Grand Forks herald., 1919-08-26
Filter Plant Insured By the
State For Amount Five
Times That Which Could
Ever Be Collected on Poll
cy; Rate Exceeds That
Charged by Private Com
pany Where Risk is Great
er.

1T may be economy, but to make
the city pay $69s.40 as annual insur-
ance premium on hole in the ground
filled with water, seems trifle steep.
ITS especially steep when one
realizes that we could never collect
more than about $4,000 on the
policy"
This is the view taken by Grand
Forks city officials regarding the ac-
tion of the Nonpartisan league state
ing that the city pay an annual pre-
MUM Of $69S.40 on fire and tornado
insurance policy of $4,000 on the city
filtration plant.
Weird Economy.
"If the Nonpartisan league state Of
ficials are going to persist in this kind
bankrupt" was the way one member
OF the administration expressed the
situation today.
Rate Excessive.
Also the local officials are some
what curious to know by what extra
ordinary mental process the commits
sioner arrived at the conclusion that
s1.O5 per hundred dollars was the
surance on the filter plant when at
present under a private company the
premium rate on the city lighting
plant, situated across the street from
the filter. is only 81 cents per hum
dred dollars.
1t is obvious that the risk on the
lighting plant is greater than on the
fi'.e-
The state law passed at the last ees-
80 ,l, ~. ~, !
all public buildings shall be insured
by the state. The state insurance
commissioner is authorized to fix at
his discretion the insured value of
these buildings not exceeding 80 per
cent of the actual value, and also to
fix the premium rate which shall be
the average rate charged on insurance
of building of similar class by the
private companies now operating In
the state.
Pursuant to this law the city of
that the insurance valuation of the
city filter plant had been fixed by the
insurance commissioner at $56,000,
the actual value of the plant having
been figured at $4,000. The pre-
MUM on fire insurance for the year
was fixed at 1856. and the tornado
insurance premium at $112.40, max
ing total annual premium OF
$69S.4O.
The city is given no option in the
matter.
$4,000 Practical Limit.
Now, it is pointed out that if fire
should break out at the filter plant ii
would be impossible for it to cause
any damage except to the roof, and
what few other inflammable parts
oh1 ~, lao - 1S,
If all these should be destroyed by
fire the damage would not exceed ir
value $4,000. 1t would be impos-
sible for the city to collect more thar
this amount.
similar situation exists as regard.
tornado insurance. The greater par
of the structure is sunk in the ground
projecting only a few feet above the
street, and is constructed of brick
For a tornado or fire to cause any
great amount of damage is plainly
impossible.
The city is thus being compelled
to pay $69S.40 a year for an insurance
policy on which under no circum.
stances within the range of practica
possibility would it be able to collect
more than $4,000.
The absurdity of compelling any
city to pay an annual premium
amounting to over six per cent of the
collectable value Of the policy is Oh
vious.
1t is equally absurd for the state
to charge a rate of $1.05 per 500 fol
insurance on building of the char.
acter Of the filter plant. when pri.
vate companies are insuring the city
lighting plant on which is plainly
apparent the fire risk is far greater
at 81 cents per 500.
Added to Expenses.
Realizing the extreme improbable.
ity of fire damaging the filter plan
at any great extent. the city has no
carried any insurance on. the filter
plant. The premium which is nov
teing charged by the state is therefore