The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-04-28
NO INSURANCE ON
STATE PROPERTY.
FUND THAT WAS CREATED
HAS DWINDLED
NEED OF PROTECTION
Recent Mankato Teachers Col
lege Fire Has Revealed The
True Facts. ..
IAssociated Press Dispatch. !

i lASSOClaLeQ fTcSS DlSpalCn.
St Paul, Mimi, April "a State
property valued at more Lnan $40.
600, 600 is without any insurance
projection and this condition will
obtain until some action is taken by
the legislature, it was disclosed
when the balance of the state in
surance fund was appropriated fol
the reconstruction OF the main
building of the Mankato State
Teachers college.
The state insurance fund created
in 1913 by act of legislature, which
J stipulated that the equivalent oil
the cost Of insurance policies be SET
aside by the state treasurer, was
allowed to dwindle from 1919, when
the legislature ignored the necess
| ity of this fund and now the state
| institutions, with the valuable per
sonal effects of the state, are with
out protection.
The amount remaining in the
state insurance fund, approximately
$3.50, 900, was authorized for pay
ment of the Mankato college, to re-
place the building recently destroy
ed by fire, entailing loss OF about
$500, 900.
Every Institution in the state, in
CtuuluS Tic NdIIOuo cCotc CdNh
ers' Colleges, the state University,
the capitol building, the hospitals,
is without protection in case of de-
struction of the building and the
ooly possible way money could be
raised to replace the building or
contents would be by calling spe
cial. session of the legislature, state
officials pointed out.
Does Not Carry Insurance
The state does not carry insur-
ance, however, on some Of the con-
tents Of the state prison, but the
building, like the other public insti-
tutions, is without this protection.
The amount of insurance carried by
the state prison contents varies
each year according to the supply
of raw and finished material on
hand, members of the state board
of control said.
The need of some sort of protec-
ton. officials said, is emphasized
by the recent fire at Mankato. With
the limited amount of funds avail
able for reconstruction of the school
building. but a part of this Struc
ture will be completed, and although
permitting the holding of classes
next season, the school will be I'M
able to function as efficiently as it
would if the building were com
pleted. Completion, because of lack
of available funds, will await the
action of the next legislature, which
convenes in January.
The state insurance fund totaled
approximately 100000 when it was
allowed to go by the way by past
legislatures, and when turned over
to the state board of control for dis
tribution in 1919 by act of the law
making body of that session, 1t to
tailed 1901, S57.S5.
less. reticent commenting on the
probable results should several or
more of the Statebuildings be de-
stroyed at this time, They, however
are positive in their statements
that a special session of the legis
lature would have to be called or
reconstruction await the converting
of the next legislature. Several
methods of self insurance have
been proposed by various officials,
including Henry Rines, state treas
urer.
Mr.. Rines is of the opinion that
the best way to handle a problem
of this kind is for the legislature to
pass an act giving the state board
of control authority to issue certifi-
Gates of indebtedness when the &C.
casion arises for reconstruction or
repair of any building or buildings
destroyed by fire or any other
causes. This authority, he said,
would naturally be limited to GER
tain extents.
State Fund Laying Dormant
In this way, he pointed out, the
state taxpayer would not be com
PEELED to bear burden until some
actual expense occurred. With pay
ment of insurance risks premiums,
the state would be called upon to
make payment of these premiums
annually, and although the amount
each year would be small, the ag-
gregate in years would reach large
proportions.
The state treasurer also pointed
out that at the present time the
sta.te fund devoted TO the support
OF the insane .totaling approxim-
ateiy 100000, is laying dormant,
expend it, except for the specifi:
designation of support of the insane
of the state.
By legislative action, he said, this
fund in an emergency could be de-
voted to the reconstruction of any
building, and with the authority
granted the state board of control
to issue certificates of Indebtedness
the state property would be amply
protected.
Among the buildings with high
valuation are: New Capitol building,
81, 450, 900; state agricultural socie-
ty buildings Estate fair), $S44,726;
Soldiers Home, $S72,657; Universe
ty of Minnesota, main campus, 81,
179,s7S; Central station. University
of Minnesota, $1,420.954; Fergus
Falls hospital $1,221,00S; st Peter
hospital s1,267. 289; School for
Feebls Minded, S1.503,435 State
Reformatory, $l,305,16l; and state
prison, part of contents are insured,
81, 603, ITO. The amounts cited above
are the valuations of the buildings
and do not include the personal
property or fixtures.