previous, although its assets had
slightly increased.
On the first day of January 1878, the company had 34,766
policies in force representing a total amount of $64,416,847 in-
sured. On the first day of January 1879, it had but 33,254 policies
and the amount at risk was $61,441,014. In 1877, 3,650 policies
covering $7,859,542 were written while the showing for 1878 was
3,068 policies amounting to $6,584,816 of insurance.
The successful accomplishment of specie resumption in Janu-
ary 1879 gave fresh courage and hope to people, however, and
the renewed confidence was productive of improving business re-
sults.
In the latter part of 1878, the company established an Inquiry
department whose function was to acquaint itself with the moral
hazard of applicants and those already insured.
The Examining Committee commended the introduction of
the system in a report to the Trustees on January 29, 1879. This
committee also recom nended that at each monthly meeting of
the Executive Committee and at every quarterly meeting of the
Trustees, full special reports by officers be made showing the
progress of loan agents in the field; the sales and purchases of
real estate ; the condition of the various general agencies and the
progress made by special inspectors of real estate, to the end
that Trustees should be given detailed information of what was
being done and how it was being accomplished. This was im-
mediately adopted.
President Palmer sent a communication to the Executive Com-
i88 Depression and Recuperation
mittee dated June 10, 1879, stating that the company had about
$994,000 in banks drawing two and one-half per cent interest,
owing to inability to make investments on safe and adequate secur-
ity, for three principal reasons:
FIRST: The large amount of unemployed capital in the country
seeking investment, the amount apparently exceeding the demand in
the territory within which the company was then loaning;
SECOND: The narrow limits within which the investments of the
company were circumscribed by the law of Wisconsin which governed
them, being allowed to invest in proper proportions only in stocks of
the United States; stocks of states; bonds of incorporated cities and
towns and mortgages on real estate; and
THIRD: The rigid scrutiny as to the character and value of prop-
erty offered as security for loans on real estate which experience had
proven was -necessary to the safety of mortgage investments.
He urged the Executive Committee to give careful considera-
tion to the whole subject of investments making them absolutely
safe and at the same time productive of a satisfactory rate of in-
terest as soon as possible after reaching the treasury of the com-
pany.
He suggested further that experience had demonstrated the
necessity of separating the loan business entirely from that of
soliciting life insurance. The insurance solicitor needed all his
time and thought to devote to his branch of the business; the
loan agent needed to educate himself to that business and to con-
stantly study values, local and general, specific and relative,
throughout his field. The financial character and standing of
every loan applicant should be investigated and a personal ex-
amination and valuation of the property offered for security
should be made by one acting for, wholly in the interests of, and
paid by, the company.
This meant the selection and placing of competent and re-
liable men in the loaning field for the purpose indicated, and the
Executive Committee adopted a resolution to the effect that a Spe-
cial Loan Agent should be placed in each loaning field, to give
his entire time and attention to obtaining applications for loans,
investigating the character and value of property offered as secur-
ity, the business character and standing of the applicant and at-
tending to consummating the loans.
Depression and Recuperation 189
Some months after this resolution was adopted one of the
largest general agencies in the employ of the company made
a formal request that the loan business be transacted through
their agency, but the policy of the company was definitely settled
by a reply to them on November 19, 1879, to the effect that no
recommendation could be made involving a variation in the gen-
eral policy of the company requiring all loan applications to be
accompanied by an independent valuation of a salaried repre-
sentative of the company who had no interest whatever in the
result of the application.
Thus began the company's existing system of effecting real
estate loans through the medium of Special Loan Agents acting
for the company and not the applicant, and not dependent upon
the acceptance of the loan for compensation or commissions.
At the time the resolution was adopted the nucleus of the sys-
tem had already been formed by the employment of A. B. Alden,
in Ohio; Redmond Prindiville, in Illinois, and Clum Drew in
Minnesota. Of these, Mr. Prindiville still remains with the com-
pany as Special Loan Agent in Chicago, and is the dean of the
profession. The names of the present Loan Agents of the com-
pany will later appear.
It is interesting to note that as early in the experience of the
the company as 1879, it was found necessary to address a circular
to the agents calling attention to the fact that frauds in life insur-
ance were becoming manifest and alarming, and that when in-
surance companies investigated mysterious deaths, influences not
always discountenanced by agents were brought to bear to con-
demn the action taken. Agents were reminded that they must
bear in mind that officers and agents of insurance companies have
a sacred fund to protect.
It is probable that this circular was prompted by the publicity
given the famous Hillmon case of Kansas. The facts in that case,
briefly stated, are as follows : John W. Hillmon took out a large
amount of insurance on his life early in 1879, all payable to his
wife. Some of the insurance was taken as late as March 4 of
that year. On March 17, 1879, it was claimed, Hillmon was killed
by the accidental discharge of a gun in a camp near Medicine
Lodge, a part of Kansas then sparsely settled. Investigators be-
came convinced that Hillmon was not dead and that a conspiracy
190 Depression and Recuperation
had been formed to defraud the companies that had insured his
life, the Northwestern not being among the number. The inter-
ested companies, therefore, resisted payment of the death claims
and suit being brought contended that Hillmon was still living
and that the body produced at Lawrence, Kansas, where Hillmon
resided, was the corpse of another man. The case was tried six
times and was finally, in 1901, after being in the courts twenty-
one years, decided against the companies.
One of the singular whims of chance made itself manifest to
the company in the summer of 1879, when the officers received a
letter from a certain D. E. Murphy, of Chicago, inquiring about
an agency. The Northwestern needed solicitors and on July 8,
1879, a proposition was returned to him offering reasonable com-
missions on business and containing the following: "To aid you
in starting we will be willing to pay your board bill in the city for
a short time at the rate of five or six dollars per week, and when
it is thought advisable for you to go into the country, will advance
you money to pay your expenses."
Think of a letter like that written to Daniel E. Murphy who
afterward became one of the largest producers in the United
States.
Mr. Murphy accepted the proposition and was so successful
that on June 5, 1882, he was appointed General Agent for the
Northern Peninsula of Michigan, and Marinette, Oconto, Flor-
ence and Door Counties, Wisconsin. December 10, 1898, this
agency was enlarged to include the Northern Peninsula and the
whole State of Wisconsin. February 21, 1902, a new contract
was made by the company for the same field with Mr. Murphy
and William H. Surles.
Daniel E. Murphy was born in Ireland, June 16, 1843 1 came
to America in 1859; worked at the carpenter's trade until 1868;
then opened a book-store at Bridgeport, Connecticut; developed
a real estate, life insurance and steamship agency; was financially
embarrassed by the panic of 1873, and subsequently came to the
Northwestern as stated. He died May 6, 1906.
It has been publicly said of Mr. Murphy that he was one of
the best insurance men of his time. He was eminently successful
as a business producer. His partner, Mr. Surles, continued with
the company to the date of his death, August 20, 1907.
Depression and Recuperation 191
On August 9, 1879, the company had the proud satisfaction
of issuing policy numbered 100,000 but it is to be regretted that the
insured, a gentleman then living in Boston, suffered this unique
policy to lapse after one semi-annual premium had been paid,
thereby losing the benefit of a profitable investment and utterly
disregarding the great honor that would have come to him had he
carried policy No. 100,000 to finality.
An air of modernity is here and there distinguishable in the
company affairs of 1879 and one notes with interest a long and
technical report by three of the Executive Committee, outlining
in almost verbose detail, an elevator system for the office-build-
ing and a method of heating by steam. A somewhat startling
proposition then, it was not so long before both were installed.
Cornelius Walford, of London, England, the great lawyer and
publicist, whose Insurance Guide and Hand Book is standard, was
a guest of Actuary McClintock at the home office of the company
September 16, 1879.
On the twenty-fifth day of November, 1879, The Northwest-
ern Mutual Life Insurance Company attained to its majority but
as it did not accomplish much between November 25, 1858, the
date it was organized, and the first day of the fol-
lowing year, its status on the first day of January
1880, may truthfully be said to represent twenty-
one years of growth. Commentators on this de-
velopment at the time considered its wonderful career of progress
attributable to the exhibition of unusual prudence, economy and
sound judgment on the part of its officers, not only in the in-
vestment of funds but in the selection of lives and the curtail-
ment of management expenses.
The annual report of conditions at the close of business, De-
cember 31, 1879, made the assets $18,002,142.35 and the surplus
over a four per cent reserve, $3,028,158.86. During the year the
company issued 3,345 policies covering risks to the amount of
$7,640,660, making a grand total of 33,066 policies in force repre-
senting $61,948,888 of insurance.
Among the assets of the company were first mortgages on real
estate to the amount of $10,398,984.63; premium notes, $2,154,-
211.21; real estate, $1,666,997.96 and United States and other
bonds, $1,913,525.19.
192 Depression and Recuperation
Returning confidence and ability on the part of the members
to keep their insurance in force were indicated by the fact that
during 1879, the company was called upon to pay about one-half
as much for surrendered and lapsed policies as was paid the pre-
ceding year. It looked as if public opinion had settled down (so
the Executive Committee reported to the Trustees on January
23, 1880) to the conviction that those companies which had suc-
cessfully passed through the general business trials and disasters
of the six years then passed, and were stronger than they were at
the beginning of that period, were entitled to the fullest con-
fidence. And so they were.
On January 6, 1880, at an informal meeting of the Trustees
called for that purpose, the President announced the death of Dr.
Erastus B. Wolcott, whose official connection with the company
has been heretofore outlined.
Dr. Wolcott died January 5, 1880, at his home in Milwaukee,
and a committee of five was appointed to draft suitable resolu-
tions, which were adopted next day at a called meeting of the
Trustees. After recounting Dr. Wolcott's connection with the
company it was
"RESOLVED that the memory of Dr. Wolcott deserves to be cher-
ished not only by this board but by the city and state, as most honor-
able, for his high integrity, innate love of justice, and unassuming but
fearless independence; for his public services, his exalted position in.
his chosen profession and his high standing in the community in which
he lived; for the courtesy which he habitually extended to all men, and
his possession in an eminent degree of the attributes which make up
the genial gentleman and honorable man."
The Executive Committee passed a resolution in 1879, provid-
ing for monthly reports by officers and corresponding meetings of
the committee to receive and consider them. These meetings
were generally held at seven o'clock in the evening so they would
not conflict with the daily duties. It would gratify Northwestern
policyholders to read these reports in full on the record-books
of the company. No detail was too small to be slighted and
every essential is shown in full. An extract from the records
of a meeting held January 22, 1880 is here given. The Vice
President, in reviewing the condition of insurance affairs at the
time, said:
Depression and Recuperation 193
"I deem it proper to present to this committee the general situation
of the life insurance business for the past year as well as for the last
five or six years, or since the panic, and the consequent prostration
of the business interests of the country affecting life insurance and
the volume of new work more seriously perhaps, than any other trade,
industry or pursuit. * * Insurance agents did not find their
occupation as profitable and remunerative and to their business of life
insurance they added fire insurance or some other agency work of
kindred character merely giving time to life insurance sufficient to
save the business theretofore secured, without attempting to obtain
new work. Hence occurred a large falling off in new business. This
was not the only unpleasant or unfavorable outlook. A large amount
of business secured in years past, having been on our books and hav-
ing paid annual premiums for one or two years, or more, the period of
depression caused many to feel themselves unable to continue their
policies and they have therefore discontinued them; taking their values
in cash or in paid-up insurance. This was to be expected following the
panic and the depressed condition of business. Persons were unem-
ployed, business no longer yielding a profit for labor and capital
invested was discontinued or prosecuted at a loss, and therefore, life
insurance not being considered an immediate necessity, was on the
list of articles not wanted. Insurance workers became fewer in num-
ber and only those remained who had a paying business on their
books. Others sought employment on a salary basis. This salary
plan was tried, the company taking a risk which the agent was
unwilling and perhaps unable to assume. It was not a success. * * *
The older and larger companies have not reduced nor contracted their
field of operations, but continue to work in the Southern states, Cali-
fornia, and nearly all of them in Canada, fields abandoned by the
Northwestern. These opposing companies, located at the great money
and business centres of the country, have had all advantages, friendly
and business connections to aid them in the immediate field of their
operations, generally confined to the large cities and their vicinities,
and to which the Northwestern was considered a stranger if not an
intruder, and worse yet, a western company, a name generally con-
sidered there as synonymous with 'wild-cat.' "
The question of retiring from Missouri came up for considera-
tion before the Executive Committee on January 22, 1880, that
state having passed a law providing that no policy of insurance
should be forfeited or become void for non-payment of premium
after two annual premiums had been paid thereon, but should be
subject to rules of commutation enacted by the law, and that after
two full annual premiums had been paid, a policyholder should be
entitled to paid-up insurance as provided in the statute. The
IQ4 Depression and Recuperation
Northwestern's policies required payment for three years to
secure paid-up insurance or a cash value.
It was objected that the law sought to impose a different
contract on policies issued in Wisconsin from that conveyed by
policies issued elsewhere, destroying the principle of mutuality.
Actuary McClintock wrote concerning it: "The formation of a
special class of this kind is not at all like the constitution of a spe-
cial class of members like a Tontine class. If all members have
the right to join a Tontine class, if they please, none can com-
plain of its institution. In this case no applicant residing out-
side of Missouri can by any possibility enter the Missouri class,
and hence all would have just ground of complaint." There
were other objectionable features of the law to which special at-
tention was given, and it became a very serious question whether
the company should not give up its agency in Missouri and cease
doing business there. This it was reluctant to do and it was
Concluded to insert in Missouri policies, and applications therefor,
c stipulation that the contracts were to be construed according to
the laws of the State of Wisconsin. Later it was decided that
these contracts would, notwithstanding this stipulation, be ruled
by the law of Missouri, and the Northwestern withdrew from that
state in 1884.
A modification having been made in the California law which
appeared to be more acceptable to insurance companies, and a
number that had withdrawn in 1874 having returned, it was de-
cided that the Northwestern should renew its work in that field.
The usual annual committee appointed in 1880 to examine the
accounts and departments of the company made recommenda-
tions to the Trustees on January 27, 1880, among which were
that an Auditor be appointed and a complete divorcement made
between the business of insurance and the placing of loans.
In addition to the above, it having been suggested that the
President should be relieved of some of his many arduous duties,
the Trustees at their meeting January 28, 1880, provided for a
Special Real Estate department to take charge of and sell as
speedily as possible, the real estate acquired by the company
from foreclosure of mortgages.
The department thus formed was placed in charge of the As-
sistant Cashier, but later under the personal direction of one of
Depression and Recuperation 195
the Vice Presidents and still later under a committee composed
of the Vice President, the Auditor and a member of the Execu-
tive Committee.
It may be interesting to know that the first telephone ever
used in the office of the Northwestern was installed May n,
1880. There are now in the home office sixty instruments, with
a well established and running switch-board capable of caring for
eighty telephones.
This year was further noteworthy as the one in which the
question of employing women at the home office, a subject that
had been receiving considerable official attention on various oc-
casions, was definitely settled by the employment of Miss
Frances Lillian Madden, then of Elkhorn, Wisconsin, on Sep-
tember 7, 1880. Miss Madden has, therefore, the unique dis-
tinction of having been the first woman ever employed at the
home office. She was given a place in the Collection division,
and still remains with the company. Before coming to the North-
western, Miss Madden was principal of a school at Lyons, Wis-
consin, and among her pupils was Zeno M. Host, who afterward
became Insurance Commissioner of Wisconsin.
Following closely after Miss Madden, and on September 15,
1880, Miss Hetta Merrill Russell came and remained until Sep-
tember 30, 1905-, when she resigned to make her home at Waynes-
ville, North Carolina.
There are now employed at the home office sixty-four women.
Beginning of Progressive Era
THE period which began with the year 1881 has been one of
continued prosperity for The Northwestern Mutual Life
Insurance Company. Starting with a hope of continued
existence at a time when every circumstance fought to crush out
its young life, and long before the west had been even thought
of as a fitting place for the launching of financial enterprises ;
struggling in the midst of a general business depression and
against the competition of great eastern companies, it had been
pursuing its way and had passed through a severe financial crisis,
which it bore without a tremor, yea, it had even thriven under
years of business depression and had emerged with a reputation
and a general system of business so well established that nothing
could shake it.
In the decade preceding 1881, the Northwestern, while faring
much better than many of its contemporaries, had not increased
its insurance in force. In 1871, it had sixty-five million out-
standing; in 1872, sixty-two; in 1873, sixty- four; in 1874, sixty-
four; in 1875, sixty-five; in 1876, sixty-seven; in 1877, sixty-
seven; in 1878, sixty- four; in 1879, sixty-one, and in 1880, sixty-
one million.
Still it must not be forgotten that the premium receipts of the
company from the date of its organization to January i, 1881,
had been $37,452,223.11 and its payments to its own members
and representatives of deceased members aggre-
gated $25,007,879.22.
The year 1880 had already given evidence of the
benefits accruing from improving conditions. Dur-
ing that year 3,951 policies had been written, covering risks to the
amount of $8,683,702, making on January i, 1881, the whole num-
ber of policies in force 34,172 and the total amount at risk $64,-
967,081, an increase of 1,106 policies and $3,018,193 over the pre-
ceding year.
The loan account showed an investment of $9,985,729.05 in
real estate mortgages; $2,470,184.31 in United States and other
196
Beginning of Progressive Era 199
bonds; $1,873,329.46 in premium notes and the total assets Janu-
ary i, 1881, were $18,346,212.38. The surplus was $3,011,-
297.01.
The Examining Committee in its inspection of the various de-
partments of the company noted the many duties required of of-
ficers and made a recommendation which led to substantial ad-
vantage. This was the appointment of a Superintendent of
Agencies whose whole time was to be given to the life insur-
ance proper, as distinguished from the loan, land or any other de-
partments of the company, the Vice President to give his entire
time to the loan and real estate features of the work.
It took until December 17, 1881, for circumstances to make
this plan feasible but on that date \Yillard Merrill, Secretary,
was designated as Superintendent of Agencies and the Vice Presi-
dent, Mr. Keenan, was placed in charge of the Real Estate
department.
On April 13, 1881, a committee composed of H. L. Palmer,
Matthew Keenan, Emory McClintock, William P. McLaren and
Willard Merrill, reported that after making inquiries in regard
to forms of tontine policies, the principles on which that class
of insurance was based, the estimation in which it was held by
the business public and its safety and practicability, they recom-
mended that the company receive applications and issue policies
on the Tontine plan. This was adopted although the Secretary
of the company, Willard Merrill, did not concur in the conclusion,
but nevertheless pledged his cheerful and cordial co-operation
in aiding the system if adopted.
The first full Tontine policy was issued by the company May
4, 1881, and was numbered 107,157; the last one, November 25,
1885, numbered 138,734.
The first Semi-Tontine policy of the company was numbered
124,277 and was issued December 15, 1883. The issuance of
semi-tontine insurance ceased June 24, 1905, the company volun-
tarily abandoning the system of deferred dividend policies before
there was any legislation whatever on the subject.
Within the few lines thus devoted to the tontine feature in
the company's progress, there is a fund of history that might be
given. It is a form of insurance as to which there has always
been controversy, which was once held in high favor but is now
200
Beginning of Progressive Era
discarded. Interesting as it is, it is hardly desirable here to dis-
cuss the pros and cons of the system. It must be said, however,
that the adoption of the Deferred Dividend plan at the time it re-
ceived the Northwestern's sanction, was most propitious, as it im-
mediately gave a new incentive to agents and enabled them to
meet the demands of the insuring public. It is indisputable that
from that time the Northwestern has never failed to make gains.
Indeed, within six years succeeding its introduction, the company
had twice as much insurance in force as it had in 1880. The
Northwestern, however, never forced this plan but left it to the
full choice of the applicant to take his insurance in this form or
with the regular annual dividends.
At the same meeting, also, began the custom of giving prizes
to agents who annually led in the amount of business written,
which continued until the Armstrong law appeared to prohibit
the practice. Those who attained to the proud distinction of hav-
ing led the field force of the company, since the competition was
started on the basis of iSSi, are here named:
Date
Class
Name
Residence
Jan 1881
D Stevenson
Rochester, Minnesota.
Jan., 1882
Jan, 1883
Jas. Allen
D. E. Murphy
Norwich, Connecticut.
Marquette, Michigan.
July, 1883
Jas. Allen (6 mo.)
Norwich, Connecticut.
July 1884
D. E Murphy
Marquette, Michigan.
July 1885
D. E. Murphy
Marquette, Michigan.
July 1886
John E. Dean
Chicago, Illinois.
July, 1887
Oliver Williams 1 _.
Denver, Colorado.
July, 1887
July 1888
y Tie
L. L. Anderson J
J. I. D. Bristol
Louisville, Kentucky.
New York City.
July 1889
D. E. Murphy
Milwaukee, Wisconsin.
July 1890
P. T. Throop
Nashville, Tennessee.
July 1891
I. Kaufmann
Minneapolis, Minnesota.
July 1892
I. Kaufmann
Minneapolis, Minnesota.
July, 1893
July 1894
Geo. Pick
Geo. Pick
Milwaukee, Wisconsin.
Milwaukee, Wisconsin.
July 1895
Geo Pick
Alilwaukee, Wisconsin.
July 1896
Geo Pick
Milwaukee, Wisconsin.
July, 1897
July 1897
Class AA
Class A
Geo. Pick
No winner
Milwaukee, Wisconsin.
July, 1897
Class B
Stetson Leach
New York City.
Beginning of Progressive
201
Date
Class
Name
Residence
July. 1897
Class C
Millard W. Mack
Cincinnati, Ohio.
July. 1897
Class D
J. Carlton Ward
Xew York City.
July, 1898
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1898
Class A
Stetson Leach
Xew York City.
July, 1898
Class B
A. Turner
Xew York City.
July, 1898
Class C
Millard W. Mack
Cincinnati, Ohio.
July, 1898
Class D
J. L. Downes
Baltimore, Maryland.
July. 1899
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1899
Class A
J. Carlton Ward
Xew York City.
July, 1899
Class B
Millard W. .Mack
Cincinnati, Ohio.
July, 1899
Class C
H. E. Crouch
Chicago, Illinois.
July, 1899
Class D
O. L. Gooding
Minneapolis, Minnesota.
July, 1900
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1900
Class A
Albert Turner
Xew York City.
July, 1900
Class B
Thomas Bell
Xew York City.
July, 1900
Class C
J. L. Downes
Baltimore, Maryland.
July, 1900
Class D
G. J. P. Raub
Quarrysville, Pa.
July, 1901
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1901
Class A
A. B. Newman
Chicago, Illinois.
July, 1901
Class B
Thomas Bell
Xew York City.
July, 1901
Class C
J. L. Downes
Baltimore, Maryland.
July, 1901
Class D
Sam D. Goza
Denver, Colorado.
July, 1902
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1902
Class A
A. Turner
Xew York City.
July, 1902
Class B
Chas. Sachs
Chicago, Illinois.
July, 1902
Class C
R. O. Becker
Peoria, Illinois.
July, 1902
Class D
X. S. Jonas
Brooklyn, New York.
July, 1903
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1903
Class A
B. X. Waller
Council Bluffs, Iowa.
July, 1903
Class B
A. C. Murdough
Chicago, Illinois.
July, 1903
Class C
Xo winner
July! 1903
Class D
Wm. McMullan ) ^
Minneapolis, Minnesota.
July, 1903
Class D
D. P. Donovan }
Boston, Massachusetts.
July, 1904
Class AA
Robert R. Reid
New York City.
July, 1904
Class A
Dan. P. Donovan
Boston, Massachusetts.
July, 1904
Class B
J.T. McGiveran) Tie
Green Bay, Wisconsin.
July, 1904
Class B
Chas. Sachs (
Chicago, Illinois.
July, 1904
Class C
William McMullan
Minneapolis, Minnesota.
July, 1904
Class D
W. B. Lindsley
Boston, Massachusetts.
July, 1905
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1905
Class A
Dan. P. Donovan
Boston, Massachusetts.
July, 1905
Class B
M. E. O'Brien) .
Calumet, Michigan.
July, 1905
Class B
L. W. Mack j
Xew York City.
202
Beginning of Progressive Era
Date
Class
Name
Residence
July, 1905
Class C
J. W. McGiveran
Green Bay, Wisconsin.
July, 1905
Class C
Edward W. Allen
New York City.
July, 1905
Class D
H. N. Cockerline
Salem, Oregon.
July, 1905
Class D
Ralph H. Hobart
Chicago, Illinois.
July, 1905
Class D
N. P. Langford, Jr.
St. Paul, Minnesota.
July, 1906
Class AA
Geo. Pick
Milwaukee, Wisconsin.
July, 1906
Class A
Ralph H. Hobart
Chicago, Illinois.
July, 1906
Class B
Lawrence W. Mack
New York City.
July, 1906
Class C
Royal S. Goldsbury
New York City.
July, 1906
Class D
J. Griffin Daughtry
New York City.
July, 1907
Class AA
Dr. C. E. Albright
Milwaukee, Wisconsin.
July, 1907
Class A
Rudolph Recht
New York City.
July, 1907
Class B
Lawrence W. Mack
New York City.
July, 1907
Class C
William C. Mage
St. Louis, Missouri.
July, 1907
Class D
L. L. Anderson
Louisville, Kentucky.
The regard in which the Northwestern was held in the early
8o's may be judged from correspondence had in March and April
1881, between Willis Danforth, a prominent physician of Mil-
waukee, and William S. Candee, a banker of the same city, who
occupied no other relation to the company than that of policy
holder. Following are two of the letters which are self-explana-
tory :
"March 26, 1881.
"William S. Candee, Esq.,
Cashier Mfg'r's. Bank,
Milwaukee.
Dear Sir:
Your name has been mentioned to me by an agent of the North-
western Mutual Life of this city as one who, among many others,
has had an endowment policy in that company for a number of years
now matured and paid. It is stated that the result of your experience
is entirely satisfactory; that the company has not only given you
insurance on a non-forfeiting policy for nineteen years, but has re-
turned your money with 4-7/10 per cent compound interest, or
$176.64 for every $100 you paid the company. I am contemplating
insurance in some company and would be pleased to have you let me
know if the above statements are true.
Very truly yours,
(Signed) W. Danforth."
Beginning of Progressive Era 203
"Milwaukee, April 7, 1881.
"Willis Danforth, M. D.,
Milwaukee, Wis.
Dear Sir:
Yours of the 26th ult., was duly received. In reply I cheerfully
say that I have a very high opinion of the Northwestern Mutual Life
of which you inquire. I am pleased to learn that you are contem-
plating taking out a policy as I not only consider that company the
very best there is, but I have ever regarded it as the plain duty of
every man, rich or poor, to insure his life even before he insures his
property, as life should be considered much the most valuable and
there are more chances that men will die than that property will burn.
About nineteen years ago I instinctively felt the necessity of in-
suring my life. Unsolicited I went to the office of the Northwestern,
then in its infancy, just the same as I would go to buy anything else
that I felt the need of. I looked over the various plans and con-
cluded to take an endowment policy. I was then thirty-one years
of age, and I ordered the policy made payable at death or when I
arrived at the age of fifty. The amount was $5,000. My policy has
matured and I have received my money with the exception of one
dividend not due until 1882. I must say right here that the result
has been exceedingly gratifying, much beyond anything I could rea-
sonably expect. Indeed I feel that I cannot say enough to do justice
to the modest and efficient management which accomplishes such fine
results. I will, therefore, give you the record of my policy so that
you may judge yourself whether or not I have reason to be well
satisfied.
My age was thirty-one; the amount $5,000; the time nineteen
years and the annual premium $237.
Total premium in 19 years $4,503.00
Total dividends received prior to 1881 1,492.91
Net cost of policy 3,010.09
Cash received from company March 24, 1881. $5 .000.00
Dividend of 1881 in addition 158.45
Total cash received 5,158.45
Another dividend will become due me in
1882, which will probably be as much as
the one just received with the amount of
my policy, viz. : $158.45 158.45
Total amount of policy with dividend added. 5,316.90
Net cost of policy as above 3,010.09
Net profit $2,306.81
Or nearly 5% compound interest on my money with life insurance
thrown in for 19 years.
2O4 Beginning of Progressive Bra
To put it in another light. I received about $177 for every $100
in cash paid to the company. The number of my policy was 1810,
being among the first issued, consequently its history is the history
of the company; and as institutions of this kind like men have to
creep before they can walk so my policy had to bear its full share
of expense in the early establishment of the company.
I will give you the earnings of my policy the first ten years as
compared with the last:
Total dividends the first ten years $ 422.24
Total dividends the last ten years 1,387.25
$1,809.49
The language of this record cannot be improved by anything
which I might gladly add. It simply speaks volumes for the manage-
ment that without display or "gush" of any kind accomplishes such
results.
I have been told by agents of eastern companies that they could
do better than the Northwestern. I have examined their plans and
I have not seen a single case where their advertised results equalled
the above record of my policy in the Northwestern. This being the
case I have concluded to take out another policy in this western
institution, believing it to be the best there is, and I have no hesita-
tion in recommending it to your favorable consideration.
Yours truly,
(Signed) W. S. Candee."
A special meeting of the Agents' Association was held on
July 20, 1 88 1, at which resolutions were adopted expressing un-
qualified horror at, and condemnation of, the infamous shooting
of President Garfield ; extending sympathy to him and his family
and expressing the hope of his speedy restoration to health, which
resolutions were telegraphed to Secretary Elaine.
Resolutions were also adopted requesting the company to ex-
tend to other than ordinary life policies, the plan by which the
first and second years' premium might be settled in part by credit ;
expressing the opinion that January was a better time of the year
than July in which to hold the annual meeting of the associa-
tion, notwithstanding former action, and recommending a modi-
fication of the then existing non-forfeiting rule so as to provide
for an equitable amount of insurance in case of lapse, without
surrender of the policy.
These are but samples of the continuing requests and recom-
mendations made by the association, and the officers at the home
Beginning of Progressive Era 205
office have always welcomed exchange of views between them-
selves and those equally interested and concerned in the welfare
of the company. The system has been an important factor in
development and liberalization.
