The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-06-01

a brilliant thought leaped into his har-
ried brain.
He decided to transfer bis financial
burdens to the capable hands of the
rightful receiver of all gold bricks, TO
wit, the government. From the Joint
land stock banks established by the
government TO aid the stricken farm
ers and stock raisers he would induce
his debtors TO borrow on mortgage. al
5h per cent, sufficient funds to pay
off the existing mortgages at 8 per
cent held by the Bank of Valley Gen.
ter. In order to sweeten the deal Mr..
Babson even considered waving the
accumulated and unpaid interest for a
couple Of years. All he wanted back
was the principal of his foolish loans.
for with that in his vaults he knew
his bank would be quite safe.
Promptly he bulldozed farmer
into making application for such q
loan. and with commendable celebrity
a government farm appraiser came
up from San Francisco to inspect the
proffered collateral II required
something less than thirty seconds for
this individual to make his appraisal
and decision.
The government" he said, will not
consider loaning money on California
farms which are listed as dry-farming
lands"
But these lands are irrigated" Mr..
Babson reminded him.
Yes. so | observe. but from deep
wells. But as more and more wells
are bored and the farming In this
valley tends more and more toward
intensive cropping. thus requiring more
and more water for irrigation. the wa
ter levels will recede and the cost OF
pumping the water to the surface win
increase proportionately with the lift
until a point will be reached where
the water will be tinctured with red
ink. Hence, such lands as these are
listed as dry-farming lands and con-
stitute loan risk the government is
unwilling TO assume II viii loan
only on lands that are surface irri-
gated and with an assured and con-
tinuous source Of water supply"
so I've loaned money on dry farms
because l was jackass enough to con-
slider them irrigated farms" Babson
almost moaned.
He made survey of the water situ-
alton and discovered to his horror that
the water levels were indeed receding.
Creeping paralysis That's what it
is" he soliloquized. And the Bank of
Valley Center is the richest patient
and will have to pay the heaviest bill
for medical attention"
But the old ability to scheme his
way out of a tight hole did not desert
him. He reduced his situation to its
lowest common divisor. If surface ir-
rigation, from a never-failing and am
pie source of water supply, could be
brought to the lands Of Forlorn VAL
ley, then Forlorn Valley lands would
be classed by the government as irri-
gated lands, whose value would imme-
diately return to the old wartime
figure. And the federal farm loan
banks would then have no hesitancy In
loaning up to 60 per cent Of the ap-
praised value.
Therefore, the thing to do was to Sc
cure surface irrigation for Forlorn
Valley.
eden Valley creek" Babson cried
aloud. "a dam in that gorge In the
lower end of Eden Valley, kept peren-
nially at high level by the flood wa
tiers Of Eden Valley creek and led
through a tunnel or canal cut
through the low hills on the north
ern rim and down into Forlorn Valley.
will do the trick"
The next problem was that of &C.
curing the water, but this Babson did
not regard as a difficult one. He had
but to acquire the dam site from young
Nathan Tichenor, sole owner of the
Bar q Land and Cattle company. The
land which would be inundated By the
lake which would be formed when the
dam should be built was next to worth
less; Babson decided the Bar Fl Land
and Cattle company would be delight
ed to get rid of it at price not ex.
ceeding ten dollars an acre. although
as grazing land il was not worth that
There were hydro electric possibilities
inherent in the enterprise that would
be worth millions alone. He must ap-
proach this delicate matter cautiously
Tichenor had been an absentee land
lord ever since leasing the Bar Il
ranch to Rance Kershaw. That ar
gued he would scarcely be interested
in returning to Eden Valley again and
engaging In the cattle business.
Rance Kershaw was a financial
wreck and could not possibly continue
his lease of the Bar 81, and it would
be several years. doubtless, before a
new tenant could be found for il Yes,
Nate Tichenor would sell the Bar q at
a fair price-exorbitant, considering
the present status of the cattle in
dustry-rather than hang on to a
frozen asset and pay taxes On 1t
Mr.. Babson decided instantly to
buy the Bar 81, If he had to pawn his
wife's piano to aid in raising the
money for the enterprise. With the
title TO the ranch vested in him-no,
a dummy, for Babson must not appear
in the dealt would be simple mat
ter to sell the dam and lake sites to
the Forlorn Valley Irrigation district
for a cash consideration that would
leave him the remainder of the ranch
without cost
He considered the Kershaw ranch
and decided he would not bother to ac-
Quire that. even II he had the money
to buy Ii cheap. 1t was worth not
NANNY loss than q million doIIars hu-