"This is it," Bryant went on. "I propose to bond the ranch and water
right for enough to build the project, then construct it, then market
the land in farms at fifty dollars an acre. The canal system can be
completed easily next year, and sales and colonization proceed
immediately when done. Naturally, as a sale is made, the mortgage and
notes will be put up behind the bonds to secure the latter. The
purchasers will pay down some cash, say, ten dollars an acre; that
makes fifty thousand cash and two hundred thousand dollars in notes
against sixty thousand dollars in bonds. A visible profit of one
hundred and ninety thousand. That amount will be covered by a stock
issue. I shall set aside sixty thousand of it as a bonus to whoever
purchases the bonds. Thirty thousand more shall go to whoever markets
the bonds, as a commission. The remaining hundred thousand of
stock----"

"Goes to you, I presume."

"Yes; I keep that. It's payment for the ranch and water right, for my
developing the scheme and building the project. What I need is someone
to sell the bonds; I'll take care of everything else. And because you,
Mr. McDonnell, know the character of the land hereabouts and know
water rights, the fertility of the soil when watered, and the
soundness of a proper irrigation project as an investment, I've come
first to you. Millions aren't involved; it's a small project; the cost
is uncommonly cheap and the security therefore exceptional; you know
the property personally; I, as builder, and having everything at
stake, would see that the construction is right. So small an issue of
bonds should be quickly placed in the East. And the commission isn't
to be sneezed at."

Mr. McDonnell's features relaxed into a smile.

"I never saw an irrigation scheme yet that didn't look a money-maker
on paper," he stated, "nevertheless, seventy-five per cent. of them
wind up in the hands of a receiver."

"Because of faulty estimates and wasteful construction, yes. Because
they're generally too big, and the interest eats them up before the
land is sold. Because some start building on a shoestring. Or because
of changes in the projects that are costly, or rows in the management,
or insufficient water, or bad land titles--I know, I know. I've
studied and analyzed their troubles. And I propose that this Perro
Creek scheme of mine shall be one irrigation project that shall
succeed."

"And you think you've taken all precautions?"

"Yes."

"W