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William Loring Andrews.

The Continental Insurance Company of New York, 1853-1905, a historical sketch online

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the city's financial affairs, noted in the community
for their sagacity and for the possession of that
business sense which, experience teaches, is almost
as rare a gift as that of poesy.

IN the latter part of the year 1869 The Continen-
tal Insurance Company established in the West
a Department with headquarters at Chicago.
The field covered at that time was the States of
Ohio, Michigan, Indiana, Illinois, Wisconsin, Min-
nesota, Iowa, Missouri, Nebraska, Kansas and the
Dakotas. In 1873 Kentucky was added, and
since that date the Department has gradually ex-
panded its operations until at the present time it is
writing insurance in practically all the Western
States, including Tennessee and the States of the
Pacific Coast.

It was soon discovered that farmers required
credit in order that they might pay their insurance
premiums out of the proceeds of the year's har-
vests, and to meet this necessity the Continental
in advance of any other company decided to con-
duct its farm business upon a three to five year
note installment plan. As time passed on, and the
farmers became more prosperous the single note
plan was inaugurated which allowed but one year's
credit, the note being timed to fall due when the far-
mer realizes from his crops. The greater part of
the farm insurance business of the Company has
been conducted upon these two lines. The popu-

49



THE CONTINENTAL INSURANCE COMPANY

larity it acquired by this liberal action, its honor-
able treatment of claimants and prompt settle-
ment of losses, and its strong financial position,
have resulted in its present large and growing busi-
ness throughout the farming community. The
Continental was also one of the first companies to
recognize the necessity for tornado insurance and
in 1882 this class of business was added to its farm
department.

The Western Department is in charge of Vice-
President Mr. George E. Kline whose period of
service with the Company passed the quarter cen-
tury mark in November 1904, and Mr. Charles R.
Tuttle, who in the year 1903 was promoted to an
assistant secretary-ship from a special agency in
the State of Colorado. The headquarters of the
department is in Chicago, and the vaults in the
Postal Telegraph Building formerly called the
Rialto Building in that city, in which these farmers'
notes are filed away in orderly arrangement, supply
a striking object lesson of the magnitude, in the
aggregate, of the business there conducted and
the vast amount of detail work and clerical labor
that the average littleness of its component parts
involves. These tiers upon tiers of boxes contain
two hundred thousand farmers' notes ranging in
amount from five dollars to one thousand dollars
each. None of the installment notes of the Com-
pany (over $ i ,200,000 face value) are included in
the assets until collected.

Since the organization of its Western Depart-
ment the Company has paid to the holders of its



OF NEW YORK, 1853 TO 1905

farm policies over $ 1 2,500,000 and in its own partic-
ular sphere it has unquestionably been an import-
ant factor in the upbuilding of the Great West dur-
ing the past fifty years. The security afforded by
its policies of insurance has enabled hundreds of
thousands of agriculturists to obtain loans upon
their farms or to secure extensions of time for the
payment of existing mortgages which they were un-
able to meet when due, and the western farmer
now regards a Continental policy as a provision
for a rainy day, equivalent to a government bond.

IN the three and fifty years of its corporate life
the Company has paid losses amounting to
over Fifty-eight Million Dollars. Its business
covers sixty States and Territories of the Union,
and is transacted through the medium of agencies,
which at the last report numbered seventy-one
hundred. It maintains a force of fifty-nine travel-
ing representatives, covering all the States in which
it transacts business, and is thus enabled to prompt-
ly reach any policy holder who has a claim upon it.
Agents in the following States are under the direct
supervision of the home office at New York:

Alabama Maine Ohio

Arkansas Maryland Pennsylvania

Connecticut Massachusetts Rhode Island

Delaware Mississippi South Carolina

Dist. of Columbia New Hampshire Texas

Florida New Jersey Vermont

Georgia New York Virginia

Louisiana North Carolina West Virginia

51



THE CONTINENTAL INSURANCE COMPANY

Agents in the following States are under the su-
pervision of the Western Department, Chicago:

Arizona Kentucky Oklahoma

California Michigan Oregon

Colorado Minnesota South Dakota

Idaho Missouri Tennessee

Illinois Montana Utah

Indiana Nebraska Washington

Indian Territory Nevada Wisconsin

Iowa . New Mexico Wyoming

Kansas North Dakota

Through these agents the Company in 1905 is-
sued approximately four hundred thousand pol-
icies, or, to quote the exact figures as shown by the
records, 393,953 policies.

