Evening star., 1953-05-26
Se|f-|nsurance Plan
For County Hit al
Councils Session

"A MOIlISOL1lcFy NOUuCy 'OOUI1Cl1
bid to initiate a elf-insurance
plan last night was scored as
another encroachment under a
socialistic form Of government" :"
The attack came from Paul M.
Coughlan, an insurance agent,
who carries part Of the insurance
on county buildings.
The council held public hear
ings on five bills last night and
wound up its public hearings on
the II bills introduced during
the annual Legislative session.
The self-insurance measure
would permit the county to issue.
if necessary, up to $500.000 in
certificates of Indebtedness to
cover any loss through fires or
other disasters.
Mr.. Coughlan said the council
would be taking a big gamble, {"
with no assurance of a tax saw
ings. He added that many other
States and municipalities that
have tried Self-inSurance have
given it up.
Pictured as Great Risk.
The risk on county and school
board properties is so great, Mr..
Coughlan said, that no one in
surance company will accept it
in it's entirety.
Wylie w. Barrow indicated the
school board, in an informal poll,
viewed the Self-insurance plan
with a favorable attitude"
The board vice president, how
ever, spoke more strongly for a
plan to take out policies with
private companies on a three-to-
five year basis, rather than on
the present one-year plan. Such
a system would be a money-saver,
he said.
Mr.. Barrow pointed out the
school board this year has asked
for $4,000 to pay fire insurance
premiums on its buildings.
Some Measures Unprotected.
Bills to set up a recreation tax
district in the suburban area, to
to re-eScablish lines of the subur-
ban district along other taxing
area lines and to authorize the
issuance Of $750,000 in bonds for
road construction, drew no COM
ment from the small group at
tending the hearings.
A bill, to make requirements
for exemptions under the park
ing lot district law more uniform
with the proposed new coming
ordinance, however. did not fare
SO well.
The proposed changes were
supported in general by the Sill
yer Spring Board Of Trade and
a number Of other business
interests.
The measure also would change
the method of applying for
exemptions and would permit 100
per cent exemptions for business
houses that allow one hour of
free parking for customers only
and charge for additional time.
At present, stores that restrict
parking to their customers get
only a so per cent exemption.
Sees Business Encouraged.
David Scull. president of the
Silver Spring Board of Trade,
said he thought the law would
encourage private enterprise to
provide more parking.
Arthur Hanson, attorney for
Safeway Stores, cast a note of
warning at the meeting. He
said that. If the amendments to
the law were not passed, his firm
was considering filing court ac-
ton to throw out the entire park
ing lot law.
Safeway stores now restrict
parking to customers and get
only a so per cent exemption in
most cases. If the amendments
were passed, Mr.. Hanson said,
the county would lose $4,000 to
$2,500 in taxes 1t is receiving
from Safeway.
Terms Criticized.
Attorney James r. Miller hit
several Of the exemption require
ments as too rigid and unrealis-
tic. Mr.. Miller also said it is
cheaper now for warehouses and
industrial plants to pay the park
ing lot tax than 1t is to provide.
the parking required.
The council already has passed
eight bills, and the other nine
will be called up for final read
ing today.
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