Evening star., 1951-10-10
Prince Georges
Board Defends
New Insurance
Mrs. Boedonoff and
Husband Attacked In
Reply to Criticism

NePIy 10 NIItlCiSm
Stock company insurance is
worth twice as much as coverage
in a mutual firm. the angered
Prince Georges commissioners de-
clared today in a letter. which
personally attacked a woman
leader of the county Civic Fedora
tion and her husband.
Subjected to the boards type
written and formally approved
lash were Mrs. Irma Bogdanoff, !,
the federation's county affairs
committee chairman. and Reuben
Bogdanoff, her Government-em-
Iploye husband who sells mutual
company insurance in the District.
Obviously stung by federation
criticism of their action of week
Iago, when they approved stock
company coverage of county auto
motive equipment costing $4,000
more than mutual policies. the
commissioners yesterday vigorous
ly defended the award.
In letter directed to the fed
Grafton the board maintained the
action was in the best interest of
the public and made it clear they
intend to continue the practice.
Bond Issue Sold.
Ditpatch of the latter was or
|dered, after the board sold a ST.
175,000 bond issue at az per
cent interest rate to Phelps, Fem,
New York investment bankers,
and Ferris & Co. Associates of
Washington, the lowest of five
bidders On $3.3 million issue
floated last June. the board agreed
to pay interest at the rate Of 2.18
per cent.
Improvements in the county's
Metropolitan Areas will be A.
nanced with $725,000 of the pro-
ceeds. The remaining $3.50, 900 will
be used to build a new highway
between Branchville and Belts
vile.
In the insurance controversy,
Mrs. Bogdanoff, a former presi-
dent of the county League of
Women Voters, told the civic fed
eration at Hyattsville on Thurs
day that stock and mutual COM
pany policies involved in the dis
pute were identical. The stock
company's bid was $1,000. The
mutual company, Mrs. Bogdanoff
said, offered the same protection
for $4,000.
She offered, and the federation
adopted, a motion asking the COM
missioners to explain why they
were willing to pay the higher
rate.
In their reply the commission
ers told the federation that your
statement that the insurance is
identical Is not correct. as the
company awarded the contract is
a stock company, and the COM
pany rejected is a mutual COM
pany.
"Of course" the letter said,
you are aware of the fact that
you can purchase a pair of shoes
for IS or pay $40 for a better
grade. We believe it more eco
nomical to buy the $40 shoes"
The board attached to the letter
a copy of a ito whom it may
concern" complaint against mu-
tual companies, purportedly signed
by Henry Kirkpatrick. secretary
of the Branchville Volunteer Fire
Company and Rescue Squad. The
complaint alleged delays and diff
ficulties in collecting accident in
surance from mutual company
OF Mr.. and Mrs. Bogdanof the
commissioners letter said:
1--WE have been informed that
the principal complaint from the
federation was made by
Mrs. Bogdanoff. We wish to
bring to your attention the fact
that Mrs. Bogdanoff's husband is
employed as a partvtime agent by
la mutual insurance company and,
lat the same time, holds a good
paying Government position"
With ID. C.. Office.
Mrs. Bogdanoff said last night
that her husband is associated
with the Washington Office of a
mutual company. She pointed out
that she had so informed the
federation at Thursdays meeting.
| "The fact" she declared, ''has
no bearing on the current issue,
which the board has attempted to
becloud with an unwarranted per-
sonal attack. I am surprised that
the commissioners would stoop to
such a level
The incumbent all-Republican
board also jabbed sharply at their
Democratic predecessors. Referring
the county's insurance be surveyed
the letter said, Il am glad to in
form you that this survey was
made several months ago, and
some very startling results were
developed.
"AS for instance, premiums were
being paid on several school build
ings which had been sold by the
county one to five years ago. Also
a sever loss to the county was
Sustained by the destruction OF
fire Of the Brentwood School
which was grossly underinsured
Also, as a result of this survey
1.-THE county has recovered better