The Birmingham age-herald., 1904-08-15
MUCH IRRIGATION BASED ON FRAUDS Mir. Newell Sounds a Note of
 Warning
SCHEMERS ARE VERY ACTIVE
Western Residents Realize Value of IT. rigaton and Are Often Too Ready to Invest Their Money in
 Doubtful Enterprises.

Washington, August 14.-(Special.)- Three hundred engineers, surveyors and helpers in the irrigation reclamation ser- vice are out in the field, studying and planning for irrigation projects In the great west. Some few are experimenting the actual construction of huge dams and canals MT. Newell himself. the head of the service, has just returned to Wash ington from somewhat extensive west ern trip. He reports great interest throughout the west In the big works proposed by the government, but sounds note of warning against numerous schemes and frauds which are being folst- ed upon various localities as result of the great interest aroused through na- tional irrigation activities.
 There are many instances of honest, effective ard legitimate irrigation works" he said, where the settlers themselves, gone in and built the works. owning or controlling them along with the reclaim ed land; but I do not know of any of the big private irrigation schemes which are what might be called legitimate de- velopment enterprises. They are ex- plotted probably more for selling stock and bonds than for watering land.
 Compared With Mining.
 Irrigation development can be compar- ed to mining development. The two are quite similar in their methods of finance. The gold or the copper mine, or the oil well which is really a proven good thing, is taken up and operated by its owners. It is made into close corporation propo- sition in every case. If, on the other hand, the supply of metal or oil Is problematical then 1t is made an attractive stock and bond scheme, with glittering letterheads and artistically printed circulars and other peoples money in large quantities is solicited Attempt is being made to float very questionable irrigation schemes all over the west.
 Tt Is singular, too," said MT. Newell ''how many men of ordinary hard busi- ness sense will go into these wildcat things. successful grocer, for instance, who if he were investing his money in the grocery business, would find out every detail and every fin and out of the new business, and would make a close and advantageous deal, will draw his check for some irrigation stocks or bonds In the most trustful and confding manner-pay- ing for an investment regarding which he knows absolutely nothing, can find out nothing, and which Is as problematical in 1t returns as the veriest wildcat mine
 Make Personal Investigation.
 Other people make personal investiga- tion They go over the land to be re- claimed they see the splendid crops grow ing on other lands which have been re- claimed, and having investigator, they confidently invest, even though tract of 5O,O00 acres IS to be reclaimed with water supply insufficient for 5000 acres. l am mentioning these figures advisedly There are instances today where irriga- tion shares are being sold for land con taining absolutely no water supply at all, and which can never be irrigated, but will always remain desert.
 'The meanest and most contemptible class of sales are where the promoters hold out the alluring picture to the poor man of family, that he is by his small regular contributions buying a home for himself-a little home to which he can go in his older age. and by reason Of the bountiful crops due to irrigation, support himself and his family. Thousands of peo- ple in the United States are making such contributions which they might as well throw into rat hole.