CO-OPERATIVE CAPITAL 



"We have, first, a great investment which has prepared 

 the land for occupancy; then, fertile land and reliable 

 water supply ; intelligent and interested labor to do the 

 work; the improvements made by tho use of the labor 

 and capital. Tho very important question of wise and 

 honest administration of the enterprise is dealt with in 

 a subsequent chapter. 



Having considered tho general principles of invest- 

 ment which enter into tho problem, we are now ready to 

 discuss its details. The lands and works required for the 

 undertaking should be purchased on the shrewdest busi- 

 ness terms. They can generally be had for at most the 

 amount of the original investment, and often for a good 

 deal less. In many cases a large part of the investment 

 has been eliminated by foreclosure, and it is only neces- 

 sary to reimburse the bondholders, or those who bought 

 at forced sale. There is no occasion, therefore, for the 

 settlers to pay a sum which would represent a profit upon 

 the lands and works. If they pay six per cent, upon the 

 capital borrowed to acquire and develop the property on 

 the favorable terms now possible, they can readily com- 

 mand all the capital needed for future operations. Tho 

 price of lands would vary in different parts of tho West, 

 ranging from five to twenty dollars per acre. This would 

 include the appurtenant irrigation systems and perpetual 

 water-rights. With labor and capital to develop them 

 under wise plans and good leadership, these lands and 

 improvements would soon have a value, on the basis of 

 earning capacity, of fifty to one hundred dollars per acre, 

 and in some instances much more. 



Tho cost of transporting settlers from their present to 

 their new homes should be borne by themselves or friends. 



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