Queen City Heritage

A photograph taken in 1913for the fiftieth anniversary ofFrederick and Betsy SicklesRauh, includes the founder ofFrederick Rauh & Companyand his sons and grandsonswho later headed the family

firm. Pictured are (fourth row)Bertrand Rauh Sidney Rauh,Selma Rosenthal Rauh, JaneRauh Oettinger, Julian Rauh,Stella Rauh, Isadore Rauh,Stanley Rauh; (third row,seated in chairs) Sylvia Adler

Rauh, Betsy Sickles Rauh,Frederick Rauh, Louis LincolnRauh; (second row) Amelia(Millie) Bernheim Rauh,Grace Netter Rauh; (first row)Louise Rauh Brown, HelenRauh Bettman Heller, Morton

Rauh, Richard (Dick) Rauh,and Frederick (Fritz) Rauh.(CHS, Business Archives,Frederick Rauh & Co.Collection)

Fall 1995

Testament of Endurance:Frederick Rauh &Company, 1872-1994

Testament of Endurance

Steven L. Wright

Ahead of you lies a rich future spreadout full of hopes in sweet reverie.

Oh, would dream and hope become true,How quickly temporal existence wanes.Yes, should you, worthy of good fortuneNever have to miss what your pure heart

desires.Frederick Rauh August 7, 18581

Frederick Rauh composed this poem for adear friend but it could also be a prophesy for Rauhand the successful company he founded. A rich futurewas in store for the young Rauh as well as for futurefamily members who became involved with the busi-ness. Originally founded as a single person, generalinsurance agency that transacted business largelywith the Jewish community, Frederick Rauh &Company became one of the premier insurance agen-cies in Cincinnati. Throughout the company's longtenure in the city, all of the company's presidentsencouraged progressive advancements within theinsurance profession and became involved in commu-nity affairs. The company's reputation as a "highquality, trustworthy and intelligent agency" haveendured.2 Frederick Rauh's hopes and dreams remainalive after almost 125 years. He did not miss what hispure heart desired.

In 1856 Cincinnati boasted of sixty-threeinsurance related enterprises. Ten insurance compa-nies were headquartered in the city; forty-three "for-eign" companies, based either in Europe or in theeastern United States, maintained an office here; andten local, independent agencies operated in the city. Adramatic expansion of general insurance activity was

heavily influenced by the rapid population growththat occurred during the 1850s and the burgeoningpost-Civil War economy. By the late 1860s homebased and foreign companies could not keep up withpolicy demands. And soon insurance companies par-layed their business to local agents, who sold therespective company's policies and earned a portion ofthe premium as a commission. Indeed, for people whodid not own the capital to start a manufacturing oper-ation or the political connections to study law, insur-ance offered them a respectable alternative and apotentially lucrative career. In 1872 Frederick Rauh'sfirst year in the insurance business, thirty insurancecompanies main ta ined their home offices inCincinnati, one hundred four "foreign" companieshad representatives, and eighty-six independent agen-cies operated within the city.3

Steven L. Wright, BusinessArchivist for the CincinnatiHistorical Society Library,provides information serviceswhich include collecting andprocessing records, curatingexhibits, and historical

research and writing for localbusinesses and organiza-tions.

Frederick Rauh & Company, ageneral insurance agencyfounded in 1872 by FrederickRauh, became one of the pre-mier insurance agencies inCincinnati. (CHS, BusinessArchives, Frederick Rauh &Co. Collection)

Like many American entrepreneurialsuccesses the roots of Frederick Rauh & Companybegan in Europe. Frederick Rauh was born in August1838, in the small town of Altenkunstadt, in northernBavaria, Germany; the son of Koppel Rauh, a haber-dasher, and Hannah Mack. Little is known of hisearly years or his educational background. In 1853, atage fifteen, he left Germany and emigrated to theUnited States. After a few months in Pittsburgh hemoved to Cincinnati where he boarded for approxi-mately eight years wi th dis tant cousins, theKornbliths, owners of a wholesale clothing businessat 138 Main Street.4

During his first three years in CincinnatiFrederick Rauh learned English, probably completedhis schooling, and became acclimated to Americanlife. In 1856, lacking any marketable skill or trade,the eighteen-year-old Frederick began working as abookkeeper in his cousins' firm, J. & M. KornblithClothiers. Frederick remained there until 1863 whenhe and Moses Newburger, a former co-worker, estab-lished Newburger & Rauh Wholesale Clothiers andDealers in Cloths, Cassimeres & Co. located at 70West Pearl Street. The operation remained in busi-ness until 1871 when Moses Newburger died. Unableto find another partner, Rauh returned to his cousins'firm, now called M. & B. Kornblith Co. on 80 WestPearl Street, and worked here about a year. The fol-lowing year, however, Frederick's fortunes changedwhen, at the urging of Rabbi Isaac Mayer Wise, hestarted his own insurance business from a smalloffice at 34 West Pearl Street.5

Why and how Frederick Rauh becameinterested in the insurance business is not known. Afew pieces of evidence have surfaced that offer a plau-sible explanation. In 1856 J. H. Carter, an insuranceagency owner, and H. K. Lindsey, the local agent forAetna Insurance Company, underwrote theKornblith's fire and personal goods insurance.6

Because Frederick Rauh boarded with the Kornbliths,it is possible that his interest was raised as he lis-tened to Carter and Lindsey discuss the policy withthe family. The Kornbliths renewed their Aetna poli-cy through 1871, providing Rauh numerous opportu-nities to query the men about the business which

Queen City Heritage

may also explain how Rauh became interested ininsurance. But why did he start his own agency?

"From the end of the Civil War until thebeginning of the twentieth century," an historianwrote, "the United States witnessed the emergence ofa full-fledged anti-semitic [sic] society."7 This preju-dice affected every aspect of life: where one lived,what organizations one could join, social and recre-ational activities, and business opportunities.

In the business world, Jews sufferedmainly from the suspicions raised by their Christiancounterparts. In 1866 after a series of devastating firesdestroyed numerous Jewish owned properties locatedin New York City's clothing district as well as prop-erties located in the West and South, eastern insur-ance companies contended that the fires had beendeliberately set by their owners to collect the insur-ance money. Within a few months Aetna, Manhattan,Niagara, Germania, Hanover, Phoenix, and RepublicInsurance companies secretly agreed not to sell poli-cies to Jewish businessman.8 "In the future," theagreement stated, "all applications to insure wares ofJews must be forwarded to the general agent for fur-ther instruction prior to making insurance binding;otherwise the insurance is to be considered closedwithout the authority and the insured to be informedthereof."9 Initially, the deal was a secret, but soon itwas leaked to the press causing a major Jewishprotest. Jewish businessmen in New York City, St.Louis, Missouri; Richmond, Virginia; Cleveland,Ohio,- and Nashville, Tennessee,- held meetings cen-suring the companies.

A key leader of the Jewish protest inCincinnati was Rabbi Isaac Mayer Wise, the founderof Reform Judaism. In addition to reporting on eventsoccurring in New York through the Jewish newspa-per, Die Deborah, he demanded that the main perpe-trator, Rudolph Garrigue, the president of GermaniaFire Insurance Company of New York, be removedfrom office by the stockholders. "He not only actsagainst the interests of the company," Wise wrote,"but against the spirit of the Republic, the truth, andin defiance of humanity and advocates acts that stig-matize Jews as a class of criminals."10 Wise warnedother conspirators that, "We no longer have to put up

Fall 1995 Testament of Endurance 5

with the president of Germania. We can only warnthe stockholders of the company and suggest to themto end the infamy. For the time being, we exhort allJews to withdraw from the Germania and the fourother companies. . . ."" Jews throughout the nationcanceled their policies. It was not long before theseven companies began to court them again, hoping toregain the Jewish business.

