"This is it," Bryant went on. "I propose to bond the ranch and water right for enough to build the project, then construct it, then market the land in farms at fifty dollars an acre. The canal system can be completed easily next year, and sales and colonization proceed immediately when done. Naturally, as a sale is made, the mortgage and notes will be put up behind the bonds to secure the latter. The purchasers will pay down some cash, say, ten dollars an acre; that makes fifty thousand cash and two hundred thousand dollars in notes against sixty thousand dollars in bonds. A visible profit of one hundred and ninety thousand. That amount will be covered by a stock issue. I shall set aside sixty thousand of it as a bonus to whoever purchases the bonds. Thirty thousand more shall go to whoever markets the bonds, as a commission. The remaining hundred thousand of stock——"
"Goes to you, I presume."
"Yes; I keep that. It's payment for the ranch and water right, for my developing the scheme and building the project. What I need is someone to sell the bonds; I'll take care of everything else. And because you, Mr. McDonnell, know the character of the land hereabouts and know water rights, the fertility of the soil when watered, and the soundness of a proper irrigation project as an investment, I've come first to you. Millions aren't involved; it's a small project; the cost is uncommonly cheap and the security therefore exceptional; you know the property personally; I, as builder, and having everything at stake, would see that the construction is right. So small an issue of bonds should be quickly placed in the East. And the commission isn't to be sneezed at."
Mr. McDonnell's features relaxed into a smile.
"I never saw an irrigation scheme yet that didn't look a money-maker on paper," he stated, "nevertheless, seventy-five per cent. of them wind up in the hands of a receiver."
"Because of faulty estimates and wasteful construction, yes. Because they're generally too big, and the interest eats them up before the land is sold. Because some start building on a shoestring. Or because of changes in the projects that are costly, or rows in the management, or insufficient water, or bad land titles—I know, I know. I've studied and analyzed their troubles. And I propose that this Perro Creek scheme of mine shall be one irrigation project that shall succeed."
"And you think you've taken all precautions?"
"Yes."
"With Mr. Menocal, even?"
"Even with Mr. Menocal, yes. Once my application for changes has been approved and I have the money to build, what can he do?"