The Foundation and Early History of Catholic Church Insurances (Cci) 1900-1936
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THE FOUNDATION AND EARLY HISTORY OF CATHOLIC CHURCH INSURANCES (CCI) 1900-1936 Submitted by JANE MAYO CAROLAN BA (University of Melbourne); Grad Dip Lib (RMIT University); MA History (University of Melbourne) A thesis submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy School of Theology Faculty of Theology and Philosophy Australian Catholic University Research Services Locked Bag 2002 Strathfield, New South Wales 2135 Australia November 2015 i STATEMENT OF SOURCES This thesis contains no material published elsewhere or extracted in whole or part from a thesis by which I have qualified for or been awarded another degree or diploma. No other person’s work has been used without due acknowledgement in the main text of the thesis. This thesis has not been submitted for the award of any degree or diploma in any other tertiary institution. Signed __________________________ Date: 28 November 2015 ii DEDICATION To my husband Kevin James Carolan, our children Thomas, Miriam, Ralph and Andrew and our grandchildren, Sophie, Lara, Samuel and Katherine, for their loving patience and support. Many colleagues and friends provided assistance including Dr. Sophie McGrath rsm, Professor James McLaren and Professor Shurlee Swain of ACU. Wonderful insights and advice were offered by outside academics, Dr Jeff Kildea, Dr Simon Smith and Associate Professor Bronwyn Naylor. iii ABSTRACT In the early twentieth century Cardinal Patrick Moran and others, both clerical and lay, understood that the adolescent Australian Catholic Church needed physical as well as spiritual support. The Church, as trustee, had an economic imperative to care for and maintain its properties. In 1910 Moran asked Hugh Mahon, a feisty Irishman and an Australian federal politician, to establish an Australian Catholic insurance company to achieve this purpose. Moran made it clear that the primary purpose of the company was to protect the assets and properties of the Church and that the company was to serve the Church only. Mahon took as his model the Irish Catholic Church Property Insurance Company founded in Dublin in 1902 and gathered around him laymen with impeccable Catholic and business connections to support him in the running of this new company. The Irish laity had become prominent as board members and shareholders in the Irish company and the founding board members of the Australian company, with Mahon as Managing Director, were all laymen with Irish backgrounds. The thesis traces the foundation and early history of this company and analyses those practices that distinguish it from secular insurance companies during the first twenty-fives of operation. The study intertwines many strands: Episcopal vision, Irish heritage, aspirations of the Catholic community for both the religious and the laity and how the spiritual and social services of the Church’s mission were evident in the works of this new company and their supporters. This strongly contextualized thesis demonstrates that, for the period under examination, the company and their supporters were influenced by factors at the local, state, federal and international levels. These included the rapid expansion and development based on the hopes of a newly federated Australia, Mahon’s rejection of an existing insurance tariff scheme run by the secular companies, constraints placed on business operations during the First World War and the effects of the downturn in the economy during the depression years of the 1930s. The company iv was not founded in opposition to any existing business, but devoted to the interests of one group – the Catholic Church. The thesis demonstrates how the many challenges that faced the pioneering founders were handled by diplomatic and dedicated laymen, who interceded on behalf of the company in political and economic spheres to ensure that the Church’s business activities and mission were dealt with fairly and justly. Success was based on their own style of management, an enthusiasm to assist the Church and their recognition that the most valuable asset was the people of the Church. It was unusual that laymen with impeccable Catholic and business connections, not clergymen, were chosen by the hierarchy to run and finance this new company. Their mission was far from easy. There were inconveniences and frustrations in dealing with this semi-captive market. The lines of communication between the company’s operatives and the Church were not always clear. Not all dioceses or religious institutes joined the company from the outset. Many were not anxious to part with their money, until they could see sustained success. Others left in the pursuit of more favourable insurance rates. Many benefits flowed to the Catholic community through the Church operating their own insurance company. Dioceses, parishes and religious orders became beneficiaries initially through shares, dividends, bonuses and rebates, and later through loans, the establishment of charitable funds and investment portfolios organised to support sick priests. Mahon’s dream of establishing a broader range of insurance policies, not confining the company to fire insurance only and extending policy holdings to include the Catholic laity were not realised, but he left the company firmly established, providing a substantial yearly profit. It became evident as the thesis investigation unfolded that Hugh Mahon, who came to the company’s mission challenge as a successful journalist, politician and patriot, with experience in business, was an impressive man of initiative, generosity, and high ethical standing. His close associates shared these values and they formed a successful Church business. Apart from providing an informative, integrated critical account of the founding and early history of Catholic Church Insurances, this thesis also includes rich resource material concerning the Catholic laity of the time, which can be drawn upon for subsequent in-depth research about the laity in the Australian Catholic Church. v ABBREVIATIONS ACCA Australasian Catholic Charities Association AIBR Australasian Insurance and Banking Record BAA Brisbane Archdiocesan Archives CCI Catholic Church Insurances MDHC Melbourne Diocesan Historical Commission NAA National Archives of Australia NLA National Library of Australia SAA Sydney Archdiocesan Archives SGIO State Government Insurance Office UCD University College Dublin UMI University of Melbourne Archives vi LIST OF TABLES IN APPENDICES Table One: Insurance Premiums and Cost of Reinsurance 1912-1936 269 Table Two: Revenue and Liabilities 1921-1931 270 Table Three: Capital Raising 1912-1936 271 Table Four: Profits and Dividends 1912-1936 272 Table Five: Fire Claims 1912-1936 273 Table Six: Income and Profit 1912-1936 274 Table Seven: Board Membership: Directors, Secretary and Auditors 275 vii CONTENTS STATEMENT OF SOURCES .............................................................................................................. i DEDICATION ...................................................................................................................................... ii ABSTRACT ......................................................................................................................................... iii ABBREVIATIONS ............................................................................................................................... v LIST OF TABLES IN APPENDICES ............................................................................................... vi Chapter 1: Collaboration between the hierarchy, clergy and laity ..................................................... 1 Introduction ......................................................................................................................................... 1 Methodology ....................................................................................................................................... 1 Archival Research ............................................................................................................................... 2 CCI Archives ....................................................................................................................................... 3 Overseas Precedents ............................................................................................................................ 5 Insurance histories and related sources ............................................................................................... 6 Relevant insurance material ................................................................................................................ 7 Catholic Church archives .................................................................................................................... 8 Religious archival sources ................................................................................................................... 9 Irish archival sources ........................................................................................................................... 9 Australian sources ............................................................................................................................. 11 The Australasian Catholic Congresses .............................................................................................. 12 Friendly and benefit societies ...........................................................................................................