18 TIMBER BONDS 



present liabilities, and borrow the money neces- 

 sary for his needs in the form of a bond issue, 

 maturing over a period of years, and secured 

 by a first mortgage and prior lien, on all his 

 holdings now owned or to be acquired. 



In order to negotiate this loan and get a fair 

 price for his bonds, the enterprise must be well 

 founded and sound. The property must be 

 favorably located, the shipping facilities ample, 

 the market for the product not restricted, the 

 plants modern and economical producers, the 

 timber of good quality, the cost of logging and 

 mining not excessive, the selling department 

 well organized and effective. Every branch of 

 the business must be able to stand the closest 

 scrutiny of the experts that the bond under- 

 writer or the banker will send on the property 

 to make investigations. 