It would be interesting to note the resolutions adopted each
year at these agents' meetings but space allowed will hardly permit
it. A special section of this work will give the evolution of the
policy contract, and while the part the Agents' Association took
in its liberalization may not specifically appear, it must, never-
theless, be borne in mind that it is by no means insignificant.
Now and then an examiner of the records is amused to find
some detail that appears trivial in the present state of things.
One such is shown in a formal resolution of the Executive Com-
mittee dated September 10, 1881, authorizing the President to
sign a consent for a street railway to run past the office building.
Another diverting incident is found recorded at length in the
diary kept by one of the officers. He has noted with accuracy
that on Wednesday, July 20, 1881, the combination lock on the
east vault refused to work. Immediately the man who built the
vault was sent for and tried in vain to unlock it. Then an expert
locksmith was called and after trying all the arts of his profession
unsuccessfully, he advised knocking off the lock as the easiest
and quickest way to get the door open. This was radical treat-
ment and required high official sanction, so the President was
consulted and advised the operation. The locksmith produced
a cold-chisel and axe, and finally succeeded in breaking into the
vault after demolishing the lock. Forcible entry was thus ac-
complished and the routine of work again normally established.
It is recorded that on May 4, 1881, Wm. P. McLaren was
dispatched to Chicago where he rented a "double office fronting
on the street in the second story of the Unity Building, 79 Dear-
born Street, for $36 a month," with use of a safe. This was for
the company's Chicago Special Loan Agent, Redmond Prindi-
ville.
At or about the same time, the company decided to invite
loans of $200,000 or more at five per centum in Chicago and Mil-
waukee. This was the first bid the company had made up to
that time for real estate loans at five per cent interest.
Engaging as these details may be, space prompts a limit of
2o6 Beginning of Progressive Bra
examples. However, before closing the history of 1881, men-
tion may be made that on October 19, 1881, the Trustees defi-
nitely decided that all agents of the company writing and put-
ting in force annually $100,000 of insurance, should be invited
to the home office at the time of holding the annual Trustees' and
General Agents' meetings, the company to pay railroad fares and
hotel bills while in attendance at such meetings. This was
adopted and was maintained as a custom for a series of years.
On the first day of January, 1882, the officers were enabled to
report to the Trustees that the new insurance written during the
year 1881 nearly doubled the new business of 1879, was about
twenty-five per cent larger than that of 1880 and
was greater than that of any year since 1870.
During the year the company issued 6,012 pol-
icies amounting to $15,038,242, which gave it a
total of 37,491 policies in force January i, 1882, representing
$74,503,740 of insurance.
In addition, $3,200,822.26 was loaned in 1881 on real estate
security, making it the largest single loan year in the history of
the company up to that time, and bringing the total investment
in this class of securities up to $11,043,228.04. The assets Janu-
ary i, 1882, were $18,859,458,96, and the surplus was
$3,022,611.61.
One of the early acts of the year 1882 was to take necessary
steps to change the time of holding the annual meeting for the
election of Trustees, a majority believing that July was a better
time than January for the purpose. Consequently, the passage
of chapter 192, Laws of 1882, was secured changing the date to
the third Wednesday in July and this has since continued to be
the date of the annual meeting.
On January 25, 1882, James W. Skinner was elected Secre-
tary. He held the position twenty-three years, when he was elect-
ed Second Vice President.
Thomas W. Buell, who came to the company in July 1865 as
a solicitor and subsequently entered the official force as advertis-
ing man and acting Superintendent of Agencies, severed his con-
nection with the company on January 26, 1882. He had resigned
July 30, 1 88 1, but at the solicitation of the Executive Committee
remained until the date noted.
f Increase
247.3
228.8
340.5
260
Decade of Remarkable Growth
No. of Policies
Amount
Insurance in force January 1, 1897...
Insurance in force January 1, 1887...
165,415
56,544
$384,167,829
127,629,903 '
Increase
108871
$256,537,926
Percentage of Increase
192.5
201
New Insurance
Written
Income
Disburse-
ments
During 1896
$50,395,155
$18,575,435
$9,132,390
During 1886
28,082,620
5,870,797
3,576,507
Increase . . '
$22,312,535
$12,704,638
$5,555,883
Percentage of Increase
79.5
216.4
155.3
One of the early events of the year was the death of E. C.
Jennings, Cashier, on February 17, 1897. Mr. Jennings was
well and favorably known among the employees of the company.
During his incumbency of the office, it was the practice to pay
them in cash at the Cashier's office, but since the later system of
paying by check was inaugurated, the Cashier's office is not
brought into as close touch with employees.
John W. Du Four, who had been Assistant Cashier since
January 1882, was appointed Cashier and William P. Behling
Assistant Cashier. Both are now serving.
John W. Du Four was born in New York City April n, 1845 ;
removed with his parents to Racine, Wisconsin, in 1857; located
in Milwaukee in 1861 ; entered the employ of the company in
1864 as office boy; was promoted to places in the Policy and Col-
lection divisions and at one time was in charge of the Policy
division; then went to Cashier's department; was appointed
Assistant Cashier in January 1882, and Cashier, February 18,
1897. Mr. Du Four has served the company continuously since
1864, with the exception of a short time spent in the University
at Evanston, Illinois.
William P. Behling, Assistant Cashier, was born in Milwau-
kee, Wisconsin, May 4, 1865; graduated from the high school
Decade of Remarkable Growth
261
f,
/. W. DuFour
of that city and entered the employ of the company August 15,
1882, in the Secretary's department, where he remained until
appointed Assistant Cashier, February 18, 1897.
_ E. C. Jennings, whose death is
here recorded, was the first to be
officially designated Cashier of the
company, having been appointed in
1866, and the only other officer
connected with the department ex-
cept those mentioned, was William
H. Farnham, who was Assistant
Cashier until appointed Assistant
Secretary.
From 1859 to 1865, the com-
pany (then known as the Mutual
Life Insurance Company of the
State of Wisconsin) transacted
its banking business through the
Bank of Milwaukee. In 1865,
the account was transferred to the
National Exchange Bank, its successor. In 1875, the Wisconsin
Marine & Fire Insurance Company Bank was added as a deposi-
tory. In 1892, the First National Bank; in 1894, the Wisconsin
National Bank, and in 1902, the Marine National Bank, as the
successor of the Wisconsin Marine & Fire Insurance Company
Bank. The company maintains accounts at the present time with
those four banks.
It may be interesting to know that since the company began
business nearly one-half million checks have been issued, and
three hundred and seventy-one large cash books, averaging four
hundred and fifty-five pages each, have been used. The Cashier's
department receives and banks all funds and disburses the same
on the order of the proper officers. At the present time, ten per-
sons are employed in this department.
Another death among those prominent with the company
came March 21, 1897, when C. D. Nash passed away. Mr. Nash,
it will be recalled, became identified with the company just before
its removal to Milwaukee, having been elected a Trustee March
4, 1859, and remained actively identified with it for thirty-eight
262 Decade of Remarkable Growth
years. Throughout this long career of service, his attention to
the important duties of the respective positions he filled and his
interest in the progress and prosperity of the company were
unremitting.
The Executive Committee decided to withdraw from Alabama
April 1 6, 1897, by reason of a law passed by the legislature on
February 18, 1897, a section of which read as follows:
"That no life insurance company shall contest a claim under any
policy of insurance on the plea of fraud or irregularities in application
after three annual premium payments have been made on policy, but
must pay the full amount of policy within sixty days after proofs of
death have been received at the home office of the company in the
United States." (Sec. 22, Act No. 614.)
All life premiums being payable in advance, the effect of the
quoted provision was that a policy with premiums payable annu-
ally could not be contested for fraud after two yea^s; one with
premiums payable semi-annually, after two years and six months,
and one with premiums payable quarterly, after two years and
nine months, making a discrimination that was deemed unjust,
but the seriously objectionable feature of the section was its
attempt to abrogate the time-honored principle that " fraud, when
discovered, vitiates all contracts."
The Northwestern has always endeavored to be fair in its
treatment of claims. Not taking advantage of mere technicali-
ties, it has refused to connive at or condone fraud. It then had,
and still has, provisions in its policies making them incontestable
in the hands of any honest man. In its thirty-eight years of
experience prior to 1897, it had resisted but two claims for mis-
statement in applications where the insurance had been three
years in force ; but it was not prepared to stipulate that after the
payment of three annual premiums it would place the dishonest
policyholder on the same footing as the honest policyholder. It,
therefore, reluctantly concluded to withdraw from Alabama a
second time. It discontinued its first agency there in 1874, but
returned in 1890, only to withdraw in 1897, since which date it
has maintained no general agency in that state.
Legislation of an irritating character was enacted in 1897
in Kansas and Nebraska, and for a time, it appeared that the
company would have to abandon its loaning business in those states.
Decade of Remarkable Growth
263
W. P. Behling
Kansas passed a law which was approved March 13, 1897
(chapter 243) requiring deficiency judgments to be assessed for
taxation at their face value and providing that if the tax thereon
should not be paid, the judgment
should be offered for sale, and
sold for not less than the amount
of the tax.
Nebraska's law provided, in
effect, that the amount bid at a
foreclosure sale should discharge
the claim of the mortgagee and
that no judgment for deficiency
should be rendered. (Chapter 95,
Laws of 1897.)
These laws were objectionable,
but the company had large inter-
ests at stake in both states and
decided to continue its invest-
ments in them, notwithstanding
the legislation in question. Ulti-
mate decisions of the courts of both these states held the laws
unconstitutional. The Kansas law was so held by the Supreme
Court of that state, in the case of Hamilton vs. Wilson, Clerk,
decided February 10, 1900 (59 Pacific Rept'r, 1069), and the
Nebraska law, by the Supreme Court of Nebraska, in the case
of Moore vs. Neece et al., decided January 23, 1908. (114 N. W.
Rept'r, 767.)
Possibly the most important feature of 1897 relating exclu-
sively to the company's history was the adoption by the Executive
Committee, on September 22, 1897, f an anti-brokerage rule in
the following clear and unmistakable terms :
"WHEREAS, the acceptance of insurance business from brokers,
or others not regularly appointed and authorized as agents of this com-
pany, may lead to violations of the anti-rebate rule of this company and
to the placing of undesirable risks on the company's books: Therefore,
"RESOLVED, That from and after October 1, 1897, this company
shall not accept business from or pay commissions (or remuneration of
any kind) therefor, to any other than duly authorized and accredited
agents of this company; nor shall any agent of this company accept
insurance business from or pay commission or consideration of any
264 Decade of Remarkable Growth
kind, directly or indirectly, to any other than a duly appointed and
authorized agent of this company devoting his time, so far as life
insurance work is concerned, exclusively to the interests of this com-
pany, except, that legitimate surplus business (where the applicant has
the limit in other companies) may be accepted by agents of this com-
pany from regular agents of other companies, provided such last
mentioned agents agree in writing to comply strictly with the anti-
rebate rule of this company."
This, and the anti-rebate rule adopted July 24, 1893, are
printed in the company's rate books. They guarantee the plac-
ing of Northwestern insurance at its par value by men selected
and authorized by the company to solicit it.
The company reached its fortieth anniversary disclosing in-
creased results over the preceding year, as follows : In assets,
$10,741,932.17; liabilities, $7,762,497.07; income, $1,444,727.67;
insurance written, $7,856,734, and insurance in
force, $28,913,541. Possibly the most interesting
exhibit at that date was the amount of its income
and disbursements. Of the companies reporting
to the Massachusetts department, fourteen preceded the com-
pany in a fortieth anniversary and the records show that the
Northwestern's excess of income over disbursements in forty
years was larger by two to nine million dollars than that of all
the other companies attaining to a like experience.
A new office, that of Auditor, was created January 10, 1898.
William R. Adams was appointed, and still holds the position.
Mr. Adams, born at Williamstown, Massachusetts, May 16, 1859,
came while an infant to Wisconsin ; received his early education
and business training in Milwaukee, and lived there until 1883,
soon after which he engaged in business in New York City and
Chicago. He returned to Milwaukee to accept a position with
the company January 15, 1897.
The Auditor has charge of the special real estate under direc-
tion of the Finance and Real Estate Committees.
The question of the reserve to be held for the security of
insurance and annuity contracts was becoming one of wide
interest to insurance companies generally and the Northwestern
was but one of a number considering a change. The laws of
many states prescribed the rate, but considerations of safety
prompted the conclusions of most of the companies.
Decade of Remarkable Growth
26;
W. It. Adams
A committee of the Northwestern gave the subject much
thought and finally concluded that absolute safety required a re-
serve accumulation based upon a less rate of interest than four
per cent, the then prevailing rule,
and, therefore, recommended that
the company adopt as a basis for
its future insurance contracts, a
reserve calculated upon the Amer-
ican Table of Mortality and three
per cent interest, and that annuity
reserves be based upon the same
interest assumption and a mortal-
ity table to be prepared.
The Executive Committee
adopted the recommendation, Jan-
uary 12, 1898, to take effect Janu-
ary i, 1899. Subsequently the
time was extended to February i,
1899, and it was not until Febru-
ary 20, 1899, tnat tne fi rst policy
under the new reserve (No. 422,200) was written.
Once more, insurance companies were called upon to con-
sider questions related to war, for it will be remembered, the
Spanish-American difficulty began early in 1898. The policies
of the Northwestern in force more than two years were free
from restriction as to military or naval service, but the interest
of existing policyholders called for extra precaution or protec-
tion as to new members whose policies were less than two years
old. Consequently on April 19, 1898, it was decided to issue
war permits under such policies, including such as might there-
after be issued, for service north of the Tropic of Cancer, at
the rate of ten dollars per annum for each one thousand dollars
of insurance, and for service south of the Tropic of Cancer, at
the rate of twenty dollars per annum per thousand. It was ex-
pressly provided, however, that no extra premium would be
charged after the expiration of two years from the date of the
policy. The question arising, it was also decided May 13, 1898,
that war risk rates began at the time the insured was mustered
into the United States service.
266 Decade of Remarkable Growth
On June 13, 1898, for the second time in the history of the
company, a national war revenue measure was approved requir-
ing revenue stamps to be attached to policies of life insurance,
at the rate of eight cents for every $100, or fractional part
thereof, of the amount insured. The question arose: Who
should pay this tax ? It was at first voted that applicants should
do so, but on further consideration it was decided that the com-
pany should pay the tax out of the common fund, as other taxes
were paid.
One of the company's Trustees who had served for a long
period passed away May 6, 1898. This was Angus Smith, of
Milwaukee, a prominent grain merchant and capitalist, who was
elected in 1874. Mr. Smith was born in Michigan, December
1 6, 1822, and was consequently seventy-six years of age at his
death. He was a man of resolute character, positive convic-
tions, sterling integrity and remarkable efficiency in large busi-
ness undertakings.
July 20, 1898, Dr. H. L. Toulmin was elected Assistant Medi-
cal Director. Dr. Toulmin came to the company from Philadel-
phia, where he had been Assistant Medical Director of another
company, and remained until January I, 1900, when he returned
to Philadelphia.
The year 1899 was the twenty-fifth anniversary of the ad-
ministration of President Palmer. When he assumed office in
1874, the assets of the company were $14,093,579.16; the amount
of real estate loans, $7,986,335.58; the whole num-
ber of policies, 35,226, and the amount at risk,
$64,692,003 ; the income of the year preceding was
$3,906,252.13; the death losses paid the previous
year, $701,108.15; taxes paid by the company, $40,934.70, and
the surplus, $1,779,731.02. Twenty-five years later the assets
were $115,446,643.16; the amount of mortgage loans, $72,012,-
604.79; the number of outstanding policies, 196,022 and the
arnount at risk, $457,712,738; the income for 1898 was $22,307,-
406.99; the death losses paid that year amounted to $3,869,616.27;
taxes paid in 1898 totaled $328,555.72 and the general surplus
was $6,362,428.52.
The business of the year ending December 31, 1898, was the
largest in the company's history up to that time. The marked
eof Remarkable Growth
267
stability of life insurance companies during all the long period
of financial depression attracted public attention. In the case
of the Northwestern, it appears that without special effort, with-
out the payment of extra commis-
sions and in the face of a strict
enforcement of the anti-rebate
and no-brokerage rules, results in-
creased as follows: Assets, $12,-
Ita^^H 7 T ' I0 7; income, $2,287,245; in-
B^. surance written, $15,104,435, and
insurance in force, $44,631,368.
^^ j| At the meeting of the Trustees
January 25, 1899, the twenty-fifth
anniversary of Judge Palmer's
presidency was duly remembered
by congratulatory resolutions, and
at the quarterly meeting held Oc-
tober 1 8, 1899, which happened to
coincide with the eightieth anni-
versary of the birthday of the
President, a fine portrait in oil of him, by Ralph Clarkson, of
Chicago, was presented to the company by members of the Execu-
tive Committee.
David B. Ramsey died at his home in Milwaukee, January
10, 1899, having to that time held the position of Chief Exam-
iner of Titles. Mr. Ramsey was born in Greenfield, New Hamp-
shire, in September 1829; went west as a young man and taught
school for some time in Kentucky; later located in Chicago and
became manager of a large abstract of title office; removed to
Madison, Wisconsin, in the early 50*5 ; located in Milwaukee in
1855 and came to the Northwestern in 1871. At that time he
was the sole Title Examiner for the company. At the time of
his death, he was chief over a force of nine expert Title
Examiners.
The vacancy occasioned by the death of Mr. Ramsey was
filled by the promotion of Courtney S. Kitchel, the present in-
cumbent, who had been acting Chief Examiner since the summer
of 1898, when Mr. Ramsey left the office, never to return. Mr.
Kitchel was born in Thomastown, Connecticut, June 19, 1843;
D. J5. Ramsey
268
Decade of Remarkable Growth
Courtney S. KitcJiel
graduated from Yale; located in Milwaukee in 1866, and entered
the employ of the company December 14, 1874.
The division at present consists of fourteeen Examiners beside
Mr. Kitchel. During the year
1907 this force examined, and re-
ported upon, the title to 3,126
pieces of real estate.
The year 1899 witnessed the
beginning of what is deemed an
injustice to the company which
has continued to date. This was
with regard to taxation.
During the early years, it will
be recalled, no tax was put upon
it by the state ; in 1868, an annual
tax of one per centum on the
amount of Wisconsin premiums
was imposed and in 1879 this
was increased to two per centum,
with a license fee of $300 per
annum. This remained the rate until the 1899 session of the
legislature, when a law was passed (chapter 326) requiring the
company to pay the state an annual license fee of one per centum
of its gross income from all sources, excepting therefrom income
from rents of real estate on which taxes were otherwise levied,
and income from United States bonds.
The plan of taxation thus inaugurated increased the com-
pany's taxes from $29,647.67 in 1898 to $186,386.54 in 1899, and
caused it to pay the State of Wisconsin, in taxes and license fees
for the year 1907, the immense sum of $367,726.01 more than
$1,000 per day.
The company paid into the Wisconsin state treasury in the
year ending June 30, 1906, a sum greater than was paid by all
other life insurance companies, all fire insurance companies, all
accident and casualty companies, all loan and trust, plank-road,
boom and river improvement, express, sleeping-car, freight line
and equipment companies doing business in the state. It has paid
nearly $3,000,000 in taxes to the State of Wisconsin during the
last ten years.
Decade of Remarkable Growth 269
The tax paid by the Northwestern to Wisconsin for the year
1907 was more than fourteen per cent of all Wisconsin premiums
paid to it for that year, making a rate seven times as great as the
average premium tax rate imposed by the laws of other states.
Contestants over the proceeds of life policies had been dis-
turbing the company and making it additional expense pending
decisions by the courts as to the rights of various parties. It was,
therefore, decided, April 24, 1899, that thereafter, in all cases of
conflicting claims on policies, liability for which was not con-
tested by the company, the amount payable thereon at the maturity
of the policy should be deposited in bank in the form of a special
deposit to await the issue. This was done with a view to protect
the company against liability for interest and costs.
Dr. H. L. Toulmin having, on October 21, 1899, resigned as
Assistant Medical Director, Dr. George A. Harlow, the present
incumbent, then of Boston, was appointed. Dr. Harlow began
his duties in October, 1899.
The new business written during the year 1899 failed to equal
that written in 1898, but this was probably due to the loss of time
on the part of field representatives of the company in familiarizing
themselves with the new premium rates and policy put forth on
February I, 1899. The business record for 1898 was 28,723
policies and $72,501,490 insurance, and that of 1899 was 2 7^43
policies and $69,616,806 insurance. However, the net result of
the work of 1899 showed increased results as follows: In assets,
$11,200,085; income, $2,297,736; payments to pol-
icyholders, $1,743,392, and insurance in force,
On January i, 1900, the following were some
of the totals shown : Income during previous year, $24,605,-
143.46; paid to policyholders, $9,029,471.31; assets, $126,646,-
728.45; surplus, $5,534,697.74, and total insurance at risk,
$497,606,125.
Notwithstanding the fact the company had been examined in
1895, the Commissioner of Nebraska and three experts made
another examination early in 1900, which calls to mind the fact
that in 1898 the Kansas Department made an examination, and
in 1899 both the North Dakota and Tennessee Departments did
the same.
270 Decade of Remarkable Growth
George Oxborrow, a hero of the Crimean war, had worked
in the Medical Department of the company exactly thirty-two
years to a day, on April i, 1900, when, owing to ill-health, he was
obliged to tender his resignation. Mr. Oxborrow wore the Vic-
torian cross for bravery, was prominent in the English societies
of Milwaukee, and owing to his long term of service with the
company was well known. He died March 10, 1903.
When the building which formerly stood on the southwest
corner of Broadway and Wisconsin street in the city of Mil-
waukee, was being torn down in the summer of 1899, it occurred
to George E. Copeland, now Assistant Superintendent of Agen-
cies, that, in view of the fact that two small rooms of this
building were the first offices of the company in Milwaukee, a
souvenir of ' some description might prove of historic interest.
He, therefore, had a gavel made out of a piece of studding from
the partition which separated the two rooms, and presented it to
President Palmer on July 15, 1900. The gavel is on the table in
the committee room ready for use at meetings of Trustees and
committees.
One of the important events of 1900, as related to the history
of the company, was the effort in its behalf before the Wisconsin
State Tax Commission to invoke from that body such remedial
recommendations and action as the excessive taxes under the new
tax law, seemed to demand. Masterly arguments were presented
in behalf of the company, but the legislature of 1901 met and
passed a new tax bill and no definite conclusions by the Commis-
sion were announced. A similar attempt was made before such
Tax Commission in the summer of 1907 with like results.
Richard M. Hackett, who was well-known wherever the
Northwestern maintained an agency, owing to his employment as
special representative, died suddenly of apoplexy, December 20,
1900. Mr. Hackett entered the employ of the company in March
1876 and continued in a confidential capacity to the date of his
death.
A Period of Extremes
THE period from 1901 to the year which marks the semi-
centennial anniversary of the organization of the com-
pany, was one of extremes. Half that time life insurance
sailed tranquilly on the sea of prosperity. Both the technical and
practical sides had been brought to approximate perfection and
the prospects were bright for an era of steady progress. Then
came a storm. In the east, black clouds arose and broke into a
torrent of investigation and legislation that threatened, for a time,
the usefulness, if not the very existence, of companies. The gale
was finally weathered and life insurance was saved, and the
Northwestern, despite the general public prejudice, and the dis-
quietude of the public mind, increased its business to a remark-
able extent.
An early subject of interest to the Trustees in 1901 was taxa-
tion. The law of 1899, as has been shown, materially increas-
ing the company's tax, was considered unjust to its policyholders
and a special meeting of the Trustees was called
January n, 1901, to consider the subject. It was
decided to ask the legislature, then in session, to
modify the existing law so that the amount would
be substantially reduced.
An amendment was adopted requiring the company to annu-
ally pay "three per centum of its gross income from all sources,
excepting therefrom income from rents of real estate upon which
the company has paid taxes and excepting also premiums col-
lected outside of the State of Wisconsin on policies held by non-
residents of the State of Wisconsin."
The change thus made did not decrease the amount of taxes
to be paid to Wisconsin, but obviated to some extent the burden
to which the company would have been subjected in other states
under the so-called "retaliatory laws."
Speaking before the agents' meeting in 1901, President Pal-
mer said: 271
272 A Period of Extremes
"It is twenty-eight years since in changing the official force of
the company, I became its President. The assets of the company were
then fourteen million dollars. You see by the reports which we have
submitted at this annual meeting that the assets of the company were
increased by the last twelve months' business by over thirteen mil-
lion dollars. One year's work, therefore, gave to the company an
increase of assets which was within a few hundred thousand dollars
of being equal to the entire assets of the company twenty-eight years
ago. I can only say that so long as life insurance companies are
faithfully and honestly managed, so long as their business is con-
ducted as a life insurance business should be conducted, and integ-
rity is found in the management, in every department, so long life
insurance will be one of the most beneficent agencies of our present
civilization. If it can be protected from the assaults outside, it will
continue to be a blessing to those who are members of the various
companies.".
During 1900, the company issued 24,763 new policies involving
$61,279,843 and making a total of 224,747 policies in force January
i, 1901, with $529,647,290 at risk. The amount loaned on mort-
gages was $72,484,397.47; policy loans amounted to $7,176,615;
the company owned bonds valued at $47,428,727.41 and the total
assets were $139,512,166.31.
At the Trustees' meeting held January 30, 1901, the office of
Third Vice President was revived and George C. Markham was
appointed. The duties differed from those formerly assigned
to this officer, and consisted of special charge and management of
the company's real estate, with general powers of an executive
officer.
In June 1901, the company joined the principal life companies
of the United States and Canada in a mortality investigation
(conducted by the Actuarial Society of America) upon the basis
of the combined experience of the companies represented. This
investigation was of specialized risks with a view of ascertaining
the experience of companies with regard to those considered
doubtful. The work of furnishing the necessary data relating to
the company was under the direction of J. C. Crawford, then
Assistant Actuary, and the research took a year's time. The
published report of the investigation is interesting to those who
are in any way concerned with mortality experiences.
"Field Notes," the company's official agency publication, was
issued first in September 1901 under the editorial supervision of
A Period of Extremes 273
Percy H. Evans, now Second Assistant Superintendent of
Agencies, by whom it is still edited. This publication, as its
introductory number frankly states, is not intended for general
circulation, but designed to be a means of occasional communica-
tion between the home office and the field. It is published monthly
and is abundantly fulfilling the purposes of its originators.
In the revision of the by-laws on October 16, 1901, the office
of Treasurer, which was created December 30, 1858, was abol-
ished, the office having become largely an honorary one. The
Cashier and his department attended to the depositing and dis-
bursing of company funds and the Treasurer was a financial factor
in name only. Charles Ray, the then Treasurer, remained a
Trustee of the company and is still serving in that capacity.
Toward the latter part of 1901, the company had a controversy
about taxes in Kentucky. It started when the authorities in a
certain county endeavored to list for taxation the company's
mortgages on property in that county. The company contested
the levy and was successful in its contention that the law under
which the taxation was attempted did not authorize it. Following
this the auditor threatened to impose a tax on all life insurance
companies doing business in Kentucky under a general franchise
statute. The company was forced to question the applicability of
this law to it, and on Septemebr 15, 1903, obtained a decision from
the courts restraining the tax collecting officers from making or at-
tempting to collect any franchise tax against the Northwestern.
In some life insurance companies the custom has developed of
holding policies numbered by the even thousands for the purpose
of issuing them to specially prominent applicants, but the North-
western never adopted the practice. It so happened, however, that
policy numbered 500,000 was issued to William Jennings Bryan,
November 30, 1901.
Of the new insurance written and paid for during the forty-
three years of its existence prior to January i, 1902, 53.3 per cent
was in force on that date. This was unequaled by any other
company having one hundred million or more insur-
ance in force. The year's work showed the follow-
ing increases in results : In assets, $12,432,590.65 ;
income, $2,310,979.85; payments to policyholders,
$2,489,253,54; insurance in force, $45,057.710, and number of
274 A Period of Extremes
policies in force, 18,411. The grand totals January I, 1902 were:
Assets, $151,944,756.96; income, $29,471,784.02; payments to
policyholders in 1901, $12,344,476.95; insurance in force, $574,-
705,000, and number of policies in force, 243,158.
Anson P. Waterman, of Beloit, Wisconsin, a Trustee of the
company, died January 8, 1902. Mr. Waterman was elected
Trustee June 3, 1861 and served until the day of his death. It
was his proud distinction never to have been absent from a regular
meeting of the Board during his forty-one years of service. Next
to President Palmer, he was its oldest member.
Mr. Waterman was born at South Ballston, Saratoga County,
New York, January 15, 1819; settled in Beloit in 1851 ; was mayor
of that city in 1857-9 an ^ hdd many other positions of honor and
trust. He .was a broad-minded, public-spirited man of the strictest
integrity.
Vice President Merrill, who for many years had been the
active head of agency supervision, began to feel the excess of
daily detail, and that he might devote his time exclusively to
general insurance, requested the Executive Committee on Decem-
ber 17, 1902, to appoint Henry F. Norris, Superintendent of
Agencies. Mr. Norris at that time was his assistant. The
committee acceded to Mr. Merrill's wish and the promotion
followed.
Henry F. Norris was born in Springville, Erie County, New
York, December 23, 1848; was educated at the local Academy;
conducted a general store there until 1875 ; was a traveling sales-
man for eleven years; on January I, 1886 moved to Rochester,
New York, and began soliciting insurance for the Northwestern ;
removed to Milwaukee in July 1892 and was appointed Assistant
Superintendent of Agencies. He is still serving as Superintendent.
At the same time, George E. Copeland was promoted to the
office of Assistant Superintendent of Agencies, and Percy H.
Evans to that of Second Assistant, positions still retained by them.
George E. Copeland was born at Middlebury, Vermont, May
28, 1857; was general agent of the company at Davenport, Iowa,
from January i, 1886, to May I, 1893, when he came to the
home office ; began his duties as Second Assistant Superintendent
of Agencies September i, 1894 and was promoted as above
stated.
