July 2.-,, 1921 HARDWOOD RECORD 



$5,000,000 



Edward Hines Associated Lumber Interests 



First Mortgage 8*;^ Serial Gold Bonds 



The joint and several obligations of Edward Hines Lumber Co., Park Falls Lumber Co., Edward Hines 

 Yellow Pine Trustees and Trustees of Lumber Investment Association ; and secured by a first mort- 

 gage on properties of the Edward Hines Yellow Pine Trustees and the Park Falls Lumber Co. 



Dated July 1, 1921. Due serially, as shown below. Interest payable semi-annually January 1st and July 1st in Chi- 

 cago and New York. Coupon bonds registerable as to principal only. Denominations of $1,000, $500 and $100. 

 Redeemable at the option of the Company as a whole or in part on any interest payment date upon forty-five days" 

 published notice, at par and accrued interest, and a premium of l"r for each year or part of year that the bonds have 

 to run before their fixed maturity. Authorized, $7,000,000. To be presently issued, $5,000,000. Interest payable 

 without deduction for Normal Federal Income Tax not in excess of 2'/o. 



CONTINENTAL AND COMMERCIAL TRUST AND SAVINGS BANK, and CALVIN FENTRESS, CHICAGO. TRUSTEES 



The following information is summarized from a letter by Edward Hines, Pres. of Edward Mines Lumber Co.: 



BUSINESS: The Edward Hines associated lumber interests are the largest wholesalers of lumber in the United 

 States, and the owners of two of the most valuable bodies of timber remaining in this country. 



DIRECTORS: The directors of the Edward Hines Lumber Co. are Edward Hines, L. L. Earth, C. F. Wiehe, 

 and W. J. Carney of Chicago, and F. E. Weyerhaeuser of St. Paul. 



ASSETS: After giving effect to the present financing, the consolidated balance sheet of the Edward Hines 

 Lumber Co. and associated interests, as of December 31, 1920, as audited by Marwick, Mitchell & Company, 

 shows total assets of approximately $33,700,000, after deducting all indebtedness excepting this loan, or nearly 

 seven times the present issue. The net current and working assets alone are approximately $7,200,000. 



SECURITY: These bonds are secured by a first mortgage on properties of the Park Falls Lumber Co. and Ed- 

 ward Hines Yellow Pine Trustees, comprising approximately 305,000 acres of timber lands in Wisconsin and 

 Mississippi, all owned in fee simple (except 19,000 acres of timber rights), estimated to carry 2,700,000,000 feet 

 of merchantable timber, together with five sawmills, railroads and other equipment. On the basis of pre-war 

 prices for timber, and cost less depreciation for sawmills and equipment, the value of these properties is over 

 $20,000,000, or more than four times the amount of the bonds. 



MAINTENANCE QUICK ASSETS : The Trust Deed provides that at all times during the life of these bonds 

 the combined net current assets of the Makers shall be maintained at a simi at least equal to 100% of the 

 amount of the bonds outstanding. 



EARNINGS: For the year 1920, after providing for depletion of timber, maintenance and depreciation of physical 

 properties, the net earnings, before Federal Taxes, of the Edward Hines Lumber Co. and associated interests, 

 as reported by Marwick, Mitchell & Company, available for interest charges, amounted to $1,296,744.70. For 

 the years 1917 to 1920 inclusive such net earnings averaged $1,432,401.56 per annum, or over three times the 

 annual interest charges on the total indebtedness outstanding. Since organization, 29 years ago, the surplus 

 earnings available for dividends of the Company and its associated interests have averaged approximately 

 $700,000 per annum. 



RELEASE OF TIMBER: The Trust Deed provides that a releasing price for timber of $4.50 per thousand feet 

 shall be paid and used for the retirement of these bands, except that a total of 400,000,000 feet of timber may 

 be removed without such payment. Payments of this releasing price should provide over $750,000 annually for 

 payment of these bonds. 



MATURITIES 



$300,000 July 1, 1924 $300,000 July 1, 1928 $400,000 July 1, 1932 



300,000 July 1, 1925 400,000 July 1, 1929 400,000 July 1, 1933 



300,000 July 1, 1926 400,000 July 1, 1930 500,000 July 1, 1934 



300,000 July 1, 1927 400,000 July 1, 1931 500,000 July 1, 1935 



$500,000 July 1, 1936 



PRICE 100 AND I^fTEREST, YIELDING 8% 



ESTABLISHED 1891 



BAKER, FENTRESS & COMPANY 



SUCCESSORS TO LYON, GARY & COMPANY 

 208 So. La Salle Street, Chicago Yeon Building, Portland 



The statements contained in this advertisement are not guaranteed, but are based upon information which we believe to be 



accurate and reliable. 



