The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-24

Columbia Mutual Life Assurance com
Iany, which came into existence In 1909
Ind one year later disappeared. are recall
d by the frequent mention OF Mr.. Dun
lam's name In connection with affairs
" the Home Realty company.
The Rhode Island Agency holds. 1t Is
nated, about 531 shares of the stock or
he Home Realty company. The CONNER
dal corporation holds large number
" lots of land at Washington Park. val
ting them I'm excess OF 100000 1t also
lolds. according to a statement which
Everett A. Dunham made at the nrst
Meeting of the creditors OF the Home
Realty company. $4,000 worth of the
'onds which were issued by that now In
plvent corporation.
The Commercial corporation and the
Rhode Island Agency are Maine corpora
IONS The Central Trust company. which
ecently informed depositors that II pro-
,osed to take advantage OF the 9o-day
ususe In allowing Withdrawals, holds 257o
mares OF the stock of the Commercial
prporation and II also holds mortgages
which were received through the Peoples
trust company. Everett A. Dunham II
Interested and so In Isaac l.. Con ana
ach Of the companies do business In the
mite of offices occupied by Isaac l.. CON
t Co.
Everett A. Dunham first attracted at
ention In this state when he appeared at
he capitol at the January session or the
GENERAL assembly Is years ago In 1892 ana
With Younger man by the name OF Traf-
ord sought to interest a number OF pub
Ic men in a plan to float a local life in
mrance company. Durham was a good
nlker and found little difficulty In en-
listing the attention OF capitalists In
cheme to have a Rhode Island insurance
company.
CHARTER OBTAINED.
Taking alvantaeh OF the law which per-
nitted the amendment of existing char
ers and obvated the necessity of waiting
or a charter to be sanctioned by two sue
pessive legislatures, Dundam had the
lharter which had been granted to the
Rehoboth Brick company and which was
,wned by John f. Goldsworthy OF Lin
,oln, amended 80 as TO make IL operative
,or the purposes OF the business or the
Columbian Mutual Life Assurance com
Dany. Under II the company was author
ged to write life insurance In any and all
.orms It was claimed at the time that
here was no life insurance charter In the
country which gave as liberal privileges
~ this one.
The bill amending the charter was put
through the house with little trouble. but
was strenuously combated In the senate.
partly because of representations which
we're made with reference 10 previous life
insurance affairs In which Durham was
laid to have been concerned.
The lobby for IL won out The charter
allowed the company to write tontine or
Deferred premium policies. and In the
nrst estimate which was published by
the company probable esrnings from Is to
20 per cent. higher than those OF other
companies doing uhe same line OF bust
ness were phophesled.
Some OF the most prominent politicians
Of the state were induced TO take shares
afr nd RI f11f<>GfOr-
ate. 1t was announced that II would be
necessary TO secure 100000 In cash before
he company could begin issuing policies.
md the stockholders were invited TO raise
that sum.
The company began 10 do business May
that the required 100000 had been paid In.
though but S97 900 had been paid In and
the company began to issue policies.
Dunham took a suite of rooms on the
vecond floor Of the Butler Exchange and
lifted them up at great cost, while great
rold signs upon the front and back Of the
building announced the home OF the new
company
Early developments showed that Dun
ham was the largest stockholier. COM
trolled a majority of the stock and held
the working majority OF the board OF
directors.
MANY POLICIES ISSUED.
Everything went on SWimmlngly, 1or
the agents who were sent out among
the politicians were told to urge to the
limit the desirability OF having "a home
campany managed at home In the inter-
ests of home capital After the big
men and the more prosperous farmers
had been induced to take out policies a
land-office business was done among the
mill operatives, particularly In the north
ern part OF the state.
The finance committee recommended
that a salary list of $32, 700 be established.
In addition II wGs stipulated that there
should be paid to the president per cent.
on all premiums received In the first 10
years; to the vice president PA per cent.
while the secretary and treasurer were
30 have liberal commissions on the gen.
eral business The salary list was voted
by Dunham's representatives on the
board and a number who had lent their
names end influence to boom the COM
pany and had contributed for stock. with
drew.
In the first four months about $4,000
was received in premiums-a very large
amount to be taken by a new company In
% short a time.
Dunham began making trips to New
York. and finally. calling the directors to-
gether. announced that he had been ne
gctiating for the purchase Of the Com
mercial Alliance Insurance company OF
New York. which. he said had large
amount OF outstanding insurance. He
recommended that the Columbia purchase
q controlling interest In that New York
company. secure the outstanding policies
and premium income. and then combine
The business Of the two companies.
The Columbia purchased 1910 shares, or
The controlling interest, paving s75,750
for the stock. The mortgages and other
securities OF the Columbia were sold and
the principal asset OF the Rhode Island
company was now represented by the
certificate Of 1910 shares in the CONNER
rial Alliance.
This deal did not meet with the ap-
proval OF some OF the men who had
come into the company. and they dropped
out
DUNIfAM MOVED no NEW YORK.
Dunham then removed the home COM
pany to New York. where he reorganized
the Commercial Alliance. making his
close friends officers OF the company. A
short time after this Vt was said that ne
had been deceived as to the standing and
condition OF the New York company and
MAI ha bad been Obliged TO buy contracts
w1rcdh had been nse<pe wfsM cersNfp New
York men procedure which had proved