e
land cannot be sold, and the stock can only be sold to the Company;
nevertheless, the original cost of the land is covered by the stock. The
entire capitalization of $250,000, which I think will fairly represent
the financial status of the farm at the end of the first five years, is
divided as follows:

Purchase price of land $ 32,000

Improvements 68,000

Buildings 100,000

Live stock, equipment and machinery 50,000
--------
$250,000

Of the last named item, about $25,000 is estimated for machinery.
However, this amount does not fully represent its real value. In many
instances, it only gives the actual cost of the raw material used in
construction. This capitalization does not seem so large, when we
consider the small individual holdings. Having a par value of $250 a
share, we have only $500, in the two shares, for each one of the five
hundred co-operators. I think it has been wisely determined by a
majority vote, that as the resources of the farm continue to develop and
mature, the increase of profits shall come to the individual stockholder
in the shape of larger wages, instead of by dividends on stock. Although
this is not a money-making institution, and was not so intended from the
beginning; a fact properly emphasized by the foregoing. Yet, by the way
of arriving at some estimate of its future value, I feel safe in
predicting, that, if the stock should be offered in the markets of the
world, and dividends declared in the usual way, twenty years hence,
these certificates of stock would be worth $1,500 per share. In other
words, would have doubled in value six times during that period."

"Judging by what I already know of the farm and its resources," said
Fern, "I quite agree with you in this view of the matter.

"In considering the future needs of such a large number of
co-operators, which in ten years may be increased by pensioners and
children, to one thousand people; do you think this farm is large enough
to meet the demand?"

"For the purpose in view it is ample," said Fillmore. "Operated in
connection with so many allied industries, I think a farm of 5,000 acres
would be sufficient. That would be ten acres for each one. Here in
Solaris, we have 12-8/10 acres of land for every adult member of the
company. By carrying