THIS is, in brief, the story of The Continen-
tal Insurance Company, whose stock to-
day has a higher book value than that of
any other company in the United States having a
capital of a million dollars or more, and that, in
"Standing by Assets," "Surplus to Policy-
holders," "Premiums on Fire Business/' and
"Gross Risks in Force," ranks with the strongest
fire insurance companies the world over.

"The Company," wrote President Hope a gene-
ration ago, "is from principle, a supporter of
schedule rating, of wisely discriminating tariffs,
and of uniform charges for insurance; believing
that underwriters owe it to the country, by such
means, to induce property-owners so to build that
property shall be less liable to destruction by fire,

5 2



OF NEW YORK, 1853 TO 1905

and that thereby the immense drain upon the
resources of the nation by the burning up of
earned values, may be diminished; and it believes
also, that only by such discriminating and uni-
form charges can the companies grow strong to
meet the next great conflagration and its suc-
cessors. To these ends the Company has always
co-operated with others for uniform tariffs, paid
fire departments, better water supplies, and all
that tends to conservatism."

These are still the watchwords of the Con-
tinental, and by the wise, able, experienced and
progressive management of its affairs by Mr.
Hope's successors in the presidency of the Com-
pany, through days when the sun of its prosperity
rose high in the heavens, and again when the
smoke from burning towns and cities enveloped it
in clouds and darkness, it has kept the steady, up-
ward and onward tenor of its way, and won for
itself a name and prestige equalled by few and
surpassed by none of the fire insurance corpora-
tions of this or any other country.

IT is the part of wisdom and prudence for those
in charge of the affairs of any institution, to
select men of ability on the staff of their em-
ployees and train and fit them to occupy the high
and responsible positions in the ranks of its
officials which sooner or later in the course of
time become vacant. No other method of filling
such vacancies is productive of equally satisfac-
tory results. This, as before noted, has been the

53



THE CONTINENTAL INSURANCE COMPANY

creed and practice of the managers of the Con-
tinental and in consequence it has always been
able to command the services of those who have
grown up under this tutelage and who have thus
become fully equipped and qualified for the work
assigned them. To the untiring efforts of these
officers and agents and their devotion to the
interests of the Company, the commanding posi-
tion it at present occupies is largely due.

