736 SHEEP INDUSTRY OF THE UNITED STATES 



are now generally known as " promoters." This class is composed of 

 shrewd and sagacious business men of means or influence who have 

 taken advantage of the active demand for sheep to employ their own 

 means, or to borrow capital advantageously to promote the extension 

 of the industry and make large profits on the investments. The " pro- 

 moter 77 found that he could buy sheep quite low for cash in Montana 

 and other Western States, provided he was not particular as to the 

 class of sheep, age, quality, and grade considered, and by purchasing 

 them in large numbers he could buy them cheap. He resold or put 

 them out 011 shares in small lots of from 50 to 500 head or more to 

 responsible farmers who were eager for sheep and suitably equipped to 

 handle them without special risk to the "promoter," under a contract 

 with the farmer to properly care for, shelter, and bear all expenses of 

 maintenance of the flock, and thus make good to the "promoter 77 all 

 losses. In consideration of this he was to receive one-half the wool and 

 one-half the increase and at the expiration of the contract return to the 

 "promoter 77 the original number of sheep selected from the flock. In 

 the contract the " promoter " usually reserves the right at any time to 

 repossess himself of the sheep if dissatisfied with the way they are 

 being handled, with recompense to the lessee. He also reserves the 

 right to control the sale of wool, which must be delivered to him as 

 soon as clipped. 



When sheep were not leased on shares they were sold in small bands, 

 either for cash or on time, when satisfactory security could be given , 

 and at an advance which is seldom less than 50 per cent net for spot 

 cash. When sold on time the usual advance over cost is 100 per cent? 

 and as much more as the traffic will bear, with a minimum rate of in- 

 terest of 10 or 12 per cent for a period of from three to five years, and 

 an annual payment on the principal Avhich comes out of the wool and 

 mutton sales. The " promoter" took no risks and was sure of the bulk 

 of the profits, while the flockmaster had to wait until he was out of 

 debt or until he could realize something from the increase. 



So very successful were the pioneer "promoters 77 in realizing large 

 profits that during 1890 and 1891 the number increased, and almost 

 every county in the State was under their operations. Banks, mort- 

 gage-loan companies, and other capitalists became interested in sheep 

 speculation. Companies were also formed to enlist eastern capital to 

 invest in sheep husbandry. It is estimated that in 1890 over 20,000 

 sheep were brought into North Dakota by " promoters, 77 and a larger 

 number during 1891, to say nothing of the number brought in by the 

 stockmen and farmers themselves. 



The development of the sheep husbandry in North Dakota by this 

 system of "promoters" has had its advantage as well as its disadvan- 

 tages so far as the future welfare of the industry is concerned. It has 

 enabled farmers who were barely making a livelihood by exclusive 

 wheat-raising, and who were without capital, to enlarge Qr extend oper%> 