A Period of Extremes 275
Percy H. Evans was born in San Diego, California, November
9, 1873; educated in public schools of Denver, Colorado, and
University of Michigan; entered the employ of the company as
clerk in Actuary's department June i, 1889 ; went to San Francisco
in 1896 as a life insurance solicitor and editor of an insurance
journal; returned to Milwaukee in 1901 and was made Second
Assistant Superintendent of Agencies.
In the latter part of 1901, changes were made in the terms
of contracts with general agents to become effective January I,
1902. These were less advantageous to the agents than formerly
and there were those not connected with the com-
pany who hoped that the change would cause dissat-
isfaction among them. At any rate, the year 1902
witnessed vigorous solicitation on the part of others
to engage the services of Northwestern general agents. This was
particularly true in the east, where an extensive business was
being done, but Chicago and other parts of the west became
involved. Extravagant offers were made, but most agents
remained loyal, and persisted in their work.
Neither the changed contracts nor the campaign of conquest
had material effect on the volume of life insurance paid for, nor
in the increase of assets and income, in 1902. During the year
29,379 new policies were reported covering $68,421,657 of insur-
ance. The 1902 gain in insurance in force was forty-five millions
in round numbers, which was practically the gain of 1901.
On January 30, 1903, President Palmer presented to the
Executive Committee for consideration, proposed amendments to
existing insurance laws: (a) Authorizing the company to invest
its funds in like securities and under the same restrictions in the
territories and the District of Columbia as in the states, and
(b) authorizing the valuation of the company's bonds at the
average market value for six months or a year preceding the
thirty-first day of December in each year.
The committee sanctioned both these propositions and they
were enacted into laws, the first as chapter 6, Laws of 1903, and
the other as chapter 237. The bond valuation was limited to "the
range of the market and the average market value as then found
running through a reasonable period of time, not more than six
months preceding the thirty-first day of December in each year."
276 A Period of Extremes
George F. Wheeler, Trustee from July 17, 1889, and a promi-
nent banker of Waupun, Wisconsin, died at Los Angeles, Califor-
nia, April 25, 1903. Mr. Wheeler was born in Vermont, December
23, 1824; removed to Wisconsin and took a prominent place in
public affairs of the state. After his election as Trustee, he was
repeatedly appointed a member of the Examining Committee.
Dr. C. E. Albright, then Second Assistant Medical Director,
resigned July 6, 1903, and a few days later the Executive Com-
mittee authorized the appointment of Dr. William Thorndike as an
Assistant Medical Director. August 22, 1903, Dr. D. E. W.
Wenstrand was appointed Third Assistant Medical Director.
The year 1903 was characterized by insurance business disturb-
ances, by severe fluctuations in the values of securities and by
unsettled business conditions, but the transactions of the company,
both in amount of insurance written and in the
receipt and investment of funds, were the largest
in its history.
Items of increase for 1903 were as follows:
Number of policies, 18,349; insurance in force, $42,169,911;
assets, $13,158,190; income, $2,196,691, and payments to policy-
holders, $2,090,158.
A thoughtful act on the part of the Executive Committee is
shown in the following resolution adopted February 13, 1904:
"In view of the recent conflagration in Baltimore, it is RE-
SOLVED by the Executive Committee that as to all policyholders of
this company resident in Baltimore, an extension of thirty days from
February 7, 1904, be granted them in which to pay their premiums
on policies in force and held by them on said seventh day of Febru-
ary, without any interest charge, and also without the usual certificate
of health."
During the latter part of February 1904, a letter was received
from a man in Indian Territory covering an offer to solicit insur-
ance among the Indians. The idea appealed to him as a particu-
larly happy one and he requested official sanction. The proposi-
tion was submitted to the Committee on Insurance which decided
that while there might be no objection to issuing policies on
specially selected lives among educated Indians, it was not deemed
desirable to employ as agent a man making a specialty of working
among them.
A Period of Extremes 277
A series of deaths began in 1904 and continued in 1905, which
removed from the official force of the company men who had
been factors in its progress.
The first of these was William P. McLaren, Second Vice
President, who died March 2, 1904. A resume of Mr. McLaren's
connection with the company is given with the events of 1877.
April 20, 1904, George C. Markham was elected Second Vice
President to fill the vacancy.
The second death was that of Jesse Spalding, of Chicago.
Mr. Spalding became a Trustee in 1883 and so remained until
the date of his death, March 17, 1904. He was attentive to the
interests of the company and in years of health and business
activity, was zealous in promoting its advancement. Accustomed
to large affairs, he appreciated company needs and urged a broad
and liberal policy in its management.
Titus Sheard, of Little Falls, New York, died April 13, 1904.
Mr. Sheard was elected Trustee in 1896 and so continued to the
date of his death. Throughout his trusteeship he manifested a
deep interest in the affairs of the company.
John Johnston died June I, 1904. The connection of Mr.
Johnston with the company is shown with the events of 1891,
when he was first elected Trustee.
In a revision of the by-laws adopted at a special meeting of
the Trustees held April 20, 1904, the Executive Committee was
increased to ten members and the general duties of the Third
Vice President were changed, as follows : "The Third Vice Presi-
dent shall act as the Assistant of the President and Second Vice
President and shall perform all such duties as may be assigned
to him from time to time by the Executive or Finance Committees,
the President, the Vice President or the Second Vice President."
The office of Third Vice President was not filled at that meet-
ing, however, but at the annual meeting held July 20, 1904, P. R.
Sanborn, then Second Assistant Secretary, was chosen.
Mr. Sanborn was born at Appleton, Wisconsin, February r,
1853; later lived at Madison, Wisconsin; came to the company
December 20, 1875 ; was designated superintendent of the Loan
department May 5, 1890; was appointed Second Assistant Secre-
tary July 15, 1890, and Third Vice President, the office he now
holds, as above stated.
278
A Period of Extremes
T. J. Knox
At the same meeting T. J. Knox was chosen Second Assistant
Secretary, his present position.
Mr. Knox was born at Peterhead, Aberdeenshire, Scotland,
December 8, 1861 ; educated in the
public schools there; arrived in
Milwaukee April 1881, and im-
mediately engaged with the Chi-
cago, Milwaukee & St. Paul
Railway company in a clerical
capacity ; he came to the company
as clerk in the Loan department
April i, 1892, and was promoted
fy^JT"' to Second Assistant Secretary as
m -i irIM stated.
An examination into the af-
fairs and condition of the com-
pany under direction of Hon. Zeno
M. Host, Commissioner of Insur-
ance for Wisconsin, was begun
November 9, 1904. General super-
vision of the details was placed in charge of S. H. Wolfe, an
actuary and examiner of broad experience. The examination was
complete and ended late in January 1905. Extracts from the
report of the examiner in charge, in the order in which they
appear, are as follows :
As to income and disbursements : "The company has an
excellent system of having its accounts audited. Four times a
year independent accountants who have no connection with the
company, and in fact come from another city, visit the home
office and verify the transactions of the company for the preceding
quarter. This method of having the audit made independent of
local influences is to be commended. In addition to this, once a
year a committee of three from the Board of Trustees visits the
home office to ascertain the presence of all of the assets which
are claimed by the company.
"One of the principal points to which I wish to direct your
attention * * * j s the low commission rate which is paid
the agency force for the procurement of business. This low
rate is not the result of book-keeping methods whereby some
A Period of Extremes 279
of the cost of obtaining the business is charged to other accounts,
but represents the actual condition of affairs. I also desire to call
your attention to the economical manner in which this company
administers its business at its home office. The salaries paid are
moderate and the expenses of the company are kept well within
the loading in its premiums."
As to assets : "The real estate owned by this company consists
of its home office property in Milwaukee and one hundred and
thirty-two parcels acquired under foreclosure proceedings. Each
piece was carefully examined and appraised by competent real
estate experts in the various localities in which the properties are
situated. The home office building is a well-built structure de-
voted almost entirely to the use of the company and maintained
in most excellent condition. The appraisers selected to examine
this property reported that notwithstanding that it had been con-
structed about twenty years ago, it showed absolutely no signs of
deterioration. * * * The outside properties of the com-
pany are looked after in a systematic and excellent manner by the
real estate department, and * * * are worth $584,731.99
more than the figures at which the company carries them upon its
books. This most creditable showing is an indication of the
excellent manner in which the company's properties are being
looked after.
"The mortgage loans of the company were examined in detail.
In each case the presence of the necessary papers was ascertained
and appraisals were made by competent experts wherever it was
deemed necessary. The careful and conservative manner in which
these loans have been placed is indicated by the small amount
of past due interest which in this and previous years has been
outstanding on December 31.
"The company has a thoroughly equipped abstract department
in charge of the Counsel of the company and his assistants and
I have no hesitation in saying that I have never seen the legal end
of the investments of an insurance company looked after so sys-
tematically and with such fidelity to the interest of the policy-
holders as in this case. The security is always the first consid-
eration and the interest rate the second. * * * The records
in this department" (the Loan) "are most complete and its ad-
ministration is certainly to be commended."
280 A Period of Extremes
As to policy loans, it is said that they constitute "one of the
best and most remunerative assets of the company."
As to the company's bonds: "The bonds owned by the com-
pany * * * consist of gilt-edged goverment, municipal and
steam railway bonds, and among the last named, is found none
which is a second mortgage bond or bonds issued upon the de-
posit of the stock of railroads as security. The company does
not invest its funds in street railway, electric light or industrial
corporation bonds. * * * I particularly desire to direct your
attention to the fact that there is not one cent of the funds of
The Northwestern Mutual Life Insurance Company invested in
the stock of any corporation. It is not interested in the success or
failure of any subsidiary or auxiliary institutions."
As to dividends: "The company is a mutual organization in
the strictest and best sense. It issues annual dividend and semi-
tontine policies." (The latter were abandoned in 1905.) "All
policyholders of the same class whether they hold annual dividend
contracts or semi-tontine contracts receive the same dividend each
year, i. e., two policyholders aged 35 holding twenty-payment
life policies, one upon the annual dividend basis and the other
on the deferred dividend basis, will receive each year exactly
the same dividend apportionment. In the latter case, however,
the unpaid dividends are accumulated at interest and constitute
the tontine fund. The company does not, however, compel the
policyholder at the time that a policy is issued to him to make a
selection of the manner in which the dividends are to be paid.
At the end of the second year (when the first dividend is appor-
tioned) the policyholder receives notice of the amount of such
dividend and is requested to indicate the manner in which he
wishes it applied, i. e., as a cash payment upon his next premium,
as a reversionary addition or as the beginning of his semi-tontine
accumulation. This removes the policyholder from any influence
of the agent who might desire to write semi-tontine contracts
instead of annual dividend ones. * * * From the foregoing
it will be apparent to you that the company apportions each year
to each policyholder his share of the surplus."
In conclusion, the examiner wrote the following terse sentence :
"This is a company operated by the policyholders and for the best
interests of the policyholders."
A Period of Extremes 281
Extracts from the comments of Commissioner Host on the
examination are also noted as follows : "The policyholders of the
company, and the people of the State of Wisconsin may well feel
proud of the company's condition and record, especially at this
time when so much criticism prevails. * * * The North-
western Mutual Life Insurance Company has not a bank stock,
not a trust company, no industrial enterprises; every investment
is in strict compliance with the laws of this state. * * * The
findings of the examiner in charge disclose the fact that the
several departments of the company are economically conducted
with ability and integrity."
During the year 1904, 32,067 new policies were reported,
covering $73,876,037 of insurance and making the total number
of policies in force January I, 1905, 299,730 amounting to
$708,552,287. Its assets were then $i93>777>433- 2 9
and the general surplus was $7,276,778.76.
Death claimed its victims in 1905, carrying away
Alonzo W. Kimball, March 25 ; Willard Merrill,
August 8, and Charles E. Dyer, November 26, each of whom
has already been noticed in this narrative.
January 25, 1905, the by-laws were amended to create the
office of Associate Actuary. On January 27, 1905, J. C. Crawford,
then Assistant Actuary, was elected to the new office which he
continues to hold.
James Camp Crawford was born at Herrick, Bradford County,
Pennsylvania, January 15, 1844; was educated at the common
schools of Herrick; the Collegiate Institute of Towanda, Penn-
sylvania, and received the degrees of A. B. and A. M. at La
Fayette College, Pennsylvania, in 1871 and 1874 respectively;
was an educator from August 1871 to July 1888 in the capacity
of principal of high schools and superintendent, residing at various
times at Pittston and Athens, Pennsylvania, and Marinette and
Green Bay, Wisconsin ; engaged as solicitor with the company in
July 1888; removed to Milwaukee in May 1890, and was appointed
Assistant Actuary July 8, 1892.
Mr. Crawford served in the Pennsylvania militia and from
March to August 1865 was a member of the I4ist Regt. Pennsyl-
vania Volunteers ; was a member of the Milwaukee School Board
1905-1907; and is a Fellow of the Actuarial Society of America.
282
A Period of Extremes
On April 14, 1905, the vacancy in the office of Assistant
Actuary, was rilled by the appointment of the present incumbent,
Frank C. Hemsing.
Mr. Hemsing is a native of Milwaukee, born May 23, 1871.
He was educated in the public schools of Milwaukee and entered
the employ of the company in the capacity of clerk in the
Actuary's department, January 19, 1888.
The question of resuming business in the State of Missouri
having come up for renewed consideration it was, on May i,
1905, decided in view
of changed conditions
to re-enter that state,
where the company is
now m a i n t a i ning
three general agen-
cies.
At the meeting of
the Trustees held July
19, 1905, a general
promotion of officers
occurred, George C.
Markham being elect-
ed Vice President; J,
W. Skinner, Second
Vice President, and
C. H. Watson, secre-
tary.
George C. Mark-
ham is a native of
New York state, born
in Wilmington, Essex County, May 7, 1843 ; educated in the pub-
lic schools of Essex County and later at private and select schools ;
taught school for a time; was admitted to the bar in 1868; located
in Milwaukee in 1869, practicing his profession; was elected a
Trustee of the company and appointed a member of both the
Executive and Finance Committees in 1895 ; was elected Third
Vice President January 30, 1901 ; Second Vice President April
20, 1904, and advanced to the Vice Presidency July 19, 1905.
James Washburn Skinner was born in Warren, Pennsyl-
Chas. E. Dyer
A Period of Extremes 283
vania, August 8, 1838 and came with his parents to Wisconsin
when nine years old, settling in Sheboygan County. At the age
of thirteen, he entered his father's general store; was in due time
admitted to partnership and later engaged in manufacturing at
Sheboygan Falls. When gold was discovered in Colorado he went
west and after three years of "roughing it," returned to Wis-
consin, entering the employ of the Northwestern, December 26,
1865. He had charge of the collection division until appointed
Assistant Secretary March 18, 1872. He was chosen Secretary
January 25, 1882, and was elected Second Vice President, which
office he now holds, as above stated.
Reference to Mr. Watson and his connection with the com-
pany has been made in prior pages.
A complete history of life insurance in 1905, and the two
succeeding years, cannot be written without entering fully into
the details of official investigations and legislative proceedings
during those years, together with the causes leading thereto, and
the conditions under which they were conducted. The time to
write an impartial and accurate narrative of these events has not
arrived; furthermore, such an account would trespass upon the
scope of this history and must therefore be omitted. It is suffi-
cient here to say that legislative committees in several states,
including Wisconsin, as well as Royal commissions of the
Canadian and English governments, were appointed to investigate
the life insurance business. A convention of governors, attorneys-
general and insurance commissioners of the several states was
held, and a committee known as the "Committee of Fifteen" was
appointed to consider the subject with the special object in view
of recommending uniform laws throughout the Union. Investi-
gations made by these officials have been classified as actuarial,
legal, and those "looking toward the economic and social phases
of the insurance business." Of this last named class, the report
of the insurance department of the state has said "the Wisconsin
investigation stands as a distinctive type."
The Wisconsin legislative committee recommended to the
legislature of Wisconsin, which met in January, 1907, the adoption
of many bills affecting the business of life insurance, which it
had prepared. A considerable number of these bills became laws
and are now in full operation. Several of the bills, however, that
284 A Period of Extremes
were enacted led to the withdrawal from Wisconsin on the first
day of January, 1908, of twenty-three of the foreign life com-
panies which had theretofore been doing business in the state.
The laws so enacted may be found in the printed volume of the
Laws of Wisconsin for the year 1907.
On July 10, 1907, the company withdrew from the State
of Texas, such withdrawal being occasioned by the enactment of
a law of that state known as the Robertson Act, which provided
that a life insurance company doing business in Texas must invest
a certain percentage of its reserves on Texas policies in Texas
securities, and deposit them with the state treasurer or at some
other place in that state. The deposit feature of this act is
somewhat similar to the enactment which caused the company to
withdraw from Canada in 1878. Furthermore, the ad valorem tax
to which the deposited securities would be subjected under the
Robertson Act, as explained in a circular letter to the Texas
policyholders, would decrease the net rate of interest on such
securities to such an extent as might imperil the reserve repre-
sented thereby, and this risk the company was unwilling to take.
The unusual prominence given life insurance in 1905 and the
confidence of the people in the Northwestern, made that year
prosperous for the company.
Increase in every feature where progress was
courted, marked the year's work, and the totals
were gratifying. On January I, 1906, the assets
were $208,417,072.72, and the general surplus,
$9,331,697.58. There were 320,896 policies, representing
$764,266,187 of insurance, in force.
Judge George H. Noyes, of Milwaukee, was appointed Counsel
of the company to succeed Charles E. Dyer, lately deceased, on
January 22, 1906, and still continues in that capacity. On January
31, 1906, at the semi-annual meeting of Trustees he was elected
to the Board and made a member of the Executive Committee.
George H. Noyes was born at McLean, New York, April 18,
1849; came to Wisconsin in 1855; educated at the University of
Wisconsin; admitted to practice law on graduation in 1874; was
judge of the Superior Court of Milwaukee County from 1888
to 1890; resigned and resumed practice; was a member of the
Board of Regents, University of Wisconsin, for twelve years,
A Period of Extremes
285
being president two terms ; president of the Wisconsin State Bar
Association in 1904-5. He was given the degree of IX. D. by
the University of Wisconsin in 1904.
The death of Charles H. Watson, Secretary of the company,
occurred April 14, 1906. It will be recalled that Mr. Watson,
after thirty-five years with the company, had been elected Secre-
tary July 19, 1905.
A. S. Hathaway, Assistant Secretary, was promoted to the
office of Secretary July 18, 1906, and E. D. Jones was appointed
Assistant Secretary.
A. S. Hathaway was born at Bedford, Ohio, March 10, 1861 ;
educated at public schools in Cleveland, Ohio ; came to Milwaukee
in 1886; entered the employ of the company in the collection divi-
sion, March 1886; was given charge of the department in 1890;
appointed Assistant Secretary July 19, 1905, and Secretary, the
position he now holds, on July 18, 1906.
E. D. Jones is a native of Milwaukee, born July 25, 1869. He
was educated in the local public
schools and on leaving them,
worked in the auditor's office of
the Chicago, Milwaukee & St.
Paul Railway company and for
the Wisconsin Central Railway
company until March i, 1891,
when he came to the Northwest-
ern as a clerk in the Secretary's
. department.
In view of the appalling dis-
aster that resulted from the earth-
quake in San Francisco and other
parts of California, the Executive
Committee on May 9, 1906,
E D Jones adopted the following resolution :
"RESOLVED, that the general agent of this Company at San
Francisco, be authorized to accept from all California policyholders
suffering loss by reason of the earthquake of April 18, 1906, or the
fires following the same, payments of their premiums falling due
on March 19, 1906, or within ninety days from that date, at any time
within sixty days from the respective dates on which such premiums
286 A Period of Extremes
shall have become due, the thirty days' grace allowed by policies, if
any, to be counted as a part of said sixty days. Evidence of good
health shall not be required."
The reports to January i, 1907, did not show any decrease
in desired results. At the close of 1906, the year of its own
investigation and following the climax of insurance disclosures,
the company showed an increase of $54,986,092
insurance in force and $12,684,641 in assets. Dur-
ing the year, 34,938 new policies amounting to
$93,885,273 of insurance were reported.
On March 26, 1907, the Executive Committee decided that
in view of the provision of the New York law that no company
doing business in that state should allow any prize or reward,
additional commissions or compensation of any sort based upon
the volume of business, the practice of inviting agents who placed
a certain amount of business during the year to attend the annual
meeting at the expense of the company, should be discontinued.
Notwithstanding this change the Association of Agents met as
usual in 1907, each one in attendance paying his own expenses.
Policy number 700,000 was written April 27, 1907. The dates
of these round-numbered policies are as follows : Number 100,000,
August 9, 1879; 200,000, February 8, 1890; 300,000, April 14,
1894; 400,000, June 29, 1898; 500,000, November 30, 1901;
600,000, November 7, 1904, and 700,000, April 27, 1907.
The Trustees on July 16, 1907, adopted an amendment to the
by-laws to the effect that the Examining Committee annually
elected should consist of three policyholders of the company.
November 13, 1907, the Executive Committee decided to grant
the full ninety-five per cent of cash surrender values on policy
loans, being the limit allowed by the statutes of this state.
On the death of W. H. Surles, general agent for Wisconsin
and Northern Michigan, August 20, 1907, this territory was
divided into seven general agencies.
The company's semi-centennial year began with good business
prospects. The previous one had shown consistently increasing
results and there was nothing on the horizon
threatening the field work. Present indications are
that this will be the most prosperous year in the
company's history.
A Period of Extremes 287
Following is a table showing its development by decades:
Year
Ending
Number of
Policies
Insurance in
Force
Assets
January 1,
1858
January 1
1868
21 380
$ 36539333
$ 3 126 197
January 1
1878
34766
64 416 847
18 173 257
January 1,
1888
64406
147,615,323
28 858 019
January 1,
1898..
178,462
413,081,370
103,375,536
January 1,
1908
361,084
881,563,593
232,819,246
It is pertinent, and it may be interesting, to note that only
five life companies in the world have as much insurance in force
as the Northwestern has gained during the last ten years.
January I, 1908, found the company preparing to comply with
the new Wisconsin laws, while most of the foreign companies
were preparing to withdraw from the state. It was a unique
position. The Northwestern did not withdraw; and that it
might not be thought it would embrace the situation to its profit,
H. F. Xorris, Superintendent of Agencies, sent the company's
Wisconsin agents notice to use every reasonable effort to induce
policyholders in withdrawing companies to retain their policies.
By a strange coincidence, two of the company's Trustees died
on April 17, 1908: Thomas C. Lawler, of Dubuque, Iowa, elected
in 1891, and Henry C. Urner, of Cincinnati, Ohio, in 1893. Mr.
Lawler was particularly well known at the home office because of
his many years of service on the Examining Committee. Mr.
Urner was a staunch supporter and safe adviser. He had been
nominated for re-election.
This brings the record down to July I, 1908, and embraces the
larger portion of the data relating to the company's history.
Important features of development have, however, been omitted,
to be later included in chapters dealing with special departments,
the whole, in combination, making the completed product.
Enough has been recounted upon which to base impressions
of the past ; when the rest shall have been set down and consid-
ered, what hope will it bear for the future ?
The following words of President Palmer, spoken to agents
a few years ago, may serve to answer :
288 A Period of Extremes
"My connection with the company must soon cease," he said.
"Looking back upon the years which are past, I am admonished
that there are very few left for me, and the time is very near at hand
when, though I may still perform my daily duties, I shall be obliged
to look back upon my connection with The Northwestern Mutual
Life Insurance Company as a matter of history. But the company
itself will go on; it must go on, with the force you have in the field,
with the men you have to care for it, and there can be no doubt that
its interests will be protected, and while 'men may come and men may
go/ the grand old company, like the little brook of Tennyson, will
go on forever."
Liberalization of the Policy Contract
THE first policy of life insurance issued by the company, it
will be recalled, bore date Xovember 25, 1858 and its terms
show that the management then felt the necessity of
throwing about the company ample protection against seem-
ingly unfavorable conditions affecting insurance risks, but time
and a better knowledge of the principles governing the busi-
ness have swept away a multitude of restrictions once thought
necessary to a contract for life insurance and added many new
benefits not thought possible in the early history of the company.
At the outset the only form of policy issued was the Ordinary
Life with premiums payable during the whole of life and the full
amount of the insurance payable at the death of the person insured
to a beneficiary, usually a wife, or to children in case of the prior
death of wife, provided all the conditions of the contract had
been fully complied with. The premiums were generally payable
annually, and a failure to pay any premium when due termi-
nated the contract absolutely without any provision for surrender
value in cash or by way of fractional paid up insurance, all pre-
vious payments being forfeited to the company.
It was also provided that if any declaration made in the appli-
cation for the policy should be found in any respect untrue the
policy should be null and void. It was further stipulated that if
the insured, without the consent of the company previously ob-
tained and endorsed upon the policy, should pass beyond the
settled limits of the United States (except to the settled limits of
the British Provinces) or should pass west of the looth degree of
west longitude, or should visit those parts which lie south of the
southern boundaries of Virginia or Tennessee, or should reside
within ten miles of the Mississippi or Missouri Rivers, or enter
upon a voyage on the high seas, or be engaged in any capacity on
any sea, sound, inlet, river, lake or railroad, or in any military or
naval service whatsoever (except militia not in actual service) or
if he should die by his own hand or by the hands of justice or in
291
292 Liberalisation of the Policy Contract
consequence of a duel or in the violation of any law of the United
States or any other country, then the policy should be null, void
and of no effect.
At this early date the company granted insurance on both
male and female lives, and, subject to restrictions, that practice
was continued until the year 1876. The policies involving female
lives were on the Joint Life form insuring husband and wife for
the benefit of the survivor, or single policies for husband and for
wife, each naming the other as beneficiary. No policies were
issued on the lives of unmarried women, but a widow might insure
Policy Heading used from 1858 to January i, 1860
for the exclusive benefit of her children, and a few policies of
that description were issued.
These Life forms, similar in many respects to those in use by
other companies, were continued without material modification
until the year 1861, when the company introduced a number of
amendments here described.
The insured was given a choice in the method of paying pre-
miums either annually, semi-annually or quarterly, but a different
form was used for each variety of payment, and it was not until
two years later (1863) that the company prepared a single form
adapted to the case of either of the three varieties of payment.
At the same time (1861) the "heirs at law" clause was introduced,
providing that in case of the death of the beneficiary before the
Liberalization of the Policy Contract
293
death of the person whose life was insured the proceeds of the
policy would be payable to the heirs at law of the person whose
life was insured. It was no doubt expected that this provision
would prove a convenience to the policyholder, but it was the
cause in after years of much dissatisfaction because it prevented
the surrender of such policies for cash value, as it could not be
determined in advance who the legal heirs would be at the time
of the death of the person whose life was insured.
In the same year the so-called "temperance" clause was intro-
duced in the following language: "If the insured shall become
Policy Heading used from January i, 1860 to March, 1863
so far intemperate as to impair his health or induce delirium
tremens * * * * or shall die of any injury received when
in a state of intoxication, the policy shall be null and void and of
no effect."
It was in 1863 that the first form of Life policy providing for
premium note in part payment of each annual premium made its
appearance. The conditions relative to travel, residence and oc-
cupation were modified in important particulars and an arrange-
ment perfected by which the company might give in writing a
waiver of certain policy provisions. The restriction against
residence within ten miles of the Mississippi or Missouri Rivers
was also stricken from the contract.
294
Liberalization of the Policy Contract
Although paid-up insurance had previously been allowed in
case of Limited Payment policies, it was not until the year 1867
that the company adopted for Whole Life policies the so-called
''non-forfeiture clause," being a recognition of the equity of the
policyholder in the contract upon which premiums for two or
more years had been paid, but upon which default had finally
occurred, and preserving to him the part of the insurance paid for.
The clause as adopted was as follows : "And the said company
further promises and agrees that if after the full amount of two or
more annual premiums, including any premium note or notes with
THIS. POLICY or ASSURANCE
lUitllCiHUll) 'ftwifftgi
Policy Heading used from March, 1863 to March, 1865
interest thereon, shall have been paid in cash, default shall be
made in the payment of any premium or interest on the day it
shall become due, it will issue a paid up policy for a sum equal to
the full amount of the ordinary annual premiums so paid, pro-
vided written application be made therefor and this policy and all
interest therein be surrendered within three months from the date
of such default." This provision, although accompanied by some
onerous conditions, was a long step in the direction of liberalizing
the Life contract. It was in fact too liberal in promising paid up
insurance "equal to the full amount of the ordinary annual
premiums paid."
Up to this time (1867) the company had paid but one divi-
dend, which was allowed in the year 1864, and now in 1867, for
the first time, the promise of dividends was inserted in the policy
Liberalization of the Policy Contract 295
contract in the following words : "At each distribution of the
surplus after three years from the date hereof a due proportion
of such surplus on each and every year's business during the
continuance of this policy will be returned to the said assured."
Permission was also given to travel to or from California and
for travel or residence in any part of America or Europe north
of the Tropic of Cancer.
In this year the company removed from its policies the pro-
vision for forfeiture in case of suicide, which, however, was in
part restored in 1872 by the following provision: "In every case
U '&&&*
THIS POL.ICY OF ASSURANCE ',
Policy Heading used from March, 1865 to June, 1865
where this policy shall cease or become null and void all payments
thereon shall be forfeited to the company, except as above pro-
vided and except that if the person whose life is insured die by
his or her own hand or act the company shall return the pre-
miums received."
In 1869 the dividend clause above quoted was changed so as
to provide that at each distribution after two years a due propor-
tion of the surplus should be returned to the assured.
In 1872 the company discontinued the annual premium note
plan and thereafter no policies were written containing the privilege
of giving notes for a portion of each annual premium, although
a modified premium loan plan has been continued in the practice
of the company. In the same year it was provided that fractional
paid up policies should be non-participating, and the time after
lapse of the original policy within which paid up insurance
could be claimed was extended from three months to six months.