However, Jewish businessmen still feltvulnerable to the whims of gentile businessmen.Although no written proof exists, it is very likely thatRabbi Wise approached Rauh and encouraged him toopen an insurance agency that catered to the localJewish community. Wise probably viewed a "Jewish"owned agency as a means of protection against futureanti-Semitic acts. Plus Wise was a close friend of acongregation day school teacher, Betsy Sickles, whomRauh had married in 1863.

It took Rauh a number of months toacquire the capital necessary to begin his new career.Regardless of the enormous risks involved with secur-ing funding and owning an agency, he was convincedthat he made the right decision. Through his diligentefforts he not only established an ongoing business,but simultaneously ensured that "his" people wouldnot fall victim to outsiders. In 1872 he wrote his firstpolicy with American Central Insurance Company ofSt. Louis.12

By 1874 Rauh's business had grown tothe point that he needed a larger office. He decided tomove his agency from Pearl Street to Third Street, theci ty 's banking, commerce, and insurance hub.Although he moved a few times on Third Street, heremained in this business center until 1900. By 1875Rauh felt confident enough to join with two partners,Henry K. Lindsey and George K. Snider, formerly ofLindsey, Snider and Perkins General InsuranceAgents, Brokers and Adjusters. Both men had a lot ofexperience in the insurance field and probably broughtwith them a large quantity of business,- accounts andcontacts that Rauh could not obtain. The greatpromise of success did not materialize, however, asLindsey, Rauh & Company lasted only one year. In1876 Lindsey and Snider left to become CentralDepartment managers for the Niagara Fire Insurance

Rauh wrote his first policywith American CentralInsurance Company of St.Louis. (CHS, BusinessArchives, Frederick Rauh &Co. Collection)

Company of New York.13

Three years passed before Rauh formed anew partnership with David J. Workum, the formerpart owner of the retail boot and shoe store,Kilsheimer &. Workum. Even with the new partner,Rauh maintained Frederick Rauh & Company, thename he had operated under since the departure ofLindsey.14

Although numerous types of insurancebegan to appear in the marketplace, Rauh was catego-rized as a specialist in fire insurance, and representedthe products of "foreign" companies— those firms notheadquartered in Cincinnati. In fact, Rauh's youngerson recalled, "Practically all our business in the earlyyears was Fire Insurance and not over 5 percent was inother lines."15 Rauh represented Guardian AssuranceCompany of London; German American InsuranceCompany of New York City; Hamburg Bremen FireInsurance Company of Germany; LancashireInsurance Company of Manchester , England;Transatlantic Insurance Company of Germany; LionFire Insurance Company of London; British AmericaAssurance Company of Toronto, Canada; Niagara FireInsurance Company of New York; Citizens InsuranceCompany of New York; Mercantile Fire and MarineInsurance Company and the American InsuranceCompany both of Boston; People's InsuranceCompany of New York; and Security InsuranceCompany of New Haven, Connecticut.16 The compa-nies that entrusted Rauh to issue policies wereimpressive, and soon he became the envy of his corn-

Queen City Heritage

petitors. "Of the sixteen companies whose interestshave been entrusted to him, not [sic] one but will berecognized as rated with the strongest of the home,and the most thorough of the foreign corporations tak-ing risks in this vicinity."17

By 1881 Rauh saw the need to diversifyand to offer additional lines of insurance. Increasedtechnology necessi tated Accident, Plate Glass,Elevator and Boiler Insurance. Faster forms of trans-portation increased the quantities of goods beingshipped that required both Ocean Marine and InlandMarine Insurance. The same type of companies thatentrusted Rauh to represent them in the fire insur-ance line asked him to represent their products inthese new areas. Rauh worked with Fidelity andCasualty Company of New York for Accident, PlateGlass, Elevator and Boiler Insurance; for MarineInsurance he worked through Marine InsuranceCompany, Ltd. of London; and, for Inland Marine heworked with Louisville Underwri ters . By 1883Frederick Rauh & Company represented a fairly com-plete line of insurance plans from some of the world'smost noted companies.18 However, one area intowhich the company did not venture for almost anoth-er sixty years was life insurance.

In the nineteenth century and throughthe first part of the twentieth century, a reputableinsurance agent did not aggressively solicit his busi-ness door to door. He transacted business mainlythrough word of mouth and by becoming known as aleader in the city's cultural and civic affairs. Frederick

In 1869 Frederick Rauh joinedthe Congregation of BeneYeshurun (Plum StreetTemple) and served as secre-tary for twenty-five years andthe congregation's presidentin 1902, 1903, and 1904. (CHSPhotograph Collection)

,-:;'./

Fall 1995

Rauh operated his business in this fashion. His pro-fessional associations and community involvementsenabled his business to grow and to prosper.

Family members never thoughtFrederick "was a deeply religious man." They fre-quently shared the story about how on Yom Kippur,the day of fasting, Frederick would sit solemnly in hisfront row pew until the noon recess when the choir,largely consisting of gentiles, would leave and meetFrederick for a sumptuous meal.19 Regardless of thisslight indiscretion, he cherished his membership inthe Congregation of Bene Yeshurun on Plum Streetwhich he had joined in 1869. Not only did he attendthe synagogue regularly and sing in the choir, but heheld positions of influence. In 1873 n e served as thefinancial secretary for the congregation. He held thisposition until 1878 when he was chosen to be record-ing secretary. He maintained this position, as well asserving on the fiftieth anniversary committee, until1895 when he was elected to a two year term as atrustee. In 1898 he served as vice president and waselected president in 1902. He was re-elected as presi-dent for two additional terms in 1903 and 1904. In hisfinal report to the trustees Rauh thanked them fortheir confidence and reminded them that "His was awork of pleasure, not of hardship."20 Rauh's adminis-tration oversaw the construction of the SabbathSchool Building in Avondale, a significant accom-plishment. Rauh maintained his membership in thecongregation until his death.

Another organization which Rauh joinedthat brought him in contact with other German Jewswas the Allemania Club, one of two Jewish socialclubs created specifically because Jews were excludedfrom the city's other popular clubs. Although mainlya social organization that hosted elaborate dinnerswhere Rauh was often the toastmaster, Allemaniaalso exposed members to the literary, musical, anddramatic arts. It was also a place where the elite busi-ness owners met and transacted business; no doubtFrederick Rauh was among them, offering advice andanswering their questions about insurance.21

During World War I Rauh served, alongwith J. Walter Freiberg and Rabbi Louis Grossman, onthe executive committee of the American Jewish

Testament of Endurance 7

Relief Committee for War Sufferers. Its main goal wasto provide the necessary funds for the "unfortunateand helpless Jews" in the war stricken zones ofEurope.22

Not long after Rauh started in businesstwo opportunities arose which greatly benefited hisagency and enhanced his professional reputation. Inaddition to operating his own business, in 1887Frederick Rauh became president of Germania Fireand Marine Insurance Company of Cincinnati, a localcompany founded in 1864 by J. H. Carter, the sameman who sold Rauh's cousins their fire insurance pol-icy in 1856.23 A leading publication wrote, "Its safeand conservative methods have secured for it a steadyprosperity and the confidence of the insuring publicin the States of Ohio and Michigan. . . ."24 Originally,from 1864-1872, it engaged in both fire and marineinsurance, but then restricted itself solely to firerisks. William McAlpin, A. J. Seasongood, JuliusFreiberg, Max Mack, A. J. Friedlander, and Henry Stixwere some of the city's prominent businessmen thatserved on the board of directors.

