340 JOURNAL OF FORESTRY 



company. If plantations or unmerchantable young growth of natural 

 reproduction, a predetermined valuation per acre was agreed upon as 

 the basis of loss settlement. If second cuttings or old growth, the 

 statement supposedly represented a fair market stumpage estimate and 

 value of the full amount of merchantable and accessible softwoods 

 and hardwoods on the land, large enough to make pulp or lumber, and 

 did not include land values in any way or young growth too small to be 

 merchantable. Final settlement was made on the actual value of the tim- 

 ber destroyed, as found by the company's adjuster, with the co-insur- 

 ance clause working as described above. In case of a dispute over the 

 salvage value of timber left, the company reserved the right to pay the 

 value of the lot as set in the policy and salvage for its own account. 

 The regular standard policy of insurance authorized in New Hampshire 

 was used, with a rider concerning the special clauses applicable to 

 timber insurance. A higher premium charge was required for a policy 

 taken out only for the dry season, or for carrying over the dry season 

 when canceled at the close of it. Insurance was written in Vermont 

 and Massachusetts only upon solicitation from those States, as the 

 company had no right to solicit outside of New Hampshire. During 

 the first season insurance was written to an amount of $276,000, no 

 risk exceeding $5,000 in 57 towns in New Hampshire, Massachusetts, 

 and Vermont among 62 poHcy holders, 87.4 per cent of which was 

 merchantable timber, 4.2 per cent plantation, and 8.4 per cent young 

 growth. Care was exercised in the acceptance of risks and avoidance 

 was made of land close to railroad right of way, recent slash, portable 

 mills, picnic grounds, large cities, and other unfavorable environments. 

 Cutting or the establishment of portable mills upon an insured lot 

 vitiated the policy unless special permits for same were secured in 

 advance. During the life of the company, which extended for two 

 years, the largest loss sustained was $600, which occurred in a young 

 plantation completely destroyed. 



Due to the war, the solicitation of insurance was given up in 1918 

 and the company effected reinsurance with the Globe-Rutgers Fire 

 Insurance Company of New York at a rate which left it a small bal- 

 ance for management. At the close of the first year premiums were 

 reduced to 1^ per cent and a further reduction of y^ per cent was in 

 contemplation when the company, having established the principle of 

 timberland insurance and not being particularly interested in the com- 

 mercial aspect of the matter, decided to turn over its policies to the 



