The Providence news. (Providence [R.I.]) 1891-1906, 1894-11-05

vaiieS ia those duys, Gan act 10 incor-
porato the Rehoboth Brick Company"
Tie following year this charter was
amended by replacing all the provisions
relating 10 the brick company with pro-
visions suitable TO a life insurance COM
pany. The life Insurance company was
called the "Columbia Mutual Lie Assur-
ance Company
The history OF this concern indicates
that the amendment 20 the charter might
euitablv have cOmprohended a change OF
name from the Rshoboth Brick Company
TO the Rehoboth ssGold Brick" Company
for tho Columbia Assurance Company, or
its successor, the Comercial Alllsnc- Lie
Insurance Company, judging by recent
revelations, seems 10 have been very
much OF the nature OF gold brlek-the
+ hind that turn 20 sawdust when the IN
genuous agriculturists purchase them.
n According 10 The official Investigation
of the Commercial Alliance Life Insurance
Company, which swallowed the pictur-
esque Columbia, the Commercial slli-
nnce-and 80 tho Colum bia-cOmpeny IS
3 3 complete wreck. And, according 10 the
statement OF William n. Willis, VINO was
appointed receiver OF the concern the
OF her day, the sworn statements issued
by the concern are absolutely untruthful.
The history OF the COLUMBIA as involved
in the Commercial Alliance, as at present
developed, thus indicates reckless manage
mcnt, desperate financiering and, finally,
n
cern from disruption by official action OF
the New York Insurance Department.
An Auspicious Bcginning.
During the January session OF the Gen.
eral Assembly 1892, there appeared ut the
State House n clipper young hustler
named f. A. Dunham. He and another
young fellow proposed to start LIE In
sarance company to have It's home IN
Rhode Island. The advantages To nhode
Islanders OF having "your own life insur-
apce company were act forth in glowing
colors. Dunhnm had the charter OF
1Se Brick Company In ms pocket
for amendment into life insurance
company and he undertook to interest
Z prominent State officials In the scheme
with a Wow OF having an impressive list
of names az patrons OF the now company.
He succeeded in this as he also succeeded
in getting the signatures 10 stock OF
considersble number OF tho prominent
business men OF Rhode Island.
The new insurance company was TO be
thcrurh sfftf44r-fTf ftA- oil the -adXanlAgos-
\ thai that implied. The business was To be
done at home, the head officers located
here, money invested in Rhode Island
1,roperty. and all that sort OF thing. some
day a building as big as the Industrial
n Trust Company's would probably rise
Is tie skies with "Columbia Life lnsur-
nnce Company" in big gold letters across
the front and statue OF Dunham in--e
NJ
t>Providence and to the State would be in
calculable, for nothing makes money like
life insurance company, and nothing,
except a college football team, so we'll
adyertises the community that is blessed
with its possession.
70 Geld Brick Company and business
Wap begun by a meeting OF the lncorpo-
rators on May 81, 1892 By September ~
the cash book OF the Columbia showed tho
100000 capital paid in, affidavit OF which
was made TO the Secretary of State. AS
matter OF fact only s97 600 of this could be
h found in bank, but nobody who might
I worry or inquire knew about this until
later.
However, with its capital presumably
Foll paid in, the company was authorized
10 begin business on september n, 1897,
although, as later discovered, policies
werc already issued prior TO this. But no
one who might worry about this irregu-
larity knew OF it until later on.
The concern set up an elaborate Office
outiit in the Butler Exchange and hung
out signs big enough TO swallow the big
building in the Columbia Life Assurance
Company. The office furniture was
superb and the books were impressive in
size and elegance. There WAS a general
suggestiveness OF fireworks about it all
calculated TO impress the verdant
4 Rhode Islander who crossed Vice Presi-
dcnt-for he was now president
Dunhnn's threshold. Vice Pres dent
Z Dunham had been a life insurance solicitor
3 for good many years, and he was we'll
up in the arts Of the impreasionist.
Besides, ne had plenty OF money to back
him and his associates, as is indicated by
Tire fact that the finance committee y
Of the Columbia voted the pres-
dent and officers salaries to the
<nmount OF e3l, 7OO per annum, besides
4F A3eA-t hi president ATas- to receive q per
cent OF all premiums received for 10 wears,
the vice. president 2h per cent, and
the secretary and treasurer commis-
mons on personal business. These elegant
percentages were voted by the directors"
on July II, 1892, and contracted for Janu-
ary 8, 1883. The Liberal salaries were
voted February "a, 1895, by the ''hnsnce
committee" Vice Presden Dunham
later became president. In the following
( month, however, the directors cut OF
part OF the salary grab.
The Columbia Mutual Life Assurance
Company made itself felt at once. 1hoir
agents fairly swept Rhode Island. Up in
Bnrriilviile, uowo in Bristol in Newport
Westerly, the PsWtuXet valley and in
Providence. They wrote policies by the
barrel full. Many OF thess were taken bv
the poorer and middle class-smail
amounts Of insurance aud lots of them
being the speciality Of the new home con-
cern.
Commercial Alliance Deal.
One day an announcement was made
Through the press and otherwise that the
, Columbia Mutual Life Assurance Company
J Dad bought out enc Commercial Alliance
4 Lille Insurance Company OF New York
4 City TINS was general surprise party
aDc the iact that The name Columbia Mu-
a tual i1fe Assurance was now 10 di4anuear
4 IA iayor OF the Commercial Alliance. and
= that the headquarters or "your own in
N surance company" were now 10 be ia New
York caused doubt as 20 which concern
4 had gobblod the other, but the fscts were
= subsequently, proved as stated-that the
4 Durham Company had done the Duvinq.
! IL Was poor job, too.
The nominal price FOR which the Column
n bia ana President Dunham secured con-
n trol OF the Commercial Alliasce wss fgO.-
tOO but the payments were mado ia 30 re-
markeble manner that su ubsequsn. in
n yestigation, august 81, 1894 report) led
llr. y. II. fackiCr, who made an examine
q ton for Insurance Commissioner L.andors
oi Rhode Island, 60 state IN his report
flf.t 4 tens.