STANDING TIMBER INSURANCE 339 



000 guarantee reserve was met by subscriptions among the incorpora- 

 tors and directors. The directors were Everett E. Amey, of the Inter- 

 national Paper Co. ; Martin A. Brown, of the Parker & Young Co. ; 

 W. R. Brown, of the Brown Co. ; Geo. B. Leighton, of the New 

 Hampshire Forestry Commission; H. G. Philbrook, of the Connecticut 

 Valley Lumber Co. ; E. Bertram Pike, of the Pike Manufacturing Co. ; 

 L. S. Tainter, of the Publishers' Paper Co. ; C. C. Wilson, of the 

 Odeli Manufacturing Co. ; and George Hewitt Myers, a forester of 

 Washington, D. C. W. R. Brown was elected president; Everett E. 

 Amey, vice-president; S. L. de Carteret, treasurer and manager; and 

 Thomas E. Sears, of the insurance company of Ives, Baird & Sears, 

 Boston, secretary. 



A form of policy was adopted which provided for additional security 

 through the pledging of the policy holder to meet a loss if called on to 

 the amount of twice his annual premium. The company was author- 

 ized to write a line in New Hampshire to the extent of $5,000 at 2 per 

 cent annual premium on a mutual basis, it being understood that the 

 policy holders retained their rights and interests in any unexpended bal- 

 ances there might be at the end of the year, when used to build up a 

 reserve. The policy also bound the policy holder by a co-insurance 

 clause to an approximately correct estimate and valuation of his stand 

 to within 10 per cent, so that beyond 110 per cent or under 90 per cent 

 of true value he would be the co-loser with the company in a damage 

 settlement in the proportion that the amount he over or under valued 

 his stand bore to the actual amount found existent by careful estimate 

 and appraisal made after the fire. 



The general principle followed was to scatter the risks widely 

 throughout the State, to make them small if for full value or take but a 

 partial risk over a large area, and to have these risks at least one-half 

 mile apart in a wooded area or separated by some natural fire line, as a 

 farm, lake, sizable river, clearing, etc. Any policy holder who wished 

 to receive more insurance on his timber than represented by $5,000 

 could be accommodated by an arrangement made with the Globe- 

 Rutgers Fire Insurance Company of New York, an old-line stock in- 

 surance company of size and resources, to take the additional risk at 

 approximately the same rate, but on this insurance there was no return 

 of unused premium at the close of the year. 



Estimates and values were determined on the basis of a written 

 statement, copy of which is attached, filed by the policy holder with the 



