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 filbe&d ' ;fters, and of the j>oor and diftreffcd \YiJo7rs and Children of Prc/byreriafl Minifterr, of the othtr 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 '-;'/ ! '.-^5 made on theo^**^^ -<^Cf>^^> Dayot ^TCex^" .* .\ 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*