The second opportunity came early in1890 when Rauh received an interesting request fromthe German American Insurance Company, a NewYork firm that he had represented since 1876. TheNew York firm voiced concern about the nineteencompanies nat ionwide that used the name"German," "Germania," or "German American" intheir title. In an effort to prevent confusion, to gener-ate more business, and to eliminate its competition,the directors of German American InsuranceCompany, inquired about buying Germania Fire andMarine Insurance Company of Cincinnat i . OnDecember 20, 1890, Rauh presented the proposal toGermania's stockholders who agreed to be bought bythe New York firm. Four days later GermanAmerican Insurance Company purchased Germaniastock for $95.00 a share.25

Rauh's business soon progressed towhere he could afford additional employees. His old-est son, Louis Lincoln, joined the firm in 1885 andanother son, Bertrand, started in 1890 as an errandboy. Robert D. Schmitt hired as a clerk about 1888,later worked as a bookkeeper and underwriter. By

1893 the company had branched out and offered anadditional type of insurance called Employer 'sLiability, the predecessor to the workmen's compen-sation of today.26

Since its founding, Frederick Rauh &.Company had moved three t imes, but alwaysremained within the commerce and banking center onThird Street. In 1899, in need of larger and moreimpressive office space, the company moved to theUnited Bank Building on the southeast corner ofThird and Walnut streets. Frederick Rauh & Companyremained here until 1905 when, following the lead ofthe banks and insurance companies, it moved fromThird Street to the corner of Fourth and Walnutstreets in the First National Bank Building.27

By the close of the nineteenth centuryFrederick Rauh &. Company was a very important andprosperous agency. The company's premium returnsfrom 1896-1900 and from 1904-1912 were indicativeof the firm's growth. The company usually ranked asone of the top three agencies in the city, a few times iteven held the top ranking. During the period 1896-1900, total premium averaged $93,076, and the com-pany ranked either second or third behind arch-com-petitors Neare, Gibbs & Company, Adam Gray &

Queen City Heritage

Company, or Laws Insurance Company.Frederick Rauh &. Company's largest

block of business continued to be with GermanAmerican Insurance Company of New York, the firmthat had purchased Germania Insurance Company ofCincinnati. Rauh wrote an average of $19,543 m Pre-mium for this insurer, equating to about twenty per-cent of the agency's business. Other insurers thatFrederick Rauh & Company regularly wrote businesswith included North American Insurance Company,Atlas Assurance Company of America, Fidelity andCasualty, Pennsylvania Fire Association Company,Niagara Fire Insurance Company, and a rather obscurecompany, Magdeburg Fire Insurance Company, head-quartered in Magdeburg, Germany. In the years 1904-1905, the company ranked third with an averageannual premium of $97,661. It was only surpassed byGray, Dolle and Latta and A. W. Schell and Company.In 1905 the company surpassed the $100,000 mark inwritten premium for the first time. During the period1909-1911, Frederick Rauh & Company continuallyplaced first among all agencies in the city with anaverage annualized premium of $I2,8,42O.28

Frederick Rauh's connections within theJewish community undoubtedly helped establish the

*&U3 *• CT

On December 20, 1890, stock-holders of Germania Fire andMarine Insurance Companyof Cincinnati accepted a pro-posal to be purchased byGerman American InsuranceCompany for $95.00 a share.

(CHS, Business Archives,Frederick Rauh & Co.Collection)

Fall 1995 Testament of Endurance

company as one of the city's premier agencies. Hisnumerous social and cultural contacts generated someof his business, but Rauh did not build a successfulagency and gain the respect of his peers by being affa-ble. He earned it by the manner in which he conduct-ed himself and the fairness he espoused as an officer,committee chairman, and member of the CincinnatiFire Underwriters Association.

Although the Cincinnati Fire UnderwritersAssociation's name has changed eight times since itsfounding in 1838, its basic principles have remainedthe same: to maintain order and fair practices amongfire insurance companies and agencies, and to providecontinuing education to agents.29 In the days beforestate regulation, members met and established insur-ance rates on a weekly basis. The Association eithercreated or encouraged many lasting civic servicessuch as forming the volunteer fire department, enact-ing or revising the city's building codes, and foundingthe Underwriters Salvage Corp.

In the late nineteenth century much ofthe damage sustained to property and contents wascaused by the large quantities of water used to extin-guish the flames. Such was the case in the disastrousThird Street fire in 1882. The enormity of the collater-al damage awakened Cincinnati's insurance industryto study the possibility of organizing an efficient sal-vage corps, an organization that could prevent fires, ordiscover them early and save and preserve personalproperty. The Cincinnat i Fire Underwri tersAssociation discussed the subject at a meeting.Members agreed something had to be done to alleviate

some of the losses experienced by local insurancecompanies. They proposed that a representative of theAssociation attend all fires and work alongside thefiremen. Sanctioned in November 1886 by the firedepartment, it took only one week before FrederickRauh and two other insurance businessmen foundedthe Cincinnati Fire Underwriters Salvage Corps. Theorganization became so successful at discovering andpreventing potential fires and at saving property andlife from conflagration, that in 1902 the Ohio GeneralAssembly enacted a law that permitted a nonprofitcorporation to be organized under the state's generalincorporation laws.30

The enormity of the damageand loss caused by the 1882Third Street fired causedCincinnati's insurance indus-try to consider organizing anefficient salvage corps whichcould prevent fires or discov-

er them early enough to saveproperty. (CHS PhotographCollection)

In November 1886, FrederickRauh and two other insur-ance businessmen foundedthe Cincinnati FireUnderwriters Salvage Corps.(CHS Photograph Collection)

IO

Frederick Rauh probably joined theCincinnati Fire Underwriters Association shortly afterhe entered the insurance field, and he remained aClass No. i member for the rest of his life. Presidentin 1881 and 1892, Rauh, in addition to regularly serv-ing as the arbitrator for rating and rebate disagree-ments, chaired committees that dealt with ratings,bylaws revision, ways and means, and the organiza-tion's anniversary celebration. A member of the exec-utive committee in 1893, he served as chairman in1896, 1902, and 1903.3I These activities not onlyafforded him the opportunity to meet with his peersand to discuss key insurance issues of the day, butenhanced his credibility and reputation as an agent.

Frederick Rauh's grandson, Fritz, oftenjoked about how his grandfather established the fireinsurance rate for a given week. "He was one of acommittee of agents who would sit down periodicallyat lunch and endeavor to assign equitable rates forvarious fire exposures. The size of the agreed uponrates probably was affected significantly by the quali-ty of the meal/'32 There may be a kernel of truth inthis statement. The setting of the rates was totallyarbitrary. At times it was based on whether the com-mittee liked the insured party or not. Except for a ratescale based on the type of industry that operated with-in the building, there was not any scientific basis orinteraction with insurance engineers after the build-ing was inspected. Despite this, Frederick Rauh'squality work on the rating committee earned him areputation for complete honesty and fair dealing.

Troubles that arose among competingagents were often adjusted and resolved by FrederickRauh. Because of his conduct and honest dealing,Frederick became known as the final arbitrator inresolving such matters. His fellow agents usuallyrequested that Rauh be appointed to the disciplinaryand arbitration hearings.33

Not long after Bertrand Rauh startedworking for his father, a prominent agent in town hada grievance with the Association. The agent was notsatisfied with the Association's decision so heresigned from the group and commenced a rate war.The agent had a clientele similar to Frederick Rauh &Company and the situation started to have a negative

Queen City Heritage

impact on the business. "Both Louis and myself,"Bertrand recalled, "were greatly in favor of meetingthis cut but I can well remember my father's soundadvice to us that we should under no circumstancesmeet this competition." Frederick Rauh reasonedthat when the policy expired, the agent's clientswould demand a renewal at the reduced rate, some-thing the agent could not guarantee. "My father'sjudgment proved to be correct and this agent lostmost of a fine business eventually, and a few yearsafterwards retired."34

At an Association meeting in January1902, the president assured the membership that stepswould be taken to stop "underhanded underwriting."According to the minutes, Frederick Rauh was recog-nized immediately, where he reflected upon "theproper spirit which should guide the members in theirdealings, calling particular attention to the evil ofrebating and doing business with non-board agents."35

In May 1902, another debate ensued concerning whohad the authority to reinstate former members.Apparently, it got so out of hand that a few formermembers who had been denied membership hiredattorneys to represent them. Once again FrederickRauh took the floor and urged the membership "torefrain from legal proceedings to settle differences,and to be more in harmony with each other."36 Rauhoffered a constitutional amendment that called for avote by secret ballot requiring two-thirds of the mem-bership to approve admission or reinstatement. Themembership agreed and approved the amendment.

