Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1899-05-12
WHY LAND IS CHEAP.
Question That Ha~ Puzzled Eastern
People, Investors and owl.
ers Of Property.
GLANCE INTO THE PAST.
Oncninr If the Northern Pacific and
Its Attendant StrugEles-Wfld
Immigration and speculation.

mnllxralt1On uhu SIcSuAsANAu"s
Many times in the past ten years
have l been asked by Eastern people,
investors and owners of property, why
with a soil by nature supplied with
nutrition almost inexhaustible, show
ing an average return OF twenty-five
per cent on the total value to the TAR
mer, could our lands be bought for
such %ridiculously low prices as have
been made. Did you ever stop to THINK
of the question? DO you know of any
other state where the farming CONF
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 was practically the opening rae
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 our boundaries. The extension and
completion Of this road was disastrous
ly interfered with by the panic OF 1873.
The bonds Of the road being acceptable
by the company rs payment for lands
in any part of their land grant, the
holders, to avoid the risks and uncer-
%taintics Of the stock market OF when
they had Just rcapcd 4 lambs snare.
selected large bodies of these lands IN
our state and immediately conferred
their attention on 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 & Co. being the subject upper
most in the 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 was
ccntcrcd on this locality. This led to
q wild immigration made up of specu-
lators, lawyers. teachers. tailors ana
thinkers. and followed along ut the lat
tor end by the intended farmer from
East and South, as well as foreign
countries. This immigration located on
government land under the VARIOUS
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 a fictitious residence Of six
months. thus terminating a farm resi-
dcnce 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 sQueamish on rates they had
to pay; high rates caused money te
seek questionable investments, ant
millions were loaned to this specula
tive immigration on what We're, or i'm
mediately after became, wild plHirit
land. willing to produce ~abundantly i
titled. but a dead weight on the dollar
a-day clerk. the owner.
Just ut the top notch Of this wave
came the stringency Of 1884. None,
frightened on all sources of supply; in
terest defaulted by the thousands, ant
the investor who had purchased thes'
mortgages from the loan companies
was rudely awakened to the fact thai
he had something to do besides tea
off coupons. The disasters following
that awakening need not be recalle'
here. The foreclosed mortgaged prop
;s 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 III population could
absorb; prices at which it was offered
were scaled down repeatedly. unit
large bodies Of these securities were
bought at a song. as compared with the
rY actual value of the land measured by
the sure production the owner coulG
count upon by cultivation. Hence. I'M
Is til the year 1892, North Dakota value:
IS, had shown no increase. but our in
H. crease in population has been so SUR
ng year after year that the sacrifice offer
"a ings have been absorbed. and lands il
If, the Red River valley which sold tel
il years ago ut seven to ten dollars pc
at acre are selling. in many instances. q
", twenty-five and thirty dollars. Thi
TO- sphere Of higher values travels farthe
ed West each year.
ne That North Dakota has not throw
~ a heavy loss on the shoulders of til
ry Eastern investor as other Western
'es states is solely because of the fact tina
VI within her borders is laid out tor tn
gu use Of man the largest body of ricl
W. black loan clay subsOil land free frol
stone, gravel or ravine known in thes
ne United States.
,,t HORACE HANCE.
Fargo, N. D.