"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. I, and those associated with me, are entitled to all that is made above five per cent. By retaining the common stock the surplus income will come to us. Neither will I destroy the home value, because I shall associate the former owners with me in the conduct of the estate and may give them some of the common stock, so that they will be interested with me in making a profitable return. If they wish to keep their money invested in the farm, they will be given preferred stock in place of cash for their farms."