Frederick Rauh &. Company's reputationas a company that regularly followed the rules wasquestioned only once and proved unfounded. InSeptember 1906, the governing committee investigat-ed a rumor that a rebate had been paid to Louis Stix &.Company, a dry goods and notions store. Five agenciesincluding Frederick Rauh & Company were known tohave done business with the store. Rauh gave an affi-davit denying that he or an agent from his companyhad offered the rebate. Three other agencies alsodenied involvement. However, the fifth agency,Gansel 61 Company, admitted that they had paid Stix& Company a rebate. As punishment the governingcommittee imposed a fine of $25.00, required the

Fall 1995

agency to cancel all policies written or placed by themwith Stix & Company, and restricted it from doingany business with Stix & Company for one year.37

Frederick Rauh remained active in thebusiness he founded until his death on January 9,1918, seven months short of his eightieth birthday.The local insurance community mourned his loss.The Cincinnati Fire Underwriters Association eulo-gized Rauh as "a man and a gentleman, strong in hisconvictions and fearless in living up to them, the soulof honor, warm and staunch in his friendships. Hewas genial and charming in his intercourse, makingfriends without effort and without effort keepingthem fast bound to him. . . ,"38 Presidents and vice-presidents of insurance companies sent their condo-lences. "There is no man in our profession/' wroteThomas Gallagher, general agent for Aetna Insurance,"for whom I have greater admiration. He was honor-able and upright in his dealings with everyone. . . .""The vice president of The Phoenix InsuranceCompany, George Lovejoy, wrote: "His was that rarecombination of wisdom and gentleness, and his influ-ence upon our business was always for good."40 Thegeneral manager and secretary of Atlas AssuranceCompany, Ltd., London, Samuel J. Pipkin, stated, "Forover twenty years the Atlas has been represented tothe entire satisfaction of the management here byyour esteemed firm . . . we have felt privileged in hav-ing the goodwill of your esteemed senior in whosehands the interests of the company were so well safe-guarded."41

Following Frederick Rauh's death man-agement of the company passed into the capable handsof Louis Rauh, the son who had been handling the day-to-day operations for a number of years. Louis hadstarted working for his father in 1886 immediatelyafter graduating from Woodward High School. By 1918,after thirty-two years experience in the business, Louishad little difficulty managing the firm.42 Louis' son,Mort, recalled of his father's work ethic, "Dad was theone who put the steel in the backbone. . . . " However,unlike his gregarious father, Louis was "very reserved[and] didn't show emotion," Mort remembered. "Yet,he was very indulgent to his kids. When I was eightwe went out west, and then eight years later the fami-

Testament of Endurance I I

ly went to Europe."43 Louis' family remained veryimportant to him throughout his life. In fact, Louisregularly left the office early so that he could visit andplay with his first grandson, Albert "Buzz" Brown.44

Louis managed the company as frugallyas he managed his own affairs. A favorite saying of hiswas, "A prudent fellow saves as much as he spends."45

Indeed, under Louis' tutelage Frederick Rauh &.Company continued to be one of the city's dominantagencies. Louis expanded the business, and continuedhis father's tradition of being involved in insuranceand community affairs. In 1922 when Louis Rauhhired a young insurance engineer, Joseph F. Cloud, thecompany acquired what became termed as its "main

competitive weapon."46 With this addition, FrederickRauh &. Company could compete effectively againstthose agencies who used rebating as their primemethod for lowering rates. Using Fire InspectionBureau standards and codes, Cloud, a trained fire pre-vention engineer, was able to lower or adjust the cus-tomer's insurance rates legally. In addition to having

In 1899 Frederick Rauh &Company moved to theUnited Bank Building on thesoutheast corner of Third andWalnut streets. (CHSPhotograph Collection)

1 2 Queen City Heritage

brought in great reductions, Mort Rauh rememberedCloud as being an aggressive salesman and a capableproducer, too.47

The addition of new personnel helpedthe company's total premiums increase during theperiod 1918-1929. In 1918 premiums total led$287,000. This amount increased regularly every yearand by 1929 premiums totalled $485,600. By 1930 pre-miums totalled $502,395, a company record thatremained unsurpassed until 1937 when premiumtotals reached $542,610, which remained the compa-ny record until 1941.48

To help a friend who owned a buildingwith high vacancy, Louis moved the company fromthe First National Bank Building to the Keith Buildinglocated on Walnut Street. Mort Rauh remembered itas a building with "shabby tenants," but because hisfather got a good deal on the lease Frederick Rauh &Company remained there until 1950.49

Louis Rauh had been a member of theCincinnati Fire Underwriters Association since hehad started working for his father. Soon he became asinvolved as his father had been. Louis served numer-ous times on the rating committee during the 1890s,and in 1911 was elected vice president of the govern-ing committee. This was followed in 1912 and 1916with his election to a two year term as a trustee of thesame governing body. He was appointed regularly asthe organization's representative to the national con-vention of insurance underwriters. In 1916 the OhioAssociation of Insurance Agents, of which he was oneof the founding members, appointed Louis as theirrepresentative to the legislative committee thatreviewed laws governing the insurance business with-in the state. One year later, Louis became president ofthe Cincinnati Fire Underwriters Association, thesame position that his father had held twice before.50

During his tenure as president Louisdealt mainly with issues emanating from America'sparticipation in World War I. He encouraged all of theAssociation's members to co-operate in the local RedCross Fund Drive to raise a mil l ion dollars.Additionally, Louis urged that his fellow membersjoin the National Protective League, an "extra legal"organization designed to ferret out German sympa-

To help a friend who had ahigh vacancy rate in hisbuilding, Frederick Rauh &Company moved to the KeithBuilding on Walnut Streetand remained there until1950. (CHS PhotographCollection)

Under the leadership of LouisRauh, who became head onthe death of his father in1918, Frederick Rauh &Company continued to beone of the city's dominantagencies. (CHS, Business

Archives, Frederick Rauh &Co. Collection)

Fall 1995

thizers and supposed communists. Louis' progressiveleanings as president were exhibited by his responseto a question a member raised as to "whether coloredsolicitors were eligible to membership?" Rauh repliedthat he did not believe that blacks could be excludedbecause "there was nothing in the Constitution thatexempts them from becoming members."51 Duringthe disastrous 1917 winter, when large numbers ofhomes caught fire because of defective flues, LouisRauh acted on a resolution proposed by another mem-ber which encouraged a closer association with build-ing inspectors, architects, and the Ohio fire marshallin the design, specification, and construction of chim-neys and flues.52

The business relationship that FrederickRauh & Company had developed with GermanAmerican Insurance Company of New York, renamedGreat American Insurance in January 1918 as a resultof anti-German hysteria during World War I, becameeven closer during Louis' tenure. The directors ofGreat American felt confident enough in Louis' abili-

Testament of Endurance 13

ties that they appointed him to the board of directorsof the Great American Indemnity Company, a posi-tion that he held until his death.53 On October 27,1926, executives from Great American, including W.H. Koop, the vice president, traveled to Cincinnati tocelebrate and to honor the fiftieth anniversary of theagency's appointment as an agent for the company; adefinite honor, as no other agency of Great Americanin Ohio was believed to have represented the compa-ny continuously for fifty years. Great American'spresident had planned to attend, but on the advice ofhis physician remained in New York City.54

