ns best suited to
meet their particular problem.

There still remains to consider another form of business relation as
applied to farming which has become almost universal in trade and
transportation. The following incident may illustrate and emphasize
the problem better than abstract discussion: One day a man walked into
an office and stated that a friend had a half million dollars to
invest in farming, provided that he could be convinced that the money
would be invested profitably.

"Does your friend desire to buy land in any particular locality?"

"Yes," replied the promoter, "he wishes to buy land near ----. He has
some sentiment about it. He was born in that neighborhood."

"Well, that is a rather bad beginning. Farming on sentiment is
dangerous, especially when the sentiment is in no way related to the
business."

The facts were that the region indicated was recognized to be one of
the most unpromising sections of the state.

"If you undertake to invest a half million dollars in one neighborhood,"
continued the adviser, "you will pretty certainly fail to earn interest
on your investment."

"Why?" inquired the promoter.

"Before you could possibly buy any considerable part of the land the
owners of the farms you desire to buy would have doubled or perhaps
trebled the price asked for their holdings. It is one thing to earn
interest on an investment of $30 an acre and quite another to earn an
equal per cent on $60 or $90 an acre.

"In the second place, farmers are content to accept less per cent on
their capital than they would if it was loaned at interest, because
the farm furnishes a home as well as a business. When you buy up all
these farms and convert them into a single enterprise you will destroy
their home value. You cannot hope to compete with the man, who,
because his farm furnishes him a home, is content with an otherwise
small return on his investment."

There were other reasons, of course, why such an enterprise would
fail, which the speaker did not stop to explain.

"You are mistaken," challenged the promoter. "I intend to meet both
your objections. My plan is to form a corporation and issue both
preferred and common stock. The preferred stock shall bear 5% and that
will belong to my friend who furnishes the money. I will retain the
common stock. Five per cent is all the owner of the money is entitled
to, while if the business returns more than that amount, it will be
due to my management.