PROTECTION OF FOREST PROPERTY 37 



An announcement^ has been made recently of the organization 

 of a mutual forest fire insurance company in Sweden, which 

 marks a new departure in European forest fire insurance. A 

 minimum premium is fLxed and the highest risk taken is 75 per 

 cent of the forest value. The latter may be based on the owner's 

 estimate, or determined by an expert hired by the insurer at the 

 expense of the insured. The damage is appraised by referees 

 representing both the association and the insured, with final 

 resort to the courts in case of disagreement. 



The only fire insurance policy on timber on this continent 

 was issued in 1910 by Lloyd's, London, to Price Brothers Com- 

 pany, Ltd., of Quebec, Canada, as additional protection for a 

 bond issue of $5,000,000 which they wished to float. The basis 

 on which the policy was issued was the division of the area 

 insured into blocks of approximately 300 square miles, the 

 boundaries of which were natural barriers such as rivers or 

 mountain ranges. The average value of the property per square 

 mile was determined by estimate, and the poHcy contains a clause 

 that the insured must bear all the loss up to $75,000 in a given 

 block. The underwriters' HabiHty in a given block was limited 

 to $250,000. The premium rate was 0.25 of one per cent of the 

 total value of the property. 



WIND DAMAGE 



The zone of greatest damage from wind is in the yellow pine 

 region of the South in the vicinity of the Gulf of Mexico. Many 

 heavy storms have passed through various sections in this region 

 destroying milHons of feet of timber. In September, 1909, 

 over one-half biUion feet was blown down, some of which was 

 manufactured, while large areas could not be logged in time to 

 save the timber from insect attacks. These storms are espe- 

 cially destructive in timber weakened by boxing for the extrac- 

 tion of crude turpentine. 



Extensive wind damage has been comparatively rare in the 

 Northeast, although more than 1,500,000,000 feet of softwoods 



1 See Forestry Quarterly, Vol. X, No. 2, p. 304. 



