The Dickinson press., 1899-05-13
WHY LAND IS CHEAP.
Question That Has Puzzled Eastern
People, Investors and Own
ers of Property.
GLANCE INTO THE PAST.
Of the Northern Pacific and
Its Attendant Struggles-Wild
Immigration and Speculation.

nave l been asked by Eastern people,
investors and of property, why
with n soil by nature supplied with
nutrition almost ineXhaustible, show
ing an average return Of twenty-five
per cent on the total value to the far
mer, could our lands be bought for
such ridiculously low prices as have
been made. Did you evcr stop to think
of the question? Do you know of any
other state where the farming COM
munity clear one-Quarter Of the value
of their property annually?
10 get at the foundation OF our strug-
gle. which was not the consequence
of local conditions. but placed upon US
by foreign circumstances over which
we had no control. it Is necessary to
go back to the construction Of the
Northern Pacific Railway Company,
which vas practically the opening fac
tor for the settlement of North Dakota.
Congress endowed this road with a
body of land 100 miles wide. made up
of alternate sections, clear across our
state and through the very best lands
in u boundaries. The extension and
completion Of this road was disastrous
~ interfered with by the panic Of 1873.
The bonds Of the road being acceptable
by the company as payment for lands
In any part of their land grant, the
holders, to avoid the risks and uncer-
taintics of the stock market of which
they had just reapcd n lambs share.
selected large bodies of these lands in
our state and Immediately ccntored
their attention o problems to make
their holdings profitable and recover so
much as possible of the loss coming to
them from their bond purchases. The
affairs of the Northern Pacific and JAY
Cooke 4 Co. being the subject upper
most in tho minds of people in all parts
of the world. The press was of course
full of it. and as they drew attention
to the possibilities back of the lands.
the attention of the Spectator a
ccntcrcd on this locality. This led to
a wild immigration made up of specu-
lators. lawyers. teachers. tailOrs and
thinkers. and followed along at the lat
ter end by the intended farmer from
East and South, as we'll as foreign
countries. This immigration located on
government land under the var.Nus
land laws Of the United States. and
many purchased from the holders of
railroad lands pieces contiguous to
their homestead or presumption claims,
and those not actual farmers made
final proof Of their government claim
at the earliest possible date, usually
after n fictitious residence Of six
months. thus terminating n farm resi-
dence altogether distasteful. Witt this
undesirable speculative population
came the various loan companies from
all parts Of the financial world. Money
was to be made quick, hence borrowers
were not s%queamish on rates they had
to pay; high rates caused money to
seek questionable Investments. and
millions were loaned to this spccula-
tive immigration on what We're, or i'm.
mcdiately after became, wild plHirie
land. willing to produce abundantly If
titled, but a dead weight Oh the dollar
u-day clerk. the owner.
Just at the top notch of this wave
came the stringency Of 1884. Money
frightened on all sources of supply; in.
tercSt defaulted by the thousands, and
the investor who had purchased these
mortgages from the loan companies
was rudely awakened to the fact that
he had something to do besides tear
off coupons. The disasters following
that awakening need not be recalled
here. The foreclosed mortgaged prop
erty thrown on the market here in
North Dakota. although not as great in
amount by thousands Of acres as in
states south of us. was. nevertheless,
much more than our population could
absorb; prices at which it was offered
were scaled down repeatedly. until
large bodies of these securities were
bought at n song. as compared with the
actual value of the land measured by
the sure production the owner could
count upon by cultivation. Hence. I'M
til the year 1892, North Dakota values
had shown no increase. but our in
crease in population has bccn so sure
year after year that the sacrifice offer
ings have been absorbed. and lands in
the Red River valley which sold ten
years ago at V to ten dollars per
acre are selling, in many instances. at
twenty-five and thirty dollars. This
sphere Of higher values travels farther
West each year.
That North Dakota has not thrown
n heavy loss ON the shoulders of the
Eastern investor as other Western
states is solely because of the fact that
within her borders is laid out tor the
use Of man the largest body of rich.
black loan clay subsOil land free from
stone, gravel or ravine known in these
States.
HORACE HANCE.
Fargo. Y. ID.