In 1880 the company amended the provision relating to the
method of determining the amount of paid up insurance to be
granted in case of default in premium payment, and the new
296
Liberalization of the Policy Contract
clause was as follows : "If, after three or more annual premiums
shall have been paid in cash, default shall be made in the payment
of any premium or interest on the day it shall become due, it will
issue a paid up policy for such sum as the reserve upon this policy
by the now existing standard of the State of Wisconsin will then
purchase as a single premium at the company's published rates,
but without further participation in dividends," with the proviso
added that the policy be freed from all indebtedness to the com-
pany and that written application be made therefor and the policy
surrendered in the lifetime of the insured, within six months from
C THIS POLICY Of ASSURANCE
Policy Heading used from June, 1865 to July 15, 1896
the date of such default. The standard of reserve referred to was
the American 4^ % table. At the same time the company inserted
in the contracts the following rule of construction : "This policy
is a contract made and to be performed in the State of Wisconsin,
and shall be construed only according to the charter of the com-
pany and the laws of said state." This clause was removed from
all policy contracts in 1892.
In 1884 beneficial changes were made in the form and appear-
ance of the policy and the arrangement of its different parts, a
portion of the conditions being transferred to the second page, and
all prohibitions made inoperative after three years from the date
of the policy, except that the company retained the right to cancel
the policy for intemperance during the lifetime of the insured, but
in that case would pay the amount of the legal reserve held, on
condition that the policy be surrendered during the lifetime of the
Liberalization of the Policy Contract 297
insured and within one year from the date of cancellation. It was
further provided that after three years from date of contract the
company should not have the right to contest a policy after the
death of the insured (unless such policy had been canceled by the
company during the policyholder's lifetime) for any non-fraudu-
lent representation in the application. In the same year the dividend
clause of the policy was changed so as to promise to pay dividends
"according to the company's usage" and the following prohibition
introduced: "But no dividend shall be payable at or after the
time default may be made in the payment of any premium."
'fli {l/
insurance Gompanv,
Installment Policy Heading, December, 1892 to July,
In 1892 the company adopted the "automatic paid up policy
provision" applicable to all policies then in force, a measure justly
regarded as of great importance to the policyholders. For a num-
ber of years prior to 1892 paid up insurance had been granted in
case of default in the premium payment, but subject to the re-
quirement that written request for same must be made to the
company within three months (later changed to six months)
from the date of the default in premium payment. The auto-
matic paid up provision swept away all conditions and secured
the paid up insurance without any action on the part of the policy
holder. The basis of this action was declared to be that the policy
holder was entitled to paid up insurance because of the premiums
he had paid prior to lapse, and the failure to surrender the original
contract within six months from date of lapse should not be
allowed to destroy that right.
At the same time (1892) the restrictions as to travel, occu-
pation, etc., became inoperative after two years.
298
Liberalization of the Policy Contract
In 1896 the company adopted guaranteed cash, loan and paid
up policy values, which were incorporated in tabular form in the
policy contract. This was a wide departure from former methods,
as up to that date no contract had contained any promise of an-
nual cash surrender value,, with the single exception of the so-
called Deposit policy, which was adopted for a special purpose
and as a substitute for short term endowments, and was discon-
tinued in 1878. Between the years 1896 and 1899 the company
had entirely changed its attitude with reference to cash surrender
values, twice increasing such values and taking rank with the
Policy Heading used from July 75, 1896 to February i,
companies making guaranteed cash and loan values an important
element in the business.
At this date may be noted the privilege of changing bene-
ficiary, which was for the first time introduced in the policy con-
tract. This provision gave rise to much discussion in the insur-
ance world as to the legal right to dispossess the person named
in the contract as beneficiary or to substitute a new beneficiary
simply upon the request of the insured.
It had long been the practice of the company to permit the
restoration of annual dividend policies within one year after de-
fault in premium payment, but a provision allowing this privilege
was now introduced in the policy.
Liberalization of the Policy Contract 299
At an early date in the history of the company the question of
the reserve became of much importance. In 1870 the company
had placed all of its insurance on a 4% reserve basis according to
the Actuaries' Table of Mortality, and that basis was maintained
until the year 1899, when, as heretofore stated in detailing the
events of that year, a change was made to the 3% reserve accord-
ing to the American Table of Mortality. By this action the com-
pany reasserted its claim that perfect security of its contracts was
made of first importance in its business. The adoption of the
new reserve standard necessitated a change in premium rates and
the adoption of new policy forms.
XSFRANCE CCMFASY,
Policy Heading used from February i, 1899 to October i, 1905
At this time the Ordinary Life policy had expanded to about
four times its original size, and it became necessary to transfer
some of the provisions to the fourth page of the policy. The
contract contained as a new feature the installment provisions by
which the death claim might be made payable to the beneficiary
in annual installments instead of in one sum. A provision was
introduced in the contract for extending installment benefits be-
yond the life of the beneficiary, and the following clause was
inserted in the policy: "The insured, subject to the rights of
any assignee of this policy, shall have the right at any time, if
the continuous installment feature is not in force as a part of
this contract, to nominate in writing a beneficiary in succession,
to be known as 'contingent beneficiary,' to whom the remaining
installments shall be paid as due, provided all of the beneficiaries
300 Liberalization of the Policy Contract
die before receiving all of the designated number of install-
ments." For the first time there was also incorporated in the
policy a provision giving the insured the choice of receiving
dividends annually in cash or additional insurance, or of select-
ing a tontine dividend period of either 10, 15 or 20 years, the
tontine feature being made an option in all regular policies, and
thus doing away with the separate forms previously used for
Semi Tontine contracts.
In the year 1900 further changes and improvements were
made in the policy, and a provision was introduced allowing
NORTHWESTERN
Policy Heading used from October i, 7905 to January i, 1907
thirty days' grace in payment of all premiums except the first,
subject to an interest charge at not to exceed the rate of six per
centum per annum, and the limit of time for restoration of lapsed
annual dividend policies was increased from one year to five
years.
At this same date the company adopted and incorporated in
the policy contract three options known as "A," "B" and "C" as
follows :
OPTION A.
"To have the whole or any part not less than $1,000 of the pro-
ceeds of this policy at the death of the insured, including any dividend
additions then in force, retained by the company until the death of the
last surviving beneficiary or contingent beneficiary, the company in
the meantime to pay an annuity equal to three per cent of the amount
so retained, the first annuity being payable one year after the death of
the insured.
"At the time any annuity payment becomes due, the beneficiary or
Liberalization of the Policy Contract 301
beneficiaries, if of lawful age, provided the company has not been
otherwise directed by the insured, shall have the right, upon due sur-
render of this policy, to withdraw the amount so retained by the com-
pany, in addition to such annuity payment, and if said amount be so
withdrawn the annuity payments shall cease."
OPTION B.
"To have the whole or any part not less than $1,000 of the proceeds
of this policy at the death of the insured, including any dividend addi-
tions then in force, paid in a specified number of annual installments
as per the first table below, 'which shall apply pro rata per $1,000 for
the amount to be so paid, the first installment being payable imme-
diately.
"The number of installments may be changed at any time by the
insured, but any such change must be effected prior to the payment of
the first installment.
"The installments remaining unpaid will be commuted upon the
basis of three per cent compound interest, and paid in one sum, at
any time when an installment is due, upon written request of the bene-
ficiary or beneficiaries, if of lawful age, and due surrender of this
policy, provided the insured shall not have otherwise directed in
writing."
OPTION C.
"To have the whole or any part not less than $1,000 of the pro-
ceeds of this policy at the death of the insured, including any dividend
additions then in force, paid in annual installments continuous during
the lifetime of any beneficiary of an amount corresponding to that
stated in the table below for the age of the beneficiary or beneficiaries
at the date of death of the insured, which table shall apply pro rata
per $1,000 for the amount to be so paid, the first installment being pay-
able immediately.
"If there be more than one beneficiary the amount to be so paid,
shall be considered as divided into equal parts and the amount of each
beneficiary's annual installment shall be determined pro rata for the
age attained."
Options "B" and "C" were supplemented by appropriate
tables illustrating the installment payments and the following
provision included in the policy contract : "All stipulated pay-
ments under Options "A" and "B," and the first twenty-five
stipulated payments under Option "C," will be increased by such
annual dividends as may be apportioned by the company."
In the year 1901 further changes for the benefit of the policy
holder were adopted. Policies issued prior to this time provided
3O2 Liberalization of the Policy Contract
for cash values upon reaching the fifth policy year, but at this
date the provision was changed so as to allow such values begin-
ning with the third year. At the same time the amount of the
cash surrender value was increased, with the provision that the
increased values should be extended to all 3% reserve policies in
force.
In the Ordinary Life form adopted in 1905 the liability clause
was again liberalized by the insertion of the following: "After
one year from the date hereof, the liability of the company under
this policy shall not be disputed on account of any misstatement
The ; Xorihwrslmi Mutual Life
Insurance Company
Policy Heading used from January i, 1907
in the application, unless it relates to some fact material to the
risk and shall have been intentionally made. Misstatement of
age, made without fraudulent intent, will be adjusted by the
company in accordance with the published premium rate now in
use for the correct age."
From 1905 to 1907 no change was made in the Ordinary Life
form, but in the latter year the contract was further simplified,
and the company obligated itself to pay the sum insured "upon
receipt and approval of proof of the death of said insured while
this policy is in full force," etc., and the time for which payment
of the first dividend should be deferred was changed from two
years to one year by the following provision : "This policy shall,
beginning one year from the date hereof and annually thereafter,
share in the surplus as apportioned by the company until all con-
tributions to the surplus found to have arisen from this policy
shall have been returned." The period of grace in payment of
premiums was changed from thirty days to one month. In place
of the tontine dividend feature, discontinued in the year 1905, an
option was introduced providing that dividends might be left to
Liberalization of the Policy Contract 303
accumulate to the credit of the policy with interest at three per
cent per annum and payable at maturity of the policy, but with-
drawable on any anniversary.
The company also adopted and inserted in the policy an auto-
matic premium loan provision as follows : "If any premium on
this policy shall not be paid when due the same, without action
on the part of the insured, and provided this feature shall not
previously have been waived in writing filed at this office, shall be
charged as an automatic loan at five per cent interest if the then
loan value of the policy, including existing additions, be suffi-
cient to cover such loan in addition to any existing indebtedness
and accrued interest. If the loan value * * * shall not be
sufficient to pay the entire premium due, then it shall be used, if
sufficient, to pay the premium for a shorter period, but not less
than an entire quarterly premium," etc.
This automatic provision was a substitute for automatic paid
up insurance previously allowed, but the privilege of taking paid
up or extended term insurance upon request duly made to the
company was preserved in the contract.
A new clause, substantially as follows, was also included :
""Whenever the reserve at the end of a policy year, taken together
with the reserve on existing additions, shall be equal to or greater
than the net single premium by the American Experience Table
of Mortality with three per cent interest for an amount of in-
surance equal to the face amount of the policy, the company will
upon request (if the policy be freed from indebtedness) endorse
the policy as full paid participating insurance payable at the same
time and in the same manner as the original policy for such an
amount as the then combined reserve on policy and additions will
purchase at the net single premium rate ; or, whenever the reserve
on policy and additions shall be equal to or greater than the face
amount of the policy, the company will then upon due surrender
pay as a matured endowment the amount of the then combined
reserve on policy and additions, less any existing indebtedness to
the company."
At the beginning of 1908 a further revision of the policy con-
tracts of the company was found necessary in order to conform
with the new laws of several states enacted in 1907, and the prin-
cipal changes and provisions were as follows :
304 Liberalisation of the Policy Contract
"This policy with the application therefor contains the entire
contract between the parties, and all statements made by the in-
sured shall, in the absence of fraud, be deemed representations
and not warranties. No such statement shall avoid or be used
in defense to a claim under the policy unless it is contained in the
application, a copy of which is hereto attached."
The provision for grace in premium payment was changed
from one month to thirty-one days, subject to an interest charge
of five per cent per annum.
The automatic premium loan provision adopted in 1907 was
withdrawn and a provision for automatic extended term insur-
ance substituted, but the privilege of securing automatic premium
loan, or of paid up insurance as a substitute for automatic term
extension upon proper request filed with the company was still
preserved to the policyholder.
The gradual development of the Ordinary Life policy con-
tract of this company having thus been traced through a period
of fifty years, it remains to call attention to the other forms of
insurance contracts issued by the company in conjunction with
that form of policy during such period.
LIMITED PAYMENT LIFE, ENDOWMENT AND MISCELLANEOUS FORMS
OF INSURANCE CONTRACTS, AND ANNUITIES.
As noted at the outset the company for the first two years of
its existence limited its insurance contracts to the Ordinary or
Whole Life form, but in 1860 it was decided that other forms
should be introduced, and policy No. 409 was issued as the first
life contract with a limited number of annual premiums lo-Year
Life; and policy No. 648 as the first Endowment.
In 1865 the first Limited Payment Endowment made its ap-
pearance, being on the 10 payment plan, and such Endowments
were made payable upon the insured attaining a given age.
At this time the company introduced an amended form of the
provision in regard to intemperance, to the effect that if the "per-
son whose life is insured shall become in any sense an inebriate
the company shall have the right to declare the policy canceled
and shall be absolved from all liability on payment of the sur-
render value as determined by the company's table ;" and also
a new provision that if the insured shall "engage in, aid or abet
Liberalization of the Policy Contract 305
any insurrection against the government of the United States
or any state thereof, the policy shall be null and void." A change
of some importance was also made in the Endowment forms by
omitting the "heirs at law" clause and providing that in case of
the death of the beneficiary before the death of the insured the
amount of the insurance should be payable to the executors, ad-
ministrators or assigns (or, as it was in some forms, "heirs or
assigns") of the person whose life is insured, but the "heirs at
law" clause was continued in the Life forms.
Up to this time the policy forms had contained the provision
that "if the declarations made by or for the assured in the ap-
plication for the policy should be found in any respect untrue,
then the policy shall be null and void," but in 1865 this provision
was modified so as to read, "if any of the statements or declara-
tions in the application for this policy shall be found in any
material respect untrue, then the policy shall be null and void."
For quite a period succeeding 1865 the company issued a
large number of Limited Payment Life and Endowment con-
tracts, the preference being given to the 10 payment plan, and
the amended provision for paid up insurance contained in such
policies was as follows : "And the said company further promises
and agrees that if default shall be made in the payment of any
premium, it will pay as above agreed as many tenth parts of the
original sum assured as there shall have been complete annual
premiums paid at the time of such default. But, in order to secure
such proportion of the policy, all premium notes must be taken
up or the interest thereon be paid annually in cash on the date
of the annual maturity of the premium until the notes are can-
celed by returns of the surplus, or the whole policy will be for-
feited."
For the Ordinary Endowment, with annual premium pay-
ments continuing through the Endowment period, the provision
for paid-up was slightly less liberal as it required payment of all
outstanding notes with interest in cash within three months from
date of default in premium as conditions upon which paid up in-
surance would be granted.
To May I, 1869, the only new forms of insurance contracts in-
troduced and not heretofore described were the 5 payment En-
dowment policies, Joint Endowments, 5, 15 and 20 payment Life
306
Liberalization of the Policy Contract
Emory McClintock
plans, Non-participating Life contracts, Return Premium Life
policies and Child's Endowments. Under these new forms of
contracts (except such as were non-participating) dividends were
now payable annually after two
years, as on the Ordinary Life
plan.
The new Limited Payment
forms also contained a provision
giving the insured three months
succeeding the date of the annual
maturity of the premium within
which to pay the interest on the
notes (if any) in order to avoid
a forfeiture of his claim to paid
up insurance in case of default in
the premium payment.
At this same date the prohibi-
tion against hazardous employ-
ment was liberalized by except-
ing employment as passenger or
sleeping-car conductor, mail agent, express messenger or bag-
gage master; or in ocean navigation the employment as master,
mate or pilot of first class steam or sailing vessels plying between
ports within the limits before mentioned.
The practice of attaching a copy of the application to each
policy was also adopted at this time.
The Non-participating Life policy was issued on a form simi-
lar to that for the Ordinary Life, but in place of the usual provi-
sion for annual dividends the following was inserted : "In con-
sideration of the reduced rate of premium upon this policy
(which is of the class known as non-participating) all claim for
dividends is waived by the claimants under this policy; of which
waiver the acceptance of the policy is due and sufficient acknowl-
edgment."
The Return Premium Life contract was also similar to the
Ordinary Life form, but contained this special provision : "The
company further agrees that at the maturity of this policy it will
pay in addition to the amount thereof the full sum of all premiums
that have been received upon said policy at such time ; in con-
Liberalization of the Policy Contract 307
sideration whereof all claim for dividends is waived by the claim-
ants under this policy, of which waiver the acceptance of the
policy is due and sufficient acknowledgment."
The Child's Endowment was made payable to a trustee or
guardian for the use and benefit of the insured upon attaining a
given age. In case of the death of the insured before the period
fixed for payment of the Endowment, all premiums paid were to
be returned to the trustee or guardian without interest or divi-
dends.
In 1872 the company discontinued a number of its plans for
short term Endowment and substituted a contract known as the
Deposit policy, making use of various forms limiting the pre-
mium payments to five years, ten years or fifteeen years; also
forms for single premium deposit payable in five years, five
premium payable in ten years and ten premium payable in fifteen
years, etc. These policies provided for payment of the face of the
insurance in case of death, but accompanied by this special pro-
vision : "And the said company further promises and agrees that
a portion of the full year's premium after it shall have been com-
pletely paid shall be held in deposit to be applied towards payment
of the sum insured in case of death, otherwise to be paid without
interest on demand and upon surrender of this policy to the per-
son or persons entitled thereto or interested therein, the sums to
be so held from time to time being stated in a schedule hereto
annexed." The fact that the portion of the annual premiums so
held "in deposit," and which might become payable at stated
periods as a surrender value, was -very large, served to render this
form of insurance attractive, but the entire plan was soon discon-
tinued and short term Endowment forms, which had been tempo-
rarily suspended, were resumed.
In the year 1875 the company introduced a new plan of in-
surance known as Addition Life, but sometimes called Decreas-
ing Life. This plan was continued, with some modifications in
the policy contract until 1888. Its purpose was to furnish a low
premium insurance, being a combination of two-thirds ordinary
life insurance and one-third term insurance. The premium writ-
ten in the contract was the rate in use by the company for Ordi-
nary Life on the two-thirds life part of the contract, with a pro-
vision for application of the annual dividends towards continuing
308 Liberalization of the Policy Contract
in force the one-third term insurance. The provision in the policy
with reference to application of the dividends was as follows :
"At each distribution of the surplus after two years from the
date hereof a due proportion of such surplus shall be credited to
this policy and applied to purchase an addition to the amount
hereby insured for the then ensuing policy year, but, including
such amount, not to exceed the sum hereby insured for the first
two years, the remainder, if any, being applied to reduce the
premium for said year."
This plan did furnish insurance at a less cost than the Ordi-
nary Life rate during the earlier years of the policy contracts, the
advantage becoming less apparent as the cost of the term insur-
ance increased with the advancing age of the policyholder.
In this year (1875) were issued Term policies, having a low
rate of premium and being similar to the Non-participating Life
policy except that the insurance continued for a limited number of
years only and expired without surrender value at the end of the
period.
In the year 1881 the company took important action in the
adoption of the so-called Tontine Dividend plan, a contract for
investment coupled with insurance. It was not then entirely new
in this country, having been adopted by some of the New York
companies more than ten years earlier. The plan first adopted
was the Full Tontine and its distinguishing feature was expressed
in the following special conditions :
"No dividend shall be allowed or paid upon this policy unless the
person whose life is hereby insured shall survive the completion of
the Tontine Dividend Period and unless this policy shall then be in
force."
"Previous to the completion of its Tontine Dividend Period this
policy shall have no surrender value in a paid up policy or otherwise."
"The foregoing special stipulations being contained in all policies
issued on the Tontine Dividend plan, all savings made in consequence
of them shall be apportioned equitably among such policies issued on
that plan as shall complete their Tontine Dividend Periods."
The tontine dividend periods were either 10, 15 or 20 years
according to the choice of the insured at the time of making his
application. It will be observed, under the conditions quoted,
that the insured would forfeit all surplus earning in case of death
Liberalization of the Policy Contract 309
within the stipulated tontine dividend period, or would forfeit
both reserve and surplus in case of failure to pay the required
premium at any time within the tontine dividend period. In case
of default in premium payment the insured was allowed only
sixty days within which to restore the policy upon evidence of
good health. The Full Tontine Dividend plan was not received
with much favor by the insuring public and comparatively few
policies of that form were issued. Presumably the provision for
forfeiture of both surplus and reserve in case of premium default
was found objectionable, as it would deprive the insured of the
right to fractional paid up insurance he would otherwise have
secured. This form of policy was in use by the Northwestern
for a period of five years and discontinued in October 1885.
Meantime, and in November 1883, the Semi Tontine plan was
adopted by the company and immediately advanced in public
favor. This contract was a modification of the Full Tontine and
provided for forfeiture of the surplus only in case of prior death
or non-payment of premium, and paid up insurance was guar-
anteed by the contract in case of premium default and surrender
of policy. The policy forms for the Semi Tontine plan were
quite similar to those already in use, being adapted by insertion of
the tontine provisions and options of settlement in the Ordinary
Life, Limited Payment Life and the different forms of Endow-
ment policies. This plan of Semi Tontine insurance was in use,
giving the company a very large amount of business, for a period
of twenty-two years succeeding its adoption. It was finally dis-
continued in the year 1905.
This company has paid out and still holds for future pay-
ment many millions of dollars in surplus earned by Semi Tontine
contracts. The tontine dividends allowed by the company as the
result of the accumulation of surplus for the stated dividend
periods have been large and in the main satisfactory to the policy
holders because furnishing an investment at a high rate of inter-
est in addition to the value of the insurance protection during the
respective periods. Such policies guaranteed payment of the full
reserve in cash as a surrender value, if desired, at the completion
of the tontine dividend period.
In this same year (1883) a new form of insurance was also
introduced called Semi Endowment, and the policy contract pro-
3io
Liberalization of the Policy Contract
J. C. Crawford
vided for a stipulated amount of insurance to continue for the
term of twenty years only, and in case of death within that period
the full face of the insurance to be paid as a claim, but if
the insured should survive the
twenty years, one-half of the
amount insured should be paid in
cash as an Endowment to the per-
son entitled to receive the same;
otherwise the policy provisions
were about the same as found in
the Life contracts. In this con-
tract the provision that suicide
should void the policy was limited
to the first three years.
In 1890 the company for the
first time introduced a system of
Annuity contracts, consisting of
Immediate Annuities, with first
annuity payment to begin in
one year from date of contract ;
single and annual premium Deferred Annuity, either independ-
ent of, or coupled with, insurance, etc. These contracts were
adapted to the 4% reserve basis then in use by the company and
have been issued without material change in form under the pre-
vailing 3% reserve system. The company has at no time issued
or had in force any large number of annuity contracts, and it
would appear that the system is not largely in favor in this coun-
try.
In 1892 a new policy provision was adopted known as the Life
Option and applicable to Endowments, as follows :
"At the maturity of this (endowment) contract the face of the
policy may be withdrawn in cash, or may without medical examina-
tion be applied to purchase a participating paid up Life policy of like
amount and a life annuity equal to four (4) per cent of such paid up
policy, and any surplus or dividend or any dividend addition that may
be due and payable with the face of this policy at its maturity may be
used to correspondingly increase both the paid up Life policy and the
annuity or the annuity alone."
In December 1894 the company introduced its first form of
Renewable Term insurance. This was a low premium contract
Liberalization of the Policy Contract 311
providing term insurance for a period of ten years with the fol-
lowing clause for a renewal, to-wit :
"At the expiration of the full term of this policy it may be renewed
for successive ten year periods without medical re-examination on
condition that at least thirty days before the expiration of each term
the insured shall give written notice to the company of his desire to
renew, and at each renewal the premium shall be increased to corre-
spond with the company's present published rate for the then age of
the insured."
The privilege was also given in such contracts to change to
other forms of participating policies in use by the company under
stated conditions. These policies provided for accumulation of
surplus for ten years, with the following dividend provision:
"If this policy shall be renewed at the end of its term and at the
end of any subsequent ten year term it shall at each such renewal
share in the surplus contributed by policies of its class according to
its contribution to such surplus, but each such dividend to which it
may become entitled shall be allowed only in permanent reduction of
future premiums."
This plan of Renewable Term was continued for a period of
about thirteen years and during that time it was favorably re-
ceived. A large amount of insurance \vas put in force, but, as
will appear later, the company found it advisable to modify the
privilege of renewal for successive ten year periods by a new
form of contract.
In 1896 the company issued a series of policies providing for
payment to the beneficiary in annual installments instead of in
one sum, at the option of the insured. The clause relating to
change of beneficiary heretofore noted, was also incorporated in
policies of this date.
In the year 1899 the company adopted a form of contract
known as Insurance and Annuity, which was adapted to the
different forms of Ordinary and Limited Payment Life policies.
It provided for the ordinary insurance protection, but in addition
the beneficiary was to receive an annuity of a specified amount
and term of years to commence at the death of the insured, and
in one year after the termination of such annuity the principal
amount of the insurance became payable. This contract was but
little used and after a short time was discontinued.
3 I2
Liberalization of the Policy Contract
F. C. Hemsing
In the year 1902 a plan known as Partnership insurance was
introduced. The plan did not necessitate a considerable change
from the ordinary forms in use, except with respect to beneficiar-
ies and the usual privilege of set-
tlement by installments, those pro-
visions being omitted from policies
of this class. A considerable
amount of insurance on this plan
has been issued and is being is-
sued to corporations and business
partnerships, the insurance being
placed upon a selected member of
a firm for the benefit of the co-
partnership, or upon the life of
an official or skilled employee for
the benefit of a corporation.
In the year 1905 the Renewable
Term plan with ten year accu-
mulation of surplus was discon-
tinued and a new form of policy
issued providing for annual dividends in accordance with the gen-
eral plan of the company. The privilege of renewal for succes-
sive ten year periods was continued, the premiums to be increas-
ed for each new term according to the attained age of the insured,
but the privilege of change to another form of contract from
original date was limited to the first ten years of the Term policy.
In 1907 the Executive Committee authorized the adoption of
a special form of policy under the title of Modified Life. This
contract differs from the Ordinary Life or Limited Payment
Life forms only with respect to the duration of the insurance, the
period being limited strictly to the first 15 or 20 years (according
to the decision of the company) at the end of which time the in-
surance is to be terminated by the payment of a stipulated cash
surrender value. The purpose of the plan is to furnish insurance
to applicants who desire life contracts but do not on examina-
tion conform strictly to the standard of physical excellence estab-
lished by the Medical Department of the company, but neverthe-
less are considered as safe and desirable risks for the period spec-
ified, at the end of which the contract is to terminate. At present
Liberalization of the Policy Contract 313
this form of insurance is issued upon the Ordinary Life or 20
Payment Life rate of premium, according to the choice of the
applicant.
In January 1908 the company discontinued the plan for Re-
newable Term insurance and in lieu thereof adopted the Conver-
tible Term policy, which by its terms limits the insurance to a
period of ten years, with no renewal. This policy provides for
annual dividends and grants the privilege, limited to the first
seven years of the contract, of changing without medical exami-
nation to any form of Life or Endowment insurance issued by the
company, subject to specified conditions. The conversion to a
new plan may be from the original date of the Term contract or
from the date at which the change in plan is made, and if the
latter, it is provided that the age of the insured shall not exceed
sixty years.
The foregoing describes the principal forms of Insurance and
Annuity contracts adopted and issued by the company, as well as
the many changes made therein, during the half century since its
organization.
Increased benefits to members without increased cost has at
all times been the aim.
The Medical Department
THE Medical department of a life insurance company is
charged with the final duty of selection, and selection is
one of the great life insurance functions. It requires ex-
pert, professional knowledge and the exercise of keen judgment.
The present staff of the Medical department is as fol-
lows : Medical Director, John W. Fisher, M. D. ; Assistant
Medical Director, George A. Harlow, M. D. ; Second Assist-
ant Medical Director, William Thorndike, M. D., and Third
Assistant Medical Director, David E. W. Wenstrand, M. D.
John Welton Fisher was born at Terre Haute, Indiana, Sep-
tember 10, 1848; graduated Wisconsin State University, class
1875 > Rush Medical, class 1877; served as interne in Cook County
Hospital; in August 1878, appointed Resident Physician, State
Hospital for the Insane; resigned August 1881 ; engaged in prac-
tice of medicine and surgery in Milwaukee ; appointed local Med-
ical Examiner for company in 1884; appointed Assistant Medical
Director, December 15, 1885, giving only a portion of his time to
the work until July 1888; appointed Medical Director, October
21, 1896.
George Arthur Harlow was born in Augusta, Maine, July 15,
1867; graduated Amherst College, 1889; Harvard Medical School,
class 1893; was House Surgeon, Boston City Hospital, from June
1902 to January 1904; House Surgeon, Boston Lying-in Hospital,
from May 1904 to October 1904; went to Europe in November
1904 and remained in Berlin and Vienna, as a student, until fall
of 1905 ; returned to Boston and entered general practice ; soon
thereafter was appointed Assistant Surgeon to Boston Dispen-
sary; continued in general practice to 1899, when he came to the
company.
William Thorndike was born in Milwaukee, August 5, 1870;
attended public schools of Milwaukee, and Nobles' School of
Boston ; graduated at Harvard University, with the degree of
A. B., 1892, and M. D., 1896; was interne at Boston City Hos-
314
The Medical Department 317
pital from July I, 1895 to January I, 1897; interne at the Boston
Lying-in Hospital from March 1897 to September 1897; engaged
in general practice in Milwaukee from November 1897 to July
1903, when he entered the Medical department.
David E. W. \Yenstrand was born in Sweden, May 6, 1876;
graduated from Chicago High School, in 1894; attended North-
western University, Evanston, 1894-1896; graduated from the
Medical side of that University in 1900; was interne in the
Cook County Hospital, Chicago, from 1900 to 1902; Fellow in
Pathology, Rush
Medical, 1902- 1903
and came to the de-
partment October i,
1903.
The Northwestern
has the distinction of
never having placed
an insurance risk on
its books unless the
applicant had fi r s t
been examined by a
physician who made
full report thereof, on
forms furnished by
the company.