During the first forty years of the twenti-eth century the economic success of Jewish immi-grants and the goals they set for their children in edu-cation, social, and cultural activities frightened manyAmericans. Despite and perhaps because of FrederickRauh &. Company's success, the anti-Semitism expe-rienced earlier by Louis' father in Cincinnati had notabated. The Rauhs could be accepted and evenrespected in professional circles, but they continued

Jnsurant? dfonpang

%t it 5bwtt©Jt that 0

Because of the anti-Germanhysteria during World War I,the German AmericanInsurance Company of NewYork changed its name toGreat American Insurance.(CHS, Business Archives,

Frederick Rauh & Co.Collection)

to be excluded from social clubs. One of Louis' moreimportant community involvements occurred in 1902when he, along with other pioneers: Carl Iglauer,Simon Kuhn, Charles Stix; Walter and MauriceFreiberg and Walter and Edgar Friedlander, decided toform their own social organization. Louis served asfirst secretary of the original club which was locatedat the old Oakley race track. Four years later the clubmoved to Langdon Farms in Pleasant Ridge and wasreorganized and incorporated as the LosantivilleCountry Club. At the May 1907 opening Louis, amember of the board, delivered a dedicatory address."I am delighted to transfer to you, your home for plea-sure and recreation may you all . . . among your fami-lies and your friends, enjoy its advantages and itsopportunities for many, many years."55

By 1932 Frederick Rauh &. Companyconsisted of five partners, Louis and Bertrand Rauh,Robert Schmitt, Joseph Cloud, and Louis Rauh's son,Frederick, commonly referred to as Fritz who hadjoined the firm in 1926 after graduating from WilliamsCollege.56 Mort Rauh, Louis' younger son, joined thefirm after graduating from Harvard College in 1932and became a partner in 1937.

Queen City Heritage

Although the effects of the severelydepressed economy eroded the agency's total incomefrom a high of $100,479 m I93° to a low of $68,751 in1933, nothing impacted the company as greatly as theunexpected death of Louis Rauh in February 1932.57

"On account of his many good qualities, capabilitiesand untiring efforts in behalf of the best interests ofthe insurance bus iness ," the Cincinnat i FireUnderwriters Association proclamation stated, "theAssociation has suffered a distinct and irreparableloss. . . ."58 This "distinct" loss probably affectedyoung Fritz Rauh more than anyone. At age twenty-seven he found himself in charge of an agency mired

in the depths of the Great Depression. Four years laterthe company suffered additional losses when its twomost experienced partners, Robert Schmitt and JosephCloud, died.59 By 1936 Fritz Rauh was managing anagency that in just four years had undergone signifi-cant changes.

Throughout the 1930s the companyoccasionally had difficulty collecting fees from clientsand commissions from the insurance companies. Inone instance Fritz became suspicious of an insurancecompany's soundness and sent Mort to a broker's

In 1922 the agency hiredJoseph F. Cloud, a trainedfire prevention engineer. Byusing Fire Inspection Bureaustandards and codes. Cloudwas able to lower or adjustcustomers' rates legally.(CHS, Business Archives,

Frederick Rauh & Co.Collection)

Mort Rauh, younger son ofLouis, joined the firm in 1932following his graduation fromHarvard and became a part-ner in 1937. (CHS, BusinessArchives, Frederick Rauh &Co. Collection)

Fall 1995

office to evaluate the company's assets. Mort conclud-ed that the company was not solid and, in the interestof Frederick Rauh & Company's clients, its policiesshould be replaced. Their instincts proved correct.Not long after the transfer occurred the insurancecompany in question went bankrupt.60

The years 1932-1936 were difficult yearsfor Fritz. Not only had he lost his father and two keypartners, but the company's revenues were $10,000 to$20,000 less than they had been during the 1920s.61

Despite these concerns, Fritz and Mort forged a newand closer relationship that complemented eachother. Where Mort was creative and imaginative, Fritzwas an aggressive producer. They worked together andgradually became interested in a new line of insur-ance, inland marine insurance.

Frederick Rauh & Company had repre-sented inland marine insurance companies almostsince its founding. However, Fritz became increasing-ly interested in inland marine floaters which insuredproperty that did not have a final destination or didnot remain stationary. Particularly as the ability tomove goods greater distances became easier andquicker, it seemed natural to Fritz that the companytake the lead and persuade insurance carriers to broad-en the description of coverage, its location, and therisks covered. "Our interest was furthered through theassociat ion wi th Ernie Schirpser. He was the

Testament of Endurance 15

Commercial Union Insurance Company's inlandmarine specialist. He visited us frequently to promotethis new kind of business, and Fritz was smart enoughto see it," Mort recalled.62 Fritz first found a marketin the local fur storage business. He wrote policies onthe fur departments of some of Cincinnati's majordepartment stores: Shillito's, Rollman's, Mabley &.Carew, McAlpin's, and Pogue's as well as for indepen-dent furriers: The A. E. Burkhardt Company, TheTheodore Dietrick Company, the Felix B. FriedmanCompany,- and numerous dry cleaners that stored furs.With this success, it was not long before Fritz insti-tuted the personal property floater, which covered alltypes of personal property regardless of where it waslocated, from furs and jewelry to golf clubs and finearts. It too became very successful. Frederick Rauh &.Company retained this line of insurance until home-owners insurance did away with the specific need formany types of floaters.63

Like his father and grandfather beforehim, Fritz Rauh became an active supporter of theCincinnat i Fire Underwri ters Association. InDecember 1933, just seven years after entering theinsurance business, he was elected to a two year termon the governing board. In 1934 and 1935 he support-ed having "Smokey Rogers" the fire clown, give aseries of lessons on safety and fire prevention toCincinnati Public School children. Also in 1935, after

An enthusiastic golfer, LouisRauh was one of the "leadingspirits" in building theLosantiville Country Club andserved as its first president atthe Pleasant Ridge location.(Picture courtesy AlbertBrown)

i 6 Queen City Heritage

months of meeting with University of Cincinnati offi-cials, Fritz and another member established a basicinsurance course which was offered to students for anumber of years. Fritz was elected president of theAssociation for two consecutive terms in 1945 and1946. He achieved the same success in this position ashad his father and grandfather.64

Fritz Rauh's philanthropic ventures andcommunity involvements became almost legendary.His son, Louis, recalled years later, "Dad was a moti-vator of people for social good."65 His choice of ven-tures reflected his own tolerant attitude as well ashow far Americans had come in their dealings withone another. Fritz's activities stretched across reli-gious, economic, and cultural lines. During the late1930s he was one of several businessmen who spon-sored refugees escaping Hitler's Germany. It requireda major commitment because being a sponsor meantfinancially supporting and taking care of the refugeefor at least five years. He was chairman of the JewishWelfare Fund, served as a leadership volunteer formany United Appeal campaigns, and was on the boardof The Jewish Hospital, Big Brothers, the CincinnatiSymphony Orchestra, the Cincinnati Nature Center,

the Civic Garden Club, and the Fine Arts Fund. Twoof Fritz's most prized activities included supportingCamp Joy, an inter-racial and inter-faith outdoor campfor young children, and raising one million dollars forthe permanent housing of the Cinc innat i FireMuseum.66

Frederick Rauh & Company, like manycompanies, experienced a shortage of workers duringWorld War II. In 1942 Mort left the company to workfor the federal government in Washington, D. C.Other support staff were drafted causing Fritz to askhis wife, Harriet, to handle claims and to cover forhim when he was on appointments.67 Before the warended Fritz brought in an additional partner, RobertWinkler, to handle the burgeoning business. Althoughhe lacked the insurance background, Winkler was anexcellent businessman who acted as a sounding boardfor Fritz and became an important asset to the compa-ny.68 Additionally, Fritz hired J. C. Rielage to head theengineering department and R. H. Schulte to operatethe fire and marine departments. Both men laterbecame partners in the business. The business contin-ually grew during the immediate post-war years. In1944 the company's premiums totalled $612,000 and

