Repository: UIHistories Project: Board of Trustees Minutes - 1928 [PAGE 155]

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152

BOARD O F TRUSTEES

[October 2 0

large number of students would be lost for a year unless speedy repairs could be made. Presumably we always carry enough in our reserve and contingent fund to take care of such an emergency, and yet I think it safer to continue carrying insurance on our non-fireproof buildings. I presume it will be possible to carry insurance on parts of the Pharmacy group without carrying it on the newer portions. Yours truly,

James M. White

Supervising Architect October 16, 1926 President David Kinley, University of Illinois

My Dear President Kinley:

Referring to m y letter of October 5th concerning the question offireinsurance in Chicago on which you asked for a specific recommendation from Professor White and myself, I enclose a letter from Professor White on the subject. You will note that he believes we should continue to carry insurance on our non-fireproof buildings in Chicago. I concur in this opinion, and in view of the fact that a saving of 2 0 % can be made on the rate when insurance is carried to the amount of 8 0 % of the value of the buildings, I believe we should contine to carry insurance on this basis. T h efireloss in the last two years has been nearly $38,000 and the annual cost of insurance on both buildings and contents is about $1400. I therefore request that I be authorized to renew insurance on non-fireproof buildings in Chicago expiring during the currentfiscalyear and to increase or decrease the insurance as m a y be found necessary to keep the insurance on an 8 0 % basis, based on valuation to be determined by the Supervising Architect's Office, the premiums to be payable out of the special appropriation for Chicago insurance made July 7, 1926, page 82. With respect to insurance on contents of buildings, including furniture, laboratory equipment, supplies, etc., a recent ruling makes it necessary to carry insurance to the extent of 9 0 % of the valuation in order to secure the benefit of a reduction in premiums on the co-insurance basis. The total valuation of our equipment and materials in the non-fireproof buildings in Chicago is probably about $150,000 so that it will be necessary for us to carry $135,000 of insurance at a cost of about $350 per year. Straight policies for any amount could be carried at an increase of 2 0 % in the rate. Insurance for one-half the valuation of the equipment would seem to be adequate and could be carried at a cost of $220 per year. This plan of insurance for the contents of buildings would considerably reduce the work necessary on our inventories and would simplify problems of insurance adjustment in case of loss. I shall appreciate instructions on this point. Cordially yours,

Lloyd Morey

Comptroller I recommend that the Comptroller be authorized to renew the insurance policies on the non-fireproof buildings and contents in Chicago which expire during the current fiscal year, and to increase or decrease the insurance as m a y be found necessary to keep it on an 80 per cent basis, based on valuation of buildings and contents to be determined by the Supervising Architect, and the premiums to be payable out of the appropriation for Chicago Insurance, made July 7, 1926. O n motion of M r . Armstrong, this r e c o m m e n d a t i o n w a s approved.