Arizona republican., 1916-11-19

sociation was convinced that he was serving him gratis. Should the loan organization have $20.000 to s50,000 or between S50,900 and $100, 900.
 If you are forced to compensate the i secretary-treasurer, it would be better to have one competant man serve for several neighborhood associations" o. H. Kunce of Chandler, was the second on the stand. Should land nearer Phoenix have larger loans than lands further away" he asked. Com missioner Norris explained that the loan act is to serve the agricultural rather than the suburban interests
 Can one association form itself within the limits of another associa- tion?" asked w. w Carney of Mesa. Secretary McAdoo answered that that was possible but htat it would first be better to join with the other organi- zation.
 Who pays for the deficit, if any?" questioned H. A. Bustrin of Maricopa county. Secretary McAdoo answered that the borrower was responsible for no more than ten per cent of his loan, five per cent on the stock and five per cent on the possible assessments. The bank pays the balance on all deficits.
 How much money could small far mers use profitably to raise truck crops" questioned Commissioner Quick "The Glendale bank loans from s37 to $40 per acre to producers for these crops at ten per cent on straight loans. It requires $1O0 per acre frequently to make truck crops" returned Mir Ham, 1 mels of Glendale.
 i O.-"Do you think it safe to loan to desert lands (pumping propositions" asked Commissioner Quick. Al don't take much stock in pumping propositions" G-"Do you think it helpful to Ari- zons to have the government loan cheap money here" A-.Yes"
 John Orme, president of the Water Users association reported that in the
 Salt River valley there are 250.000 acres of land under cultivation. the gross in-
 come from which is s35 an acre or $5, 5,5O0.O00 There are large amounts of | chattel mortgages in this section, he stated. most of which is at ten per cent. lsometime with 2 per cent commission. Some money on farm loans has been let out this fall, he announced, at per cent. There are 60,000 head of dairy stock, 75.000 hogs, "A, ,0O0 beef cattle land l2,000 horses and mules in this dis trict.
 Questions by Secretary Answers by Mir. Orme.
 Q.-"Have you any idea what the net income per acre is?"
 A.-"Wheat. 1916, net s25; 1915. net
 $lO. The acreage value of lands is $l5O.
 Q.-'Do you think it safe to loan fifty per cent on this valuation?" A.-"Yes."
 President Orme of the Water Users
 association explained the payment of
 the project cost. The first four years owners pay per cent; the second four years, per cent and the third four
 years per cent The total cost was
 slS.OOo.00O. Of this amount. s3,00O, OOO has already been paid. leaving an un-
 paid balance of S10,00O,000
 Questions by Secretary McAdoo Answers by Mir Orme.
 Q-"What term or length are mort gages?"
 1 A-"Usually three years"
 lands?"
 l A-'Forty to sixty per cent" I Q-"Can you obtain small loans
 say s1.000 for three years?" g A-"Yes'
 I L. H. Storey, of Higley, a farmer | was the next witness. His farm is
 1s0 acres. mostly wheat. Mir Store,
 stated that he had a loan on hi.
 property at ten per cent for thre,
 nentfs. He said that he could prof iltaDly use cheaper money for improv- ing his property with stock ana
 crops. He stated that the land values