On January 30, 1950, thecompany announced it wasmoving to larger headquar-ters in the Vernon ManorBuilding at 2810 BurnetAvenue. (CHS, BusinessArchives, Frederick Rauh &Co. Collection)

Fall 1995 Testament of Endurance

increased regularly each year thereafter until 1948when total premiums reached a company record of$1,099,000.6y

By the late 1940s it became obvious toFritz that the Keith Building no longer provided ade-quate space. The quantity of business the companygenerated necessitated a larger office. On January 30,1950, the company sent announcements to its clientsstat ing that Frederick Rauh 8k Company was,"Expanding and Moving with Cincinnati," to a largerheadquarters on Burnet Avenue in the Vernon ManorBuilding.70

A new office was not the only importantevent that occurred at the company that year. Also in1950 Frederick Rauh's great-grandson, Albert Brown,Jr., commonly referred to as "Buzz," joined theagency; a job he enjoys forty-five years later. Buzz, theson of Louise Rauh Brown, Fritz Rauh's sister, and Dr.Albert Brown, had worked for his uncle as an officeboy during high school performing tasks like shavingoff the grooves on the dictaphone cylinders, generalfiling, and running errands. After graduating fromWalnut Hills High School in 1946, Buzz attendedMiami University at Oxford and continued workingin the office during the summers. In 1950 he earnedhis B.A. in Business Administration. "I always wantedto work for him [Fritz]," Buzz recalled. "He was a pos-itive role model. I never considered anything else."71

He started officially with the company in September1950, but Fritz ironically had no idea how to use thefresh college graduate. Fritz's dilemma was soonsolved because Buzz's career was interrupted by theKorean War. Buzz was drafted and served in the armyfor two years.72

When Buzz returned from the army, thecompany still did not have a clear understanding ofwhat to do with its new employee. Robert Winklerjokingly gave Buzz the title of "plant manager." Itbecame one of Buzz's responsibilities to water all theplants in the office! Finally, in September 1953, Buzzenrolled in the Aetna Insurance Company trainingprogram in Hartford, Connecticut. After completingthe training he re turned to Frederick Rauh 8kCompany and began selling all different lines of insur-ance. It was not long before an opening for a casualty

underwriter appeared. Buzz got the position, and soonfound himself responsible for all the casualty under-writing in the office. By the late 1950s Fritz admittedBuzz as the fifth partner to the company. AfterWinkler's death in the mid-1960s, Buzz's influencewith his Uncle Fritz increased a great deal.71

For many years Frederick Rauh 8kCompany had serviced the insurance needs of some ofCincinnnati's most prestigious companies: CrosleyCorporation, Cincinnati Shaper, Taft Broadcasting,U. S. Shoe Corporation, Gruen Watch Company,Lodge 8k Shipley, and Nutone. However, after 1945and throughout the 1950s, increased competitionfrom other local insurance agencies forced Fritz to re-evaluate his business strategy.74

Fritz decided to meet this increased com-petition by expanding. Several key additions weremade in the early 1960s. In April i960, Fritz's son,Louis, started working for the company after graduat-ing from Antioch College and fulfilling a one yearmilitary obligation. Like his cousin, Louis had workedfor his dad as an office boy during the summer beforeentering college. At no time during his college yearsdid his dad pressure him to join the business. In fact,Louis was a co-op student and worked for severalcompanies in different types of industries. He stillwanted to enter the insurance field and so afterattending the Aetna Insurance School in Hartford,Connecticut, Louis started selling and servicingaccounts. Although years later Louis agreed that theinsurance business was not always exciting, heenjoyed its stability.75

Another key personnel addition occurredin 1965 when Fritz hired a young University ofCincinnati graduate, Stephen Wolter. Like all newemployees, his impact was not immediate,- however,within just fifteen years he became a key ingredient ofthe company's success. When he first joined the com-pany, Stephen wanted to sell, but Fritz had him spendhis first four years administering the company's per-sonal lines. Partially to fulfill his desire to sell and tocompete, Stephen started selling professional liabilityinsurance to the strong doctor client base that thecompany had maintained for a number of years.Although Stephen increased the company's doctor

i 8 Queen City Heritage

client list, something more was needed.76

In the late 1960s Fritz, Buzz, Louis, andStephen started gradually to analyze various growthstrategies. Total premiums had increased throughoutthe 1960s, from $1,312,000 in i960 to $2,328,000 in1967, but this increase tended to be very incremental.The company's top three insurers were CommercialUnion Insurance Company, Aetna InsuranceCompany, and Great American Insurance Company.77

Eventually, they became convinced that for the com-pany to progress and to expand it needed to developindividual departments. Stephen Wolter recalled yearslater: "I wanted to take a good reputation and add fiveor six spokes."78

Fritz slowly distanced himself from dailyinvolvement in the company during the 1970s, andBuzz, Louis, and Stephen began implementing theirplan. They divided the company into five key depart-ments: personal lines, engineering, surety bonding,commercial, both professional liability and smallaccounts,- and life and benefits. A qualified manager

became responsible for each of the department's per-formance. As the new decade approached, this depart-mental plan coupled with other changes proved bene-ficial and profitable.79

Once again Frederick Rauh & Companyhad outgrown its office space and in March 1969,moved its operation to 3300 Central Parkway. Besidesits own internal growth the move was necessitatedbecause in January 1969, Frederick Rauh &. Companyacquired Isaacs &. Bernstein Inc., the other old lineJewish agency in Cincinnati, founded in 1919. The

acquisition, engineered by Buzz and Louis, enabledthe new company to represent twenty property andcasualty insurance companies and to become theexclusive general agency in the region for NationalLife Insurance Company of Vermont. The new compa-ny was incorporated as Frederick Rauh-Bernstein, Inc,-the first time in its history that Frederick Rauh &.Company had been incorporated. This acquisition hadan even more dynamic effect on the company. "Wewent from being mainly a 'family' business, to being afull fledged, real business with real business prob-lems."80 Such growth forced management to institutenumerous changes, from starting profit sharing andshared ownership plans to beginning an aggressiveadvertising campaign, something the company hadnot practiced since the early days.81

Stephen Wolter became thefirst non-family memberpresident. Between 1980 and1990 Wolter had majorimpact on the company. Hisindustry and innovative ideasaltered everything. (Picturecourtesy Stephen Wolter)

Wolter used innovation inadvertising and marketing toincrease sales. He engineeredthe first formal sales meetingwhere "Fritz" urged the salesforce on. (Picture courtesyAlbert Brown)

Fall 1995 Testament of Endurance

However positive it appeared on the sur-face, it was not long before the consolidation soured.Within two years the principals from Isaacs &Bernstein either retired or their interests were bought.In March 1971, Frederick Rauh & Company revertedto its old name but remained incorporated. Twomonths later Fritz Rauh assumed the newly createdposition of chairman of the board and Buzz Brownbecame president, the fourth generation family mem-ber to have earned this position. Louis Rauh waselected executive vice president and secretary.82

Fritz Rauh resigned his position as chair-man of the board on December 31, 1975. His retire-ment basically ended a forty-nine year career with thefamily business although in 1978 he returned as a paidconsultant. The chairmanship position remainedvacant unti l November 1981, when Buzz Brownbecame the company's second chairman of the board.An important indicator of how far the family businesshad come was exemplified when Stephen Wolterbecame the first non-family member president. "Wewere willing to do this for the good of the company/'Buzz noted. "It was a difficult decision, but it shows

what kind of company Frederick Rauh was when anoutside interest can gain control."83

On February 10, 1981, Fritz died sudden-ly at his Hyde Park home after returning from a dayconsulting at the office. Just three months earlier, atthe Cincinnati Fire Museum opening ceremony, Fritzwas named an honorary fire chief in appreciation forhis help raising the million dollars needed to renovatethe old fire station and build exhibits. It was a projectthat he wanted to see finished.

