There is not much difference after all, when one comes right down to the facts, between the crook who starts out deliberately to get one's money and the fellow who starts out in ignorance and makes great promises of returns that he knows nothing about. Both succeed in getting one's money and both succeed in misleading those who have a desire to lay aside something for their old days. We naturally feel more charity for him who has good intentions, but who fails, than for him who starts out with bad intentions. But, after all, only results count.
Did you ever receive the literature of one of these various concerns that has pecan or apple orchards to sell? How beautiful their schemes look on paper! With what exquisite care they have worked out the pictures and the language and the columns of figures showing the profits! While writing this article I have before me a prospectus of a certain pecan company that prints columns of attractive figures. Fearful, however, that the figures would not convince, it has resorted to all the various schemes of the printers' art in its portrayal of the prospective profits from a grove set to pecans and Satsuma oranges, and it tells you in conclusion that it guarantees by a bond, underwritten by a responsible trust company, the fulfillment of all its representations. Yet what are the facts? Their lands are located in a section where the thermometer falls to a point that makes highly improbable the profitable growing of Satsuma oranges. And all their figures are merely estimates of the wildest character, printed in attractive columns, based upon nothing.
As a member of the National Nut Growers Association I was this year chairman of the committee on orchard records. I sent out blanks, with lists of questions, to many prominent nut growers to see if I could secure data upon which to base a report to the association. The replies I received showed the existence of some very promising young orchards of small size, well cared for, but they also showed that there was no such thing as an intelligent report upon which reliable data as to the bearing records of orchards could be based for any future calculations. There are two reasons for this. First, most of the figures we have are based upon the records of a few pet trees around the dooryard or garden, grown under favorable conditions. Second, the young groves are not yet old enough for anyone to say, with any degree of accuracy, what the results will be. Therefore, the alluring figures printed in these pamphlets are only guesses.
Furthermore, what of the contract of these concerns? What does it specify? You would be surprised to know the legal construction of one of these contracts, together with their guaranty bond. In most cases they advertise to plant, and properly cultivate for a period of five to seven years, orchards of the finest varieties of budded or grafted pecan trees, with Satsuma oranges or figs set between. But the guaranty company is usually wise enough to have lawyers who are able to advise them of their liabilities, and about all they actually guarantee is that, after a period of five years, provided all payments have been promptly met, there will be turned over to the purchaser five acres of ground with trees upon it. Five years old? No, they may not be one year old. Budded or grafted? No, they may be mere seedlings. Oranges set between them? No, the orange has passed out of the proposition before the bond stage. The companies generally print a copy of the bond, but usually in such small type that the victim does not read it, though the heading is always prominent. It thunders in the index and fizzles in the context.
Moreover, suppose suit is brought on one of these contracts and bonds? What is the measure of damages? What basis has any court or jury for fixing damages? And be it remembered that courts do not exist for the protection of fools against their folly. The principle "caveat emptor" is as old as the common law itself, and it means that the buyer must beware, or in other words, that he should inform himself, and that he cannot expect the courts to protect him where he has failed to exercise due caution and diligence. Therefore, as a lawyer, I should very much hesitate to take on a contingent fee the suit of one of these various victims against a promoting orchard corporation.
However, in any jurisdiction where there is a criminal statute against fraudulent representation and obtaining money under false pretenses, I should not hesitate, if I were the prosecuting attorney, to indict every member of such a corporation, and, to sustain the case, I would simply present to a jury of honest men the representations in their advertising literature, and then have the court instruct the same jury as to the validity and limitations of their contract. Their advertising is brilliant enough to dazzle the sun. Their contract is as dull as a mud pie.
In addition to all of this comes the question of orcharding by proxy, and the success of the unit or acreage system, and many other similar questions; and let me say that I doubt if there is today in the United States one large development scheme, either in pecan or apple orchards, that will prove of ultimate financial profit and success to the purchaser. The promoter may get rich—he has nothing at stake. In most instances he has the price of the land in his pocket before there is a lick of work done on it, and the payments come in regularly and promptly to take care of his salary and the meager and unscientific development.
Of course I would not be understood as saying that pecan or apple orchards cannot be made profitable. I am of the opinion that reasonable sized orchards in proper locations and proper soil, of proper varieties, with proper care in handling, are good investments, and, as proof of my confidence, I am planting orchards both in the north and south. The adjective "proper" which I have used here may seem insignificant at the start but, believe me, before you have begun to clip the coupons off your orchard bonds this adjective will loom up as important as Webster's Unabridged Dictionary. In fact you will wonder how it has been possible for anyone to forecast in one word such comprehensive knowledge. Think of a man a thousand miles away putting money into the hands of some unknown concern, for five acres of unknown land, to be set in unknown varieties of trees, to be cared for by unknown individuals. Can he not see that, in keeping with all the other unknown factors, his profits must also be unknown?
We look at a great industrial enterprise, such as the steel trust, and marvel at its success. But it must be remembered that this industry started many years ago, and step by step built furnace after furnace and mill after mill, after the owners had tried out and become familiar with all the factors of that industry, and after great corps of trained experts had been developed, and after science had given to this industry many of the most marvelous mechanical inventions of the age. These facts are overlooked, however, when some fellow steps up and proposes to put a steel-trust-orchard on the market in twelve months. In most industrial enterprises there are well-known and established factors to be considered. In horticultural enterprises, however, no man knows what twelve months hence will bring. I read the other day with great interest the prospectus of a great pecan orchard started several years ago by a very honorable and high-minded man, and the promises of success were most alluring. What are the facts? The boll weevil came along and wiped out his intermediate cotton crops. The floods came later and destroyed acres of his orchards, and, if he were to write a prospectus today, it would no doubt be a statement of hope rather than a statement of facts. He would no doubt turn from the Book of Revelations, where at that time he saw "a new heaven and a new earth," and write from the Book of Genesis, where "the earth was without form and void."
How many people have been defrauded by these various schemes, no one knows. How many clerks, barbers, bookkeepers, stenographers, students, preachers, doctors, lawyers, have contributed funds for farms and future homes in sections where they would not live if they owned half of the county. How many people have been separated from their cash by literature advertising rich, fertile lands in sections where the alligator will bask unmolested in miasma for the next fifty years, and where projects should be sold by the gallon instead of by the acre.