158 Chicago Bureau of Public Efficiency 



money. To this amount there has since been added interest on 

 bank deposits of park money until it now amounts to nearly 

 $300,000. This fund was on bank deposit at 3 per cent, interest 

 from May, 1903, until June, 1911, when $200,000 of it was in- 

 vested in 4 per cent. Sanitary District bonds. 



An examination of values of the South Park buildings indi- 

 cates that $100,000 should be ample to maintain as a reserve for 

 isolated buildings if underwriters' policies were carried on the 

 group of buildings, including the stables, shops and power plants, 

 which represent a burnable risk in excess of $200,000. If the 

 reserve were limited to $100,000, the interest received thereon 

 would more than suffice to meet the annual premiums on the un- 

 derwriters' policies which might be carried on the larger property 

 values, a large proportion of the risk would be assumed by the 

 underwriters instead of by the Park Board, and $200,000 of the 

 fund might be used for other purposes. 



In order to determine the probability of destruction of the 

 South Park properties by fire and the measure of protection ex- 

 ercised against such a contingency, the Bureau caused an inspec- 

 tion thereof to be made in April, 1911, by the insurance inspector 

 of a reputable firm of fire underwriters. Their report is included 

 in this chapter. 



The West Park Board maintains no insurance reserve fund, 

 but carries underwriters' policies to the amount of $563,220, on 

 which an annual premium of $1,576 is paid. The terms of the 

 policies are all five years except that on automobiles the term is 

 one year. 



The Lincoln Park Board likewise maintains no insurance 

 reserve fund, but carries policies aggregating $691,650, on which 

 an annual premium of $5,837 is paid. Of this amount $3,799.67 

 is paid for $125,000 insurance on the dredge used in the park ex- 

 tension work. 



The Bureau did not secure an expert inspection of the West 

 and Lincoln Park properties as to conditions of fire prevention, 

 but the advisability of the respective Park Boards taking such 

 action is suggested. The report of the insurance inspectors on 

 the South Park buildings follows : 



