CHAPTER V. 



EEVIEW OF BUSINESS. 



All the expenses incident to a bond issue must 

 be borne by the timberman. These expenses 

 consist of an audit of the books, a cruise of the 

 timber, the legal charges for examining titles, 

 drawing the trust deed, drafting the text of the 

 bond, the charges of the trustee, the cost of cer- 

 tifying the bonds, the cost of printing the mort- 

 gage, lithographing the bonds and incidental ex- 

 penditures. Should the bond issue fail through 

 some fault or mistake of the timberman, it 

 would be very costly to him. 



Every precaution should be taken to elimi- 

 nate the risk of failure before incurring the 

 outlay for expensive investigations. The busi- 

 ness should be reviewed to ascertain if the loan 

 is feasible on the basis of the statements and 

 data furnished by the timberman. This review 

 should cover the financial, industrial and stump- 

 age operations. The prospective borrower can 

 furnish a statement of assets and liabilities 

 as taken from his books. A statement showing 

 the volume of operations with the disburse- 

 ments and receipts incident thereto. Each de- 

 partment should be shown in detail. A cruise 

 of the timber, giving its kind and quality and 

 if long leaf pine, stating whether it is round or 

 bled, a description of the various equipment 



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