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The Once and Future C&F - Captain Whiley’s Enterprise
By 1803, Captain Whiley moved to take over as commanding officer of Fort Jay and then Fort Columbus on Governors Island. His duties on Governors Island included building fortifications around the New York harbor, where he connected with many of New York City’s business luminaries. He resigned his commission in 1811 and raised a large family on the Hudson River near Poughkeepsie (on property later occupied by FDR). During his absence, the War of 1812 started and ended - the Erie Canal was more than halfway finished - and New York City was ready to grow exponentially. To do so, it needed insurance. I n 1822, there were only nine insurance companies operating in New York City. Regulations at the time had a protectionist bent. Foreign companies were not allowed to operate in New York and out-of-state companies were taxed heavily for the privilege of doing so. Captain Whiley met resistance in getting approval for North River, as the regulators felt there were already too many insurance companies (they encouraged him to open a bank instead). Many early insurance companies were started by merchants. They were not really underwriters — they just needed insurance protection for their own businesses. Whiley’s backers needed coverage, but they also sensed the potential in the budding New York City insurance market. Whiley, the entrepreneur, looked at the city, population 135,000, and had the insight that it was going to grow and that its new residents would have to live and work in new buildings — and those buildings would need fire insurance. In addition to entrepreneurial spirit and insight, Whiley had connections. He met with a group of influential New York City citizens and was able to raise $350,000 (roughly $9.4 million today) in cash to capitalize The North
Portrait of Captain Richard Whiley.
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