The blanks used
from its organization
require a full state-
ment as to the age and
Dr. Lewis McKniqht , , ,, , r , ,
state of health of the
surviving, and cause of death of the deceased, members of an
applicant's family, his parents, brothers, sisters and grandparents ;
also full details relating to personal health, habits in the use of
stimulants, diseases suffered since childhood, etc. In addition,
and up to 1887, an applicant was required to furnish a statement
from his physician on blanks prepared by the company, giving
details as to past personal health, and also a statement as to habits,
hazard and the like, from a friend.
Dr. Lyman J. Barrows, of Janesville, made the first medical
318 The Medical Department
examination for the company, that of General Johnston, to whom
policy No. i was issued, and, indeed, examined the majority of
the original members whose names appear in the list found on
earlier pages of this work.
The mortality rate has been computed to January i, 1908 on
this original class of members, showing the actual to expected
rate to be 83.17 per cent of the Actuaries' Table.
Dr. Barrows was examined by Dr. C. G. Pierce, November 2,
1858, and received policy No. 4, which was in force at the date of
his death, January 24, 1895. He remained a local Examiner for
the company until he died.
Doctors Lewis McKnight, D. T. Brown and O. P. Wolcott
were appointed local Examiners in November 1858, and Dr. E. B.
Wolcott was. designated Consulting Physician, December 18, 1858.
Cases in which doubt existed as to the insurability of applicants
were referred to him for an opinion, and when he was not avail-
able, to Dr. McKnight. Dr. Wolcott served in this capacity until
October 1864, when Dr. McKnight was appointed Medical
Director.
Dr. McKnight, who was examined by Dr. E. B. Wolcott,
received policy No. 28, an Ordinary Life, with premiums payable
semi-annually. This policy remained in force to the date of Dr.
McKnight's death and upon it he paid a total of seventy-six semi-
annual premiums.
Dr. McKnight, who was the first Medical Director, was born
at Bordentown, New Jersey, November 2, 1817; graduated from
Princeton in 1839, and two years later from the Medical depart-
ment of the University of Pennsylvania ; spent the following year
in Paris, devoting his time to hospitals and supplementary courses
in surgery and medicine ; later located in Troy, New York, where
he engaged in general practice until 1848, at which time he
removed to Milwaukee, where he resided until his death, August
21, 1896. He possessed in a great degree those Scottish qualities,
tenacity of purpose and firmness of character, which, combined
with rare kindliness of nature, particularly fitted him for the
exacting duties of Medical Director. In the early years of his
labors there was comparatively little experience in actual results
to guide him in risk selection. Many of his rulings were based
upon judgment and personal experience and were adopted by
The Medical Department
319
Dr. George A. Harlaw
other life companies, serving for years as their guide. The result
of his thirty-six years of intelligent, faithful and conscientious
management of the Medical department is reflected in the favor-
able mortality of the company as
shown by the general count of
1895, which included all the busi-
ness placed on the books from its
organization through that year.
The average mortality rate for
that period is only 68.70 per cent
of the Actuaries' Table. In no
year in the history of the company
to include 1900, the date of the
latest general mortality computa-
tion, has the mortality rate ex-
ceeded that of the tables on which
premiums were based ; not even in
the early years, when it was strug-
gling for existence. Table Xo. 4
exhibits the mortality rate com-
puted separately on the issues of each year, as indicated, and for
the entire period, showing that the rate of actual to expected mor-
tality was 66.02 per cent of the Actuaries' Table.
Two Medical Directors only have served the company during
the first fifty years of its existence, and but two changes have
occurred in the home office staff of the Medical department.
These concern Charles E. Albright, M. D., and Harry Toulmin,
M. D. The former, Second Assistant Medical Director, served
until July 6, 1903, at which time he resigned. He subsequently
joined the agency force of the company and has become a solicitor
of the first rank. Doctor Harry Toulmin, of Philadelphia, was
appointed Assistant Medical Director, July 20, 1898, serving the
company faithfully until he resigned, October 21, 1899, to accept
the position of Assistant Medical Director of the Penn Mutual
Life Insurance company.
The by-laws of the Northwestern define the duties of the
Medical Director as follows: "To examine and pass upon all
applications for insurance received by the company, and, with the
approval of the President, to appoint all Medical Examiners and
320
The Medical Department
Dr. William Thorndike
have supervision over them." They further provide that he shall
conduct all correspondence pertaining to the business of his
department and keep all such records as are made necessary in
the dispatch of such business, and
generally, perform the usual serv-
ices relating to the medical branch.
The Assistant Medical Directors
aid in the performance of these
duties.
The company adheres strictly
to these by-laws and gives full
support to the officials of the de-
partment.
The Committee on Insurance
and Agencies shares responsibility
in passing upon certain risks in-
volving questions of hazard,
travel, occupation or habits, in
which a medical question is not
involved.
The fact that less than six per cent of all authorized applica-
tions recommended by local Examiners have been rejected, shows
the care exercised by the field force and local Examiners in the
selection of risks. The Medical department has shown its appre-
ciation of the co-operation of these important factors and realizes
that such co-operation has at all times been important in securing
the favorable mortality rate for which the company is noted.
Medical Examiners are paid quarterly by draft direct from
the Medical department. A card record is kept of all examina-
tions made by each Examiner and a similar record of all deaths,
showing date and cause of death. From this, the percentage of
deaths to examinations, made by each Examiner can readily be
determined at the end of each year, serving as a check on services
performed. About 11,000 Examiners are required, to cover all
of the territory in which the company transacts business. An
average of 800 are appointed each year to fill vacancies caused by
change of residence, death, resignation and dismissal. All ap-
pointments are made direct from the home office after a careful
investigation by the Medical department through the local Exam-
The Medical De-par tmcnt
321
Dr. D. E. W. Wenstrand
iners in adjoining localities, as to qualifications and fitness for the
position. A Chief and an Alternate Examiner are appointed in
nearly all localities in which the company does business. The
Chief Examiner is required to
make all the examinations within
his territory, if posible. The Al-
ternate Examiner is employed in
the absence of the Chief, and to
examine applicants for additional
insurance who were previously
examined by the Chief Examiner.
This method of appointment and
assignment of duties to Examiners
has proven satisfactory, and the
good results are reflected in the
saving on mortality, especially in
the first five year periods of the
company's business where the ef-
fect of medical selection is most
marked. This saving has been
apparent for a long term of years, as will be seen by reference
to table Xo. 5.
It is contended that a mutual company should place risks on
as equal a footing as possible and adherence to this principle has
prompted the Northwestern to avoid unhealthful localities where
climatic conditions produce a rate of mortality above the average
of the company. The Northwestern, therefore, does not insure
residents of the states of Mississippi, Louisiana and Florida, nor
persons residing in certain counties of various other states, be-
cause of these conditions.
About ten per cent of the business on the books at the present
time is on residents of territory below Mason and Dixon's line,
and it is of importance to know that the. mortality on this business
is about twenty-six per cent higher than upon the remaining
ninety per cent north of that line.
The mortality from organization to include 1875 was 79.14 per
cent of the Actuaries' Table, and for the years 1885 to 1900,
inclusive, was 54.77 per cent, an improvement of over twenty-
four points due to restrictions in territory; discontinuance of
322
The Medical Department
insurance on the lives of women; improvement in examinations
and in sanitary conditions; more accurate data obtained from
actual experience to guide the Medical department in selection ;
a more experienced corps of solicitors and a greater percentage
of high premium policies, especially the large volume of semi-
tontine business placed on the books from 1881 to 1898.
Reference to the table below will show that the mortality on
females insured from the years 1858 to 1875, inclusive, was more
than eighteen points greater than on males for the same period.
TABLE NO. 1
Comparative Mortality Among Insured Males and Females, Under
Policies Issued From 1858 to 1875, Inclusive.
MALES
FEMALES
Expected
Actual
Per cent
Expected
Actual
Per Cent
To 1875:
1st year. . . .
2d to 5th yr. .
After 5 yrs. .
$1,334,776
2,983,920
1,663,111
$ 920,120
2,525,789
1,211,870
68.93
84.65
72.87
$104,195
236,395
97,575
$103,000
232,438
87,350
98.85
98.33
89.52
Total . . .
$5,981,807
$4,657,779
77.87
$438,165
$422,788
96.49
Number of policies under observation: Males, 66,970; Females,
6,298.
The four general mortality counts compiled by the Actuary's
department (according to the Actuaries' Table) from the organ-
ization of the company in November, 1858, to 1875; to 1885; to
1895 and to 1900 are as follows:
TABLE NO. 2
Date
Policies
Expected
Deaths
Actual
Per Cent
1858-1875..
69,257
$ 6,419,972
$ 5080567
7914
1858-1885...
1858-1895...
1858-1900...
116,111
281,797
396,323
17,531,090
51,306,792
83,983,259
6,508
15,394
23,442
13,527,180
35,256,473
55,441,939
77.16
68.71
66.02
The history of the company shows that of the different forms
of policies issued, those calling for the lowest premium have had
the highest rate of mortality, as shown by the following table :
The Medical Department 323
TABLE NO. 3
Mortality Experience, Different Forms of Policies from Dates indi-
cated, to 1900.
5 and 10 Year Term Policy .. Issue of 1868 to 1895 91.91 Per Cent.
Non-participating Life " " 1870 to 1895 83.00 Per Cent.
Addition Life " " 1875 to 1886 77.85 Per Cent.
Ordinary Life " " 1858 to 1900 75.19 Per Cent.
Limited Payment Life " " 1860 to 1900 59.87 Per Cent
Endowment " " 1860 to 1900 57.77 Per Cent.
Tontine and Semi-Tontine.. " " 1881 to 1898 53.78 Per Cent.
By reference to Table No. 7, it will be seen that the amount of
insurance in force January i, 1886, was $110,710,861. Twenty-
two years later, January i, 1908, the amount of insurance in force
had increased to $881,563,592. Not a risk included in the vast
amount was accepted except on individual merit.
The mortality for the first fifteen years of this period, from
1886 to 1900, both inclusive, was only 53 per cent of the Actuaries'
Table. The mortality for the two cheapest forms of policies
issued by the company, viz. : Renewable Term and Ordinary
Life, a class of business in which the mortality is expected to be
higher than in any other, has been computed for the years 1895 to
1905, both inclusive, and found to be 56.70 per cent of the Table,
and for the first five years, 54.42 per cent, indicating that the
mortality, when computed on all the business accepted during the
past twenty-two years, will be most favorable.
324 The Medical Department
TABLE No. 4
Mortality From Organization to 1900, Inclusive
RECAPITULATION
Year of Issue
Expected
Actual
Per cent
1858
37,907
27,000
71 23
1859
212 241
146 200
68 88
I860
278 840
201 900
72 41
1861
201,658
153,100
75.92
1862
344 165
270,200
78.51
1863
714 813
484,280
67 75
1864
1 552 695
1 110 199
71 50
1865
1,912,763
1,350,029
70.58
1866
2,022 857
1,621,243
80.15
1867
2,928,430
2,389,599
81.60
1868
3,137,94 1
2,435,382
77.61
1869
2,726,154
2,345,188
86.03
1870
,864,602
1,765,355
94.68
1871
,546,943
1,329,103
85.92
1872
,553,308
1,285,433
82.75
1873
,409,712
1,094,565
77.64
1874
,397,274
1,144,685
81.92
1875
655 460
1 337,679
80 80
1876
1,544,709
1,301,645
84.26
1877
1,071,690
820,209
76.53
1878
1,099,478
908,751
82.65
1879
1,426,121
991,238
69.51
1880
1,413,949
938,138
66.35
1881
2,304,223
1,491,699
64.74
1882
2,229,246
1,636,929
73.43
1883
2,235,144
1,614,491
72.23
1884
2,330,273
1,789,304
76.79
1885.
2,964,351
2,004,113
67.61
1886
3,270,416
1,946,841
59.53
1887
3,267,145
1,977,849
60.54
1888
3 888 080
2 488 697
64 01
1889
4 120 694
2 251 223
54 63
1890
4 373 254
2 728 640
62 39
1891
4 110 590
2 037 511
49 57
1892
3,711,269
1,910,577
51.48
1893
2 377 835
1 183 092
49 76
1894
2 170 053
1 075 796
49 58
1895
1896
2,187,636
1,808,001
1,126,853
899,777
51.51
49.77
1897 . . .
1 721,376
759,727
44 13
1898
1 605 089
624 528
38 91
1899
923 509
330 135
35 75
1900
331,362
113,036
34.11
Grand Total
83,983,259
55,441,939
66.02
The Medical Department
TABLE No. 5
Mortality Experience to Dec. 31st, 1900
325
FIRST
FIVE YE,
^RS
AFTER
FIVE YE
ARS
Year of
Issue
Expected
Actual
Per
Cent
Expected
Actual
Per
Cent
1858
5,695
5 000
87 80
32 212
22 000
68 30
1859
20 557
16 500
80 26
191 684
129 700
67 66
1860
30 511
13 500
44 25
248 329
188 400
75 87
1861
25,232
15 250
60 44
176 426
137 850
78 13
1862
39,216
33 500
85 4 9
304 949
236 700
77 62
1863
83 681
57 700
68 95
631 132
426 580
67 59
1864
207,201
147 600
71 24
1 345 494
962 599
71 54
1865
273,572
177 400
64 85
1 639 191
1 172 629
71 54
1866 . . .
342 822
9 63 700
76 92
1 680 035
1 357 543
80 80
1867
6o5 640
528 100
80 55
2 9 7 9 790
1 861 499
81 90
1868
759 580
544 3 9 8
71 66
2 378 364
1 891 054
79 51
1869
1870 . . . .
671,866
483 770
539,510
5 9 2 850
80.30
108 08
2,054,288
380 832
,805,678
1 242 505
87.90
89 98
1871
1872
375,170
388,172
350,973
288 246
93.55
74 26
,171,773
165 136
978,130
997,187
83.47
85 59
1873
315 355
278 803
88 41
094 357
815 762
74 54
1874
1875 . . . .
323,237
380 C45
338,058
285 385
104.59
75 09
,074,037
1 9 75 415
806,627
1 052 294
75.10
82 51
1876
342,551
299 909
87 55
202 158
1,001,736
83 33
1877 .'....
1878
250.867
243 998
224,703
179 370
89.57
73.51
820,823
855 480
595,506
729 381
72.55
85 26
1879
1880
323.968
356,826
208,327
191,963
64.30
53.80
1.102,153
1,057,123
782,911
746,175
71.03
70.59
1881 .
616,522
348 537
56.53
1 687 701
,143,162
67 73
1882
614 813
345 433
56.19
1 614 433
,291,496
80 00
1883
649,941
384,109
59.10
1,585,203
,230,382
77.62
1884
1885
1886
1887
1888
703,889
934,557
1,111,127
1,219,632
1,581,992
374,616
495,534
526,659
651,182
1,037.124
53.22
53.02
47.40
53.39
65.56
1,626,384
2,029,794
2,159,289
2,047,513
2,306,088
,414,688
,508,579
,420,182
,326,667
,451,573
86.98
74.32
65.77
64.79
62.95
1889 . .
1,841,208
902,496
49.02
2,279,486
,348,727
59.17
1890
1891
1892
2,154,906
2.238,268
2,256,728
1.279,927
1,028,306
1,147,002
59.40
45.94
50.83
2,218,348
1,872,322
1,454,341
,448,713
1,009,205
763,575
65.31
53.90
52.50
1893 . . . .
1,616.454
782.506
- 48.41
761,381
400,586
52.61
1894 . . .
1,681,507
812,134
48.30
488,546
263,662
53.97
1895
1896
1,992,909
1 808 001
1.042.753
899 777
52.32
49 77
194,727
84,100
43.19
1897
1 721 376
759 727
44 13
1898
1899 ....
1900 . .
1,605,089
923,509
331 362
624,528
330.135
113 036
38.91
35.75
34.11
Total
34,503,322
19,396,196
56.22
49,479,937
36,045,743
72.85
Expected
Actual
Per cent
First 5 years
After 5 years
34.503.322
40 479 937
19.396,196
36 045 743
56.22
72 85
Total all Yrs
83 983 259
55 441 939
66 02
326 The Medical Department
TABLE No. 6
Deaths from Organization to January 1, 1908
CAUSE OF DEATH
AGE AT DEATH
Under
20
20to
30
30to|40to50to
40 50 | 60
60to
70
70to
80
Over
80
Grand
Totals
General Diseases
Cancer and Sarcoma
Diabetes
1
1
3
2
6
22
16
21
30
446
16
666
54
62
120
63
20
38
637
49
1208
84
219
344
96
6
23
377
83
999
100
302
523
11
se
211
82
564
6C
228
502
16
29
82
84
26
39
160
222
80
24
2
1
6
2
17
1757
555
61
172
1771
366
3784
350
1047
Diphtheria .
Fever Malaria
Fever Typhoid
14
14
44
72
13
59
Rheumatism
Tuberculosis Pulmonary .
other than "
Miscellaneous
Total
13
1333
2438
2330
1849J132
519
55
9863
Diseases of the
Nervous System
Apoplexy & Soft, of Brain
Encephalitis & Meningitis-
Insanity
2
3
21
52
13
(
38
154
101
117
14
20
115
390
116
207
45
38
164
692
82
153
56
37
161
705
46
96
52
77
113
426
19
49
19
66
55
72
1
9
12
4
2460
419
644
186
253
653
Locomotor Ataxia
'Paralysis, cause not stated
Miscellaneous
Total
5
127
521
960
1181
1089
634
98
4615
Diseases of the
Circulatory
System
c
31
6
23
10
151
12
59
11
376
37
46
133
21
559
118
39
132
61
13
382
174
8
3
62
30
1
413
73
2197
551
140
Pericarditis
16
636
188
28
Organic Disease of Heart..
Arterio-Sclerosis ~
Miscellaneous-
Total
41
200
529
870
1000
638
96
3374
Diseases of the
Respiratory
System
Asthma
5
2
6
180
13
6
11
18
480
31
10
28
30
716
31
21
41
34
623
42
28
73
17
500
40
26
85
10
285
8
2
18
5
55
1
93
258
120
2844
166
Bronchitis
Pleurisy
Pneumonia
Miscellaneous
Total
5
201
546
815
761
658
414
81
3481
Diseases of the
Digestive
System
Appendicitis
3
2
6
94
45
21
17
57
162
105
123
73
124
140
144
253
149
169
80
156
280
181
149
846
20
129
234
146
78
607
12
83
95
92
37
319
1
17
10
10
7
512
681
1016
668
627
Intestines Disease of
Liver Disease of
Stomach Disease of
Miscellaneous
Total
11
234
587
855
45
3504
Diseases of the
Genito-Urinary
System
Bladder Disease of
Nephritis
1
3
44
6
13
66
203
17
32
13
428
46
3
23
26
606
35
18
15
64
594
44
108
11
50
268
18
168
9
513
9
38
2
44
172
2181
168
342
104
Kidney Other Diseases of
Prostate Disease of
Miscellaneous
Total
1
260
513
700
821
93
2967
Violent
Deaths. Etc.
Casualties
6
2
2
306
60
23
389
622
207
133
962
631
222i
428
1
198
278
204
26
72
263
565
80
413
13
113
619
13
492
2
13
2290
932
814
1047
Senility
Suicide
Miscellaneous . .
Total
10
905
520
5083
Grand Totals
45
2391J5514
1157112
6066
656
988
32887
The Medical Department
TABLE No. 7
Statement Showing Growth Since Organization
327
Year Ending
Policies in
Force
Amount
Insured
Assets
*June 1st, 1859
I860
137
414
$ 408,800
962 100
$ 9,335
25,494
1861 . . .
785
1 544 000
56,981
1862
1 584
2 370 650
106 813
1863
2 285
3,076,150
162,258
1864
4 766
5 902,150
275,595
1865
8 125
11 217 155
593,462
tJan'y 1st 1866
10 749
15 041 082
906,420
1867
14 799
22 517 043
1 748 759
1868
21 380
36,539,333
3,126,197
1869 ....
27,887
50,039,745
4,755,419
" 1870
31,816
59 608 675
6,757,532
1871
35,107
65,186,707
8,991,766
1872
34,349
62,425,187
10,658,170
1873
35,207
64 182 874
12,434,528
1874
35,226
64 692 003
14,093,579
1875
35,402
65 301 021
15,513,500
" 1876
36,428
67 124 215
17,118,812
" 1877
36,456
67 493 191
18 062,825
" 1878
34,766
64 416 847
18 173 257
1879
33,254
61,441,014
17,974,879
1880
33,066
61 948 888
18,002,142
1881
34,172
64 967 081
18,346,212
" 1882
37,491
74 503 740
18 859,459
1883
40,871
83,355,424
19,794,672
1884 .
43,801
92,083,093
21,115,321
1885
45,948
98 793 982
22,528,971
1886
50,100
110 710 861
24,265,257
" 1887
56,544
127 629 903
26,669,878
1888
64,406
147 615 323
28,858,019
1889
1890
73,130
84,329
172,518,891
202 405 923
32,672,811
37,116,870
1891
98,525
238 908 807
42,353,913
1892
113,528
275 674 753
48,826,755
1893
1-28,349
312 512 603
56,236,089
1894
136,410
325,152,947
64,071,183
1895
1896
144,900
155,785
340,697,569
364,259,235
73,349,708
82,902,590
1897
165,415
384 167,829
92,633,604
" 1898
178,462
413 081,370
103,375,536
1899
196,022
457,712,738
115,446,643
1900
211,926
497 606 125
126,646,728
1901
224,747*
529 647 290t
139,512,166
1902
243,158$
574 705 OOOt
151,944,756
" 1903
262 094t
620 681 283t
165,042,435
" 1904
280 443t
662 851 194t
178,200,625
" 1905
299 730t
708 552 287t
194,777,433
" 1906
320 896t
764 266 187t
208,417,073
1907
339 468J
819 252 279*
221 101,714
1908..
361,084*
881.563.5921
232,819,246
* 6 months, t 7 months.
* Includes only business actually paid for.
Investments and How Made
INVESTMENT is an obvious concomitant of life insurance.
The reserve fund must be made productive, and within this
simple statement is embraced a mountain of important ac-
cessories.
The position of the Northwestern is unique in respect of its
history relating to investments. Its original charter, granted as
it was in 1857 when modern questions and experiences could not
have been prophesied, restricted the company in its investments to
two simple classes : Mortgages on unincumbered real estate within
the State of Wisconsin, and national, state and municipal bonds.
This continued until 1863 when the territorial limitation as to
real estate mortgages was removed and the power to loan to pol-
icyholders, not exceeding one-half the annual premiums on their
policies, was granted. Subsequently the powers of the company
in this direction were enlarged, and the character of the securities
in which it may now invest, and the method of making such invest-
ments are quite fully set forth in the following excerpts from an
address delivered by Vice President Geo. C. Markham at the 29th
annual meeting of the Association of Agents of the company.
"This company, under its charter and several amendments
thereto, is authorized to invest its funds as provided in Section
1951 of the Wisconsin Statutes, which Section as amended reads
as follows:
'Every such corporation organized under the laws of this state
may invest its funds and accumulations in stocks or bonds of the
United States or of this state, or of any county, city, town or village,
or duly organized school district therein, or in mortgages being first
liens on real estate whether held in fee or as leasehold running not
less than twenty-five years, or in fee subject to a leasehold, worth at
least twice the money loaned thereon, or in the mortgage bonds of
any railway or street-railway company duly incorporated and organ-
ized under the authority of this state; and it may also make loans
on the security of promissory notes, amply secured by pledge of any
of the bonds in which such insurance corporations are hereby
328
Investments and How Made 331
authorized to invest their funds, and every such corporation may not
only loan to its policyholders, sums not exceeding one-half the annual
premiums on their policies, upon notes to be secured by the policies
of the persons to whom the loans may be made, but may also make
loans upon the security of its own policies to an amount not exceeding
ninety-five per cent of the cash surrender value of each such policy
at the time of making any loan; and such corporation may invest its
funds in other states, organized territories of the United States, and
the District of Columbia, on like securities and under the same
restrictions as in this state. No life insurance corporation organized
under the laws of this state shall issue policies insuring fire, marine,
accident or live stock risks, or do any banking business, except as
otherwise provided by law.'
"As regards the investments of this company, it can be stated
as a matter of fact, that this company never has invested any of
the funds of the policyholders in stocks of any kind. It does not
invest in street railway bonds, nor in what are known as industrial
stocks or bonds, although very many street railway bonds would
be considered good security, and our charter permits the company
to invest its funds in them. But, as a matter of fact, the company
so far has not invested in any street railway bonds. In short, the
assets of this company are invested almost entirely in four kinds
of security. First, and what was originally its only investment,
mortgages upon centrally located business and residence property
in many of the principal cities of the middle west and some of
the more prosperous cities of the south. Second, mortgages upon
farms in the several states in localities that have previously been
examined and selected as safe and desirable fields to loan in.
Third, in municipal bonds, bonds of some of the more important
steam railroad systems of the country and we have a few govern-
ment bonds remaining unredeemed. Fourth, loans to the policy-
holders upon their policies.
"Every farm upon which the company has made a loan has
first been carefully examined by one of the company's Special
Loan Agents, and his written report made thereon to the Finance
Committee. It is the aim of the Finance Committee to vote such
an amount upon each application as in its judgment will be well
secured, and to assure itself that the farmer will be able not only
to pay his interest, but pay his principal, thereby making the
investment safe, solid and desirable.
332 Investments and How Made
"I have personally visited several times all of the cities and
towns wherein this company has made and is making loans.
Members of the Finance Committee are expected to and do visit
cities and examine property where large loans are wanted. This
gives the members of the Finance Committee an opportunity to
view localities for themselves, and to become better acquainted
with such localities, and also enables them to consider and act
more intelligently upon applications submitted for loans.
"Some of our policyholders have inquired why the company
pays our Special Loan Agents a salary instead of allowing them
to charge a commission. These agents are put upon a salary for
the simple reason that experience has shown that it is best and
safest to pay these agents a fixed salary instead of allowing them
to charge the borrower a commission. No matter how honest he
may be or how good in his intentions, it is perfectly natural that
an agent, if he be allowed to charge a commission, is tempted to
recommend a loan to the committee for a larger amount than
ought to be loaned upon a given piece of property, and years ago
when agents were allowed to charge a commission, some of them
yielded to this temptation. By paying an agent a salary, which
he receives monthly, no matter whether the committee votes a
loan recommended by him or not, all temptation is at once removed
from such agent to recommend a loan that ought not to be made
in order to secure his commission or compensation for his services.
With the great number of loans the Finance Committee votes,
upon the applications received, it would absolutely be a physical
impossibility for the Finance Committee, or any member of it, to
personally examine all of such securities. We necessarily must
rely to a large extent upon the ability, honesty and intelligence of
our Special Loan Agents. Therefore, we pay them a salary
commensurate with the services rendered, and say to them: 'We
want your best, conservative judgment ; that is what the company
will pay for. The Finance Committee will take the responsibility
of voting such an amount upon each application as in its judgment
will be safe and conservative.'
"After a loan upon real estate has been voted by the Finance
Committee, the borrower is required in every case to furnish the
company a full and complete abstract of the property offered for
security. Each and every abstract is subjected to careful and
Investments and How Made 333
rigid examination by our Legal department, and that department
is required to and does certify that each and every security offered
for a loan is absolutely free and clear of all liens and incumbrances
of every kind and nature before any money is paid to the
borrower.
"As before stated, the company does not buy stocks, street
railway bonds, industrial stocks or bonds, and therefore its bond
buying is confined to municipal bonds and bonds issued by the
leading steam railways. The bonds of a railroad are usually
secured upon the franchise, the roadbed, the rolling stock, ma-
chine shops, depots, stations, terminals, etc. Before any bonds
issued by any railroad corporation are purchased, the Finance
Committee usually has the opinion of the attorneys of the road
that issued the bonds, the attorneys of the bond-house selling the
bonds, and also the opinion of our own Counsel as to their legal-
ity. Millions of bonds of different kinds are offered to this
company every year that are declined, because they do not come
up to the high grade and quality demanded by this company for
the investment of the funds of our policyholders.
"The company loans 95% of the surrender value of its
policies. This kind of security is, beyond question, safe. It is
of great benefit to our policyholders to be able to borrow money
on their policies, and is also legitimate and safe business for the
company.
"Bonds and stocks of all descriptions are offered, including
so-called industrial bonds. The industrial bond is usually a bond
issued by a corporation that has taken over several smaller con-
cerns by deed or otherwise to one central corporation. Such
combinations are usually composed of some sort of manufactur-
ing property, such as paper mills, saw mills, timber lands, logging
railroads, shipyards, zinc and tin industries, etc. These con-
solidated corporations issue bonds or stocks that are secured by
mortgage upon their property, the funds thereby raised being
used in payment for the plants and to run the business. Some of
these stocks and bonds are undoubtedly well secured and the
business conducted under proper and conservative management;
many of them are not. If any of the enterprises fail, of course
the bonds or stocks are worthless, and we all know that very
many of them do fail. It is enough for my purpose, I think, to
334 Investments and How Made
state that this company, as above suggested, has not and I hope
will not ever invest its funds in any such kind of security. Per-
haps it is needless to say that the Northwestern has never gone
further in investigation of this class of securities when offered,
than to promptly decline them.
"I have already stated the kind and quality of bonds which the
company buys. These bonds are bought for permanent invest-
ment and not for the purpose to trade in, or to simply buy and
sell for speculative purposes. The bonds are carefully selected,
and while they do not bear the highest rate of interest, they are
of the better and safer kind of security. Bonds that bring the
highest rate of interest are usually of such kind or quality that
they are not considered by the careful investor as first-class
security.
"No officer of the company, member of the Executive or
Finance Committees, agent or employee, has ever had or now has
any financial interest, near or remote, in any of the securities or
assets of this company. This company has no interest in any
trust company, bond company, bank or any other corporation or
association of any kind. The company must have depositories
in which to deposit its funds that are uninvested. These funds are
deposited in four of the leading banks of this city. Each of the
banks where deposits are made has for years furnished and now
furnishes what is deemed to be an ample and sufficient bond to
protect the company against any possible loss occasioned by any
bank failure or any disaster of any kind that may affect the
financial condition of such bank.
