to suggest that Mr. Adams proceed to explain to you more in detail the work of this Committee on Land Settlement.

One thing, however, I want to mention to you further. As I stated, we have established a precedent in the expenditure of the funds of the Club. Another precedent, this Committee on Land Settlement has made a unanimous report. We have had regular luncheons at the Engineers Club, and at these luncheons the reports of this sub-committee were presented from time to time, and acted upon by the whole committee; and Dr. Mead, Mr. Adams and Mr. Morgan are very proud of the fact that when their final report was presented, after the whole committee had had a good square meal at the Engineers Club, we all fell for it when the report was submitted, and it was unanimously adopted by the whole committee.* (Applause.)

Remarks by President Hodghead

THE PRESIDENT: We are obliged to our esteemed relative for this clear outline of the work of his section. I fear, however, there is a difference of opinion between the chairman and the Board of Governors as to the number of the committees of which he is the chairman, and that conflict will rise when an application comes for more money.

It was not expected that we could complete the report of this section which has been at work for six months and then have much oppor. tunity to discuss it at the same meeting, so it is very probable the discussion will go over until the meeting in February.

We will first hear from Mr. Adams, as Mr. Cornish has suggested— Mr. Frank Adams, who has charge of the Government's irrigation investigation in California-on the subject of how the data from which the committee formulates its report was collected throughout the state.

* The members present at the meeting of the Committee on Land Settlement on November 2d, at which the action referred to was taken, were as follows: Chairman Cornish, Messrs. Frank Adams, Barrett, Boardman, Cox, Gould, Grunsky, Honeywell, Hutchins, Kendrick, Mead, Morgan, Reed, Shaw, Stafford, and Wickson.

Data on Land Settlement

Submitted by Sub-Committee of Section on Agriculture

MR. FRANK ADAMS: In March of this year Messrs. Elwood Mead, David N. Morgan, and Frank Adams were appointed a sub-committee of the Section on Agriculture to make an investigation of land settlement conditions in California in co-operation with the State Commission on Land Colonization and Rural Credits and the University of California.

In conducting this investigation the sub-committee has had before it two main objects:

(1) To make such an examination of the results of existing land colonization methods in California as would indicate how far those methods are meeting the needs of our rural development; and

(2) To make such a study of land colonization methods in other countries as would furnish a proper basis of comparison between land colonization methods here and elsewhere.

At the outset of its investigation the committee was confronted with the fact that during the past three years settlement of California farm lands has been relatively negligible and that California is without a definite land settlement policy.

It was apparent that either our methods of land colonization were faulty or that the demand for California farm lands had practically ceased.

It is the conclusion of the sub-committee that the former of these two propositions and not the latter is true, and the data on which these conclusions are based will be given in that portion of the report of the sub-committee that I have been asked to present.

Previous Consideration of Land Settlement by the Commonwealth Club

The subject of land settlement in California was first brought to the attention of the Club at a special meeting at the Palace Hotel on the evening of May 8, 1914. At this meeting a paper was presented comparing the methods of land settlement followed in California with those of other countries, principally Ireland, France, Italy, Germany, Denmark, Australia, Canada, and New Zealand. It was shown that California is far behind these other countries in its colonization methods and the speaker of that evening expressed the feeling that the time was not far distant when, in the United States, land settlement would become a part of settled public policy as it has in the other countries referred to. He also suggested the need for an investigation in California to determine the results of present methods.

Shortly after this special meeting of the Commonwealth Club and at the request of Governor Johnson, President Wheeler of the University of California appointed a faculty commission to investigate the subject of land settlement with a view to reporting to the Governor at the next session of the Legislature. This commission presented two measures, one providing for a state rural credit bank and the other suggesting a state experiment in land colonization along the lines that have been successful in other countries. Both of these measures were introduced in the Legislature, the former as Senate Bill No. 508 and the latter as Senate Bill No. 509, and were referred by the Governor to a special commission appointed by him. This commission recommended that a constitutional amendment should precede the passage of a strictly rural credit bill, but they urged the passage of the land settlement bill.

At the regular meeting of the Club on the evening of April 14, 1915, the bill providing for a state experiment in land colonization was brought before the Club for discussion by the Section on Agriculture, with arguments for and against it. A report of this meeting is to be found in Volume X, No. 5, of the Club's Transactions.

Scope of Recent Investigations in California

While the act creating the State Commission on Land Colonization and Rural Credits, with which the Commonwealth Club has been cooperating, provided for an investigation of both rural credits and land settlement, that commission deemed it wise to confine its work to land. settlement alone, owing to the pending federal legislation on rural credits, since passed as the Farm Loan Act.

