124 TORIvST VALUATION 



So far only commercial organizations have worked extensively 

 in this field. Of these a department of the Gladbacher fire insurance 

 company, starting in 1895 is the oldest and most important. In 

 1903 this company had more than 300,000 acres of forest covered 

 by insurance, mostly in the densely settled Rhine province where 

 the forest is in small tracts. The average rate has been about $1.80 

 per $1,000 of property. 



Since then the Bayerische Hypoteken und Wechselbank, the 

 Provincial Fire Insurance Institute of the Rheinprovinz and others 

 have taken up this work. The rates usually run from one to five 

 dollars per thousand dollars worth of property. 



Usually it is demanded that the insurance continue for at least 

 ten years, that the owner insure all his holdings in one company, 

 and that he give to his property such protection as is customary in 

 the district, this point being stipulated rather in detail. The rate 

 of premium varies with the kind of timber and age, formerly the 

 rates increased with age up to thirty years, this appears to have been 

 given up and the rate starts with a maximum and decreases. 



Regular published tables of yield and methods of assessing 

 damage are provided, the cost and sale value of the stand prevail, 

 the expectation value is permissible only under certain exceptional 

 conditions, the payment is to cover only actual damage, any income 

 from material salvaged is deducted, the interest rate for any calcu- 

 lation of values is three per cent. 



The following figures from Vorster, director of the Provincial 

 Fire Insurance Institute of the Rheinprovinz, published in Zeit- 

 schrift fur Forst und Jagdwesen, 1908, p. 797, etc., will illustrate 

 what is today good forest fire insurance as to rates, and change in 

 these. 



Premium per $1000 

 Kind of timber insured. , 



of property. 



1. Pure hard-woods, coppice or timber $0.25 .80 



2. Mixed 'hardwoods and conifers in timber forest 60 i .50 



3. Coppice mixed with conifers 90 3.00 



4. Pure conifers : 



Up to 8 years old 3.004.00 



8-15 2.504.00 



15-40 1.50 2. co 



over 40 50 i SO 



The following illustrates how a small forest of pine, site IV, 

 of Schwappach, properly regulated, with present prices for timber, 

 fares in this insurance. Figures of the Rhenish Institute are com- 

 pared with those of the Gladbach Fire Insurance company. 