"Before any accounts or bills can be paid, proper vouchers
for the same have to be made and signed by at least two officers
of the company, and all the checks given by this company have
also to be signed by at least two officers before such checks will
be honored. Payments to the company are almost invariably made
by checks or drafts, and the payments made by the company are
invariably made by either check or draft. There is no opportunity
for any of the funds of this company to go in the wrong direction,
and I think it quite impossible under the present system that any
funds belonging to this company and in bank or elsewhere can
be misappropriated.
"The question has been asked: Are mortgage loans better
Investments and Hozv Made 335
investments than bonds? This question is not quite accurate
because a certain class of bonds, such as steam railway bonds
and street railway bonds, are generally secured by a mortgage.
If the inquiry means, are loans made to individuals or corporations
upon farms or city property better investments than municipal
bonds or railroad bonds, I should say that such mortgages are
probably no better security than well secured railway bonds or
municipal bonds. I need not go over again the different kinds of
security, or the nature of a bond and how secured. Nearly all of
the bonds are subject to market fluctuations to a greater or less
extent, but a bond bought for an investment as this company
buys them, is not affected by a fluctuating market, for the reason
that we do not buy bonds to sell again. A bond bought at a certain
price today is bought upon a basis to yield a certain rate of inter-
est to maturity, so that the company knows exactly what the
investment will yield when it purchases a bond.
"Under the law, our bonds have to be valued once a year. In
estimating the value of the bonds at the end of the year, the
market value of the bonds at the time the appraisal is made
governs the values as fixed by the appraisers at the time. The
market value of all bonds varies somewhat according to the
demand for investments, and such appraisal may fix the then
market value of the bonds held by the company a little more or
a little less than cost to the company or as shown on the company's
books. This appraisal is made to comply with the law that
requires the company to furnish the Insurance department the
appraised value of all its bonds at the end of each year, but it in
no way affects the actual asset value of our bonds as carried on
the company's books. No one connected with this company has
ever received any commission or other compensation for the pur-
chase or sale of said bonds."
When \Yilliam P. McLaren was Second Vice President, he
closed an address on investments in the following words: "The
result of the efficient labors of life agents has been the accumu-
lation of an enormous fund, * * * held as a sacred trust
for the policyholders and their families. The care of this vast
sum, and its safe and profitable investment, not only requires
much labor, but calls for the very best judgment in its direction
and the utmost prudence in its methods and details. We believe
336 Investments and How Made
that real estate mortgages, properly selected and carefully placed,
are the best possible investments for such a fund as is held by a
life insurance company.
"It is sometimes said that the Northwestern is too particular in
its methods, and if it were not so particular, it would make more
loans. It may be answered that the policyholders and the officers
are alike proud to be identified with a company that is known
everywhere as having the most perfect system of loaning in this
country, so that it has become a by-word to say that the acceptance
and consummation of a loan by our company imply an absolutely
perfect title and a first-class security. We do not deny that we
are conservative, and that our first consideration is always the
security of our loans. With this constantly and prominently in
view, it is no doubt true that we sometimes decline to make loans
which would ultimately prove safe, just as the company may
decline some insurance risks that would probably be good.
Instances of both kinds are not infrequently quoted and called
'great .mistakes by the company.' They may be, but if they are
the only mistakes made by the company, arising out of judicious
management and conservative methods, its record and results will
continue to command the satisfaction of its policyholders, and the
respect of every intelligent business man."
The Legal Department
THE Counsel has general charge of the Legal, including the
Abstract, department, and all matters pertaining thereto.
He represents the company's interests in all suits and pro-
ceedings to which it is a party and conducts all correspondence in
reference to the same. He furnishes, whenever requested, to the
Board of Trustees, or to any officer, committee or head of depart-
ment, a written or oral opinion, as may be desired, upon any
question arising, in con-
nection with the business
of the company.
He has usually been
given supervision of the
subject of legislation in
the various states in
which the company is
transacting business.
One of the important
branches of this depart-
ment covers the examina-
tion of the legality of all
the investments of the
company. A corps of ex-
aminers, most of whom
have been admitted to the
bar, are engaged the year
round in examining the
David G. Hooker abstracts of title furnished
as securities for loans.
The legal work of the company was transacted by firms of
practicing attorneys until in 1878, when it was deemed advisable
to employ the exclusive time of an attorney, and David G.
Hooker was selected as Counsel of the company. He was suc-
ceeded by. Charles E. Dyer, who in turn was succeeded by George
339
340
The Legal Department
H. Noyes, the present Counsel. J. R. Dyer is now assistant, and
W. R. Nethercut, second assistant; A. G. Miller and H. N.
Laflin also assist the Counsel.
/. R. Dyer
W. It. Nethercut
Henry F. Tyrrell has had charge of the loan extension branch
of the work since 1894.
There are in the department fourteen examiners of title, two
clerks engaged in drawing notes and mortgages, and nine stenog-
raphers.
H. F. Tyrrell
The Agency System
THE history of the agency work of The Northwestern
Mutual Life Insurance Company cannot be fully written.
It is impossible to more than indicate its salient features
and to present the merest outline of its origin, methods and
development.
At the time of its organization, fifteen old line companies now
doing a prosperous business had been in successful operation from
four to twenty years. Twenty companies had been chartered by
this state with the privilege of writing life insurance, but none
succeeded in getting fairly launched in the business. There
was little in the outlook for the new company to attract agents, in
competition with old and strong companies of the east operating
in this state, especially in view of the failure of various Wis-
consin companies.
In 1858, Hiram G. Wilson was employed in procuring the
insurance necessary to entitle the company to begin business, and
during that year was appointed General Agent, a position which
later became equivalent to that of Superintendent of Agencies. It
would have been so designated at the time of his appointment, had
there been any agents to supervise. Mr. Wilson went into the
state and picked, with great skill, men to represent the company in
the various towns and cities. He succeeded in imbuing them with
his own enthusiasm and his own belief in the ultimate success of
the company. Mr. Wilson remained in this position until 1864. As
a result of his labors, those of his agents, and the growing favor of
the company, the insurance in force had increased to nearly six
millions, the assets had grown to $275,595 and the work had been
extended into Northern Illinois and Southern Minnesota.
Mr. Wilson was followed by J. G. McKindley, who had the
same title and who succeeded him admirably. It was during Mr.
McKindley's administration that the business was extended into
certain districts in Iowa, Nebraska and Michigan, and a beginning
made in Indiana.
344 The Agency System
In 1865, the company entered Pennsylvania and late in that
year began work in Massachusetts.
In 1868, the advisability of entering Tennessee, Kentucky and
Missouri was favorably considered and work in those states began
in the ensuing year.
In January 1867, the agents, then few in number, were invited
to meet the Trustees at the home office for consideration of various
questions of mutual interest, and as an outgrowth of that meeting,
the agents have continued to meet annually in Milwaukee.
In April 1866, the legislature passed a law permitting the
company to operate anywhere in the country, and in February
1867, by resolution of the Executive Committee, the President and
Secretary were authorized to appoint agents in any state or terri-
tory of the United States.
Mr. McKindley tendered his resignation as General Agent,
which was regretfully accepted by the Board of Trustees in May
1867, and Heber Smith, who had since 1863 represented the
company as agent at Watertown, Wisconsin, and later as traveling
agent, was appointed in his place, a position which he filled with
conspicuous success until January 1874, when Matthew Keenan
was appointed Superintendent of Agencies, the title of the office
being changed from that of General Agent. The work in the
meantime had grown to large proportions, the new company
having in force 35,226 policies, insuring $64,692,003, with assets
of $14,093,579. During the incumbency of Mr. Keenan, which
lasted until December 1881, the insurance in force had increased
ten millions. The assets were nearly nineteen millions.
In December 1881, Willard Merrill, then Secretary, was
appointed Superintendent of Agencies, Mr. Keenan taking charge
of the Real Estate department. Preceding Mr. Merrill's appoint-
ment the company had safely passed the experimental stage, had
successfully solved the problems incident to the Civil War and
the panics of 1873 and 1879, and had reached a period which
justified the belief that a great future was before it. Exceptionally
strong and able men had been selected to represent it in various
states and localities and a reputation for careful and conservative
management of its finances, as well as a conscientious regard for
the rights and interests of its members, had been established.
Looking back, it seems that the time was ripe for the advent of a
The Agency System
345
man with the peculiar fitness and exceptional ability, displayed by
Mr. Merrill in the twenty-one years of his supervision of the
Agency work. Upon the foundation strongly laid in his admin-
istration was built a superstruc-
ture of exceptionally high charac-
ter and efficiency. At its close
there were 243,158 policies in
force, insuring $574,705,000. The
assets had grown from $18,859,-
459 to $139,512,166. The Agency
force had increased and developed
to a remarkable extent on a con-
tinually decreasing ratio of ex-
pense. Mr. Merrill was succeeded
on July i, 1902, by the present in-
cumbent, H. F. Norris, who had
been Assistant Superintendent of
Agencies since 1894.
The various Superintendents
of Agencies have been ably see-
In July, 1865, Thomas W. Buell
became connected with the company. He had charge of the
advertising and also assisted the Superintendent of Agencies. For
a period prior to his resignation in July, 1882, he acted as Super-
intendent.
\Yhen Mr. Buell resigned, Charles B. Coe was appointed
Assistant Superintendent, a position which he filled with con-
spicuous merit until October 1884, when, on account of failing
health, he was compelled to go to the territory of Colorado. He
was appointed General Agent for that territory, continuing until
his death, December 19, 1889. Mr. Coe was succeeded as Assist-
ant Superintendent of Agencies by Alonzo W. Kimball, who
began work December i, 1884. Mr. Kimball with his enthusiasm
for right methods and his intolerance of anything mean or incor-
rect in life insurance work, was a tremendous factor in building up
the high standards which have for so many years characterized
the labors of the agents. Probably no man contributed more to
the better class of life insurance literature than Mr. Kimball
during the ten years he was Assistant Superintendent of Agencies.
Alonzo W. Kiniball
onded by efficient assistants.
346
The Agency System
Geo. E. Copeland
In 1894, he was appointed General Agent at Chicago and was
succeeded as Assistant Superintendent by H. F. Norris, who had
been connected with the department in various capacities for more
than six years. When Mr. Nor-
ris was elected Superintendent of
Agencies in July, 1902, George E.
Copeland, for twenty years con-
nected with agency work as Gen-
eral Agent and at the home office,
was appointed Assistant Superin-
tendent of Agencies, and Percy
H. Evans, whose actuarial knowl-
edge, supplemented by experience
in the field, especially qualified
him, was appointed Second As-
sistant Superintendent of Agen-
cies, positions still occupied by
them.
Almost from the beginning,
the agency work had been con-
ducted on what is commonly known as the General Agency plan,
by which a state or part of a state or district, is placed under the
supervision of a General Agent having in charge new work and
the collection of premiums in the territory covered by his contract.
The General Agent makes all contracts with solicitors and field
men operating in his district and is held responsible for success
in his field, as well as financially responsible for all business
transacted by his agents. The results of this method of conducting
field work have been such as to demonstrate the wisdom of
adhering to it and to justify the expectation of its indefinite
retention.
New work is written and premiums collected entirely upon
the commission basis, the income of the Agent, General or Special,
being measured by the industry and ability with which his work
is conducted. The rates of commission paid, as well as the condi-
tions in contracts, are uniform throughout the entire field covered
by company operations. As no man is appointed General Agent
who has not already been successfully identified with the work,
thus giving officers an opportunity to judge his character and his
The Agency System
347
Percy H. Evans
fitness, the personnel of the General Agents of the Northwestern
has been of an exceptionally high order, embracing some of the
best known names in the life insurance world. Men of such char-
acter naturally engage the assist-
^^^ ance of trustworthy and compe-
^^P ^V tent aids. This process of selec-
Jf tion has been pursued for nearly
IjlBfc C* 1 ^^7 y ears an d has resulted in
M bringing together a body of men
who have given the company a
representation in their respective
>^B communities, which has been a
^K ^^^^> large factor in its remarkable
success. The results are such as
would logically follow, not only
in the amount, but in the char-
acter, of the business, and the
expense at which it is obtained.
Of the amount, it is sufficient to
point to the more than nine hun-
dred millions of insurance at present upon the books, every
dollar of which has been placed there by its agency force. The
quality may be accurately measured by the fact that payments
for death losses have been only 66% of the expected, according to
the Actuaries' Table of Mortality, a percentage lower than that of
any other company of equal age, and by the further fact that a
larger proportion of the business written is still in force. The
field work has for many years been conducted at a lower rate of
expense than that of any other leading company, so that it
has not only had the benefit of a more careful selection of risks,
but the better class of risks have been obtained at a low cost.
During the history of the company, its agents have collected
and paid over to it more than $400,000,000 in premiums, besides
acting as agents in the payment of losses, endowments, etc.,
amounting to $240,000,000. During the whole period of its his-
tory the delinquencies have been infinitesimal, and during the
last fifteen years, the agents have collected and remitted $321,000,-
ooo for premiums and have handled checks and drafts in payment
of death losses, endowments and dividends to policyholders,
348 The Agency System
amounting to $148,000,000, a total of $469,000,000, without the
loss to the company of a single cent.
One of the most satisfactory features in the agency work
is its permanent character. The General Agency system as con-
ducted by the Northwestern does not offer any inducement for
temporary employment, and the payment of a moderate first com-
mission with renewals for a term of years furnishes a strong
incentive to continuous service on the part of the entire agency
force, both General and Special.
This company has never attempted to procure agents from
other companies, preferring to take up new men and develop
them along the lines of company policy. In the working out of
this idea, it has been enthusiastically seconded by its General
Agents. Of the ninety-one General Agents now under contract,
less than 20%, and of the four thousand agents, a still smaller
proportion, have been connected with any other company.
Meetings of agents with the officers and Trustees, which have
been annual events for more than forty years, have done more
than any other one thing to bring about a complete anl pleasant
understanding between the home office and the field. These
meetings have developed a loyalty on the part of the agents, and
an interest in, and understanding of, their work on the part of
the officers and Trustees, which have been large contributing
factors to its success. At no time have the relations between
agents and officers been more cordial, and at no time has the
agency force been more efficient, than at present. In the last
four years, when so many companies have suffered the loss of a
majority of their agency force and while the work of companies
in general showed a large reduction, the Northwestern has lost
few, if any, agents it cared to retain. Its work for 1907 was
much the largest, and the best in quality, of any year in its history.
Secretary's Department
THE Secretary's department is charged with the work of
issuing policies, collecting premiums and with all the cor-
respondence and incidental work connected therewith.
The department is necessarily a large one, now employing one
hundred and forty-nine clerks.
For convenience, and to insure rapid and accurate transaction
of business, the department consists of several divisions, each
having a special line of work, and each in charge of a supervising
clerk, who on account of long experience is able to conduct the
work with economy and accuracy.
As the "Application" is the foundation or starting point of
the insurance contract, it is naturally first considered in describing
the work of the Secretary's department.
Applications as they are received, are sent directly to the
Medical department. After passing scrutiny there, and receiv-
ing the approval of the Medical Director, a photographic copy
of each application is made, to be attached to the policy.
This company is the pioneer in the adoption of the practice
of making such photographic copies and the work in that line is
interesting, not only to policyholders receiving them with their
policies, but to other life insurance companies.
After numerous experiments, the process now used, that
of securing a photograph of the application by electric light on
specially prepared paper, was adopted, and has proven satisfac-
tory. An improvement has recently been made by which the
process of developing the negative in a dark room is no longer
necessary, thus effecting a saving of time and unpleasant work.
The writing of policies involves careful selection of the cor-
rect form, accurate checking of the premium rate, and prepara-
tion of the preliminary policy record.
During the year 1907, 37,899 new policies were issued, an
average of 126 for each working day. This division of the
Secretary's department requires the services of twenty-one clerks.
351
35 2 Secretary's Department
After policies become effective the collection of premiums
payable annually, semi-annually or quarterly (at the option of
the insured) forms a large and important part of the work of
this department.
The number of policies in force December 31, 1907, was
361,084. For each of these, at least one premium notice and one
premium receipt must be prepared at this office each year; for
those who make payments semi-annually, two notices, and for
those who have chosen quarterly payments, four. The figures
in these notices and receipts must be carefully checked to insure
accuracy and the premiums falling due each month must be billed
to the agents who make the collections.
This brief statement gives some idea of the work required
from the collection division of the department, but conveys no
accurate conception of the great amount of detail involved.
In 1907, the number of collections for which notices, receipts
and the like, were required, was 456,997, covering premiums to
the amount of more than $30,000,000. In addition to this, the
collection division has a large correspondence relating to renewal
of policies ; changes in mode of payment of premiums ; restora-
tion of lapsed policies; changes of residence, etc. Changes of
residence are frequent in this country. Thrifty people who carry
life insurance do not make such changes as often as less provi-
dent classes, but the notices of change of residence of policyhold-
ers received at this office amount to an average of more than
75,000 annually, requiring time and care in adjustment of the
records.
The reports of collections of premiums are made monthly;
those for new business on the first of each month and for
renewals the tenth, and special collections, restorations, etc., at
an intermediate date.
The work of a competent and reliable branch of the force is
required to audit the agents' reports to make sure that the com-
missions are computed correctly and that no error or omission
in the report and returns for premiums has occurred.
After the reports pass the auditing force, the premiums must
be entered on the card records. The reports then go to the
bookkeeper for entry in the general books. The system of book-
keeping has been simplified and condensed by study and experi-
Secretary's Department 353
ence to such an extent that all entries involving premium receipts
and interest of over $43,000,000 in 1907, are compressed into
very small compass.
In the early days, all policy records and premium payments
were kept in books involving, as the business of the company in-
creased, a large amount of detail work. In 1872, the card sys-
tem of keeping record of premium payments was adopted, this
company being the pioneer in the use of cards for that purpose,
as heretofore stated. The card system was extended as rapidly
as apprehension of disaster from abandoning the book system
could be overcome and for many years has been in satisfactory
use for all purposes.
The number of cards now in use for the various branches of
the work of this department is about 2,500,000 and is increasing
annually with the enlargement of the company's business. To
care for the business in its present and increasing volume, in the
old way, would be practically impossible.
Another division of this department has charge of changes
of policies. These are numerous, the number for 1907 being
11,620, an average of 38 for each working day. This work re-
quires the same care to avoid errors as in the division for issuing
new policies. Twelve clerks are employed for this purpose.
In the work of this department perplexing and intricate ques-
tions frequently arise involving the rights of beneficiaries and
contingent beneficiaries in settlements under the various policy
options requiring reference of some cases to the Legal depart-
ment for solution.
The Claim Department
THE Claim department was established March 1872. Prior
to that, settlement of death losses and matured endow-
ments were made under direction of the officers.
Upon the establishment of the department, J. N. Proeschel
was appointed Superintendent, which position he held until the
date of his resignation, August i, 1907, when F. T. Zetteler suc-
ceeded him.
Julius N. Proeschel was born
in Paris, France, September 16,
1834, and educated there. Came
to New York in September, 1850;
engaged in teaching in New York
and Philadelphia; married Miss
Margaret S. Darling in Brooklyn,
New York, August 17, 1857; re-
turned to Paris in June 1860 to
continue work on McClintock &
Strong's Encyclopedia, and after
Mr. McClintock's return to the
United States, became assistant
secretary of the European branch
of the United States Sanitary
Commission ; then private secre-
tary of Hon. John Bigelow during his whole term of office as
United States Minister to France; then secretary of the United
States section of the Paris Universal Exposition of 1867, besides
working a year with Hon. William Beach Lawrence in getting out
his French edition of "Lawrence's Wheaton" ; returned to the
United States in May 1871, and entered the employ of the com-
pany in June of that year, as a clerk in the Actuary's department ;
subsequently, necessity for the same being apparent, he helped
organize the Claim department in March 1872 and resigned
August i, 1907. Mr. Proeschel resides in Milwaukee. 354
Julius N. Proeschel
The Claim Department
355
F. T. Zetteler, who succeeded Mr. Proeschel as Superintendent
of the Claim department, was born in Milwaukee, May n, 1866
and after attending the public schools for a short time, entered
into the employ of the company in
October 1882, as -a messenger
boy in the Loan department. He
remained in that department until
January 1884, when he was trans-
ferred to the Claim department,
under Mr. Proeschel, where he
has met constant promotion. He
was appointed Superintendent of
the Claim department August i,
1907.
The first death loss sustained
by the company came in 1859, as
outlined in the events of that year.
The first year the Claim de-
partment was in operation there
F. T, Zetteler . ,
were paid:
285 death claims amounting to $ 606,024.94
1 matured endowment amounting to 1,333.33
286 Total $ 607,354.27
In 1907:
2,850 death claims were paid, amounting to $ 7,884,143.37
827 matured endowments amounting to 2,019,814.49
3,677 Total $ 9,903,957.86
From its organization to January i, 1908, the company paid
to the representatives of its deceased policyholders :
40,286 death claims amounting to $101,391,833.66
13,250 matured endowments amounting to 25,474,611.66
53,536 A grand total of $126,866,445.32
All claims are examined promptly and with exceeding care,
and when perfected in every particular, the losses are paid at
once.
It sometimes happens, however, that correspondence is neces-
356 The Claim Department
sary before final disposition can be made. The settlement of
cases, in proper shape when received, is usually within two or
three days after receipt of proofs of death.
Under a resolution of the Trustees, endowment policies which
have been paid (excepting semi-tontine policies) can be dis-
counted for the unexpired time, the present rate of discount being
six per cent. Offers of discount are sent out about ten months
in advance of maturity, and policyholders frequently avail them-
selves of this opportunity to anticipate payment, the amount
collected for discount in 1907 being $18,640.67. To all who
have not discounted their policies there is forwarded a notice of
maturity, stating the form of receipt required to be endorsed
on the policy. Payment is promptly made on the day it becomes
due, provided the policy itself, properly receipted, has been
received.
The Claim department also pays all post-mortem dividends
and final dividends on discounted endowments, discounting the
same from date of payment to the date when they would other-
wise have become payable, at the current rate charged for dis-
counting endowment policies.
The Claim department force consists of ten persons, two of
whom are stenographers.
Statement by Hoel Hinman Camp
IX recalling the names of the thirty-six citizens of Wisconsin which
are included in the charter of The Northwestern Mutual Life
Insurance Company in 1857, I find that I am the sole survivor.
As the facts now recur to me, I was induced to lend my name to
the project of organizing a life insurance company for the State of
Wisconsin, by Edward L. Dimock, of Janesville, Wisconsin, whom I
knew very well. I also knew General Johnston, who was active in
organizing the company, and I remember he went all over the state
trying to interest people in the project. Of course, I knew both
Anson Eldred and James B. Martin of this city, who joined with me
in permitting our names to be used as charter members. I remem-
ber very well when S. S. Daggett was at the head of the company,
and I knew Lester Sexton. He was a merchant here, but I did not
know until recently that he ever was President of the company. I
know he followed me on the Board of Trustees. I was also well
acquainted with Hercules L. Dousman, James H. Earnest, J. J. R.
Pease and other early Trustees.
I was elected a Trustee of the company at the organization meet-
ing on February 23, 1858, and continued as such until March 4, 1859.
Following this I paid but little more attention to the company,
simply knowing in a general way that it had located in Milwaukee,
and I never happened to be insured in it. After Mr. Van Dyke and
Judge Palmer had been elected Presidents of the company, and it
had begun to grow into a big institution, in common with all other
residents of Milwaukee, I took pride in its splendid development,
which I watched in later years with great interest.
Although, as I have said, much of my personal attention and all
of my business interests were in other channels in the early days of
my own life and that of the company, I am pleased to know that
even in a minor way I was helpful in organizing an institution of
which the whole nation is proud an institution that in developing and
growing into its present mammoth proportions, has preserved unsul-
lied its reputation for honesty, integrity and solvency.
As sole survivor of the thirty-six who joined in the company's
inception, I invoke a continuance of the business policies and rules
that accomplished this result and hope for the continued spread of the
company's beneficence.
Milwaukee, Wisconsin, March 26, 1908.
357
Employees Twenty-five Years or More
THE company has on its roster (exclusive of Trustees) the
names of thirty-seven men who have served it twenty-five
years or more. Some are now officers, others are agents
and the remainder are home office employees. Those who are
so employed by the company and who have been previously men-
tioned in this history, are Henry L. Palmer, J. W. Skinner,
Charles A. Loveland, P. R. Sanborn, J. W. Du Four, F. T. Zet-
teler, C. S. Kitchel and W. P. Behling.
Photographs of other present home office employees who have
been with the company for more than a quarter of a century are
here reproduced, making an interesting collection and exhibit.
Photographs of existing General Agents who have devoted
more than twenty-five years to the interests of the Northwestern
are also reproduced,
and to each is added
a few words of bi-
ography.
There is only
one Special Loan
Agent who belongs
to this class, Red-
mond Prindiville,
W. J. Doolittle.
Louis Schuchardt.
of Chicago.
Geo. W. Young.
Garland L. Gillett.
George T. Hooley.
358
Employees Twenty-fire Years or More 359
Charles H. Trump. J. O. Martin.
John F. Tyrrell.
K. D. Peterson. W. J. Holbrook. Frances L. Madden.
Frank W. Sanborn. C. H. Wooster.
Patrick Geraghty.
Geo. H. Winne.
H. E. Janzer. Geo. W. Jennings.
Employees Twenty-five Years or More
W. V. BAKER, of Troy, New York, was first
appointed General Agent January 1, 1880, for a
part of Eastern New York. His contract was
made under Matthew Keenan and has been re-
newed at intervals since. Mr. Baker writes:
"Twenty-eight years have enabled an intelligent
opinion to be formed by me of the company. Its
advance has been phenomenal, steady and safe.
Its benefits to policyholders are unequaled. Wis-
dom and equity have been apparent in its man-
agement, which has produced praiseworthy
results. It has brought honor to its agents. Its present standing is
proof of public satisfaction and approval."
JOHN I. D. BRISTOL, of New York City, one
of the best known life insurance agents in the
country, was born March 16, 1845. He began his
connection with the business of life insurance at
Detroit, Michigan, April 14, 1868. He became
connected with the company in December 1880
and in many ways and in different fields of opera-
tion, has given evidence of his ability. An oppor-
tunity presenting itself, Mr. Bristol was, on Octo-
ber 1, 1883, appointed General Agent of the com-
pany at New York City, where he is now located.
Mr. Bristol has a splendidly equipped force of assistants and the New
York agency of the Northwestern is the largest and best known in
the United States.
CHARLES TIFFANY BROCKWAY, of Syra-
cuse, New York, was born January 25, 1847; re-
ceived a common school and academic education;
taught in an academy for several years, and for
two years was Superintendent of Schools at Al-
pena, Michigan; was local agent of the company
from 1872 to 1877; then went to the Mutual Life
of New York as special agent, appointing, in-
structing and working with agents; made general
agency contract with company August 1, 1879,
and present field embraces central, northern and
part of eastern New York. Four active general agents came from
this agency, Messrs. Stone, Parsons, Markham and Pelton.
THOMAS ARCHIBALD CARY, of Richmond,
Virginia, is a Northwestern man by birth, the son
of Col. John B. Cary, for seventeen years prior to
his decease on January 13, 1898, President of the
Agents' Association and for many years a Gen-
eral Agent of the company. T. A. Cary was born
April 1, 1858, at Hampton, Virginia, and was
trained under his brilliant and gifted father, for
the life insurance business. A general agency
contract was made with J. B. Cary & Son on
February 9, 1883 and the younger Cary suc-
ceeded to the agency on the death of his father. His territory in-
cludes Virginia and a part of North Carolina.
Employees Twenty- five Years or More
J. M. KILGORE, of Worcester, Massachusetts,
was born in Somerset County, Maine, May 12,
1844; started as farmer's apprentice when ten
years old, serving one year; next three, sawed
wood and drove stage; learned photography at
fourteen; 1863-8 was in photographic supply busi-
ness at Boston; then took Massachusetts general
agency for the Widows' and Orphans' Benefit
Life of New York; subsequently went to the
Metropolitan, remaining until 1880, when he went
into the fire insurance business and for a short
time that year was with the Xew York Life; made general agency
contract with the company January 1, 1881.
M
M. J. MACK was born in Bavaria, Germany,
November 15, 1831; located in Cincinnati, Ohio,
in August 1846, and entered into mercantile pur-
suits; became connected with the Cincinnati gen-
eral agency of the company September 4, 1880
and upon the dissolution of that general agency
was made General Agent for Cincinnati and
Hamilton County, August 1, 1882; May 1, 1901,
formed partnership with M. W. Mack under firm
name of M. J. and M. W. Mack. A brother,
William J., deceased, and the following nephews:
Lawrence W., Millard W, Ralph W. and Harry H. Mack, and S.
Bacharach, became associated with the company through this agency.
GEORGE H. NEWELL, of Grand Rapids,
Michigan, began working for the Northwestern
as a special agent under a brokerage contract in
1878, when the company had less than 35,000
policies in force; continued in that capacity until
May 1, 1883, when his first contract as General
Agent was signed, giving him the western part of
Michigan for his territory. In preference to a
biographical sketch, Mr. Newell Writes: "I am
one of the proudest men in the world when I
consider that the great Ruler over the destinies
of men and companies has permitted me to remain so many years
with a company whose growth has been simply phenomenal."
ever since lived.
GEORGE NELSON REYNOLDS, born Lew-
iston, Maine, October 30, 1842, of Puritan stock;
contracted typhoid fever in the army and engaged
in soliciting life insurance while convalescing;
was successful from the start and accepted gen-
eral agency of the Manhattan Life in Wisconsin
and Minnesota; returned east in 1870 as general
agent in Philadelphia of the Union Mutual; Octo-
ber 10, 1877, made general agency contract with
company for sixteen counties of Pennsylvania
with headquarters at Lancaster, where he has
His territory has since been enlarged. He is the
company's oldest living general agent in point of service.
