AMERICAN FORESTRY 



1561 



$7,500,000 



BROWN COMPANY 



(Formerly the Berlin Mills Company) 

 6 °/o Serial Gold Debenture Bonds— Series "A" 



AUTHORIZED $15,000,000 OUTSTANDING $7,500,000 



Dated November 15, 1919. Interest payable May and November 15. 



Due in annual installments of $375,000 each November 15, 1920 to 1939 inclusive. 



Interest payable without deduction for any Federal Normal Income Tax up to 2% 



OLD COLONY TRUST COMPANY, BOSTON, Trustee 

 HISTORY AND BUSINESS 



The Brown Company, founded in 1852, is the largest manufacturer in this country of bleached sulphite fibre pulp and 

 kraft wrapping paper and it also manufactures bond paper, lumber and allied products. Sales in recent years have aver- 

 aged more than $23,000,000 annually. Its operations in Canada are conducted through a subsidiary, the Brown Cor- 

 poration, of Canada, of which the Brown Company owns all the capital stock. 



PROPERTY 



The mill properties at Berlin and Gorham, N. H., consist of two paper mills, two sulphite fibre mills, a saw-mill 

 and five hydro-electric plants with an installed capacity of 25,000 H. P. and a steam power plant with a capacity of 

 20,000 H. P. 



The Canadian plant consists of a pulp mill and water-power for manufacturing sulphate fibre, which product is 

 shipped free of duty to the American plants. 



A practically perpetual supply of raw material is assured by ownership in fee simple of more than 400,000 acres of 

 timber land in Maine, New Hampshire and Vermont, and the acquisition in Canada through the Brown Corporation of 

 more than 800,000 acres in fee simple and stumpage and about 1,700,000 acres in timber limits under perpetual license. 

 Total holdings are over 4,530 square miles, conservatively estimated to contain 15,000,000 cords. 



ASSETS 



The cash investment in the American mill properties alone is over $14,000,000. 



After the application of the proceeds of these bonds the net quick assets of the Brown Company will be in excess of 

 $12,000,000, and the tangible assets applicable to this issue in excess of $38,000,000. 

 The combined tangible assets of the affiliated companies are in excess of $50,000,000. 



EARNINGS 



Earnings of the Brown Company, as certified by Messrs. Niles & Niles, Certified Public Accountants, for the last 

 five fiscal years, after taxes, depreciation and interest have averaged $2,190,222, or nearly five times the interest on 

 this issue, and for the last three fiscal years have averaged $3,102,369, or nearly seven times the interest on this issue, 

 to which are to be added the earnings of the Brown Corporation for the last three fiscal years, averaging $507,617. 



In addition to the above earnings, special reserves have been set up by the Brown Company during the last five years 

 averaging $445,658, and by the Brown Corporation during the last three years averaging $272,617. 



PROVISIONS 



The Indenture securing these bonds has been, so drawn that no further mortgage may be placed upon the present 

 assets while any of this issue is outstanding. The Company covenants to maintain net tangible assets of 300% of Series 

 "A" at any time outstanding, and total tangible assets of 200% of total liabilities, so long as any bonds issued under this 

 Indenture remain outstanding. Furthermore, the Company will maintain net quick assets, exclusive of inter-company 

 accounts, at not less than 75% of all bonds of Series "A" and previously issued fundec} debt outstanding, and at not 

 less than 50% of the total funded debt outstanding during the life of any bonds issued under this Indenture. 



APPROXIMATE 



MATURITIES PRICE YIELD 



1920 to 1922 inclusive 100 6.00% 



1923 and 1924 99J4 6.15% 



1925 to 1929 inclusive 99 6.15% 



1930 to 1934 inclusive 98'/S 06% 



1935 to 1939 inclusive 98 6.15% 



HORNBLOWER & WEEKS 



42 Broadway, New York 



BOSTON CHICAGO DETROIT 



PROVIDENCE PORTLAND 



The statements contained herein are not guaranteed, but are based upon information which we 

 believe to be accurate and reliable, and upon which we have acted in the purchase of these bonds. 



