Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1904-08-15
IRRIGATION
IN THE WEST
Director Newell Of the RecIama-
tion Service Sounds a Warn.
ing to Prospective
Investors.
WILD CAT SCHEMES
While There are Many Legitimate Pro.
jects There are Some That are
Fraudulent.

A letter from Washington says that
three hundred engineers, surveyors and
helpers in the irrigation reclamation
| service are out in the field, studying
and planning for irrigation projects in
the great West Some few are super
intending the actual construction of
huge dams and canals. Mr.. Newell,
the head Of the service, has just re-
turned to Washington from some
what extensive Western trip. He re-
West in the big works proposed by the
government, but sounds note of warn
| ing against numerous schemes and
frauds which are being foisted upon
various localities as result of the
great interest aroused through nation
al irrigation activities.
There are many instances of honest,
effective and legitimate irrigation
works." he said, "where the settlers
themselves, or their capital to some
extent, have gone in and built the
works, owning Or controlling them
along with the reclaimed land; but
do not know of any of the big private
irrigation schemes which might be
called legitimate development enter
prises. They are exploited, probably,
more for selling stocks and bonds than
for watering land. Irrigation develop
ment can be compared to mining devel-
hn fur0 -iv,,i1 Low in,
their methods of finance The gold or
copper mine. Or the oil we'll, which is
really proven good thing, IS taken up
and operated by it's owners. 1t is made
into close corporation proposition in
every case. If, on the other hand. the
supply of metal or oil is problematical,
then it is made an attractive stock and
bond scheme, with glittering letter
heads and arti tically printed circu
lars, and other peoples money in large
quantities is solicited.
Floating Questionable Schemes.
Attempt is being made to float very
questionable irrigation schemes all
over the West.
ordinary hard business sense will go
into these wild cat things. A success
full grocer, for instance, who, if he were
investing his money in the grocery bus
mess, would find out every detail and
every in and out of the new business
and would make close and advanta-
geous deal, will draw his check for
some irrigation stocks or bonds in the
most trlAstful and confding manner
paying for an investment regarding
which he knows absolutely nothing,
can find out nothing, and which is as
in it's returns as the ver-
est wild cat mine. Other people make
personal investigation. They go over
he land to be reclaimed; they see the :
splendid crops growing on other lands
which have been reclaimed, and hav-
ng investigated, they confidently in
vest, even though a tract of $4,000
acres is to be reclaimed with a water
supply insufficient for 5000 acres.
am mentioning these figures advisedly.
There are instances today where irri-
cation shares are being sold for land
absolutely no water supply
at all, and which can never be irri-
gated, but will always remain des-
ert
"The meanest and most contempti-
Bile class Of sales are where the pro-
moters hold out the alluring picture to
the poor man of family, that he is by
small regular contributions buying a
home for himself-a little home to
which he can go in his older age, and
)y reason of the bountiful crops due
% irrigation, support himself and his
amily. Thousands of people in the
United States are making such con-
ributions which they might as well
hrow into a rat hole.''