362
Employees Twenty-five Years or More
S. D. STOCKTON, of Poughkeepsie, New
York, wrote his first application for the company
on April 1, 1881, under the agency of Munsell &
Corbin, of New York; at that time there were
but five or six policies in force in the Hudson
River counties; September 21, 1882, was appointed
General Agent for that territory and has since
devoted all his time and energy to the develop-
ment of his agency. Although most of the insur-
able men in his district are in business in New
York and consequently not easily visited by his
assistants, he has, nevertheless, built up a substantial business. His
first application was for a twenty-year endowment that paid off a
mortgage.
D. F. SWAIN was born in Muskingum County,
Ohio, September 24, 1845; was reared on a farm
and received district school advantages; enlisted
in the army in 1864 and served until the close of
the war; on returning to his old home, taught
school for nine months and then accepted a posi-
tion as bookkeeper in Indianapolis, Indiana,
where he now resides. Having been attracted to
the business of life insurance, Mr. Swain entered
the service of the Northwestern and was made
General Agent of the company with headquarters
at Indianapolis, February 14, 1881. The photograph of Mr. Swain
here reproduced was taken when he became a Shriner.
W. J. WELSH, of Scranton, Pennsylvania, en-
tered the service of the company at the age of
twenty-eight years, as city agent under J. W.
Howell, General Agent for Northeastern Penn-
sylvania, with headquarters at Scranton. In May
1882 he was promoted to the general agency for
the same field, and has consequently served over
twenty-six years in the capacity of General Agent,
or a total of nearly thirty years as an agent, dur-
ing which time, it is Mr. Welsh's proud privilege
to state, he has never written an application for
another company, a statement few agents can make, especially those
who have been engaged in soliciting for a number of years.
W. WOODS WHITE, of Atlanta, Georgia, in
his twenty-second year, succeeded his father, the
late Dr. William H. White, for eleven years prior
to his death, in 1880, exclusive General Agent for
Georgia. The new business of the agency for
1880 was $57,000; for 1907, $2,003,000. Mr. White
was one of the first to adopt the district agency
organization, to the development of which he has
given close attention. Following are his district
agents: Thad. E. Murphy & Son, Macon; E. J.
Costello, Augusta; R. J. Guinn, Atlanta; W. W.
McKenzie, Columbus, and A. H. Milstead, Athens. Mr. White has
remained continuously with the company since he entered business.
Employees Twenty-five Years or More 363
SPECIAL LOAN AGENT
REDMOND PRTNDIVILLE, of Chicago, is the oldest acting Spe-
cial Loan Agent in the employ of the company. Mr. Prindiville moved
to Chicago from Detroit, seventy-two years ago, when it took twenty-
one days to make the journey; was educated in
the only public school then, in Chicago and after-,
wards at St. Mary's University; was one of those
who built and operated Chicago's first railroad,
and named its first locomotive, the "Pioneer,"
now in the Field Museum; was always foremost
in promoting Chicago's success and at different
times has been a member of the Board of Educa-
tion, Assessor, Councilman, Commissioner of
Public Works, etc.; lost his home and entire be-
longings in Chicago fire; was appointed Special
Loan Agent by President Palmer in 1878 and dur-
ing his connection with the company has loaned
nearly $100,000,000 for it; up to the panic in 1893, the company did not
have a foreclosure in Chicago. Mr. Prindiville's son, Maurice, is the
company's Special Loan Agent for Illinois, outside of Chicago.
It may be explained that while the company now has a force
of twenty Special Loan Agents, operating in the states of Colo-
rado, Georgia, Illinois, Iowa, Indiana, Kansas, Kentucky, Michi-
gan, Minnesota, Missouri, Xorth Dakota, Ohio, Oregon, Wash-
ington, South Dakota, Tennessee and Wisconsin, the system of
special loan agencies was not inaugurated until the year 1878,
when Mr. Prindiville was appointed.
Officers, Trustees, Agents, Etc.
OFFICERS: JUNE 1, 1908
H. L. Palmer President
George C. Markham Vice President
J. W. Skinner Second Vice President
P. R. Sanborn Third Vice President
Geo. H. Noyes Counsel
J. R. Dyer Assistant Counsel
Wm. R. Nethercut Second Assistant Counsel
A. S. Hathaway Secretary
E. D. Jones Assistant Secretary
T. J. Knox Second Assistant Secretary
Charles A. Loveland Actuary
J. C. Crawford Associate Actuary
Frank C. Hemsing Assistant Actuary
H. F. Norris Superintendent of Agencies
Geo. E. Copeland Assistant Superintendent of Agencies
Percy H. Evans Second Assistant Supt. of Agencies
J. W. Fisher, M. D Medical Director
Geo. A. Harlow, M. D Assistant Medical Director
Wm. Thorndike, M. D Second Assistant Medical Director
D. E. W. Wenstrand, M. D Third Assistant Medical Director
W. R. Adams Auditor
J. W. Du Four Cashier
W. P. Behling Assistant Cashier
Chas. B. Piper, M. D Confidential Home Office Repressive.
PRESENT TRUSTEES
H. L. Palmer President, Milwaukee
Edwin Hyde Contractor, Milwaukee
David J. Brewer Jus. U. S. Sup. Ct., Washington, D. C.
Samuel C. Lawrence Manufacturer, Boston
Charles Ray Capitalist, Milwaukee
A. K. Hamilton Capitalist, Milwaukee
F. C. Winkler Attorney and Counselor, Milwaukee
F. F. Adams Manufacturer, Milwaukee
John S. Ellett Pres. State Bank of Va., Richm'd, Va.
Fred Vogel, Jr Manufacturer, Milwaukee
*Thomas C. Lawler Capitalist, Dubuque, Iowa
Charles Allis Manufacturer, Milwaukee 364
Officers, Trustees, Agents, Etc. 365
C A. Loveland Actuary, Milwaukee
*H. C. Urner Treas. Little Miami R. R. Co., Cin-
cinnati, O.
E. P. Matthews Manufacturer, Milwaukee
Charles G. Stark Capitalist, Milwaukee
George C. Markham Vice President, Milwaukee
H. F. Whitcomb Capitalist, Milwaukee
E. J. Lindsay Merchant, Milwaukee
B. K. Miller Attorney and Counselor, Milwaukee
Otis W. Johnson Manufacturer, Racine, Wis.
J. W. Skinner Second Vice President, Milwaukee
Albert H. Wiggin V. P. Chase Nat. Bank, N. Y. City
W. D. Van Dyke Attorney and Counselor, Milwaukee
Mitchell Joannes Wholesale Merchant, Green Bay, Wis.
Edward B. Butler Wholesale Merchant, Chicago
Wm. H. Hotchkiss Merchant, Buffalo
F. W. Sivyer Pres. N. W. Mai. Iron Co., Milwaukee
George H. Benzenberg Consulting Engineer, Milwaukee
Fred C. Pritzlaff Wholesale Hardware, Milwaukee
Charles H. Wacker Pres. Land Association, Chicago
George H. Noyes Counsel, Milwaukee
J. M. Olin Atty. and Counselor, Madison, Wis.
Hovey C. Clarke Lumber Manufacturer, Minneapolis
L. J. Petit Pres. Wis. Nat. Bank, Milwaukee
E. D. Adler.. ..Merchant (David Adler & Sons), Mil.
*Deceased April 17, 1908. Vacancies not rilled.
EXECUTIVE COMMITTEE
H. L. Palmer, George C. Markham, J. W. Skinner,
C. A. Loveland, F. C. Winkler, A. K. Hamilton,
W. D. Van Dyke, E. J. Lindsay, George H. Noyes.
H. F. Whitcomb,
FINANCE COMMITTEE
H. L. Palmer, George C. Markham, F. C. Winkler,
A. K. Hamilton, W. D. Van Dyke, E. J. Lindsay.
H. F. Whitcomb,
TRUSTEES SINCE ORGANIZATION
Adams, F. F., Manufacturer, Milwaukee 1890
Adler, E. D., Merchant, Milwaukee 1907
Alden, Alvin B., Real Estate and Abstracter, Portage, Wis ... 1862-1864
Alexander, O., Prest. Phoenix Ins. Co., Milwaukee 1859-1863
Allis, Charles, Manufacturer, Milwaukee 1892
Allis, E. P., Manufacturer, Milwaukee 1866-1877
366 Officers, Trustees, Agents, Etc.
Allison, William C, Manufacturer, Philadelphia 1882-1890
Anderson, Mons., Merchant, La Crosse, Wis 1868-1872
Baer, G. H., Grain Merchant, Baltimore 1884-1884
Baird, Henry S., Attorney, Green Bay, Wis 1860-1868
Barber, J. Allen, Lawyer, Lancaster, Wis 1857-1859
Bennett, I. M., Merchant, Evansville, Wis 1862-1866
Benzenberg, Geo. H., Consulting Engineer, Milwaukee. ..... 1904
Bigelow, Frank G., Banker, Milwaukee 1891-1905
Bingham, J. A., Banker, Monroe, Wis 1862-1865
Bintliff, James, Editor, Monroe, Wis 1857-1858
Bonnell, James, Merchant, Milwaukee 1859-1864
Bowen, Chauncey T., of Bowen Bros., Chicago 1865-1873
Bremer, George, Wholesale Grocer, Milwaukee 1861-1865
Brewer, David J., Judge Supreme Court, Washington,
Leavenworth, Kans 1872
Britt, O. E., Genl. Ft. Agent C. M. & St. P. Ry., Milwaukee. . 1871-1879
Burnham, George, Manufacturer, Milwaukee 1870-1889
Butler, Edward B., Wholesale Merchant, Chicago, 111 1904
Camp, H. H., Banker, Milwaukee 1857-1859
Carpenter, Matt. H., Lawyer, Beloit, Wis 1857-1858
Case, Jerome I., Threshing Machine Mfr., Racine, Wis 1860-1892
Cattell, J. W., ex-Auditor of State, Des Moines, Iowa 1864-1887
Clarke, Hovey C., Lumber Manufacturer, Minneapolis 1906
Cobb, A., Lawyer, Mineral Point, Wis 1860-1864
Coburn, John, Lawyer, Indianapolis 1867-1871
Cody, James, Physician, Watertown, Wis 1860-1864
Collins, Henry W., Druggist, Janesville 1858-1859
Conro, Albert, Prest. Manufacturers' Bank, Milwaukee 1878-1890
Cooke, Hubbard, Real Estate Dealer, Cleveland 1888-1893
Cottrill, Chas. M., Transportation, Milwaukee 1897-1899
Cowen, Benjamin R., Asst. Secretary of Interior, and Banker,
Bellaire, Ohio. 1868-1884
Crimmins, John D., Capitalist, New York City 1894-1896
Daggett, S. S., Insurance, Milwaukee 1858-1868
Darling, Mason C., Banker, Fond du Lac, Wis 1859-1865
Davidson, Peyton S., Supt. Keokuk N. L. P. Co., La Crosse,
Wisconsin 1878-1882
Davis, George F., Packer, Cincinnati 1866-1881
Davison, C. G., President City Railway, St. Louis 1870-1878
Dawson, William, Banker, St. Paul 1891-1897
Dickson, John P., Farmer and Real Estate, Janesville 1857-1858
Dillon, John F., Judge U. S. Circuit Court, Davenport, Iowa. . 1865-1881
Dimock, Edward L., Insurance, Janesville 1857-1859
Dixon, Luther S., ex-Chief Justice Supreme Court of Wis-
consin, Milwaukee 1875-1885
Doan, Seth, Merchant, Kenosha, Wis 1862-1863
Doniphan, Joseph, Judge Chancery Court, Augusta, Ky 1872-1874
Officers, Trustees, Agents, Etc. 367
Doolittle, James R., U. S. Senator from Wisconsin, Racine,
Wisconsin 1857-1858
Dousman, Hercules L., Fur Trader, Prairie du Chien, Wis. .. 1857-1859
Durkee, Dwight, Capitalist, Prest. Exchange Bank, St. Louis. 1871-1893
Durkee, Harvey, Farmer, Kenosha, Wis 1863-1870
Butcher, John A., Wholesale Grocer, Milwaukee 1859-1871
Dyer, Charles E., Counsel, Milwaukee 1888-1905
Earnest, James H., Farmer and Miner, Shullsburg, Wis 1857-1862
Eldred, Anson, Lumberman, Milwaukee 1857-1861
Ellett, John S., Banker, Richmond, Virginia 1891
Ellyson, H. K., Prest. Richmond College, Richmond, Va .... 1888-1891
Farwell, J. V., Merchant, Chicago, 111 1864-1872
Farwell, L. J., Real Estate, Madison, Wis 1857-1858
Ferguson, David, Cashier W. M. & F. Ins. Co. Bank, Mil-
waukee 1864-1892
Field, John, Wholesale Merchant, Philadelphia 1892-1906
Fisher, C. D., Grain Merchant, Baltimore 1885-1888
Fisher, Lucius G., Capitalist, Beloit, Wis 1857-1859
Fitch, W. G., Banker, Milwaukee 1885-1891
Fuller, M. E., Agricultural Implement Dealer, Madison, Wis. 1878-1884
Gillett, James M., Attorney, Fond du Lac, Wis 1872-1879
Grant, James B., V. Prest. O. & G. Smelting Co., Denver. . .. 1890-1894
Hackett, John, Capitalist, Beloit, Wis 1857-1861
Hall, Sheldon C, Speculator, Whitewater, Wis 1858-1862
Hamilton, A. K., Manufacturer, Milwaukee 1889
Hastings, S. D., State Treasurer, Madison, Wis 1861-1869
Hemphill, J. T., Banker, Sparta, Wis . 1861-1865
Hill, Robert, Capitalist, Milwaukee 1899-1903
Hinsdale, Henry W., H. W. Hinsdale & Co., Chicago 1864-1872
Holden, W. W., Druggist, Janesville 1857-1858
Hooker, D. G., Counsel, Milwaukee 1878-1888
Horton, Harvey L., Banker, New York City 1885-1888
Hotchkiss, W. H., Merchant, Buffalo 1904
Hutson, Solomon, Hotel Proprietor, Janesville 1857-1858
Hyde, Edwin, Contractor, Milwaukee 1871
Ilsley, C. F., Banker, Milwaukee 1859-1871
Joannes, Mitchell, Wholesale Merchant, Green Bay, Wis... 1904
Johnson, Otis W., Manufacturer, Racine, Wis 1902
Johnston, John, Banker, Milwaukee 1891-18951897-1904
Johnston, John C., Insurance, Janesville 1858-1860
Jones, N. M., Merchant, Memphis 1873-1874
Keenan, Matthew, Miller, Milwaukee 1871-1895
Keep, John M., Judge First Wisconsin Circuit, Beloit, Wis. . 1857-1858
King, Edward, Secy. R. R. Co., Indianapolis, Ind 1871-1875
Klaus, Anton, Merchant, Green Bay, Wis 1873-1877
Knowlton, James H., Lawyer, Janesville 1857-1858
Kuehn, Charles, State Treasurer, Manitowoc, Wis 1857-1858
368 Officers, Trustees, Agents, Etc.
Lappin, Thomas, Merchant, Janesville 1857-1858
Lawler, John, Capitalist, Prairie du Chien, Wis. . 1862-1868 1882-1891
Lawler, Thos. C, Capitalist, Prairie du Chien, Wis., and Du-
buque, Iowa 1891-1908
Lawrence, Samuel C., Manufacturer, Boston 1879
Lawrence, William A., Merchant, Janesville 1858-1858
Lee, George W., Physician, Shullsburg, Wis 1857-1858
Lindsay, E. J., Merchant, Milwaukee 1898
Lloyd, William J., Merchant, Philadelphia 1864-1868
Loveland, C. A,, Actuary, Milwaukee 1893
Ludington, Nelson, Prest. Fifth Natl. Bank, Chicago 1865-1886
Ludlow, Arabut, Banker, Monroe, Wis 1857-1858
McClintock, Emory, Actuary, Milwaukee 1888-1889
McKcy, Edward, Merchant, Janesville 1857-1858
McLaren, William P., Merchant, Milwaukee 1877-1904
Markham, George C., Attorney and Counselor, Milwaukee. .. 1895
Marshall, Samuel, Prest. State Bank, Madison, Wis 1859-1871
Martin, James B., Miller, Milwaukee 1857-1862
Matthews, E. P., Manufacturer, Milwaukee 1894
May, A. C, Attorney, Milwaukee 1869-1872
Meriam, J. B., Oil Dealer, Cleveland 1884-1884
Merrill, S. S., General Manager C. M. & St. P. Ry., Mil-
waukee 1869-1885
Merrill, Willard, Vice President, Milwaukee 1874-1905
Meyer, C. J. L., Manufacturer, Fond du Lac, Wis 1880-1890
Millard, Joseph H., Prest. Omaha National Bank, Omaha. .. 1894-1906
Miller, B. K., Attorney and Counselor, Milwaukee 1883-1898
Miller, B. K., Jr., Attorney and Counselor, Milwaukee 1898
Miller, Ezra, Postmaster, Janesville 1858-1861
Mills, Simeon, Prest. Bank of Madison, Madison, Wis 1857-1872
Miner, George B., Dentist, Milwaukee 1859-1871
Mitchell, Alexander, Prest. C. M. & St. P. Ry., Milwaukee. . 1881-1887
Mitchell, G. Stanley, Manufacturer, Milwaukee 1896-1907
Mitchell, Geo. W., Lumberman, Milwaukee 1862-1896
Mitchell, John, Capitalist, Milwaukee 1857-1858
Mitchell, John L., Prest. W. M. & F. I. Co. Bank, Milwaukee. 1887-1897
Myers, Peter, Capitalist, Janesville 1857-1858
Nash, C. D., President National Exchange Bank, Milwaukee. 1859-1897
Nazro, John, Wholesale Hardware, Milwaukee 1865-1869
Newhall, Daniel, Grain Shippe,, Milwaukee 1858-1864
Nicholls, Henry A., Produce Merchant, Milwaukee 1859-1866
Niel, James, Attorney, Janesville 1857-1860
Noggle, David, Attorney, Janesville 1857-1858
Northrop, George C., Cashier Racine Co. Bank, Racine, Wis. 1857-1859
Norton, Charles, Attorney, Janesville 1858-1859
Noyes, George H., Counsel, Milwaukee 1906
Olin, J. M., Attorney and Counselor, Madison, Wis 1906
Officers, Trustees, Agents, Etc. 369
Orton, William, Prest. W. U. Telegraph Co., N. Y. City 1878-1878
(Elected in January, 1878; died April 22, 1878.)
Palmer, H. L., President, Milwaukee 1858
Pease, John J. R., Lawyer and Capitalist, Janesville, Wis...
1858-18591863-18701871-1896
Pettit, L. J., Banker, Milwaukee 1907
Pfister, Guido, Tanner, Milwaukee 1864-1889
Pike, E. S., Capitalist, Chicago 1893-1905
Pixley, B. F., Produce Merchant, Janesville 1857-1862
Plankinton, John, Packer, Milwaukee 1868-1891
Preston, David, Banker, Detroit 1868-1872
Prichard, Moses S., Attorney, Janesville 1858-1859
Pritzlaff, Fred C, Wholesale Hardware, Milwaukeee 1905
Proudnt, Andrew, Merchant, Madison, Wis 1859-1861
Ray, Charles. Capitalist, Milwaukee 1885
Rice, John. Wholesale Druggist, Milwaukee 1861-1868
Rockwell, J. S., Merchant and Banker, Oconomowoc, Wis. .. 1860-1863
Rountree, John H., Real Estate Agent, Platteville, Wis 1857-1890
Sawyer, Edgar P., Banker, Oshkosh, Wis 1890-1890
Schandein, Emil, Brewer, Milwaukee 1871-1875
Scheffer, Charles, ex-Treasurer Minnesota 1863-1875
Scheff er, Louis, Cashier, Milwaukee 1860-1862
Schurz, Carl. Editor, Watertown, Wis 1859-1861
Scott, M. S., Banker. Milwaukee 1858-1863
Scoville, Augustus H., Banker, Whitewater, Wis 1858-1859
Seasongood, A. J., Banker, Cincinnati, Ohio 1885-1888
Seney, George L, Prest. Metropolitan Natl. Bank, New York
City 1878-1886
Sexton, Lester, Merchant, Milwaukee 1858-1873
Sheard, Titus, Manufacturer, Little Falls, N. Y 1896-1904
Sherman, Henry B., Coffee and Spice Merchant, Milwaukee. 1874-1878
Sibley, H. H., ex-Governor of Minnesota, St. Paul 1875-1891
Simpson, Thomas, Attorney, Winona, Minn 1866-1870
Sinclair, C. D., Manufacturer, Racine, Wis 1894-1899
Sinclair, William M., Merchant, Philadelphia. ... 1863-1867 1890-1891
Sivyer, F. W., Prest. N. W. Malleable Iron Co., Milwaukee ... 1904
Skinner, C. B., Attorney, Watertown, Wis 1872-1893
Skinner, J. W., Secretary, Milwaukee 1903
Sleeper, Joseph A., Attorney, Janesville 1857-1859
Smith, Angus, Capitalist, Milwaukee 1874-1898
Smith, Heber, Vice President, Milwaukee 1869-1875
Smith, Ira B., Wholesale Grocer, Milwaukee 1899-1907
Smith, Morris C., Merchant, Janesville 1857-1858
Smith, W. E., ex-Governor of Wisconsin, Milwaukee 1873-1883
Spalding, Jesse, Collector of Customs, Chicago 1883-1904
Spaulding, S. C, Jeweler, Janesville 1858-1862
Spencer, James C., Civil Engineer, Milwaukee 1868-1872
37 Officers, Trustees, Agents, Etc.
Stark, Chas. G., Merchant, Milwaukee 1894
Steever, Mitchell, Postmaster, Milwaukee 1859-1861
Stoughton, Luke, Real Estate, Stoughton, Wis 1857-1858
Telfair, Jacob R., Insurance Adjuster, New York City 1888-1894
Terry, F. H., Merchant, Milwaukee 1873-1874
Thompson, J. E 1870-1871
Thorp, J. G., Merchant and Mfr., Eau Claire, Wis 1862-1863
Ullmann, H. J., Cashier Bank of Racine, Racine, Wis 1857-1859
Urner, H. C, Treas. Little Miami R. R. Co., Cincinnati 1893-1908
Van Dyke, J. H., Attorney and Counselor, Milwaukee 1862-1904
Van Dyke, W. D., Attorney and Counselor, Milwaukee 1904
Van Vechten, Peter, Deputy Collector, Milwaukee 1874-1878
Vogel, Fred, Jr., Manufacturer, Milwaukee 1891
Wacker, Chas. H., Prest. Land Association, Chicago 1905
Waterman, Anson P., Hardware Merchant, Beloit, Wis 1861-1902
Whaling, W. J 1858-1859
Wheeler, Geo. F., Banker, Waupun, Wis 1889-1905
Whitacre, D. B., Banker, Berlin, Wis 1859-1862
Whitcomb, H. F., Capitalist, Milwaukee 1896
Wiggin, Albert H., Vice Prest. Nat. Park Bank, N. Y. City. ..1903
Willard, Josiah F., Farmer, Janesville 1857-1858
Williams, C. L., Agricultural Implement Dealer, Madison,
Wisconsin 1872-1878
Wilmanns, Augustus C.. Insurance Agent, Milwaukee 1859-1867
Winkler, F. C., Attorney and Counselor, Milwaukee 1889
Wolcott, E. B., ex-Surgeon General of Wisconsin, Milwaukee. 1858-1880
GENERAL AGENTS
ARIZ. F. O. Bristol Phoenix
CAL. Smith, Thomas & Thomas San Francisco
COLO. Jesse M. Wheelock Denver
A. B. Moody New Haven
IF. A. Griswold Hartford
DEL. Jas. B. Owens Wilmington
D. C. Huske & Smith Washington
GA. W. W. White Atlanta
!Ray O. Becker Peoria
Jas. M. Cowan Decatur
J. B. Maguire East St. Louis
John S. Marsh Danville
Chas. D. Norton Chicago
rj. O. Barber Richmond
T. N. Harden Indianapolis
IND. -j H. B. Hunt Fort Wayne
Warde L. Mack South Bend
^D. F. Swain Indianapolis
Officers, Trustees, Agents, Etc.
371
J. C. Garland Dubuque
Wm. M. McKercher Sioux City
C. D. Van Vechten Cedar Rapids
" Th. Von Rolf West Union
B. N. Waller Des Moines
.H. L. Williams Davenport
KAS. E. W. Poindexter Kansas City
KY. H. D. & C. D. Rodman Louisville
( Geo. E. Smith Portland
|C. R. Dunton Bangor
MD. Downes & Miller Baltimore
f Louis E. P. Smith Boston
MASS. \ W. W. Case Springfield
[ J. M. Kilgore Worcester
rG. A. Dimoc Kalamazoo
W. T. Gage Detroit
MICH. -JGeo. H. Newell Grand Rapids
Michael E. O'Brien Laurium
^Percy G. Teeple Marquette
fl. Kaufmann Minneapolis
J L " M - Keiter St Paul
IB. G. Segog Duluth
IStevenson & Melone Rochester
fW. J. Fischer St. Louis
MO. -I Chas. Sachs Kansas City
IP. W. Terry Texarkana, Ark.
S. W. Mo. and N. W. Ark.
MONT. Sam D. Goza Helena
NO. DAK. Eugene Fretz, Jr Grand Forks
N. H. Benj. T. Way Manchester
( H. H. Coleman Newark
( Sara Jardine, Cashier Trenton
"J. F. and W. F. Atkinson Brooklyn
Wm. V. Baker Troy
B. G. Bennett Rochester
Jno. I. D. Bristol New York City
N. Y. { C. T. Brockway Syracuse
H. E. Crouch Buffalo
C. A. Pelton Binghamton
C. H. Porter Albany
.S. D. Stockton Poughkeepsie
fF. E. Saffold Lincoln
NEB. So. Neb. and Wyoming.
[John Steel Omaha
(M. J. and M. W. Mack Cincinnati
J. M. Markham Dayton
S. H. Marvin.. ..Columbus
372
Officers, Trustees, Agents, Etc.
( C. H. Parsons Toledo
I E. J. Stone Cleveland
J Emmert Bros Muskogee
DKLA. (Jason C. Clark Oklahoma
ORE. S. P. Lockwood Portland
fColeman & Wonsetler Norristown
J. F. Eaton Harrisburg
Gearhart & Bentley Lock Haven
L. Hoffman, Cashier Philadelphia
Stetson Leach Pittsburgh
John R. Swengle Altoona
G. N. Reynolds Lancaster
IW. J. Welsh Scranton
R. I. C. C. Blanchard Providence
SO. DAK. J. Mallanney Sioux Falls
TENN. Throop & Eastman Nashville
UTAH E. F. Mills Salt Lake City
VT. L. S. Norton Bennington
VA. T. Archibald Gary (Va. & N. C.) . .Richmond
WASH ! T " A ' Garr ^ lies Seattle
(J. A. Reinhardt Spokane
W. VA. C. B. and H. M. Taylor Wheeling
'David N. Cameron Oshkosh
Harry S. Fuller Milwaukee
W. F. McCaughey Racine
i J. W. McGiveran Superior
Gustav Schrage Sheboygan
L. W. Shakshesky Madison
SPECIAL LOAN AGENTS.
COLO. T. A. Tuttrup Denver
GA. Edward M. Durant Atlanta
^ Redmond Prindiville Chicago
\ Maurice Prindiville Chicago
f L. H. Bush Des Moines
IOWA JM. R. Brady Sheldon
[ F. C. Fisher Cedar Rapids
IND. F. M. Millikan Indianapolis
KAS. H. L. P. Hillyer Topeka
KY. Geo. W. Davy Louisville
MINN. H. Rothschild St. Paul
MICH. Arthur Bassett Detroit
John S. Lowry St. Louis
MO. \ John W. Gish Kansas City
W. E. Hoag Moberly
NEB. E. B. Stephenson Lincoln
Officers, Trustees, Agents, Etc.
373
NO. DAK.
OHIO
ORE.
& WASH.
SO. DAK.
TENN.
WIS.
H. E. Thayer Fargo
f Geo. W. Davy Cincinnati
1 John W. Washburn Cleveland
Geo. S. McLaren Seattle
M. R. Brady Sheldon, Iowa
G. A. Maddux Nashville
Geo. F. Markham. . ..Milwaukee
CONTENTS
EARLY HISTORY OF LIFE INSURANCE
Page
Antiquity of life insurance 11
First Mortality Table 12
Saxon guilds 12
First policy of life insurance 13
Tonti, Pascal and De Witt 14
John Graunt and Dr. Halley 15
Rev. William Assheton and the Mercers' Company 16
The Amicable founding of 16-17
Charles Povey 17
The "little goes" of insurance 17-18
Royal Exchange and London Assurance 18
De Moivre and his Doctrine of Chances 19-20
Kersseboom and de Parcieux's tables 20
Simpson, Hodgson, Morris, Dodson and Buffon 20
Foundation of the Old Equitable 21
Dr. Price .... 22
EARLY LIFE INSURANCE IN THE UNITED STATES
The Presbyterian Ministers' Fund for Life Insurance 25-27
The Corporation for the Relief of the Widows and Children
of Clergymen in the Communion of the Church of Eng-
land in America 27
William Gordon pamphlet (1772) 27-32
Insurance in Philadelphia 32-33
Early Xew York companies 33-34
Other early life insurance companies 34
List of companies ante-dating the Northwestern 34-35
LIFE INSURANCE IN WISCONSIN
First company, organized at Green Bay 36
Wisconsin Marine and Fire Insurance Company 39
List of companies created by act of legislature 39-41
The Natural Premium Life, now The Wisconsin Life Insur-
ance Company 42
First regulative statute enacted 42
Extracts from reports of ex-officio commissioners 43-45
376 Contents
Page
First tax imposition enacted
First insurance code adopted 46
Department of Insurance created, and incumbents 46-47
GENERAL JOHNSTON AND CHARTER MEMBERS
General John C. Johnston, founder of the company 48-51
Act of 1857 chartering the company
Hoel Hinman Camp, sole surviving charter member 52,55
List of charter members and biographical sketches 52-69
ORGANIZATION AND REMOVAL TO MILWAUKEE
1858-1859.