FINIS





CONTINENTAL BUILDING

158 MONTAGUE STREET, BROOKLYN

ERECTED 1906



APPENDIX



THE CONTINENTAL INSURANCE COMPANY


1853 I 9 02


YEAR


PREMIUMS






TOTAL


DEC. 3 1


COLLECTED


LOSSES PAID


TOTAL INCOME


DISBURSEMENTS

INCLUDING DIVIDENDS


1853


$96,417.16


$6,785-17


$132,145.80


$56,572.86


1854


125,682.1 1


70,544.76


1 60, 1 64.02


145,982.89




136,376.53


60,010.49


179,257.03


138,501.18


I856


159,503.68


54,447.38


203,777.45


210,462.31


1857


183,090.95


63,050.54


225,858.94


148,666.72


1858


218,446.40


43,020.94


271,502.83


142,387.58


1859


265,085.14


79,659.99


321,052.38


209,734.69


i860


296,402.21


132,044.05


359-357-57




1861


275,640.40


132,826.00


342,267.95


283,51 1.98


1862


297,075.94


136,946.75


370,680.95


285,6l6.37


1863


331.204.15


74,116.78


420,936.43


247,643.62


1864


417,353.91


187,785.44


541,766.76


456,041.02


1865


495,046.90


197,153.12


606,793.85


518,045.33


1866


615,704.06


334,484.17


733,296.45


691,150.94


1867


678,947.68


315,800.64


801,085.10


681,443.47


1869


683,660.65
752,122.08


195,163.41
210,426.13


822,222.54
934,300.05


599,239.36
667,958.21


1870


879,445.22


258,040.30


1,032,352.02


862,032.59


1871


1,351.361.95


1,419,101.08


1,511,567.75


2,205,415.57


1872
1873


I,549.I53-35
1,633,904.35


i,747.3 8 7-5
977,840.61


1,657,489.33
1,740,274.96


2,443,640.03
1,651,304.59


1874


1,677,695.32


701,999.58


1,801,571.28


,1,432,718.55


1875


1,523,845.67


733,428.14


i,677.i55-99


1,448,526.15


1876


1,402,809.95


664,891.91


1,559,918.94


1,353,711.41


1877


1,465,578.95


695,413.08


1,624,109.16


1,413,1 l6.90


1878


1,493,012.42


675,506.88


1,664,418.01


1,446,892.23


1879


1,514,069.14


825,953.68


1,688,656.17


1,582,758.22


1880


1,759,601.08


801,703.79


1,946,192.73


1,627,142.19


1881


2,041,234.42


i ,097,400.08


2,228,404.61


2,019,022.63


1882


2,153.29I-14


1,164,291.70


2,375,239.89


2,157.73I-25


1883


2,601,744.86


1,474,802.72


2,828,042.61


2,6l3.755-73


1884


2,704,920.16


1,706,735.73


2,934,722.53


2,906,576.51


1885


3,159,636.36


1,945,025.78


3,388,642.70


3,360,593.23


1886


2,976,114.58


1,754,868.65


3,232.525.35


3,111,401.31


1887


2,417,081.15


1,557,501.43


2,642,950.28


2,739,784.82


1888


2,245,145.43


1,245,697.41


2,473,939.05


2,305,322.59


1889


2,203,985.66


1,287,039.76


2,439,448.42


2,333,981.32


1890
1891


2,303,080.92
2,409,268.25


1,225,157.27
1,422,638.37


2,547,812.54
2,660,543.80


2,335,047.88
2,592,604.60


1892


2,712,105.37


1,531,242.13


2,935,703.01


2,794,362.89


1893


2,954,422.87


1,780,555.72


3,228,004.03


3,052,743.98


1894


3,197,722.03


1,767,268.02


3,467,991.97


3,103,796.41


1895
1896


3,421,484.48
3,^45,828.40


1,830,789.06
1,683,362.71


3,740,744.59
3,760,603.90


3,232,101.1 I
3,126,551.58


1897


3,648,085.13


1,714,641.47


3,964,952.44


3,263,023.26


1898


3,729,768.35


1,902,824.34


4,068,796.21


3,658,137.26


1899


3,876,078.89


2,274,159.68


4,281,108.76


4,017,449.93


1900


4,294,530.98


2,220,299.31


4,667,620.36


4,044,922.58


1901


4,921,884.93


2,648,853.83


5,320,622.99


4,722,522.46


1902


5,403,061.54


2,686,323.80


5,850,237.97


4,842,578.93


Total


$91,098,713.25


$49,717,010.83


$100,368,910.45


$91,565,436.93


50 years











THE CONTINENTAL INSURANCE COMPANY


1853 1902


YEAR


UNEARNED


TOTAL LIABILITIES




NET SURPLUS






NOT INCLUDING


TOTAL ASSETS


WITH SCRIP AND


nnr 1 D i


PREMIUMS








1 M .v ,. ^ 1




SCRIP ANDCAPITAL




CAPITALDEDUCTED


1853




$5,560.00


l575.57 2 -94




1854




457-50


595,547.07




1855




4,904.68


635,249.68




1856




14.548.78


628,859.85




1857




11,709.51


706,887.25




1858




104,124.! I


835,227.59


$128,236.06


.859


$106,115.28


137.041.52


946,572.73


115,629.95


1860


133,996.00


163,463.89


,024,752.28


98,459.16


1861


123,829.74


143,231.02


,071,518.26


110,041.04


1862


133,323.16


160,901.46


,171,212.78


127,405.16


1863
1864


149,041.87
188,725.16


197,634.72
248,752.34


,345,386.92
,423,680.98


166,592.04
153,097.83


1865


213,348.74


332,909.73


,532.88 7 .84


147,088.03


1866
1867
1868


265,122.31
288,552.76
314,046.67


379,099.53
381,992.92

447, 1 54.67


,668,136.57
,814,590.31
2,066,854.10


233,899.94
358,459.87
523,519.43


1869


387,976.24


529,173.78


2,339,122.50


671,526.72


1870


491,405.18


667,740.30


2.538,037.74


647,203.44


1871


706,271.68


,456,181.36


2,509,526.27


53.344-9'


1872


801,175.27


,231,093.71


12,284,251.97


53.158-26


,873
1874


921,926.76
981,229.39


,i 17,963.17
,198,634.93


2,255,937.08
2,606,235.97


i37.973-9
366,143.41


1875


951,427.42


,189,152.1 1


2,845,165.64


600,221.53


1876


930, 1 07.84


,196,069.94


3,040,085.07


785,290.13


1877


983,069.21


,207,432.28


3.J73.933.3I


899,436.03


1878


1,060,384.21


,289,349.47


3.327,771.74


965,514.27


1879


1,132,518.32


,372,869.48


3,478,188.76


,028,155.28


!88?


