The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-09-06
Thursday September 8, 1928
HECLA'S USE AND OCCUPANCY
INSURANCE"

The foresight and good Judgment
of the management of the Hecla Min
ing company in carrying a "use and
ing co. in carrying a "use and occu-
pancy" insurance policy TO cover profits
i'm case of forced suspension through
fire has been the subject of widespread
comment and commentator. The En-
cheering and Mining Journal Press
makes it the subject of its leading edi-
torial in recent issue and urges
other companies to provide for dis
asters such as the Hecla suffered by
carrying use and occupancy" insur-
once. The Journal-Press says:
insurance is a fine thing when one
is in trouble but it is an expense alb
solutely without return so long as the
unforeseen does not happen A brilliant
example of its benefit may be seen in
the position of the Hecla Mining co.
since its recent fire A fire loss of
about half million dollars was suf-
fered but possibly even greater than
this viii be the loss due to the neces-
sary cessation of operations during
the time that will be required for re-
building. The fire insurance amounted
to SSSIOOO, distributed among several
companies. Most mining COMPANIES
would be satisfied with this and con
EiGnf fharfteaI,r..s.
But the Hecla management realized
that its eggs were all in one basket
and that "A serious fire would simply
put the company out of business until
the damage could be repaired: further
more, it realized that the property.
with its large amount of timbering and
Its hazardous location. was more likely
than many others to have a serious
fire. Accordingly, what is known as
use and occupancy insurance" to the
amount of S1.00OOOO was taken out i'm
addition to the regular fire insurance
This, according to our informant. is
payable at the rate of S274O daily for
one year from the date of the fire |
unless within that time the company /
is able to resume use and occupancy |
of its plant Thus the company is un- |
likely to suffer financially to any
marked degree as a result of the con
Migration.
Herein is a lesson for many other
similarly situated It is "a
subject which should be discussed by
the board of directors of every mining
company. especially when the company
is q small one chat is likely 20 be I'M
able to weather such shock and when
all its properties are in one place 1t
is also suggested that il is more advis-
able to take out such insurance when
The price of the metal produced is
nigh; otherwise it may not make much
Inference whether the plant operates
'r not. Some copper companies, for
Example, would be little worse off right
now if their employees were busy re-
building "a burned plant ON which suf- .
icient fire insurance We're carried than
+ they were producing copper
Companies and individuals unable to
tand losses from fire are usually the 9
mes that are the least protected. The il
of large and successful :
ompanies seem more thoroughly 20 "a
Understand the advantages of insur-
nee and protect their properties ade-
uately even though localized fire b
night not make a great deal of differ q
nee to the financial condition OF the I,
ompany as a whole. or course. with
small company having trouble TO
iake both ends meet, an ALLEGATION of e.
efficient funds to pay for adequate p
isurance might be the straw that p
ould break the camers back: but be-
're the first dividend is declared the o.,
rectors should take steps properly to q,
Jacquard the property of the stock ta
,lders from fire.
Straight fire Insurance is the first n,
for the securing of ut n,
ost protection where funds are scarce. a
atse can be brought to a minimum by n,
IeQuate fire. preventive appliances In
hen. as more funds are available, go
Ided protection can he secured d,
rough some of the modern forms of
surance such as that taken out by nc
e Hecla company u,l
- NEUTRALITY-SUSPICIOUS. -A- --rr,n. F''