The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-12-02
BIC INSURANCE PLACED.
University Gives ss1, 900 to Non
Board Companies.

Board Companies.
Under the above heading you give an
interesting account in your issue of
yesterday OF the placing OF the insur-
ance on the university buildings with
the non board companies represented
by The Ensign & Elder agency and
your statement would indicate that the
regents had benefited the state treas
ury in the sum Of several hundred dol
lars by the transaction
The facts are as follows. When Con-
tractor w H Roney was constructing
these buildings he was required TO
keep them insured, and did SO with the
board companies, taking out at various
times the sum of $4,000 IN insurance
paying the rate of 80 per cent for
three years, which is the tariff rate on
this class of property during cOnstruc-
I ton. When the buildings were COM
pleted Mr. ROney offered to transfer
this insurance to the board of regents
for the u1eXpired period, but the re-
gents refused the policies and required
Mr.. ROney to pay for his insurance at
the short rate required by the cCmpan-
les, and the secretary of the board of
regents advertised for bids. On Mon
day, the 26th the regents requested the
board agents TO appear before them
and state why no bids had been Of
fereC- The regents were informed that
/ the insurance rates were based on the
A-e-2dAu VI lllE III AftSEA ~ anu AAAAL AAD
board agent would write the business
at less than the board rate, any more
+ than they would any other piece of
! property in the state, and informed the
regents that as soon as the buildings
We're completed the board manager
would issue the minimum rate on the
| buildings. The regents requested that
I the board rate be named to them at
/ the meeting Thursday morning, which
/ was done, the board making q, rate of
u IN q L. Z . =
president DIT. kiugSDuTy. was m
formed previously that under the board
I rules i per cent could be deducted
/ from any rate named by the board by
+ obtaining 50 per cent of the value of
the buildings IN Insurance. Evidently
/ the university 1inanciers are not post
/ ed on insurance matters or they would
have had no trouble in figuring out the
/ fact that the board rate was lower
/ than the nOn-bOard bids. which were
/ the only bids offered This is easily
( proven
The contractor placed S55, 900 at 1.S0
for three years, premium on same be
ing $3.50. He paid the companies at
I short rate for the average OF HFe
! months these policies were IN force
/ S2601O. This would have left the re-
+ gents to pay for $4,000 of the S60.t G
/ placed on the buildings for thirty-one
months insurance the sum of Sl29.9
/ When the buildings were completed me
| board rate was reduced to 1.30 per cent
5 for three years so the companies would
Z have returned the regents for the IN
/ expired term the sum of S256.90. Hence
! $50 600 for thirty-Cne months would
/ have cost the state 1893 To extend the
{ time FIVE months, making the insur-
ance for three years (the time 1t IS
/ placed fOr) would have cost pro rata
the sum of $3.50. and the other 5000
to make up the total of $4,000 placed
on buildings for three years, at E30
would cost S65. making the total cOst
to the state for board insurance for the
period of three years on 100000 placed
1901 -. The nOD-bOard agents have
written this 100000 at I per cent, ol
$500 a difference for the whole three
years of S1.75.
CONTENTS OF BUILDINGS.
The board companies rate on the
contents Is the same as the buiidlns
RATE hence the $4,000 on the contents
at 130 per cent for three years woulc
have cost the state S273- The regents
nave placed this 81 600 with the non
/ board agents at 1.25 per cent for three
years, or S262.50; a difference Of $lO.2V
a total saving to the state by TIT
transaction of SIPS.
Now, had the regents accepted tn
board companies policies and attacbef
the 50 per cent clause, the insurance
would have cost Is per cent less on INT
+ Buildings, Or a. net sum OF 500; aIlt
fer the so per cent clause on the con
tents a deduction of 10 per cent al
/. lowed for same would have reduced tn
i net cost to S27.30. making a net saving
/ of S11T.55. The total premium neceS
sary to be paid the board agents wa
| 1874 rs Less above would have made
the net $500. And the regents vii
now pay Ensign & Elder SS62.50- Or
without the so per cent clause the in
strance costs the state in excess o
the board companies net rate $l05.SO.
/ It is runored on the street that on,
of the regents who has been very ac
tive in securing the insurance for TIL
non-board companies has a nephew
who has lately become silent paTtne
in the Ensign & Elder agency Thl
cannot be proven at present.
INSURANCE AGENT