INTERIOR COLONIZATION" IN CALIFORNIA 63 



to reach this average because the calculation covered the highly improved 

 orchards and vineyards in full bearing. Alfalfa crops, which ate the begin- 

 ner's main dependence, had an average value of only $22.94 an acre. Even 

 in such industries as the growing of citrus fruits, which need a large invest- 

 ment in land, a long wait for returns, and exceptionally skilful and careful 

 cultivation and marketing, the net profits over and above expenses of cul- 

 tivation only average, according to a report prepared by the California 

 Citrus Growers' Association, 4.3 per cent, on land valued at $1,000 an acre. 



Real estate agents from the overdone and less profitable fields of tha 

 Mddle West flocked to California, not to develop agriculture but to exploit 

 it. The prosperity of the settler was his own affair. The land agent's 

 business was to make money out of him rather than to make money for him. 



One agency bought about 150,000 acres ft an average price of less than 

 $ 40 an acre. The average selling price was at first about $75 but was af- 

 terwards raised to $ 1 75 an ere. The a gent's commission at the higher price 

 was 30 per cent., so that he was paid for selling the land considerably more 

 than it cost. On another colony an Eastern selling agency undertook 

 to dispose of land for a commission of 20 per cent, on the selling price. No 

 limit was placed on the price the agent could ask, so the price of farms which 

 has been selling at $ 150 an acre was raised to $400 an acre and the agents 

 thereby almost doubled their commissions. As by the terms of the sale 

 one fifth of the price was paid in cash and the balance in four yearly instal- 

 ments, the selling agent took all the first payment and sought to induce the 

 settler to buy enough land to absorb all his capital in first payments. He 

 then could pocket the whole as his comraision. When the whole projected 

 area had been sold the owner held contracts with a number of moneyless, 

 inexperienced people who were a liability rather than an asset, while the 

 selling agent had all the cash. It is no wonder that a manager of coloniza- 

 tion enterprises testified to the commission that in most cases the price of 

 land was two or three hundred per cent, higher than it should be. 



The underlying causes for much of the failure of the colonizing schemes 

 are : i) the selection of unfit land ; 2) the selection of unfit settlers ; 3) ignor- 

 ance, on the part of the promoters, of proper colonizing methods, and, on 

 that of the settlers, of the crops they should grow and how and when they 

 should plant them ; 4) the excessive cost of land ; 5) the insufficient capital of 

 the settlers ; 6) the excessive rates of interest on borrowed money and de- 

 ferred payments ; 7) the short terms allowed for payment ; and 8) improper 

 marketing facilities. 



§ 2. Conclusions and recommendations. 



After having made a detailed exposition of the position of agriculture 

 in California, and having noticed all the disadvantages and abuses due 

 to the complete liberty left to individuals as regards colonization, the com- 

 mission advances, in the last part of its report, its conclusions and recom- 

 mendations on which legislation should be based. 



