INSURANCE AND EIRE PROTECTION 805 



of $200,000 would then remain for investment, half in timberland and 

 half in liquid securities. In normal or subnormal years this surplus 

 would keep building up. The income from liquid investments could 

 be used for improvement of the timberland. Then in abnormal years 

 the liquid investment could be drawn upon to meet heavy losses. 



In the first years a larger base assessment of say 5 cents per acre 

 would be safer. As a comfortable surplus was accumulated the charge 

 could be decreased. Eventually in from 50 to 100 years it is conceiv- 

 able that the income from the timberlands owned by the fund would be 

 suflficient to entirely carry the cost of protection so that the charge 

 could be reduced to a pure insurance basis. 



In order to take advantage of existing agencies the administration 

 of this law should be handled by the Forest Fire Insurance Depart- 

 ment of the Conservation Commission. In conjunction with the exist- 

 ing fire protective system the protested zone would be divided into 

 districts corresponding to counties, each district in charge of a super- 

 visor who would employ a force of patrolmen and appraisers to carry 

 on the protection and insurance work with an allotment based on the 

 tax received from his district.. The appraisal work could be simplified 

 by a general survey and classification of each district. 



State and Government lands would be exempt from the assessment 

 and insurance provisions but would be included in the protected 

 districts. 



There should be some sort of a disinterested board of review which 

 should decide all disputed claims and appraisals and have general 

 oversight of the administration of the law. 



The advantages of such a combined insurance and protection law 

 would be that the property owner in paying the assessment would feel 

 that he was getting a run for his money so that in case protection 

 failed he would get something back in the form of insurance. This 

 automatic distribution of risk through insurance, if combined with 

 tax reform would make the growing of timber a much safer and more 

 attractive investment than at present for the private owner. The 

 increasing area of forests owned and managed by the fund would 

 serve as a spelndid concrete example of the attractive features of such 

 investments and would stimulate similar investments by other public 

 and private agencies. The making of loans at low interest rate on 

 growing timber would be much more feasible wit)\ this insurance 

 provision, owing to the much smaller risk of total loss. 



