The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-19
Secretary of Agriculture Puts Inspec-
tors in Field to Investigate Fren-
zied Spectators in Land

other charge. The agents commis-
sion was $1,000. Likely as not he Is
looking around in behalf of the COM
mercial traveller for another buyer.
In addition to the money he made
in growing his crops. a landowner in
central Iowa, now 70 years of age.
has amassed a small fortune through
the increase in the value of his farm.
4, He bought. in 1909, 34S acres at $3.50
an acre. Last June he sold the farm
for $3.50 an acre. His profit was
s56,120, or an average of $500 a
year during the decade that he owned
the land.
Two bankers were the purchasers.
They made a cash payment Of s21,S00
and gave the seller a mortgage Of
100000. The bankers own seven
other farms, containing about 1900
acres, all of which are in the market
at marked-up prices. Another bank
er, purchasing 100 acres at 5000. sold
out inside Of thirty days at $400. The
profit in this transaction was $4,000.
The proprietor Of a garage bought
| in April, also this year, n quarter Sec
ton at $3.50 an acre. Thirty days
later the land was sold for 1920 an
acre, at profit to the owner of $4,000.
This farm, in 1918 had an estimated
value of $3.50 an acre. The last pur-
chaser of the land, a young farmer.
says that he will cultivate 1t himself.
1t would seem that he Is an actual in
weston, inasmuch as he made a money
payment of $4,000. The balance, $780,
200, he has promised to pay on March
/, 1920.
Practically all sales of Western farm
lands in the regions where speculation
Is running wild stipulate that posses
sion is not to be given until the first
day of next March, at which time the
agricultural season of 1920 will begin.
The small down payments are made
simply to bind the bargains that have
been agreed upon. In other words,
they are margins, as has heretofore
been stated. Probably 80 per cent. Of
the men who are buying farms conf
IDENTIFY hope to sell them long before
the coming of spring.
Almost every sale is open to that
inference. Instances already given in
; this article leave no other interpreta-
; ton. Consider the following case: In
1917 a farmer of SO PUT away his
reaper and his plough and moved to
"town." During May, 1919, he pur-
chased a farm containing 81 acres
for 1914 an acre.
Made Almost $4,000.
The seller of this farm, a retired
man, made a profit of s71,906. A
tenant had been paying SIS an acre
as rent He Is to continue his rela-
: tons with the new owner. Fifteen
dollars an acre times 81 acres
| 70 hn
prietor Of the farm gave $4,000 in
cash, pledged himself to pay $4,000
! in cash next March and signed a
mortgage of s77,654. His invest
ment" totals $s7,654; his interest bill
! is s5.370.97 a year; his loss. accord
ingly, on the showing of the figures,
Is $7O5.97 a year.
D But not all of the farmers who are
buying land, as has been stated, are
spectators. Now and then an eHpe-
rienced man is purchasing a farm on
g the high values that prevail. He has
been prosperous in the past and thinks
that he can make money on the pres
: ent basis of prices. There are fathers.
too, who desire to set their sons up
in business.
I Such a man, for example, can be
found in Blackhawk county, Iowa. Ho
owns farm of 100 acres that is worth
D $4,000. Last May he purchased
eighty acres of adjoining land, paying
1905 an acre, and gave the farm to his
son. His interest bill is s1,22O a year.
which is the equivalent of SIS. an
0 acre. Such a charge in many parts
of this country would bring on a state
: Of bankruptcy.
In Nebraska lives a wealthy farmer,
made wealthy by agriculture. He
I owns 900 acres OF land. Twenty-Five
u years ago he moved to Nebraska from
Iowa. Like many men who leave the
homes of their youth. he hoped that
7 some time he could return and dwell
I among old scenes and friends. Find
ing that to be impracticable, he pur-
chased an Iowa farm for his son.
The farm, bought through an agent,
: was owned by a brother Of the man
J. in Nebraska, who had purchased 1t
l on a speculation. Seller and buyer
: learned of their relationship after the
b transaction had been closed. The Iowa
S brother made a profit of $4,000 In
e thirty days. The Nebraska brother
:. paid $4,000 down, agreed TO paf
$40, 900 next March and gave a mort
gage of $4,000 running ten years a.
y 8 per cent The farm contains zoo
( acres and was sold for $4,000.
Blind Girls Luck.
o SO highly does the Nebraska brother
:. think of Iowa land that he went ahead
r and made a second purchase, paying
n $4,000 for 800 acres, which was a
. price of S425 an acre. Land at such
2 a figure, a long distance from a Yity,
4 would fabbergast any farmer east OF
+, the Indiana boundary.
. A blind girl owned 1t up 10 July I
this year. a tenant paid her $40 an
acre. Hereafter, at per cent, her
> yearly income will be $3.50. instead
. OF less than half that sum. No mat
: ter what may happen, the boom has
. been a blessing to her
. The national Government has cau-
: toned farmers against selling their
i land unless they were fully informed
o as to its present value. Ignorance OF
g the rising state of the market has
l. helped and hurt a good many per-
= sons.
n The Department of Agriculture Is
n hosting storm signals in all the areas
II where the barometer of mounting
s prices indicates the coming OF very