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I - Im &wm u J 7:30 p.m., "An Evening of One-- I I Acts," Stephens Warehouse I Theater, adults $1. 8 I Exhibits See Sunday's Vibrations I magazine for a complete listing j i of exhibits. I j Movielistings oe page 33 ! Special loan key to whole Lance probe 'Correspondent9 dealings at issue N.Y. Times Service WASHINGTON The investigation of Budget Director Bert Lance's financial dealings has thrown new light on the way banks and bankers do business with each other. Much of the attention has focused on the "correspondent" relationship between banks. The questions raised about Lance, who was a banker before President Carter named him to the powerful OMB post, are based on personal loans he received and the correspondent deals his bank made with his lenders. The Lance controversy has sensitized bankers to the point that few are willing to be quoted by name. Almost unanimously, though, they say what he did was business as usual in the banking industry. "As far as I know, Lance hasnt raised any eyebrows in the banking business," said the former head of the correspondent division of a major Chicago bank. "It's quite common to look to a correspondent for personal financial needs. A correspondent is a banker's banker." Lance received a $2.6 million lean from Manufacturers Hanover Trust Co. latsigltf of New York to buy stock in the bank he headed. National Bank of Georgia. Later he refinanced that loan and bought more stock with a $3.4 million loan from First National Bank of Chicago. In both cases, National Bank of Georgia woo establishing correspondent account at the bigger bank at about the same time Lance was getting his loan. Since correspondent accounts do not receive an interest, the charge leveled at Lance has been that he used the accounts the bank's money, not his own as partial payment for his loan. The accusaton is that some of the money National Bank of Georgia had on deposit was a "compensating balance" for Lance's loan. This was reinforced by the existence of an internal memorandum at Manufacturers Hanover linking the correspondent account to "20 per cent of the facility" or loan. A compensating balance is an old practice in banking. Even when a person borrows money, he usually needs a bank balance to transact business. Banks usually will quote a lower interest rate on a loan if the balance is kept with them, because the bank can make additional interest income by lending the funds. One common correspondent account is between a medium-siz- e regional bank, such as Lance's, and one of the giant banks in New York or Chicago. National Bank of Georgia, for example, has deposits of more than $300 million. Its New York correspondent, Manufacturers Hanover, is 86 times nigger with $26 billion in deposits. The correspondent bank provides a wide variety of services for the smaller bank. If the smaller bank is not in the Federal Reserve system, the correspondent clears its checks from across the country. It gives the smaller bank a chance to participate in big loans and bond un-derwriti- ngs. If the smaller bank has a chance to make a good loan larger than its legal limit, it can pass on the excess to the larger correspondent. The larger bank provides expertise in areas where it would not pay the smaller one to have its own experts, and provides training services. In fact, a Manufacturers Hanover official said the bank has a 41-pa- ge catalogue of services it offers to its (See SMALL, page 14) 69th Year No. 280 tlaml Morn'mgl h Tuesday Aug. 16, 1977 14 Pages 15 Cents $" H& . s By Elizabeth Campbell Missonrisa staff writer Consulting engineers gave the coal gasification project the green light to go to phase three Monday, and proposed three sites for the mid-Misso- uri plant. Two of the sites are in Boone County. The 300-pa- ge report concludes that the proposed plants would be economically feasible. The $50,000 study, presented Monday by representatives of the engineering firm, Lutz, Daily, and Brain, was commissioned by the Mid-Misso- uri Council of Governments and the Green Hills Planning Commission. Colum-bia's share of the study was $20,000. An area centered about one mile (1.6 kilometers) east of Hallsville in north-western Boone County, an area near Rocheport in southwestern Boone County and an area centered about two miles (3.2 kilometers) northeast of Armstrong in northwestern Howard County are the mid-Misso- uri sites. Sites near Milan in Sullivan County and near Unionville in Putnam County were recommended for the Green Kills area. Availability of coal and water sup-plies have already been confirmed, and specific sites for each region are to be selected by the end of phase three. Con-struction would begin by the end of 1979. and the plant would begin operation bv 1382. The total capital outlay of each 300-megaw- att plant is expected to range from $347.2 million to $358.4 