* 1, 346, 1 95. 69
* 1, 458,827.07


,682,583.64
,800,484.70


3,938,719.41
4,207,205.51


,176,206.77
,327,419.81


1882


*i, 524,123. 54


,892,668.81


4,450,534.50


,496,705.69


1883


* 1-775, 820.69


2,206,144.73


4,867,942.01


,617,782.20


1884


* i, 953,694. 10


2,403,280.10


1,938,501.92


,505.523-82


1885


*2,265,427.88


2,818,599.14


5,177,478.99


,340,422.85


1886


*2, 3 8 3 ,8oo.53


2,865,124.35


5,239,981.28


,364,645.93


1887


2,585,904.05


2,954,625.42


4,875,623.03


917,237.61


1888


2,501,884.39


2,801,653.03


5,028,344.69


,226,691.66


1889


2,470,343.24


2,746,070.02


5.2I7.773-9I


,471,703.89


1890
1891


2,501,365.84
2,636,775.30


2,985,328.79
3,161,023.47


5,587,948.84
5,806,784.71


,602,620.05
,645,761.24


1892


3,008,612.00


3,594.3i5-77


6,380,180.73


,785,864.96


1893


3,204,755.03


3,856,575.95


6,433,171.33


,576,595.38


1894


3,405,407.79


3,943,639.46


6,754,908.72


,811,269.26


1895


3,521,726.96


4,191,020.12


7,216,828.25


2,025,808.13


1896
.897


3,523,299.59
3,666,749.49


4,212,128.37
4,464,212.20


7,776,347.13
8,582,207.68


2,564,218.76
3,117,995.48


1898
.899


3,762,919.29
3 ,968,336.70


4,597,879.29
4,774,665.72


9,077,114.17
9,809,660.83


3,479,234.88
4,034,995.11


1900


4,272,117.52


5,127,732.17


10,638,271.47


4,510,539.30


1901


4,806,903.60


5,697,683.69


I 1,599,011.81


4,901,328.12


1902


5,320,070.68


6,243,168.74


12,957,841.15


5,718,961.98


Capital increased to $1,000,000.


* Includes Unearned Premiums on Marine Business. [1872.


t Impairment of $400,000, in Capital, resulting from Boston Fire, met by stockholders, Dec.



THE CONTINENTAL INSURANCE COMPANY

SUPPLEMENTARY TABLE
19031905



YEAR
DEC. 31



PREMIUMS
COLLECTED



LOSSES PAID



TOTAL INCOME



TOTAL
DISBURSEMENTS

INCLUDING DIVIDENDS



1903
1904
1905



$5,820,799.23
5,906,807.17
5,934,613.72



$2,680,1 12.31
3,678,368.70
2,663,444.14



$6,287,805.23
6,443,442.08
6,505,703.72



$5,II7, 99 1.I4
6,265,035.56
5,205,687.16



Total



$17,662,220.12



$9,021,925.15



$19,236,951.03



$16,588,713.86



YEAR
DEC. 31



UNEARNED
PREMIUMS



TOTAL LIABILITIES

NOT INCLUDING
SCRIP AND CAPITAL



TOTAL ASSETS



NET SURPLUS

WITH SCRIP AND

CAPITALDEDUCTED



1903
1904
1905



$5,646,414-36
5,903,813.33

6, 1 57>738.23



$6,628,749.10
6,786,491,79
6,960,276.70



$14,192,177.63
'4, 543. '53-32
16,384,501.83



$6,563,428.53
6,756,661.53
8,424225.13




ANNUAL STATEMENT

JANUARY I, 1906
ASSETS

Cash on deposit and in office $1,1 18,043.52

Loans on Bond and Mortgage (on

real estate worth $39,500) .... 16,350.00

Stocks and Bonds 13,099,465.00

Real Estate i , 1 50,000.00

Premiums in course of collection . . 906,924.77
Interest, Dividends and Rents

accrued 93,718.54

Total Assets $ i 6,384, 50 1 .83

LIABILITIES

Reserve for unearned premiums on

policies in force $6,157,738.23

Reserve for losses in process of ad-
justment 328,209. 17

Reserve for Commissions, Taxes,

and all other claims 174,329.30

Reserve for contingencies 300,000.00

Cash Capital i ,000,000.00

Total Liabilities 7,960,276.70

Net Surplus 8,424,225. 1 3

$16,384,501.83

RESULT OF TWELVE MONTHS BUSINESS

Increase Gross Assets $1,841,348.51

Increase Net Surplus i ,667,563.60

Increase Reserve for Insurance in

force 253,924.90



RECORD SHOWING NUMBER OF FIRES AND THEIR CAUSES IN CON-
NECTION WITH CLAIMS PAID BY THE CONTINENTAL INSURANCE
COMPANY DURING 1905 AND FROM 1899 TO 1905 INCLUSIVE


CAUSE


1905


1899-1905


NUMBER


PER CENT.
OF TOTAL


NUMBER


PER CENT.
OF TOTAL


Unknown


433
1098

83
672


4.63
11.72

.86
7.16


3651
8211

711
4240


6.O5
I3.6l

I. 18
7.03


Outside Causes, Exposures, etc

LIGHTNING :
Live Stock


Building, etc


Total Lightning . .


