Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-05-30
School Man Reviews State Insurance Law
by Ralph L. Arnold, President
Montana School Boards Association

"oheahd oSnoo oodTOS A8&oC1ation)
For the information of taxpayers and all legal
voters in this State, these facts are presented as the
subject OF the new State Insurance Law" with which
they deal and is of vital concern to the citizens OF
Montana.
This Legislative Act, which becomes operative on
the first day Of June, 1895 imposes upon certain pub
lie officials entrusted to the care Of public buildings
of this State and OF each and every political subdi-
vision thereof, includes property Of all school dis
tricts, Of all county high schools, of all counties and
OF all cities and towns) to insure all such public
buildings and contents with the State against loss by
the hazards or perils of Fire, Tightening. Tornado,
Windstorm, Cyclone, Hail, Explosion, Flood, and
Water Damage, with the imposition Of a criminal pen.
atty If any person (school trustee or public Officially
violates the provisions Of the Act.
The State Insurance Law further provides that
the amount of insurance so written with the State
shall be determined by various public officials, and
that the respective boards and officers having charge
Of the property insured with the State shall, within
thirty days, pay into the State Treasury the amount
OF insurance premiums ON all such property at the
prevailing and commonly accepted insurance rates.
applying to the compulsory nine beverages aforemen-
toned.
There exists no good reason why your school dis
tr1ct, your city or town, or your county, should be
forced to unnecessary taxation in order to comply
with the mandatory provisions OF the State Insurance
Law. If the State Insurance Law becomes operative on
the first day Of June, 1885, 1t Is evident that the extra
premium charges for the flood and water damage In
surance ON all public buildings and contents, for all
risk explosion, and for hail, cyclone, windstorm and
coronado insurance, will be shared by every taxpayer
In this State. Ordinarily in the interest OF economy
coverage on public property (with private insurance
companies) embraces only fire and tightening protec-
ton.
Following the adjournment OF the State Legisla-
ture, fires in public school buildings In Montana have
destroyed property valued at approximately 100000,
in addition to a fire loss of nearly $4,000 occurring at
the main fire station in the city OF Butte. Were the
new State Insurance Law in effect now, the State
would have to make good a $65,OOO fire loss at the
Lincoln County High School, the Alexander Public
School at Forsyth, and for several school buildings
destroyed by fire in Valley County, located at Wheeler
and in the vicinity Of Nashua.
From this summary there is to be concluded:
Money Of the taxpayers will be wasted and carelessly
spent in complying with this State Insurance Law. In
school districts it will be necessary to levy an addi-
tional tax, and budgets for your city, county and
school districts inreased in order to provide funds for
the additional cost OF insurance with the State. The In
surance Law also violates the principle Of Home
Rules an unjustified invasion upon the rights OF
our citizens in requiring e~xorbitant sums Of the tax
payers money for the carrying OF insurance with the
State against such hazerds OF perils as flood, water
damage, explosion, tornado, windstorm, cyclone and
hail, In all localities, irrespective OF the danger or even
remote probability that such insurance is necessary.
Taxpayers and legal voters, in all counties OF the
State should at once, by authority OF the Constitution
OF the State OF Montana and by power Of Referendum
Petition, order that this law shall he imperative I'M
til such time at 1T shall be passed upon at an election.