Oil and Gas Promotion.—The excitement caused by a developing oil field is intense. Agriculture gives way to a spirit of speculation and overvaluation and everything looks good to an investing public. Fabulous returns appear to be in sight for all who invest in time. This gives opportunity for professional promoters to do their work, sometimes on a large scale. They claim a sure thing even when wildcatting. So they send unwarranted prospectuses broadcast and the money harvest is on. It is difficult to place the criminality of such procedure. We only know that it works out badly as a rule. You should know that it is bad business to accept the unqualified statements of most oil and gas promotion concerns as a basis for investment. These persons and concerns interfere with legitimate development and should be brought under control.
Irrigation Schemes.—The Federal Government spends vast sums in developing the irrigation resources of several dry land States. Such reclamation is of economic importance. Furthermore, many reliable individuals and private companies do as well and even better in developing some projects. As a result of successful irrigation thousands of happy homes are made where once was only dry land. Notwithstanding this fact there are fraudulent irrigation promoters. Scheming individuals sell illegitimate propositions which can not succeed because of lack of water, unsuitable land or heavy graft. Such promotion has gone on to such an extent as to call for severe criticism by many practical irrigationists of the West, and the Reclamation Department of the Federal Government is increasing its diligence in checkmating the work of persons who attempt to promote bad projects.
Fruit Land Promotion.—Have you visited the great fruit districts of Oregon, Washington and other Northwestern States? Do you know what care is there given to the cultivation and marketing of apples especially? The fruit is so perfect in form and color. It is accurately graded for the Eastern and foreign markets. These splendid successes are widely known and are taken advantage of by scheming persons who promote the sale of any and all kinds of land in and near fruit districts. One of the leading fruit men of Washington says that thousands and thousands of dollars are going into the hands of concerns that are sure to fail and that the fruit business is being hurt by such operations. The trouble of it is that the average investor does not know that the fruit business is highly specialized, and that many matters concerning soil, exposure, climate, markets, etc., not known to him, are the features that determine success and failure. Furthermore, the fraudulent promoter does not know, neither does he care.
Doubtful promotion of this kind is not confined to the Northwest alone. It has hurt the South and may do damage to New York and other States in which are lands well suited for fruit raising, if the proper authorities do not conserve the larger interests of the industry and State against promoters.
Eucalyptus Promotion.—For many years the forests of the United States have been in process of depletion. Some have seen in this, and with good reason, an approaching timber famine. The alarm has been sounded, and the demand has gone forth for better methods in timber utilization, for fire protection, and tree planting. This is the right thing without doubt, but it affords a loop-hole for promoters. It is understood, also, that some trees grow faster and are more all-purpose than others. The eucalyptus are of this kind. They are of many kinds. Such trees can not be grown on any and every type of soil and are limited somewhat by climate. It so happens that California, because of its soil and climate, is the leading State in culture of eucalyptus. It has several successful groves and larger plantings, yet the situation is promoted for all it is worth, and perhaps more. The public (in the Central and Western States) is worked by carefully-planned selling schemes. The fact is that there is too much graft in some of them. The process has gone on to such an extent as to cause the friends of eucalyptus planting to sound a warning against such procedure. This should cause investors to make a more careful inquiry of reliable persons, not controlled by the promoters, before parting with money. The trees must have suitable soil, climate, and care.
Drainage Schemes.—One of the largest lines of development in the United States is in the field of drainage, whereby swamp and flood lands are improved. The amount of land that either has or can be reclaimed by drainage is said to be about 75,000,000 acres. The Federal Government, various States, companies, and individuals, are doing this work. Much of such development is well founded, yet there are bad deals, which might be called deliberate steals in some cases. Examples of these exist in a few States and much money has been squandered on projects that can never succeed. Teachers, ministers, farmers, merchants and others are victimized. In the language of one of Florida’s representatives at the National Irrigation Congress of this year, “Persons selling certain wet lands of Florida are practicing fraud and should be prosecuted as criminals. They are hurting the good name of Florida and swindling people in the North.” This person severely criticized certain cities of the North as being promotion centers. Further comment is not necessary.
Dry Land Deals.—Much dry land promotion is fraudulent, caused in part by misinformation on the part of agents, but due to some extent to deliberate misrepresentation. For instance, there are places in Texas, Oklahoma, Kansas, Colorado, western Nebraska, Wyoming, and other States subject to such promotion. The fact is that a part of the land in the dry area of each State named is well suited for dry farming, but that unscrupulous agents sell anything and everything to unsuspecting persons as being good, awaiting the plow and successful development. So it is that geographic position has been overworked. The following points are sometimes overdrawn in securing sales:
a. The idea that nearly all agricultural land is under cultivation.
b. The notion that dry farming methods are successful on almost any kind of dry land.
c. That the climate, referring to the rainfall especially, is becoming more favorable for agriculture in dry regions as the years go by. This notion, used in deceiving thousands of people, is greatly in error.