A few years earlier Fritz had reflected onhis family's history, "Seldom can a story such as ours,a history of real people, living real lives, sparkle withglamour unless one of the figures has been ascoundrel, a genius, or a great public figure."84 Fritzdid not fit any of these categories, but the contribu-t ions he made to the family business and toCincinnati were considerable. His loss was not limit-ed to those in the insurance business. Upon hearing ofFritz's death, a prominent citizen stated, "This townhas a lot of unusual people, but Fritz Rauh was spe-cial." In a eulogistic editorial, the Cincinnati Postwrote: "He leaves behind the best monument of all —

Members of Frederick Rauh &Company celebrated the hun-dredth anniversary. Picturedleft to right: "Buzz" Brown,Max Bernstein, Louis Rauh,"Fritz" Rauh, Joe Rielage,and Ron Rose. (CHS,

Business Archives, FrederickRauh &Co. Collection)

2O Queen City Heritage

the love and gratitude of his fellow Cincinnatians."85

To Stephen Wolter, Fritz was "a father figure. A manwho could make decisions."86 To nephew, BuzzBrown, Fritz was a mentor and a close friend. "He wasthe reason I chose to enter the insurance business. Itwas having the opportunity to be associated with himthat attracted me to Frederick Rauh &. Company. Hewas a man that knew right from wrong; what wasimportant and was not important."87

By the 1980s the departmental structurestrategy that Buzz Brown, Louis Rauh, and StephenWolter had developed throughout the 1970s began toshow results. Premium totals reached record highs. In1977 premiums totalled $17.5 million. Three yearslater premiums totalled $20 million. By 1984 premi-ums reached $25 million. Just two years later premi-ums totalled $48 million. Over ninety percent of thepremiums were derived from commercial accountswith the remaining percentage being generated frompersonal lines. The major commercial accounts con-sisted of companies that Louis Rauh had developedduring the early 1920s and Frederick Rauh &Company had been servicing for thirty to fifty years.From 1980 to 1990 the company tripled its revenuefrom $3 million to $9 million. Additionally, in 1984,the Life and Benefit Division became fully integrated

into the company. By 1994 it represented twenty-fivepercent of the operation's total revenue.88

A key reason for the company's dramaticincrease was the aggressive sales approach used byStephen Wolter. Louis Rauh stated, "Between 1980-1990, Stephen Wolter was the most important factorin the company, for he made the most impact in thedirection of the company."89 His industry and innova-tion altered everything, from advertising and market-ing to personnel and management's responsibilities toemployees. He pushed and sometimes pulled the per-sonal lines of insurance away from the top producersand forced them instead to direct their sales effortsinto the commercial lines. Sales goals were estab-lished and incentives, such as the Goal AchieversClub, became available for deserving agents. In addi-tion, Wolter brought in talented personnel to managethe various departments. In the 1970s the companyhired Peter Dowd, Tom Schaefer and Ed Hagins, menwho had the skills and tenacity that Stephen Wolterbelieved were necessary to move the company for-ward. In the early 1980s Stephen hired David Eslickwho performed so exceedingly well that he becamepresident in 1993 after Wolter retired.90

While the company maintained a lot ofthe same clients during these years, the names of theinsurers changed. CNA, The Hartford InsuranceCompany, Chubb Group of Insurance Companies, andCrum &. Forster replaced some of the old line compa-nies that Frederick Rauh & Company had workedwith for decades.91 These, however, were not the onlyadvancements.

The increase in business caused a corre-sponding increase in the number of employees. In1965 the company employed fifteen people. By 1978the number increased to fifty-five and in 1986 ittotalled sixty-three. By 1990 the company employedapproximately one hundred people.92 Other changeswere afoot, too.

In the 1980s Frederick Rauh &.Company, like many other businesses during this era,was approached routinely about being purchased, butcompany officers always demurred. However, in 1987they received an attractive offer from AmericanBusiness Insurance, Inc. (A.B.I.), a San Francisco based

Albert "Buzz" Brown (right)became the fourth generationfamily member to serve aspresident of Frederick Rauh &Company. He regarded hisUncle Fritz (left) as a mentorand close friend and the rea-

son why Brown entered theinsurance business. (Picturecourtesy Albert Brown)

Fall 1995 Testament of Endurance 21

subsidiary of Great American Insurance Company,the company that Frederick Rauh & Company hadworked with since 1876, and which was owned byCincinnati entrepreneuer, Carl Lindner, who had relo-cated it to Cincinnati. A.B.I.'s offer solved the internalquestions that the company's directors had in secur-ing the company's financial longevity. Instead of pos-sibly being purchased by outside interests such asMarsh &. McLennan Cos., Inc. or Alexander &Alexander Services Inc., the directors believed that,"There was no one better to hook-up with than CarlLindner."93 Being a part of his vast empire still afford-ed Rauh growth potential, autonomy, and the right tokeep its name. Effective January 1, 1988, A.B.I, con-trolled eighty percent of the company. Five years laterA.B.I, obtained ownership of the remaining twentypercent. Ironically, in August 1993, just as A.B.I,obtained total control of Frederick Rauh & Company,Carl Lindner sold A.B.I, for about $130 million toAcordia Inc. of Indianapolis, Indiana.94 The firm oper-ates currently as Acordia-Rauh.

Frederick Rauh had taken a tremendousrisk in 1872 when he sold his first insurance policy.Through the years he endured the difficult times, andby the force of his personality, professional abilities,and community involvements, he succeeded. Hisbasic method of practicing business slowly evolvedinto a company culture: exceed the customer's expec-tations in business and become involved in the com-munity for the greater good. While Frederick's son,grandson, and great-grandsons added their own partic-ular ingredients as events warranted, none altered thebasic business philosophy inculcated 125 years ago byFrederick Rauh. "It was truly a land of opportunitythat accepted a fifteen-year-old German immigrantand then made it possible for him to prosper and toraise a family of seven children. It is also an exampleof how a small enterprise grew as it passed from onegeneration to the next. "Perhaps because it is so typi-cal," Mort reflected, "the history of Frederick Rauh &Company needed to be told."95