million, according to the engineers. The cost of the plants probably would be financed by the sale of municipal revenue bonds, said James Lundsted, director of Columbia Water and Light Department and chairman of the Coal Gasification Advisory Committee. Bonds would be issued at an interest rate expected to range between 6 and 7 per cent. The payback period for the bonds would be 25 years. Financing would be handled by a consortium, Lundsted said. The Texaco process of coal gas- - (See STUDY, page 8) """' " " ' ' Deaftla learn """ Joe Patterson, 39, of Vancouver, Wash., plunges to his death by jumping off the Interstate 5 bridge in Portland, Ore., despite the attempts of his wife Ella to stop him. The photographs were taken by an Oregon Journal staff photographer Bill Murphy who was on his way to work when the incident occurred Monday. Imsfide REACTION from the proponents and the opponents ANALYSIS of the study and its assumptions A MAP of the proposed plant locations On page 8 Traffic loop changes rejected By Cheri Duncan Misscurian staff writer The City Council Monday night rejected any changes in the downtown traffic loop after hearing a suggestion from the Downtown Task Force to allow direct exits from the loop at Eighth and Ash streets and Ninth and Locust streets. After the decision. Mayor Les Proctor, a task force member, angrily declared the task force inactive. "I think the task force has ap-proached this more objectively and more openmindedly than the council." Proctor said. The group will not meet again, he said, until the results of a second public opinion survey on the loop are made available in early October. Task force member Tom Eaumgardner presented the proposed change to the council. He said it in-volved "two very minor alterations" which would allow traffic to cross the loop when cars on the loop are stopped by lights. -- Second Ward Councilman Don Mosby said he thought the plan would violate the concept of the loop by allowing traffic to move across rather than around it. He asked Public Works Director Ray 3eck for an opinion. "I recommended to the task force that this change be made," Beck said. He said disadvantages of the plan would be reduced chances for right turns with red lights, increased traffic at the affected intersections and possibly more through traffic from the University. The plan's chief advantage is that it (See WILSON, page 14) Fire fighters delay work slowdown vote By Jim Drinkard and George Mazurak Missourian staff writers Columbia firemen voted Monday night to postpone a decision on a possible work slowdown until a secret ballot of fire fighters can be taken. Mel Tipton, secretary of Local 1055 of the International Association of Fire-fighters, said the decision to postpone the vote was made to allow firemen on all shifts to take part and to prevent members of the union from becoming subject to mass emotions that he said sometimes accompany mass votes. Tipton said the results of the vote would be available by Thursday. The firemen interrupted their meeting at the Fire and Police Building Monday night long enough to file into the City Council chamber across the street. There, Tipton told the council the impasse procedure it was considering was "something we can live with." The procedure was drawn up by City Manager Terry Novak and city em ploye group representatives. The proposed procedure called for any items on which the employe bargaining group and the city could not agree to be referred automatically to a"fact-findin- g" board. The firemen left the meeting after the provision was deleted by a 4--3 vote of the council. The deletion, proposed by Fourth Ward Councilman Jim Goodrich, gives the council the option to circumvent a fact-findi-ng procedure if it believes it will be unable to grant further labor demands. Goodrich, Mayor Les Proctor, First Ward Councilman Pat Barnes and Second Ward Councilman Don Mosby supported the deletion. Fifth Ward Councilwoman Fran Beach, Third Ward Councilwoman Diane Farish and Sixth Ward Councilman Clyde Wilson voted against it. Tipton said the amendment to the impasse procedure reduces it to "a piece of window dressing." The council defeated two other amendments proposed by Goodrich that would have limited the geographic area from which fact-findi- ng board members could be drawn and denied any benefits of the procedure to em-ploye groups that threatened strikes or work slowdowns. The fire fighters present applauded, when the council defeated those two amendments. The council postponed final action on the impasse procedure on a tabling amendment by Wilson to give employe groups a chance to "react" to the amended document. Jail construction uncertain without grant ByT.C.Murov Missourian staff writer Construction of the proposed Boone County Jail addition probably will be postponed indefinitely because the jail's design does not meet requirements of a federal grant. NorthernDistrict Judge Dick Farmer said Monday that, if the county does not receive the "pocket of poverty" grant from the U.S. Department of Com-merce, 1979 revenue sharing funds could be used to pay for it Asked if he knows of any other possibilities for financing, he said, "I can't think of any." Farmer said he did not know when construction would begin on the jail if the grant is not received. The county does not meet federal requirements because its jail design calls for two-ma- n, instead of one-ma- n, cells. Farmer said he will visit the National Gearing House for Criminal Justice Planning and Architecture Wednesday to discuss the problem. The clearinghouse, an affiliate of the Law Enforcement Assistance Ad-ministration, established the one-m-an cell requirement in 1971. The clearinghouse, located in Champaign, 111., approves plans for correctional facilities which are to be constructed with federal funds. "I'm not optimistic at all about what we'll be able to accomplish" in discussions with the clearinghouse, Farmer said. But, he said the visit is necessary to ensure "adequate jail facilities" for Boone County. Mike Dane, coordinator of correc-tions planning and programs for the clearinghouse, told the Columbia Missourian the clearinghouse "can't compromise on the single cell requirement because it is a standard. " The reasons for the single occupancy requirement of the guidelines, Dane said, are: To provide an inmate safety from another inmate. To give the inmate a sense of security. To provide a more normal en- - vironment for the inmate. The grant is a "pocket of poverty" grant from the Economic Development Administration of the U.S. Department of Commerce. The county is applying for the $1.5 million, of which it expects to receive 250,000 for the jail, with the city of Columbia. The County Court saw the federal funds as a boon after the lowest bid for the jail addition was $552,000, which was about $150,000 more than the last (See DELAY, page 14) School district hit with high insurance By Mary Little Missourian staff writer The Columbia school district has been hit with a 255 per cent increase in insurance costs, although the district's insurable building value has risen only 32 per cent since a three-yea- r policy was Issued in 1974. The district apparently is the victim of vandalism of school buildings and insurance losses elsewhere. Under a three-ye-ar pdicy in 1974 with the Hartford Insurance Co. o? Con necticut, the district paid $46,000 for fire and extended coverage on $30.8 million of school buildings and their contents, said Ed Saunders, beard of education treasurer. But when the policy was to be renewed March 1 o this year, the board was faced with an increase in rates it hadn't expected. "Everyone told us it would be twice as much but we didn't think it would be three timer as much," Saunders said. In March the board picked the Hmr&ford Insurance Co., the km bidder. for one year of fire and extended coverage on $40.7 million worth of school buildings and contents for a $54,536 premium. The only other company bidding, Wightman Insurance Agency of Springfield, submitted a proposal of $63,264, Saunders said. The board contracted the policy with the intention of canceling it after six months and reinstating the same policy on Sept 1 fo? one year at the same rate, Saunders said. The board made this arrangement bec&'cse the budget for 1876-7- 7 allowed only $25,000 for a newinsurance policy, but the actual cost for one year was more than twice that. To keep the budget balanced, the board arranged to purchase six months of insurance for $27,268, he said. Saunders said the main reason for increased rates is that insurance companies have experienced a high-los- s ratio across the nation because of vandalism, protests and riots that damaged school buildings. In Missouri, the Hartford Company is affiliated with the Insurance Services Office (ISO), that calculates standard rates. ISO manager Tom Scott said rates are based on the class of risk that the purchaser falls under. He said it is possible that Columbia's school district, which has a relatively low vandalism rate and has not filed a claim in 23 years, is paying for high vandalism rates in other districts in Missouri. "It's very difficult to insure schools anymore," said board member Charles St. John, agency director of State Farm Insurance Co. in Columbia. Insurance companies nationwide have levied increase in rates for school buildings and their contents, he said. Saunders said the rates also jumped partly because the district's insurable building value increased $10 million the past three years. The value has in-creased so dramatically primarily because the cost of replacing buildings has skyrocketed in recent years and because of building additions, he said. Buildings usually are insured for the amount it costs to rebuild them, Saunders said.
Object Description
Title | Columbia Missourian Newspaper 1977-08-16 |
Description | Vol. 69, No. 280 |
Subject |
Columbia (Mo.) -- Newspapers Boone County (Mo.) -- Newspapers |
Coverage | United States -- Missouri -- Boone County -- Columbia |
Language | English |
Date.Search | 1977-08-16 |
Type | Newspapers |
Format | |
Collection Name | Columbia Missourian Newspaper Collection |
Publisher.Digital | University of Missour Library Systems |
Rights | These pages may be freely searched and displayed. Permission must be received for distribution or publication. |
Contributing Institution |
State Historical Society of Missouri University of Missouri--Columbia. School of Journalism |
Copy Request | Contact the State Historical Society of Missouri at: (800) 747-6366 or (573) 882-7083 or email contact@shsmo.org. Some fees apply: http://shsmo.org/research/researchfees |
County |
Boone County (Mo.) |
Description
Title | Full Page |
Date.Search | 1977-08-16 |
Type | page |
Contributing Institution |
State Historical Society of Missouri University of Missouri School of Journalism |
Copy Request | Contact the State Historical Society of Missouri at: (800) 747-6366 or (573) 882-7083 or email contact@shsmo.org. Some fees apply: http://shsmo.org/research/researchfees |
Item.Transcript | I - Im &wm u J 7:30 p.m., "An Evening of One-- I I Acts," Stephens Warehouse I Theater, adults $1. 8 I Exhibits See Sunday's Vibrations I magazine for a complete listing j i of exhibits. I j Movielistings oe page 33 ! Special loan key to whole Lance probe 'Correspondent9 dealings at issue N.Y. Times Service WASHINGTON The investigation of Budget Director Bert Lance's financial dealings has thrown new light on the way banks and bankers do business with each other. Much of the attention has focused on the "correspondent" relationship between banks. The questions raised about Lance, who was a banker before President Carter named him to the powerful OMB post, are based on personal loans he received and the correspondent deals his bank made with his lenders. The Lance controversy has sensitized bankers to the point that few are willing to be quoted by name. Almost unanimously, though, they say what he did was business as usual in the banking industry. "As far as I know, Lance hasnt raised any eyebrows in the banking business," said the former head of the correspondent division of a major Chicago bank. "It's quite common to look to a correspondent for personal financial needs. A correspondent is a banker's banker." Lance received a $2.6 million lean from Manufacturers Hanover Trust Co. latsigltf of New York to buy stock in the bank he headed. National Bank of Georgia. Later he refinanced that loan and bought more stock with a $3.4 million loan from First National Bank of Chicago. In both cases, National Bank of Georgia woo establishing correspondent account at the bigger bank at about the same time Lance was getting his loan. Since correspondent accounts do not receive an interest, the charge leveled at Lance has been that he used the accounts the bank's money, not his own as partial payment for his loan. The accusaton is that some of the money National Bank of Georgia had on deposit was a "compensating balance" for Lance's loan. This was reinforced by the existence of an internal memorandum at Manufacturers Hanover linking the correspondent account to "20 per cent of the facility" or loan. A compensating balance is an old practice in banking. Even when a person borrows money, he usually needs a bank balance to transact business. Banks usually will quote a lower interest rate on a loan if the balance is kept with them, because the bank can make additional interest income by lending the funds. One common correspondent account is between a medium-siz- e regional bank, such as Lance's, and one of the giant banks in New York or Chicago. National Bank of Georgia, for example, has deposits of more than $300 million. Its New York correspondent, Manufacturers Hanover, is 86 times nigger with $26 billion in deposits. The correspondent bank provides a wide variety of services for the smaller bank. If the smaller bank is not in the Federal Reserve system, the correspondent clears its checks from across the country. It gives the smaller bank a chance to participate in big loans and bond un-derwriti- ngs. If the smaller bank has a chance to make a good loan larger than its legal limit, it can pass on the excess to the larger correspondent. The larger bank provides expertise in areas where it would not pay the smaller one to have its own experts, and provides training services. In fact, a Manufacturers Hanover official said the bank has a 41-pa- ge catalogue of services it offers to its (See SMALL, page 14) 69th Year No. 280 tlaml Morn'mgl h Tuesday Aug. 16, 1977 14 Pages 15 Cents $" H& . s By Elizabeth Campbell Missonrisa staff writer Consulting engineers gave the coal gasification project the green light to go to phase three Monday, and proposed three sites for the mid-Misso- uri plant. Two of the sites are in Boone County. The 300-pa- ge report concludes that the proposed plants would be economically feasible. The $50,000 study, presented Monday by representatives of the engineering firm, Lutz, Daily, and Brain, was commissioned by the Mid-Misso- uri Council of Governments and the Green Hills Planning Commission. Colum-bia's share of the study was $20,000. An area centered about one mile (1.6 kilometers) east of Hallsville in north-western Boone County, an area near Rocheport in southwestern Boone County and an area centered about two miles (3.2 kilometers) northeast of Armstrong in northwestern Howard County are the mid-Misso- uri sites. Sites near Milan in Sullivan County and near Unionville in Putnam County were recommended for the Green Kills area. Availability of coal and water sup-plies have already been confirmed, and specific sites for each region are to be selected by the end of phase three. Con-struction would begin by the end of 1979. and the plant would begin operation bv 1382. The total capital outlay of each 300-megaw- att plant is expected to range from $347.2 million to $358.4 million, according to the engineers. The cost of the plants probably would be financed by the sale of municipal revenue bonds, said James Lundsted, director of Columbia Water and Light Department and chairman of the Coal Gasification Advisory Committee. Bonds would be issued at an interest rate expected to range between 6 and 7 per cent. The payback period for the bonds would be 25 years. Financing would be handled by a consortium, Lundsted said. The Texaco process of coal gas- - (See STUDY, page 8) """' " " ' ' Deaftla learn """ Joe Patterson, 39, of Vancouver, Wash., plunges to his death by jumping off the Interstate 5 bridge in Portland, Ore., despite the attempts of his wife Ella to stop him. The photographs were taken by an Oregon Journal staff photographer Bill Murphy who was on his way to work when the incident occurred Monday. Imsfide REACTION from the proponents and the opponents ANALYSIS of the study and its assumptions A MAP of the proposed plant locations On page 8 Traffic loop changes rejected By Cheri Duncan Misscurian staff writer The City Council Monday night rejected any changes in the downtown traffic loop after hearing a suggestion from the Downtown Task Force to allow direct exits from the loop at Eighth and Ash streets and Ninth and Locust streets. After the decision. Mayor Les Proctor, a task force member, angrily declared the task force inactive. "I think the task force has ap-proached this more objectively and more openmindedly than the council." Proctor said. The group will not meet again, he said, until the results of a second public opinion survey on the loop are made available in early October. Task force member Tom Eaumgardner presented the proposed change to the council. He said it in-volved "two very minor alterations" which would allow traffic to cross the loop when cars on the loop are stopped by lights. -- Second Ward Councilman Don Mosby said he thought the plan would violate the concept of the loop by allowing traffic to move across rather than around it. He asked Public Works Director Ray 3eck for an opinion. "I recommended to the task force that this change be made," Beck said. He said disadvantages of the plan would be reduced chances for right turns with red lights, increased traffic at the affected intersections and possibly more through traffic from the University. The plan's chief advantage is that it (See WILSON, page 14) Fire fighters delay work slowdown vote By Jim Drinkard and George Mazurak Missourian staff writers Columbia firemen voted Monday night to postpone a decision on a possible work slowdown until a secret ballot of fire fighters can be taken. Mel Tipton, secretary of Local 1055 of the International Association of Fire-fighters, said the decision to postpone the vote was made to allow firemen on all shifts to take part and to prevent members of the union from becoming subject to mass emotions that he said sometimes accompany mass votes. Tipton said the results of the vote would be available by Thursday. The firemen interrupted their meeting at the Fire and Police Building Monday night long enough to file into the City Council chamber across the street. There, Tipton told the council the impasse procedure it was considering was "something we can live with." The procedure was drawn up by City Manager Terry Novak and city em ploye group representatives. The proposed procedure called for any items on which the employe bargaining group and the city could not agree to be referred automatically to a"fact-findin- g" board. The firemen left the meeting after the provision was deleted by a 4--3 vote of the council. The deletion, proposed by Fourth Ward Councilman Jim Goodrich, gives the council the option to circumvent a fact-findi-ng procedure if it believes it will be unable to grant further labor demands. Goodrich, Mayor Les Proctor, First Ward Councilman Pat Barnes and Second Ward Councilman Don Mosby supported the deletion. Fifth Ward Councilwoman Fran Beach, Third Ward Councilwoman Diane Farish and Sixth Ward Councilman Clyde Wilson voted against it. Tipton said the amendment to the impasse procedure reduces it to "a piece of window dressing." The council defeated two other amendments proposed by Goodrich that would have limited the geographic area from which fact-findi- ng board members could be drawn and denied any benefits of the procedure to em-ploye groups that threatened strikes or work slowdowns. The fire fighters present applauded, when the council defeated those two amendments. The council postponed final action on the impasse procedure on a tabling amendment by Wilson to give employe groups a chance to "react" to the amended document. Jail construction uncertain without grant ByT.C.Murov Missourian staff writer Construction of the proposed Boone County Jail addition probably will be postponed indefinitely because the jail's design does not meet requirements of a federal grant. NorthernDistrict Judge Dick Farmer said Monday that, if the county does not receive the "pocket of poverty" grant from the U.S. Department of Com-merce, 1979 revenue sharing funds could be used to pay for it Asked if he knows of any other possibilities for financing, he said, "I can't think of any." Farmer said he did not know when construction would begin on the jail if the grant is not received. The county does not meet federal requirements because its jail design calls for two-ma- n, instead of one-ma- n, cells. Farmer said he will visit the National Gearing House for Criminal Justice Planning and Architecture Wednesday to discuss the problem. The clearinghouse, an affiliate of the Law Enforcement Assistance Ad-ministration, established the one-m-an cell requirement in 1971. The clearinghouse, located in Champaign, 111., approves plans for correctional facilities which are to be constructed with federal funds. "I'm not optimistic at all about what we'll be able to accomplish" in discussions with the clearinghouse, Farmer said. But, he said the visit is necessary to ensure "adequate jail facilities" for Boone County. Mike Dane, coordinator of correc-tions planning and programs for the clearinghouse, told the Columbia Missourian the clearinghouse "can't compromise on the single cell requirement because it is a standard. " The reasons for the single occupancy requirement of the guidelines, Dane said, are: To provide an inmate safety from another inmate. To give the inmate a sense of security. To provide a more normal en- - vironment for the inmate. The grant is a "pocket of poverty" grant from the Economic Development Administration of the U.S. Department of Commerce. The county is applying for the $1.5 million, of which it expects to receive 250,000 for the jail, with the city of Columbia. The County Court saw the federal funds as a boon after the lowest bid for the jail addition was $552,000, which was about $150,000 more than the last (See DELAY, page 14) School district hit with high insurance By Mary Little Missourian staff writer The Columbia school district has been hit with a 255 per cent increase in insurance costs, although the district's insurable building value has risen only 32 per cent since a three-yea- r policy was Issued in 1974. The district apparently is the victim of vandalism of school buildings and insurance losses elsewhere. Under a three-ye-ar pdicy in 1974 with the Hartford Insurance Co. o? Con necticut, the district paid $46,000 for fire and extended coverage on $30.8 million of school buildings and their contents, said Ed Saunders, beard of education treasurer. But when the policy was to be renewed March 1 o this year, the board was faced with an increase in rates it hadn't expected. "Everyone told us it would be twice as much but we didn't think it would be three timer as much," Saunders said. In March the board picked the Hmr&ford Insurance Co., the km bidder. for one year of fire and extended coverage on $40.7 million worth of school buildings and contents for a $54,536 premium. The only other company bidding, Wightman Insurance Agency of Springfield, submitted a proposal of $63,264, Saunders said. The board contracted the policy with the intention of canceling it after six months and reinstating the same policy on Sept 1 fo? one year at the same rate, Saunders said. The board made this arrangement bec&'cse the budget for 1876-7- 7 allowed only $25,000 for a newinsurance policy, but the actual cost for one year was more than twice that. To keep the budget balanced, the board arranged to purchase six months of insurance for $27,268, he said. Saunders said the main reason for increased rates is that insurance companies have experienced a high-los- s ratio across the nation because of vandalism, protests and riots that damaged school buildings. In Missouri, the Hartford Company is affiliated with the Insurance Services Office (ISO), that calculates standard rates. ISO manager Tom Scott said rates are based on the class of risk that the purchaser falls under. He said it is possible that Columbia's school district, which has a relatively low vandalism rate and has not filed a claim in 23 years, is paying for high vandalism rates in other districts in Missouri. "It's very difficult to insure schools anymore," said board member Charles St. John, agency director of State Farm Insurance Co. in Columbia. Insurance companies nationwide have levied increase in rates for school buildings and their contents, he said. Saunders said the rates also jumped partly because the district's insurable building value increased $10 million the past three years. The value has in-creased so dramatically primarily because the cost of replacing buildings has skyrocketed in recent years and because of building additions, he said. Buildings usually are insured for the amount it costs to rebuild them, Saunders said. |