755

100

3.6


8.02

$

4-45

6.27
5-56

1.28
1.88
.23
i-54
85
1.40
1.03
.50
.16
.07
.03

.08
.01

.26

53
.46
.06


4951

759
2376


8.21

1.25

3-94
5.19

6.61

5-52

.27

'75
.30

i-34
.92
1.24

79
.70
.18

.12
.14

5
.06
.02
.04

'J

.10


INCENDIARY :
Internal by Assured


External bv Tramps etc


Total Incendiary


416

588
522

120
, 7 6

21

43

80

'3>
96

55
15
7
3

8
i

25
50

n,


3'35

3978
33"

166
1058
184
807

559
749
478
428

112
60

86

11

4

,3

35
2 85
61

i
i


HEATING :
Defective Flues .


Stoves .


Gas Stoves (previous to 1904 included
under Stoves) .


Fire Places Open Grates


Steam . .


Gasolene Stoves


Kerosene Oil Stoves


Hot Air Furnaces


Burning out soot in chimney


Stove Pipes defective


through walls, roofs, &c.. .
Dry Kilns


1 Rooms


Laundries


W^ater Backs Explosions


Smoke Houses private


public pork
Ovens . . . . . .


Boiler


Boiling Grease


Fumigating


Burning of vaults, Smead (W. C.)
system


Wood Box


Total Heating


2091

2

8


22.29

.02
.09

.1 I


12907

19
49


21.40

3


VACANCY :
Ordinary


Temporary . .


Total Vacancy


IO


68


.1 1




CARRIED FORWARD


4803




32923





RECORD SHOWING NUMBER OF FIRES AND THEIR CAUSES IN CON-
NECTION WITH CLAIMS PAID BY THE CONTINENTAL INSURANCE
COMPANY DURING 1905 AND FROM 1899 TO 1905 INCLUSIVE


CAUSE


1905


18991905


NUMBER


PER CENT.
OF TOTAL


NUMBER


PER CENT.
OF TOTAL


BROUGHT FORWARD
CARELESSNESS :
Adults


4803

^

1272

79

252


3.69
.91

'If,

2.68


32923

3036
IO4I
29
6262

541
252


5.03

'73

.05
10.39
.89
4i


Children


Drunkenness . ...


Matches...


Plumbers, Mechanics etc


Cigarette or Cigar Stub .


Total Carelessness


2035

88

383
16

439
288
ii
46
30


21.69

.92
4.09

17
4.70
3.07

.12

49
.30


Ill6l

473
2536
178
3110

17 S

340
119
70


18.50

78
4.21

2 t
5.16

2%
.11
.56
.19

.12


LIGHTING :
Candle . . .


Gas jets in contact with curtains
Lights in show windows


Kerosene


Electric .


Barns... . ....


Leaking Gas Pipes.


Gasolene Gas Machines


Lamp Shades


Total Lighting


1301
37

70
276

7

2


13.86
39

74
2.95
.07

.02

4.17

.65

73
.56

.27
2.90

2

1.24
.05

.02
.62
.12
.02
1.54

.02

.O\


8603

248
9
3
490

539
20

i7


14.25

.41
.01
.01
.8l
2.56
.03
-02


SPARKS :
Mill Chimneys .


Forges and Foundry Furnaces


From Cupola


Locomotives Steam Vessels &c


On roofs from Chimneys


From Forest Fires . . . ...


Threshing Machines


Total Sparks


392
6l

68
53

26
271

22

6
..6

5

2
58
12
2
144

2
I


2326

340
306

422

218
1578
196
48
724
43
4
325

99

22

99
4

2
I


3.85

. $ 6
-50
.70



3

1.20
.07
.01

:?2

4
1.64

.01


Ashes


Naphtha, Gasolene, Benzine, &c
Fireworks .


Illuminations, Wakes, Christmas
Trees, &c. . .


Spontaneous Combustion


Explosions


Sawdust Spittoons


Rats and Mice


Pickers


Steam Dryers " .


Friction


Natural Gas. . . . .


Sunlight through Glass


General Conflagration


Coffee Roaster


Moving Picture Machine


Slaking Lime


TOTAL NUMBER OF FIRES


9380




60335





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Online LibraryWilliam Loring AndrewsThe Continental Insurance Company of New York, 1853-1905, a historical sketch → online text (page 3 of 3)