Houston's second volunteer company, Liberty No. 2, was founded in 1852 by the city's most prominent citizens - including William Marsh Rice, benefactor of Rice University. In 1858, wealthy Houstonians created Houston Hook and Ladder No. 1. The three companies joined in 1859 to become the Houston Volunteer Fire Department.

In 1858, Houston Insurance Company became the first local company to sell insurance to Houston businesses. In an ironic twist, it was the last year Houston went without a major fire. In just over a year, two disastrous fires would burn most of the downtown business area.

On February 28, 1859, a fire that began in a carpenter's shop on Travis decimated everything but one brick building in the block formed by Milam, Congress, Travis and Franklin. Total damage was estimated at $100,000.

Then, on March 10, 1860, a fire broke out in Hudspeth's Restaurant in old Long Row on Main Street. The long wooden building in the block between Congress and Preston housed many businesses, and losses exceeded $100,000.