Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-01
TO INVESTIGATE
FAKE CONCERNS
REALTY FEDERATION WILL
TAKE UP EUCALYPTUS
GROSS ExAGGERATloN is LAID
TO CERTAIN PROMOTERS
Committee Is Appointed to Call Atten-
ton to Firms of Statements
Misleading to Prospect
i've Buyers

At the instance of the California
State Realty federation local COM
mittee of investigation has been APP
pointed by the Los Angeles realty
board to look into the proposition of
certain firms and corporations offering
to plant and care for eucalyptus lands.
1t is recognized that the growth of
eucalyptus is going to play an impor-
tant part in the development of this
state and that in all probability a great
deal of money will be made by the
pioneers in this way But while the re-
suit which may be reasonably antici-
pated promise very large profits some
of the statements put forth by d GER
tain class of firms and corporations are
grossly exaggerated, and in many in
stances are misstatements of facts.
At it's meeting last week the realty
board by resolution requested the ex-
ecutiVe secretary of the state realty
federation to address all firms and cor
porations dealing in eucalyptus planta-
ton, calling attention to some of the
statements made which are bound to
bring disappointment to investors, and
thus injure the real estate business in
general and the eucalyptus business in
particular.
In this letter the following six quota
lions will be given that are taken from
publications issued by six local COM
panies offering Investments in euca-
lyptus plantation. In some instances
these eXaggerations, or misstatements,
are in parenthesis attributed to gov
eminent or state forestry reports, al
though they are in no sense correct
quotations from such reports, but are
assumptions based on stated rare ex-
amples of the growth of individual
trees and are conditions wholly diff
ferent from those encountered in
plantations for commercial use.
Text of Statement
The statements quoted are as fol-
lows:
.'Trees average, at to years old,
at the base"
For purposes of calculation use a
7year-old tree, twenty inches in diane
ter and 100 feet high"
AT years eucalyptus globulus and
eucalyptus rostreta will average in
forest form twenty inches in diameter
and 100 feet in height"
TT is estimated that a tree of five
years growth represents value of at
least "a, and at an average of 800 trees
to each acre within five years VIII at
tain the remarkable value of $4,000"
"a tree years old is worth from SO
to IS per tree; 1000 trees to the acre is
worth $4,000 to $4,000 per acre"
"At the end of five years the tree will |
have an average value of 50 each. Your |
profit will amount to almost 500 per
cent at the lowest calculation and will
probably run higher"
The investigating committee is re- |
liably informed that 5-year-old trees
are merchantable for cordwood only, |
and it is self-evident that such returns |
as the above cannot possibly be OBJ |
tanned in the time mentioned. Bulletin |
No. 1856, just issued by the state, reads:
1.-The profit to be derived from euca-
lyptus in the future will be found in
hardwood lumber for wagon work, farm
and other implements, railroad, coach |
and house furnishings, furniture, etc.
Ties, telephone poles and bridge timber
will also prove profitable. For any of
the above named products of eucalyp-
tus at least ten years growth will be
required
Preliminary Warning
The above letter, say members of the
realty board, will be of the nature of
a preliminary warning to companies or
firms whose enthusiasm may have led
them astray. The committee has al
ready received assurance that certain
statements as to eucalyptus probable
profits will be withdrawn and more
conservative estimates furnished in the
future. 1t is hoped by them that this
will be the case with all exaggera ted
advertising, but if the hint is not
promptly taken the state federation will
adopt, it is announced. means to call
the attention of the public generally to
the offender.
From reliable sources" said Herbert
Burdett, secretary of the board yester-
day, Il learn that in the period of time
mentioned in the third quotation such
remarkable growth in diameter is at
tanned very rarely, and then only by
individual trees under exceptionally
favorable conditions. In a plantation
growth is slower. and SIICb 6p1IrpS Q |
the above greatly exaggerate what may
be expected. State forestry circular
No. 2 says: "Under favorable condi-
lions blue gum trees in seeding planta-
tion have reached maximum develop
ment of five inches in diameter and
.sixty-seven feet in height in four
years.