34 TIMBER BONDS 



market, the situation as to probability of a 

 meagre or plentiful car supply, the ability of 

 the management, character of the office force 

 and a survey of the business generally. When 

 Mr. Straight makes his report, if the security 

 looks good and other elements are satisfactory, 

 we enter into an agreement to take the bond 

 issue if detailed estimates, to be made, show 

 that there is sufficient timber to be good secur- 

 ity for the loan. 



Every timber land bond issue handled by us 

 must conform to the following high standard 

 of security: 



1. The Company issuing the bonds must be 

 well established; in high credit, its officers and 

 managers must be thoroughly experienced and 

 in good standing among lumbermen. 



2. The lands must be well located; contain 

 timber of good quality; the amount thereof to 

 be in every case determined by capable, well- 

 known timber estimators, emploj^ed by us to 

 cruise the timber, which in every case must 

 have a cash market value of at least 50 per 

 cent in excess of the bond issue. 



3. The titles to the lands must be carefully 

 examined and approved by our own legal coun- 

 sel. 



4. The mortgage securing the bonds must 

 contain strict provisions which operate to in- 

 sure the regular deposit of an agreed amount 

 per thousand feet for all timber cut sufficient 

 to retire all of the bonds when about one-half 



