The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-16
Low AS 4 BUSINESS MAN.
His Connection with tho RidEewood Insuranc
Company OF BrooIlyn.

W" ssS
Company OF brooklyn.
That Seth Lows Clcvclandcsque embodi.
mcnt incascs the familiar Clevclanditish spirit
OF sclf.interest became manifest TO tho bust.
ness community as lonS ago rs 1870. The
young Mr.. Low was AT that time one OF several
family representatives in the directorate of an
insurance conpany:which had been started at
his fathers bchest with Il great boom. The
boom was supposed to be for Brooklyn. but
turned out to be for Low. The company had
its beginning in 1873. William Il. Lothrop was
a well-known insurance man, who had Just
had two years OF misfortune ut the head OF in
! surance companies. The Washington Insurance
Company, with n capital OF 800. 600, had been
wiped out in 1871 by the Chicago fire, and had
just been reorganized as tho Washington Fire
Insurance Company, when it was broken up
again by Boston's big fire OF 1872. Mr.. Lo.
throp hao made the acquaintance OF A. A. Low,
the tea merchant, and in 1873 Mr.. Low told
him that he would help him organize a new
insurance company II Mr.. Lothrop would
make it n Brooklyn company and place its Of
flee in one Of Mr.. Lows buildings. The mon
came to an agreement. Mr.. Low raised $780,
600 among his friends and Mr.. Lothrop $780,.
600. and the company was established Mt 20
Court street. 1t was called the Ridgewood In
surance Company. II was started under gay
h,hNS ~ ilNAI bllo ~
mancncc, Mr.. Low having agreed to guarantee
to see the company through to u point whence
1t could safely so ahead on its own resources.
Clerks were hired and all preparations were
made to do a distinctly local business. There
were to be no out-of-town agents. The COM
pany wa to carry on II Brooklyn business, with
the aid OF the New York city and Jersey City
fields for operations. Directors were elected.
though A. A. Low. the elder. himself did not
become one Of them. In the printed lists OF
l,mn. President Lothrop's healing the other.
For six years the company ran along to the
mum; often they Went up to ii per cent. seth
Low enjoyed the prosperity OF his company,
BASED upon loans and risks, and gave such
while he continued to conduct business at the
tea store, where his father and uncle had nd
business at this time was controlled by a tnrir
association which made uniform rates. There
petition. In is79 the Tarifi X3sociation 'Wa,
broken up. ne prospect Of Mr.. Lows com
Visions Of dwindlins, dividends made Mir. Low
quail, and the possibility OF loss, once out in the
could not brook with ali his SNUG eauanimitr,
900 tthc capital stock Of 800. 900 and a gross
cash surplus OF Sl00.0o0). seth Low and his
s ssiDs and al s6gs np ds shop befdr to t gSsset w their
chance for amy one to lessen them. 1t was no
sooner decided than done. The Low golfers
must be protected at all hazard. Clerks were
discharged, President l~.othrop, who had got
up the company. was OF u sudden deprived of
the use OF the field his own labors had made
fruitful, and stockholders rights were trampled
on by the men chosen 10 safeguard them,
Seth Low and his associate dire tors. Assem-.
hled in annual meeting to elect a President,
first determined to close up affairs.
might You not as well elect u Presidentf'
Mr.. LothrOp asked, and them he said, 'Tf il
is decided 10 iiquid"te. ] will not stand in tho
way. But the stockholders have n right to be
consulted In this matter"
The answer of Seth Low and his associates
was that ~ they had been chosen to represent
the majority OF the stockholders they had n
right to act at once rs they saw 1T.
you were selected By the stockholders TO
run the company" Mr.. lothrop said TO them,
mot to wind 1t up"
Bu. his words were without effect. Seth
Low and his as :ociatc directors vO cd unani-
mOusly, to put the company out of existence.
by so doing they put into their pockets. besides
all the dividends Hev had drawn, better than
$l.25 Jon every dollars worth OF capital stock.
After the expenditure OF 100000 for rcinsur-
ing their r~isks-which Mr.. Lothrop did for
them in the .connec'icut, going thon to that
company as its New York ngent-thero was
still about $4,000 net surplus left to be dis.
tributcd on top Of the capital stock.
MIR. Lothrop characterized the action at the
time rs irregular, because the question of dis
solution or quitting business should have been
submitted to the stockholders.
Il think 1t was unworthy OF business men"
he saws now.