The charters of the companies had been drafted in the interest of the management, without much consideration for the rights or advantages of those who were insured. There were no laws on the statute book which would practically prevent directors of life-insurance companies from doing as they pleased with the immense trust properties in their possession. After two or three interviews with Elizur Wright the presidents of the companies came to the conclusion that he was exactly the man that they wanted, and they commissioned him to draw up a revised set of tables and rates which could serve them for a uniform standard. This work occupied him and two of his daughters for a full year, for which he was compensated with the paltry sum of two thousand dollars. The time was fast approaching, however, when Elizur Wright would be in a position to dictate his own terms to the insurance companies.
It was now that the Bird Club, the most distinguished political club of its time, became gradually formed out of the leading elements of the Free-soil party. At one time this club counted among its members two Senators, three Governors, and a number of Congressmen, and it was a power in the land. Elizur Wright's services as editor of the Chronotype gave him an early entrance to it; and having life insurance on the brain, as it were, other members of the club soon became interested in the subject as a political question. In this way Mr. Wright was soon able to effect legislation. Sumner, Wilson, Andrew, and Bird gave him an almost unqualified support. In 1858 he was appointed Insurance Commissioner for Massachusetts, a position which he held until 1866. As Commissioner he formulated the principal legislation on life insurance; and his reports, which have been published in a volume, are the best treatise in English on the practical application of life- insurance principles.
In 1852 he resigned the editorship of the Chronotype, and from that time till 1858 he was occupied with life-insurance work, the editing of a paper called the Railroad Times, and making a number of mechanical inventions, most important of which was a calculating machine, enough in itself to give a man distinction.
This machine was simply a Gunther rule thirty feet in length wrapped on a cylinder and turned by a crank. Gunther's rule is a measure on which logarithms are represented by spaces, so that by adding and subtracting spaces on this cylinder Mr. Wright could perform the longest sums in multiplication and division in two or three minutes of time.
Not only did the Massachusetts insurance companies come under Mr. Wright's surveillance, but the New York Life, the Connecticut Mutual, and the Mutual Benefit of New Jersey, all large and powerful companies, were obliged to conform to his regulations, for their Boston offices were too lucrative to be surrendered. About this time Gladstone caused an overhauling of the English life-insurance companies, and a number which proved to be unsound were obliged to surrender their charters. Among these latter were two companies which held offices in Boston, and whose character had already been exposed by Elizur Wright.
In 1850, when he became Commissioner, Mr. Wright sent to their agents for a statement of their financial standing, and not receiving a reply requested them to leave the State. Finding that the matter could not be evaded, they at length forwarded two reports signed by two actuaries, both Fellows of the Royal Society, which were not of a satisfactory character, so that Mr. Wright insisted on his previous order. The agents then applied for support to Prof. Benjamin Pierce, the distinguished mathematician of Harvard University, and one of the most aggressively pro-slavery men about Boston. He probably looked upon Elizur Wright as a vulgar fanatic, and supposing that a Fellow of the Royal Society must necessarily be an honorable man, came forward in support of Messrs. Neisen and Woolhouse without sufficiently investigating the question at issue; and the result was a controversy between Elizur Wright and himself in which he was finally beaten off the field.
The statements of both Neisen and Woolhouse was proved to be fraudulent, and the two English companies were expelled from the State.
Mr. Wright's insurance reports brought him such celebrity that all the companies wished to have his name connected with them. His son, Walter C. Wright, became actuary of the New England Life, and his daughter, Miss Jane Wright, was made actuary of the Mutual Union Company. Mr. Wright and his eldest son, John, set up a business for calculating the value of insurance policies, in which the logarithm machine helped them to obtain a large income. With his first ten thousand dollars Mr. Wright purchased a large house and a tract of land in Middlesex Fells, where his family still resides.
In 1865 the office of Life Insurance Commissioner was filched from him by a trade politician who knew as much of the subject as fresh college graduates do of the practical affairs of life. Mr. Wright always regretted this, for he felt that his work was not yet complete; and it is a fact that American life insurance, with its good and bad features, still remains almost exactly as he left it.
It was only after Elizur Wright had ceased to be Commissioner that he discovered a serious error in the calculation of the companies, which may be explained in the following manner: