The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-11-23
WAY IS OPENED
TO STATE HAIL
INSURANCE BASED
ON TWO SYSTEMS
Adoption of Amendments
Permits Next Legis-
lature to Act

North Dakota electors in the re-
sent general election apparently ap-
5roved two amendments providing
for universal hail insurance to be
financed by q general land tax. One
IL these was referred by the legisla-
ure, after two assemblies had APP
proved ii. AS finally ratified by a
majority OF all the electors voting on
the question as well as by a major
ity of all the electors participating
IN this election. this amendment to
The constitution stands as follows:
THE legislative assembly may by
aw provide for the levy Of a tax
lpon such lands as may be provided
BY. law of the state for the purpose
5f creating a fund to insure the own
Jrs of growing crops against losses
5yShail; provided that such tax
shall not effect the two or four mills
levied by the constitution. The leg
slative assembly may classify such
lands of the state as may be provid-
"a by law, and divide the state into
districts on such basis as shall seem
inst and necessary and may vary the
TAX rates in such districts in accord
ance with the risk. in order TO Sc
tilre an equitable distribution of the
burden of such tax among the own
by law"
Zone System in Nebraska
Nebraska, which has a state hail
AK. divides the state into three
zones, and the amount levied for pre-
miums varies according to the
proven risk in such zones. In North
Dakota there would be at least two
zones. and the burden will be least
N the Red River valley sections;
considerably higher in the central
portion of the state. and highest on
he Slope. where hail losses have
been greatest and most common.
The league hail indemnity amend
1tent, which was inflated at the last
slection. and which will require a
majority of all the votes cast at this
ELECTION. while the legislative
amendment above described, which
aAas submitted by referendum, will
require only a. majority of the votes
east upon this question. is as fol-
lows:
ITO amend Sec. lit in Article II,
changes provision relating to assess
ment of improvements on land. to
provision authorizing tax on lands
FOR the purpose Of indemnifying
owners of growing crops against
against damage by hail, as follows:
The Legislature may by law provide
for the levy and collection OF an
acreage tax on lands within the state
Ia addition TO the limitations speci-
lied in Sec. TIA in Article II Of the
constitution. The proceeds Of such
tax shall be used TO indemnify the
owners of growing crops against
3amage by hail: provided that lands
used exclusively for public roads,
lights of way of common carriers,
mining. manufacturing or pasturage
NAV be exempt from such tax"
This amendent appears to have
teen approved by 49,109 of the ca
$50 electors whose ballots in the re-
cent election have been counted on
the initiative measures to date.
The legislative assembly which con-
Henes Jan. / may therefore take it's
rick of two hail amendments, both
covering much the same ground,
hut the league amendment specifcal-
u eSempting the property of rail-
Ways, mines and other industries
and enterprises from taxation.
III State Plan Several Years
North Dakota has had state hail
Insurance for many years. The fund
has been created by premiums paid
BY farmers who have voluntarily
insured their crops with the state. A
very small percentage of the farmers
have patronized the state hail de-
partment. and the state has never
been In q position to pay 100 per
cent of the losses adjusted This
year. the hail department collected
about $4,000 and paid about So per
cent on adjusted losses. In former
years the state has paid as little as
30 per cent of the adjusted losses.
Under either of the amendments
which have now been added to the
constitution. the 18th legislative as
senbly may provide for a general
haih tax which will create a great
state fund which will insure all
crops in North Dakota against loss.
III is probable that the legislature
Will be asked to fix the maximum in
surance at not less than SIS, where
as in the past the general maximum
among old-line companies has been
$7sto SO. A tax of 8 cents per acre
Upon North Dakota's land area of
44,T35.o39 acres would yield an an
nual hail insurance fund Of $685.
ISL.
Single hail storms have caused an
estimated damage running as high
as S12,000,o00. spread over a com
or%