Although this act has a bearing on land settlement in that it permits long-time farm loans on mortgage security, thus being of value to settlers who have sufficient capital to enable them to give such security, and also will help a larger class through its provision to lend settlers twenty per cent of the value of improvements, the sub-committee has deferred any discussion of this measure until such time as remedial meas ures are taken up.

Views of Commercial Organizations Regarding Land Settlement

At the outset of the investigation of the committee it was felt that the value of the results to be obtained would depend quite largely on the co-operation received from those interested in land colonization, whether as members of commercial bodies promoting settlement, selling organizations engaged in actual colonization, owners of large estates, or settlers already on the land. Accordingly, the first step taken was to ask the co-operation of such parties.

A brief circular entitled "Land Settlement and Rural Credits in California," outlining the inquiry to be undertaken, was widely distributed. This circular brought forth many interesting responses, not only from people in California but from people concerned with similar questions in other states.

Some of these responses came from chambers of commerce, and largely as a result of correspondence growing out of the circular the investigating committee met with the executive committee of the California Development Board, the executive committee of the Sacramento Valley Development Association, and committees of the chambers of commerce of San José, Stockton, Merced, Fresno, and Los Angeles. The committee was cordially received by most of these bodies, and largely growing out of these meetings information was obtained from eighteen such organizations giving specific answers to definite inquiries made. These answers are summarized in Table No. 1, attached hereto.*

The questions asked of these commercial bodies included the cost of unimproved land, terms of payment and rates of interest, total cost of improving twenty- and forty-acre farms, estimated cost of living expenses of settlers, estimates of the capital settlers should have and of the amount necessary to pay down, and where money could be obtained to complete improvements and equipment.

The average cost of unimproved land given by these bodies was $260 per acre, and the time for payment allowed varied from three to eight years, with interest on deferred payments at an average rate of 6.73 per cent.

In regard to the question as to where settlers might obtain money for financing the equipment and development of their farms, it seems almost needless to say that, outside of mortgage loans up to thirty to forty per cent of the value of the property, none of these bodies could suggest any source of such money other than private individuals.

The answers furnished by these commercial organizations are exceedingly interesting as evidence of what intending settlers without sufficient capital to carry themselves through the period of development can expect from the communities inviting them to come to California.

Views of Selling Agencies Regarding Land Settlement

A blank was also prepared from which to obtain data from California land selling agencies, it being assumed that they would feel some interest in a public inquiry of the nature undertaken. Questions were

*See Appendix I, page 390.

asked regarding the original cost of land before subdivision, improvements made after purchase but before settlement, size of farm units sold, selling price of land, terms of payment, commissions paid selling agents, and the length of time needed to enable settlers to repay loans out of the land. Furthermore, the opinion of these agencies was requested regarding such matters as the need for and benefit to be derived from amortized payment of principal and the extent to which oversight should be exercised over borrowers on long-time loans.

It is much to be regretted that practically no response was received from this circular. In a few cases, however, much interest was shown, and reference will be made by the second speaker to constructive colonization plans which a few owners are working out to meet the new conditions that have arisen.

Statements of Settlers

Outside of its own independent investigations, which have occupied most of the time of the chairman of the sub-committee for a period of six months and much of the time of the other two members, the principal field work directed by the investigating committee has been in connection with obtaining statements from settlers on a large number of California land and irrigation projects. Prior to the beginning of the investigation, the University of California and the United States Department of Agriculture had obtained a large number of such statements from settlers on the Orland, Los Molinos, Willows, Patterson, Kerman, Chowchilla, Winton, Modesto, and Turlock projects, and these were made available to the committee. The work of this character carried on during 1916 under the direction of the committee has been largely done by two graduate students of the University of California, employed throughout the summer by the Commonwealth Club, and by a number of graduate or advanced students in the College of Agriculture working for a brief period during the summer under the immediate direction of the committee.

The projects from which settlers' statements have been obtained were selected with a view to making them representative of the entire Accordingly they extended from Los Molinos, in Tehama county, to San Fernando valley, in Los Angeles county, and to Yucaipa valley and Fontana, in San Bernardino county. Numerous other projects have been personally visited by one or more members of the sub-committee, but with no systematic attempt to obtain statements of settlers. Not counting the latter, the projects or sections included numbered twenty-five and the settlers from whom interviews have been obtained numbered 991.