558 Forestry Quarterly 



tions contemplate the payment of indebtedness from earnings 

 rather than through a depletion of the properties. 



An instance might be cited of a timber bond issue which does 

 meet this requirement. The debt is secured by mortgage upon a 

 segregated tract of land. It was provided in the mortgage, that, 

 during the life of the issue, no timber should be cut upon the land 

 so segregated. The issue was guaranteed by another company, 

 and the guarantor covenanted that he would deposit with the 

 trustee a certain number of dollars per thousand feet of its cut on 

 additional and surrounding land, so that the debt might be liqui- 

 dated without lessening the value of the property securing it. 



Nevertheless, many issues which have not met the rigid re- 

 quirements of the foregoing somewhat sweeping conclusion, have 

 been profitable and satisfactory investments, and probably many 

 others will prove equally so. 