I. Mack Family Papers, Box Y164 Hebrew Union College,Cincinnati, Ohio. This poem and the articles from Die Deborah

were translated from German into English by MarianneShrader, a manuscript department volunteer at the CincinnatiHistorical Society. The author thanks Ms Shrader for her quickresponse and dedicated effort.2. Interview by author with Stephen Wolter, January 24, 1995.3. Williams' Cincinnati Directory (Cincinnati, Ohio, 1856);Ibid., 1872; L. J. Bonar, A Sketch and Some Sketches on FireInsurance (Mansfield, Ohio, 1920).4. Rauh Family Reunion-April, 1994, Washington, D.C.;Williams' City Directory, 1853.5. Ibid., 1863, 1871, 1872.6. Aetna Insurance Company, The Cincinnati HistoricalSociety, MSS 714, Volume 2, Register of Fire Policies.7. Leonard Dinnerstein, Antisemitism in America (New YorkCity, 1994), p. 35.8. Ibid., pp. 36-37.9. "New York Newspapers Sharply Rebuke the Anti-JewishOfficials of the Fire Insurance Companies of the East," DieDeborah XII March 29, 1867, 150, Hebrew Union College,Cincinnati, Ohio.10. Isaac Wise, "On the Germania," Die Deborah XII April 5,1867, 154, Hebrew Union College, Cincinnati, Ohio.11. "Isaac Wise Calls for a Boycott by Jews of the Germania FireInsurance Company of New York until Rudolph Garrigue isDischarged or Resigns," Die Deborah XII March 29, 1867, 150,Hebrew Union College, Cincinnati, Ohio.12. American Central Insurance Company Policy, FrederickRauh &) Company Archives.13. Williams' City Directory, 1874; D. J. Kenny, IllustratedCincinnati: A Pictorial Hand Book of the Queen City(Cincinnati, Ohio, 1875), p. 365.14. Williams' City Directory, 1879.15. "Bertrand Rauh, Fifty Years of Service and a History ofFrederick Rauh &. Company," Frederick Rauh &) CompanyArchives.16. The Industries of Cincinnati: ManufacturingEstablishments and Business Houses, (Cincinnati, Ohio, 1886).17.Ibid.18. Cincinnati Illustrated Business Directory, (Cincinnati,Ohio, 1896), p. 517.19. Rauh Family Reunion-April, 1994 Washington, D.C.20. Congregation Bene Yeshurun, MSS 62, Box 5, Series C,Minute Books, 1891-1906, Hebrew Union College, Cincinnati,Ohio.21. Mack Family Papers, Box Y164, Hebrew Union College,Cincinnati, Ohio; Jonathan D. Sarna and Nancy H. Klein, TheJews of Cincinnati, (Cincinnati, Ohio, 1989); Charles T. Greve,History of Cincinnati and Representative Citizens, 3 vols.(Chicago, Illinois, 1904), I: 948-949.22. Annual Report: American Jewish Relief Committee 1918,pp. 1, 46, 36, The Cincinnati Historical Society.23. Williams' City Directory, 1864; J. W. Leonard, TheCentennial Review of Cincinnati, (Cincinnati, Ohio, 1888), pp.3O-3I-24. Ibid.25. Great American Insurance Company Archives, Cincinnati,Ohio,- Frederick Rauh &) Company Archives, Cincinnati, Ohio.

2 2 Queen City Heritage

Things to look for inan insurance agency

26. "Bertrand Rauh, Fifty Years of Service," Frederick Rauh &)Company Archives, Cincinnati , Ohio,- Williams' CityDirectory, 1893.

27. Ibid, 1899, 1905.28. Frederick Rauh &) Company Archives-, The NationalUnderwriter, The Ohio Underwriter: An Insurance Newspaper,and The Western Underwriter, 1896-1900. Although this insur-ance newspaper had three different names, it was always thesame organization. Materials are located on microfilm at TheNational Underwriter Company in Cincinnati, Ohio.

29. The Cincinnati Insurance Board Archives, Cincinnati,Ohio.30. Frederick Rauh &) Company Archives, Cincinnati, Ohio,-Kenneth H. Dunshee, Underwriters Salvage Corps CentennialHistory, (Cincinnati, Ohio, 1957), pp. 6-12.

31. The Cincinnati Insurance Board Archives, Cincinnati,Ohio.32. Rauh Family Reunion.

33. The Cincinnati Insurance Board Archives.34. "Bertrand Rauh, Fifty Years of Service," Frederick Rauh &)Company Archives.35. Minute Book, January 16, 1902, The Cincinnati InsuranceBoard Archives.

36. Ibid., May 19, 1902.37. Ibid., September 6, 1906.38. Ibid., February 4, 1918.39. "Death of Frederick Rauh," Frederick Rauh &) CompanyArchives.40. Ibid.41. Ibid.

42. "Bertrand Rauh, Fifty Years of Service," Frederick Rauh &)Company Archives.

43. Al Brown and Louis Rauh interview with Mort Rauh, March1994; Interview by author with Mort Rauh, August 31, 1994.44. Interview by author with Al Brown, February 1, 1995. AlBrown happened to be Louis' first grandson.

45. Interview by author with Mort Rauh, August 31, 1994.

46. Al Brown and Louis Rauh interview with Mort Rauh, March1994.

47. Interview by author with Mort Rauh, August 31, 1994.48. Frederick Rauh e) Company Archives.49. Al Brown and Louis Rauh interview with Mort Rauh, March1994.

50. The Cincinnati Insurance Board Archives.51. Ibid., Minutes, June 13, 1917.

52. Ibid., December 13, 1917.53. Great American Insurance Company Archives.54. Frederick Rauh &) Company Archives-, "To Have anAnniversary," The National Underwriter, October 28, 1926.55. Frederick Rauh &) Company Archives-, "A GoldenAnniversary Celebration, 1906-1956," (A History of theLosantiville Country Club).56. Frederick Rauh &) Company Archives.

57. Ibid.58. Minute Book, March 10, 1932, The Cincinnati InsuranceBoard Archives.

59. "Bertrand Rauh, Fifty Years of Service," Frederick Rauh eOCompany Archives.60. Al Brown and Louis Rauh interview with Mort Rauh, March1994.

61. Frederick Rauh &) Company Archives.62. Al Brown and Louis Rauh interview with Mort Rauh, March1994.63. Interview by author with Al Brown, February i, 1995.

64. The Cincinnati Insurance Board Archives. Unfortunately,the Minute Books for the years in which Fritz served as presi-dent no longer exist. Therefore, it is not possible to elaborate onspecific events.

65. Interview by author with Louis Rauh, February 21, 1994.66. "Frederick Rauh," The Cincinnati Post, February 17, 1981;"Frederick Rauh," The American Israelite, February 19, 1981,pp. 1, 22. Interview by author with Al Brown, February 1, 1995;Interview by author with Louis Rauh, February 21, 1995.67. Al Brown and Louis Rauh Interview with Harriet Rauh,February 1994.

68. Interview by author with Louis Rauh, February 21, 1994.69. Frederick Rauh &) Company Archives.

70. Ibid.71. Rauh Family Reunion-, Interview by author with Al Brown,

Through its 125 year historythe Frederick Rauh &Company has maintained areputation of complete hon-esty, fair dealing and workingon behalf of its clients andthe insurance business. (CHS,

Business Archives, FrederickRauh &Co. Collection)

Fall 1995

February 1, 1995.72.Ibid.73.Ibid.74. Interview by author with Al Brown, February 21, 1995;Interview by author with Stephen Wolter, January 24, 1995;Interview by author with Louis Rauh, February 21, 1995.75. Interview by author with Louis Rauh, February 21, 1995.76. Interview by author with Stephen Wolter, January 24, 1995.77. Frederick Rauh &) Company Archives.78. Interview by author with Stephen Wolter, January 24, 1995.79. Interview by author with Al Brown, February 1, 1995;Interview by author with Stephen Wolter, January 24, 1995;Interview by author with Louis Rauh, February 21, 1995.80. Frederick Rauh &> Company Archives-, Interview by authorwith Louis Rauh, February 21, 1995; Interview by author withAl Brown, February 1, 1995.81. Interview by author with Louis Rauh, February 21, 1995.82. Board Minutes, March 23 and May 25, 1971, Frederick Rauh&> Company Archives.

Testament of Endurance 23

83. Ibid., November 27, 1981; Interview by author with AlBrown, March 6, 1995.84. Rauh Family Reunion.85. "Frederick Rauh," The Cincinnati Post, February 17, 1981.86. Interview by author with Stephen Wolter, January 24, 1995.87. Interview by author with Al Brown, February 1, 1995.88. "Profile of Frederick Rauh 8k Company by Hales &Associates, 1978-1986," Frederick Rauh &) Company Archives.89. Interview by author with Louis Rauh, February 21, 1995.90.Ibid.91. "Profile of Frederick Rauh 8k Company, 1978-1986."92. Ibid.93. Interview by author with Stephen Wolter, January 24, 1995.94. Ibid.; Interview by author with Al Brown, February 1, 1995;Interview by author with Louis Rauh, February 21, 1995;"Lindner to Sell Insurance Firm," The Cincinnati Post, August26, 1993.95. Correspondence author received from Mort Rauh, March 17,1995-

By using advertising, such asbillboards and radio commer-cials, Frederick Rauh &Company increased its namerecognition and attractednew clients and business.

(CHS, Business Archives,Frederick Rauh & Co.Collection)