Resolution accepting charter 70
First Board of Trustees 70-73
Resignations from the board
Formal preliminary organization; new officers and committees. 74
President and Secretary authorized to borrow money 75
Contract with General Johnston as General Agent 75-76
Company's note for $100 extended
First piece of "literature" issued by the company, and table
of rates 78-83
Resignation of President Sleeper and election of H. W. Col-
lins 83
List of organizing policyholders 84-85
First policy issued by the company 85-87
Sole survivors of original policyholders 88-89
Real organization, on November 25, 1858 89
First Whitewater Vice President elected 89
Whitewater contract 90
Henry L. Palmer and other Milwaukeeans elected Trustees... 91
Removal to Milwaukee, and new officers 92-96
LAYING A STRONG FOUNDATION
1859-1863.
First meeting of Trustees in Milwaukee 97
General Johnston's contract terminated 98
C. D. Nash elected Treasurer 98
A. W. Kellogg elected Secretary 100
First annual statement to governor 102-103
Creation of Executive Committee 103
First loss; paid with personal credit of President Daggett... 104-107
Abrogation of Whitewater contract . 107
First real estate loan made July 9, 1860 108
Contents 377
Page
Loss of the Lady Elgin 108
Beginning of war questions 109
Adoption of non-forfeiting policies Ill
Hiring of first non-official employee Ill
Removal of offices to Iron Block 112
John H. Van Dyke elected a Trusteee 112
Praise from Elizur Wright 112
Heber Smith associated with the company 113
Continuation of war questions 114
Liberalization of company's charter 114
First non-resident Trustee elected 115
John H. Van Dyke elected Vice President; resigns; Dr. Wol-
cott elected 115-116
Site for new office building purchased 116
William H. Farnham comes to the company 116
Provision for first dividend 117
Premium notes authorized 117
CHANGS OF NAME AND GENERAL EXPANSION
1864-1869.
Edward Ilsley elected Cashier 118
H. G. Wilson resigns, and J. G. McKindley elected General
Agent 118
Annual dividend, provision for 121
Xew office site enlarged 121
William M. Sinclair elected Vice President 121
Dr. McKnight appointed Medical Examiner 122
Change to present name by chapter 1, Laws of 1865 123
Office at 416 Broadway purchased 124
Questions as to investments considered 124
Extension into new territory 125
Lester Sexton elected Vice President 126
Edgar C. Jennings elected Cashier 127
Office of Actuary created; Edward Ilsley elected 128
First meeting of officers and agents held 128-129
Unlimited field of action for company authorized 130
J. G. McKindley resigns as General Agent 131
Questions related to new office building considered 131
Table showing growth of company 131
Chamber of Life Insurance, company joins 132
Xew office site completed, and construction of building 133
Augustus Gaylord elected Assistant Secretary 134
Corporate seal adopted 134
Death of President Daggett 138
378 Contents
Page
Case of Paul v. Virginia 139
Lester Sexton elected President and Heber Smith, Vice Presi-
dent 140
Introduction of card system 141
Tax and other legislation 142
Photographic method of copying inaugurated 142
Deposit required in Alabama 143
Death of President Sexton 143
John H. Van Dyke elected President 144
New premium rates adopted 145
New York agency established 145-146
FIVE YEARS OF EVENTFUL HISTORY
1870-1875.
New standard of policy reserve adopted 149-150
Secretary Kellogg resigns; Augustus Gaylord elected 150
Emory McGlintock elected Actuary 152
O. E. Britt, Matthew Keenan and Edwin Hyde elected
Trustees 152-153
Entrance into, and withdrawal from, Canada 153
Policy registers surreptitiously removed 154-155
David J. Brewer elected a Trustee 155
Prizes offered to agents 156
Northwestern acrostic 158-159
The Colvocoresses case 159-161
Willard Merrill elected Secretary 161
Investment questions receive consideration 162-166
Henry L. Palmer elected President 167
Oren E. Britt elected Vice President and Matthew Keenan,
General Agent 168
Withdrawal from California 171-172
Deposit in Virginia 172
Method of charging taxes adopted 172-173
Tax and fire insurance divisions of Loan department estab-
lished 173
Re-insurance of Minnesota Mutual Life Insurance Company. . 174
DEPRESSION AND RECUPERATION
1876-1880.
Matthew Keenan elected Vice President to succeed O. E.
Britt 177
Tentative Association of Agents formed 178
William P. McLaren elected a Trustee 179
Agents' Association organized; list of officers 180-181
Contents 379
Page
Resolution on death of Col. John B. Gary 182
First official examination 182-185
Legal department established; D. G. Hooker first Counsel.. 185
Two per cent premium tax bill enacted 186-187
Inquiry department established and commended 187
Insurance and Investment branches separated 188
System of Special Loan Agents inaugurated 189
The Hillmon case 189
D. E. Murphy becomes a solicitor 190
Policy Xo. 100,000 issued 191
Cornelius Walford visits home office 191
Death of Dr. Wolcott 192
Question of retiring from Missouri 193
Return to California 194
Special Real Estate department created 194
First women employees 195
BEGINNING OF PROGRESSIVE ERA
1881-1885.
Superintendent of Agencies appointed 199
Tontine insurance adopted 199
List of prize-winning agents 200-202
Danforth-Candee correspondence 202-204
First Chicago loan office rented 205
Time of holding annual meeting changed to July 206
J. W. Skinner elected Secretary 206
The case of Mrs. G 209
W. J. Doolittle appointed Assistant Actuary 210
Charles B. Coe, appointed Assistant Superintendent of Agen-
cies 210
Alden and Beck come to company, 210
Change in time of holding annual meeting 211
Twenty-fifth anniversary showing 213
Special investigation of Chicago risks 214
Withdrawal from Missouri 214
A. W. Kimball appointed Asst. Superintendent of Agencies.. 215
Willard Merrill elected Second Vice President 215
Xew office site purchased 216
Insurance reaches $100,000,000 mark 217
Ohio Tontine Committee visits home office 218
ACQUISITION OF SECOND HUNDRED MILLION
1886-1890.
First meeting in new building 223
Five year double dividend began 223
380 Contents
Page
Agents pass anti-rebate resolutions 224
"The Successful Life Insurance Agent" 224-225
Legislation affecting annual statements and reserve 226
Northwestern offered first typewriter
Embarrassing legislation in Nebraska 227
Finance Committee created 228
Company's attitude on charitable and political contributions.. 231
Charles E. Dyer 232-233-234
Dr. E. J. Stone and Dr. Charles B. Piper 234
Emory McClintock resigns as Actuary
Charles A. Loveland elected Actuary
Charles N. Jones appointed Assistant Actuary
General F. C. Winkler elected a Trustee 236
A. K. Hamilton succeeds George Burnham, deceased, as
Trustee
The Northwestern Primer
Old Insurance Building sold 238
P. R. Sanborn appointed Second Assistant Secretary 239
Death of Major John H. Rountree 239
"Over Their Own Signatures" 239
DECADE: OF REMARKABLE GROWTH
1891-1900.
Deaths on Board of Trustees 240-244
Letter of Julius L. Clarke 244
Death of John L. Hathaway 245
Joseph R. Dyer appointed Assistant Counsel 246
Contributions to "conscience fund" 246
J. C. Crawford appointed Assistant Actuary 246
Charles D. Nash resigns as Treasurer 246
Cases of attempted fraud 247-249
Death of Calvin B. Skinner 249
George E. Copeland comes to home office 249
Life Insurance Club 250
Circular and Rule on Rebates 251-252
Dwight Durkee resigns as Trustee 252
Wm. P. McLaren elected Third Vice President 253
The panic of '93
Loyal resolutions by agents 254
Policy loans adopted 254
Official changes
Investigation of the company 255-256
Attack by Chicago Despatch
George W. Mitchell, Trustee, resigns 258
Wm. R. Nethercut appointed Second Assistant Counsel 258-259
Contents 381
Pag-e
Death of John J. R. Pease, Trustee 259
Death of Dr. McKnight and appointment of Dr. Fisher as
Medical Director 259
Death of E. C. Jennings, Cashier 260
J. \V. Du Four appointed Cashier; \V. P. Behling, Assistant.. 260
Depositories of the company 261
Withdrawal from Alabama 262
Legislation in Kansas and Nebraska 262
Anti-brokerage rule adopted 263
Auditor, office of, created; W. R. Adams appointed 264
Three per cent reserve adopted 265
Xc\v war questions arise 265
Death of Angus Smith, Trustee 266
Dr. H. L. Toulmin elected Assistant Medical Director 266
Twenty-fifth anniversary of election of President Palmer 266
Death of D. B. Ramsey; promotion of C. S. Kitchel 267
Increase in company's taxes 268
Dr. Toulmin resigns; Dr. Harlow appointed 269
Histoiic gavel presented to President Palmer 270
Death of George Oxborrow and Richard M. Hackett 270
A PERIOD OF EXTREMES
1901-1908.
Introduction to chapter 271
Amendment to tax law 271
Geo. C. Markham appointed Third Vice President 272
Special mortality investigation 272
"Field Notes" issued 272
Office of Treasurer abolished 273
Controversy about taxes in Kentucky 273
Policy No. 500,000 issued to William Jennings Bryan 273
Death of Anson P. Waterman, Trustee 274
H. F. Norris appointed Superintendent of Agencies; George
E. Copeland and Percy H. Evans, Assistants 274
Ineffective campaign of conquest 275
Investment law liberalized 275
Bond valuation law enacted 275
Death of George F. Wheeler, Trustee 276
Dr. Albright resigns as Second Assistant Medical Director, and
Dr. Thorndike and Dr. \Venstrand appointed Assistants.. 276
Extension of time to Baltimore fire sufferers 276
Special solicitation among Indians urged 276
Series of deaths in 1904-1905 277
P. R. Sanborn elected Third Vice President 277
T. J. Knox appointed Second Assistant Secretary 278
382 Contents
Page
Examination of company by Wisconsin department 278-281
Death of A. W. Kimball, Willard Merrill and Charles E. Dyer. 281
Office of Associate Actuary created; J. C. Crawford ap-
pointed
F. C. Hemsing appointed Assistant Actuary
George C. Markham elected Vice President
J. W. Skinner elected Second Vice President 282
C. H. Watson elected Secretary 282
Investigations and legislative proceedings considered
Withdrawal from Texas 284
George H. Noyes elected Counsel 284
A. S. Hathaway elected Secretary; E. D. Jones, Assistant 285
Extension of time to California earthquake and fire sufferers.. 285
Annual meetings of agents at expense of company discon-
tinued 286
Wisconsin "and northern Michigan divided into seven general
agencies on death of W. H. Surles 286
Table showing development by decades
Withdrawal of foreign companies from Wisconsin 287
Death of Trustees Lawler and Urner on same day 287
Hope for company's future: Words of Henry L. Palmer.... 288
LIBERALIZATION OF THE: POLICY CONTRACT
Early provisions and restrictions in ordinary life forms 291
Single form, and heirs at law clause adopted 292
Temperance clause introduced 293
Premium notes provided for 293
Non-forfeiture clause adopted 294
Promise of dividends inserted in policies 294-295
Provision as to travel and residency liberalized 295
Suicide clause removed 295
Annual premium note plan discontinued 295
Paid-up insurance guaranteed on default of premium 296
Changes in form and appearance of policies 296
Automatic paid-up policy provision adopted 297
Restriction as to travel, occupation, etc., made inoperative
after two years 297
Guaranteed cash, loan and paid-up values adopted 298
Privilege of changing beneficiary permitted 298
New reserve necessitates new forms 299
Contingent beneficiary permitted 299
Options "A," "B" and "C," adopted 300-301
Cash values beginning with third year, allowed 302
Liability after one year recognized 302
Apportionment of surplus and automatic premium loan... 302-303
Contents 383
Page
Changes to conform to new laws 304
Limited Payment Life^ Endowment and miscellaneous forms
of Insurance Contracts, and Annuities 304-313
10-Year Life, and Endowment 304
Change in "Temperance" clause and as to military service... 304-305
"Heirs at law" clause omitted in endowment forms 305
Other Limited Payment and Joint Endowments 305
Xon-participating Life and Return Premium Life 306
Child's Endowment; Deposit Policy and Addition Life 307
Tontine Dividend plan 308-309
Semi-Endowment form adopted 309
Immediate and Deferred Annuities 310
Life Option provision adopted 310
Renewable Term insurance introduced 310
Insurance and Annuity adopted 311
Partnership insurance introduced 312
Modified Life adopted 312
Convertible Term policy adopted 313
THE MEDICAL DEPARTMENT
Staff of the department 314-317
Application blanks furnished by company since its organiza-
tion 317
Dr. L. J. Barrows makes company's first examination 317
Mortality on original membership 318
Dr. Lewis McKnight, first Medical Director 318
By-Laws defining duties of Medical Director 319
System of Medical Examiners 320
Restrictions on account of climatic conditions 321
Mortality south of Mason & Dixon's line 321
Mortality to 1875 and from 1885 to- 1900 321
Comparative mortality among males and females 322
Table showing results of general mortality counts 322
Mortality experience on different forms of policies 323
Table showing mortality from organization to 1900 324
Table showing mortality for first five years and after five
years 325
Table showing deaths since organization to January 1, 1908.. 326
Statement showing growth of company since organization.. 327
INVESTMENTS AND How MADE
Charter and present provisions governing investments 328
Extracts from address of Vice President Markham on in-
vestments 328-335
Kinds of investments made by company, enumerated 331
384 Contents
Page
System of Special Loan Agents 332
Kind and quality of bonds the company buys 333
Method of paying loans and of repayment to the company.. .. 334
"Are mortgage loans better investments than bonds?" 334-335
As to valuation of bonds 335
Extract from address of Second Vice President McLaren.... 335-336
THE LEGAL DEPARTMENT
Duties of Counsel 339
Former Counsels of company 339
Present staff of department 340
THE AGENCY SYSTEM
First general agency under H. G. Wilson 343
Expansion into new territory 344
Changes in official staff 344-345
The General Agency plan 346-347
SECRETARY'S DEPARTMENT
Applications; photographic copies and policy writing 351
Premium notices; collection notices and receipts, and auditing
Agents' reports 352
Changes in residence, etc 352
Card record system of accounting 352-353
Changes in policies 353
CLAIM DEPARTMENT
When and by whom established 354
Biographical sketch of Julius N. Proeschel 354
Biographical sketch of F. T. Zetteler 355
Table showing losses paid 355
Matured endowments, discount of, and post-mortem dividends. 356
Statement by Hoel Hinman Camp 357
Employees twenty-five years or more 358-363
Officers, Trustees, Agents, etc 364-373
Personal Index
Adams, William R
Albright, Dr. Charles E...
Alden, A. B
Austin, George F
Page
264, 265
...181,276,319
189, 210
127, 129
Baker, W. V 360
Barber, Joel Allen 49, 52, 53, 70
Barrows, Dr. Lyman J 84.317,318
Beck, William 210
Behling, William P 260,263,358
Bintliff, James 49, 55, 70, 73
Bonnell, James 97, 103, 115, 119
Bradford, John 90
Brewer, David J 155
Bristol, John I. D 180,181,360
Britt, Oren E 119,152,167,168,177
Brockway, Charles Tiffany 360
Brown, Dr. D. T 99,348
Buell, Thomas W 206,345
Burnham, George 237
Camp, Hoel Hinman 49, 55, 73, 92, 357
Carpenter, Matthew H 49, 55, 70, 90, 91
Cary. John B 180,181,182
Cary, Thomas Archibald 360
Case, Jerome 1 244
Cattel!, T. \V 228
Chenev, Rufus, Jr 85, 107
Coe, Charles B 210,215,345
Collins, H. \V 71, 73, 74, 83, 84, 92, 105
Copeland, George E., 181, 249, 255, 270, 274,
346
Cramer, Eliphalet 90
Crawford, J. C 246,272,281,310
Daggett, Samuel S., 90, 91, 92, 93, 98, 104,
105, 107, 137, 138, 139, 246, 357
Dickson, John P 49,56,70,74,77
Dimock, E. L., 52, 53, 56, 73, 74, 77, 83,
84, 99- 357
Doolittle, James R 49.56,73,91
Doolittle, W. J 210,358
Dousman, Hercules L 57,65,70,357
Drew. Clum jgp
Du Four, John W 209,260,261,358
Durkee, Dwight 252
Dutcher, John A l - 2
Dyer, Charles E., 232, 233, 234, 281, 282,
284, 339
yer. T. R 246,340
Earnest, James H 52,53,57,73-357
Eldred, Anson 57,65,73,357
Page
Ellyson, Henry K 240
Evans, Percy H 273,274,275,346,347
Farnham, Wm. H 116,129,209,261
Farwell, Leonard J 49,57,70,91
Fisher, Dr. J. W 217,259,314,315
Fisner, Lucius G 58,59,70,90
Fitch, William Grant 243
Gage, William T 180,181
Gaylord, Augustus 134, 150
Geraghty, Patrick 129, 359
Gezelschap, C. H 209
Gillett, Garland L 35 8
Graham, Alexander 71,74,89,90,119
Griswold, Joseph W 85,88,89
Hackett, John 58, 59, 73
Hackett, Richard M 270
Hall, S. C 73,84,107
Hamilton, A. K 229,237
Harger, C. G., Jr 238
Harlow, George A 269,314,319
Hastings, S. D 137,138,139
Hathaway, A. S 285,340
Hathaway, J. L 217,245
Hemsing, Frank C 282,312
Holbrook, W. J 359
Holden, Wm. Ward 53, 58, 70, 73
Hooker, David G 185, 186, 232, 339
Hooley, George T 358
Howell, J. W 181
Hutchings, T. E M2
Hutson, Solomon 58,65,70,74,98
Hyde, Edwin I53
Ilsley, Charles F 103, 152
Ilsley, Edward 1 18, 128, 129
Janzer, H. E 359
Jennings, Edgar C 127, 129, 260, 261
Jennings, George W 359
Johnston, John 244,277
Johnston, General John C., 37, 48, 70, 73,
75, 77, 84, 85, 92, 94, 96, 97, 98, 318,
357
Johnston. John Henry 76,77,84
Jones, Charles X 235, 246
Jones, E. D 285
Kaufman, 1 180,181
Keenan, Matthew, 119, 152, 168, 177, 199,
209, 217, 228, 255, 344
385
3 86
Personal Index
Page
Keep, John M 58,65,73
Kellogg, A. W., 100, 101, 125, 129, 138, 140,
150
Kemper, Samuel R 122
Kilgore, J. M 361
Kimball, A. W., 180, 181, 183, 215, 224,
239, 255, 281, 345
Kimball, Mather D 249
Kitchel, Courtney S 267,268,358
Knowlton, James H., 49, 61, 70, 74, 77,
85, 98
Knox, T. J 278
Kuehn, Charles 53,61,70,90,91
Laflin, H. N 340
Lappin, Thomas 59, 61, 70
Lawler, John 137,243
Lawler, Thomas C 287
Lawrence, W. A 73,83,91
Lee, George W 53,61,70,90,91
Lewis, Joseph 141
Lindsay, E. J 229
Loveland, C. A 153, 210, 235, 289, 358
Ludlow, Arabut 59,62,73
Lynch, James M 134,200
Mack, M. J 180,361
Madden, Frances Lillian 195,359
Makley, John F 234
Mallanney, John 181
Mann, Franklin 181
Markham, George C., 119, 175, 257, 272,
277, 282, 328
Martin & Hopkins 132
Martin, James B 59,62,73,357
Martin, J. 359
May, A. C 143, i44, 156
Merrill, S. S 139,217
Merrill, Willard, 119, 161, 163, 199, 215,
217, 231, 252, 255, 274, 281, 344, 345
Miller, A. G 34Q
Miller, B. K 211
Miller, B. K., Jr 211
Miller, Ezra 91
Mills, Simeon 52,59,62,73,92
Miner, George B 92
Mitchell, Alexander 227
Mitchell, G. Stanley 258
Mitchell, G. W 228,258
Mitchell, John 63,65,70
Moody, L. W 181
Murphy, D. E 180,181,190
Murphy, W. K 181
Myers, Peter 63,65,73
McClintock, Emory, 152, 171, 172, 191, 194,
199, 218, 228, 235, 306
McKey, Edward 53,62,70,73
McKindley, John G., 112, 118, 123, 130,
343, 344
Page
McKnight, Lewis, 84, 99, 122, 129, 217, 259,
3i7, 3i8
McLaren, Wm. P., 179, 199, 205, 228, 253,
255, 257, 277, 335
Nash, C. D., 90, 92, 98, 99, 107, 140, 228,
246, 261
Nethercut, W. R 258,340
Newell, George H 361
Newhall, Daniel 91
Nichols, Henry A 97
Niel, James 53,63,73,74,90,98
Noggle, David 51, 59, 63, 64, 73, 74, 91
Norris, Henry F., 255, 274, 287, 341, 345,
346
Northrop, George C 59, 64, 70, 92
Norton, Charles 70,92,97
Norton, Charles D 181
Norton, Leverett J 84, 88
Noyes, George H 284,337,340
Oxborrow, George 270
Palmer, Henry L., 10, 90, 91, 97, 98, 100,
103, 105, 123, 129, 130, 167, 169, 187,
188, 218, 227, 228, 234, 246, 266, 271,
274, 287, 288, 357, 358
Patten, L. F 74,77
Pease, John J. R 73,92,97,259,357
Peck, John D in
Peterson, K. D 359
Pfister, Guido 236
Pierce, Dr. C. G 318
Pixley, Benjamin F 52,59,64,67,73
Plankinton, John 138, 243
Poindexter, E. W 180, 181
Prichard, M. S 73,74,98
Prindiville, Redmond 189,358,363
Proeschel, Julius N 153, 354
Ramsey, D. B 267
Ray, Charles 246,273
Reynolds, George Nelson 361
Rodman, H. D 180, 181
Rountree, George H 130, 145, 158
Rountree, John H., 52, 65, 67, 73, 112,
130, 239
Rowley, Milton 83,85
Russell, Hetta Merrill 195
Sanborn, Frank W 359
Sanborn, P. R 239, 277, 329, 358
Scheffer, Charles 115
Schindler, J. F 181
Schuchardt, L 129,358
Schultz, Carl F. C 217
Schurz, Carl 104
Scott, M. S 90, 91,246
Scoville, A. H 73,84,89,119
Sexton, Lester, 90, 92, 105, 119, 126, 138,
140, 143, 357
Index to Illustrations
Page
Sheard, Titus 277
Sibley, H. H 1/4,243
Sinclair, W. M 119, 121, 122, 126, 243
Skinner, Calvin B .' 249
Skinner, C. D 129
Skinner, J. \V., 129, 141, 156, 206, 209, 241,
282, 358
Sleeper, Joseph A., 53, 67, 68, 71, 73, 74,
98, 105
Smith, Edward J 178,181
Smith, F. H 129
Smith, Heber, 119, 139, 140, 150, 151, 156,
167, 344
Smith, Louis E. P 180,181
Smith, Morris C 53. 68, 70, 74
Smith, Wm. E 211
Spalding, Jesse 272
Spaulding, S. C 91
Spencer, James C 133,137,156
Steever, Mitchell 98
Stevens, A. \V 181
Stockton, S. D 362
Stone, Dr. E. J 234
Stoughton, Luke 49,68,73,90,91
Surles, W. H 190,286
Swain, D. F 362
Thorndike, Dr. \Yilliam 276, 314, 320
Toulmin, Dr. H. L 266,269,319
Trump, Charles H 359
Tyrrell, Henry Franklin Preface, 340
Tyrrell, John F 359
Ullmann, Henry J
Urner, Henry C
65,68,70
287
387
Page
Van Dyke, John H., 105, 112, 115, 123,
144, 147, 167, 168, 357
Van Dyke, W. D 229
Van Vechten, C. D 181
Walker, Edwin S 178, 181
Ward, J. Carlton 180
Waterman, Anson P 274
Watson, C. H 153,154,282,285
Webb, Lindsey 181
Welsh, W. J 362
Wenstrand, Dr. David E. W., 276, 314,
317, 321
Whaling, Wm. J 91
Wheeler, George F 276
Whitcomb, H. F 229
White, W. Woods 362
Whittlesey, Mills 181
Willard, Josiah F., 65, 69, 70, 71, 74, 98
Willey, Avery S 113,129
Williams, Robert W 217
Wilson, H. G., 83, 84, 91, 99, 101, 103, 118,
343
Winkler, F. C 229,236
Winne, Geo. H 359
Wolcott, Dr. E. B., 90, 91, 92, 93, 99, 115,
119, 129, 192, 246, 318
Wolcott, Dr. O. P 99, 318
Woods, R. J 180,181
Wooster, C. H 359
Young, George W 129,358
Zetteler, F. T 354,358
Index to Illustrations
Page
Adams, W. R 265
Antique Form of Insurance Contract.. 23
Back Cover First Piece of Literature... 83
Baker, W. V 360
Barber, J. Allen 49
Behling, W. P 263
Bintliff, James 49
Bonnell, James 119
Bristol, John I. D 360
Britt, Oren E 119
Broadway, Xo. 416, Milwaukee 135
Brockway. Charles Tiffany 360
Camp, Hoel Hinman 49
Carpenter, Matthew H 49
Cary, Thomas Archibald 360
Central Court 207
Charter Members 49,53,59,65
Check for 1907 Wisconsin Taxes 77
Page
Collins, H. W 71, 105
Copeland, Geo. E 346
Copy of Substitute for Policy Xo. I..-94
Crawford, J. C 310
Daggett, Samuel S 105
Dickson, John P 49
Dimock, Edward L 53
Doolittle, James R 49
Doolittle, \V. J 358
Dousman, Hercules L 65
Du Four, John W 261
Dyer, Charles E 282
Dyer, J. R 34
Earnest, James H 53
Eldred, Anson 65
Endorsement on Policy No. i 87
Evans, Percy H 347
Exchange Block, Janesville 135
Executive Committee Room 19?
3 88
Index to Illustrations
Page
Farwell, Leonard J 49
First Officers of the Company 71
Fisher, Lucius G 59
Fisher, Dr. J. W 3*5
Gaylord, Augustus 134
Geraghty, Patrick 359
Gillett, Garland L 358
Graham, Alexander 71 , 119
Griswold, Joseph W 89
Hackett, John 59
Hamilton, A. K 229
Harlow, Dr. George A 319
Hathaway, A. S 349
Hemsing, F. C 312
359
53
.. .2
339
-358
Holbrook, W. J
Holden, Wm. Ward
Home Office of the Company
Hooker, David G
Hooley, George T
Hutson, Solomon 65
Ilsley, Edward 129
Iron Block, Milwaukee 135
Janzer, H. E 359
Jennings, Edgar C 127
Jennings, George W 359
Johnston, John C 37
Jones, E. D 285
Keenan, Matthew 119
Keep, John M 65
Kellogg, A. W 7..IOI
Kilgore, J. M 361
Kimball, A. W 345
Kitchel, Courtney S 268
Knowlton, James H 49
Kno*, T. J 278
Kuehn, Charles 53
Lappin Block, Janesville 135
Lappin, Thomas 59
Lee, George VV 53
Lindsay, E. J 229
Loveland, C. A 289
Ludlow, Aiabut 59
Mack, M. J 361
Madden, Frances Lillian 359
Main and Wisconsin Streets, (S.\V.
Corner) Milwaukee 135
Main Street, J\o. 416, Milwaukee 135
Markham, George C 119. 175
Martin, James B 59
Martin, J. 359
Members of Executive and Finance
Committees 229
Merrill, Willard 1 19, 163
Mills, Simeon 59
Mitchell John
Page
65
65
AlcClintock Emory
306
McKey Edward
53
McKnight, Dr. Lewis
McLaren. Wm. P...
317
. . .170
Nash, C. D 99
Nethercut, W. R 340
Newell, George H 361
Niel, James 53
Noggle, David 59
Norris, H. F 341
Northrop, George C 59
Norton, Leverett J 88
Noyes, George H 387
Offices Occupied by the Company 135
Office of the President 169
Old Insurance Building, Milwaukee. . 135
Palmer, Henry L.
Peterson, K. D...
Pixley, Benj. F...
Policy No. i
.10, 105
359
59
..86, 87
Policy Heads, 292, 293, 294, 295, 296, 297,
298, 299, 300, 302
Present Home Office.
Presidents
Prindiville, Redmond
Proeschel, Julius N...
Ramsey, D. B
Receipts Showing Payments on John-
ston Policy 95
2, 135
105
363
354
...267
Reynolds, George Nelson ,
Rountree, John H
361
-.65
Sanborn, Frank W ..................... 359
Sanborn, P. R .......................... 329
Schuchardt, Louis ..................... 358
Scoville, Augustus H ............ ....... 119
Secretary's Department, Main Room.. 221
Sexton, Lester ..................... 105, 119
Sinclair, William M .................... 119
Skinner, J. W .......................... 241
Sleeper, Joseph A ................ 53,71,105
Smith, Heber .......................... 119
Smith, Morris C ......................... 53
Stockton, S. D ......................... 362
Stoughton, Luke ........................ 49
Thorndike, Dr. William
Trump, Charles H
Tyrrell, H. F
Tyrrell, John F
320
359
340
359
Ullmann, Henry J 65
Van Dyke, John H 105, 147
Van Dyke, W. D 229
Index to Illustrations
Page
Vice Presidents ......................... 119
\ie\v. Main Room, Secretary's De-
partment ............. ........... 221
Watson, C. H... 1:4
Welsh, W. J ..... "V>
White, W. Woods ...................... 362
389
Page
Willard, Josiah F .................... 65,71
\Yinkler, F. C .......................... 229
Winne, Geo. H ......................... 359
Wolcott > Erastus B ..................... 119
Booster, C. H ......................... 359
Young - Ce - w ................ *
Zetteler, F. T ........................... 355
UNIVERSITY OF CALIFORNIA LIBRARY
BERKELEY
demand may be renewed if JrSi tb ^ ay ' . Book s not in
expiration of loan period. 1S m&de before
MAY 26
75m-8/31
YC 23345
.,
1*