EXAMINATION OF PROPERTY 41 



checking up the work of his crews on foot, using 

 the same methods they have used. If there are 

 any differences, the work is gone over and cor- 

 rections made. Mr. Straight is in the woods 

 all the time, going from camp to camp, and his 

 men never know when to expect his coming. 

 Wlien the work of estimating all the timber has 

 been completed, a valuation is placed upon the 

 holdings, sawmill, railroad, equipment and other 

 property to be pledged for the bonded indebted- 

 ness, which completes the preliminary stage 

 of making the bond issue. 



''Thus far all the work that has been done 

 was for the purpose of determining whether 

 there was property which would be security, its 

 value and its location. These elements having 

 been positively demonstrated, the next step is 

 to discover whether the party desiring the 

 bond issue has a good title to the property, and 

 has the right and power to pledge it as security 

 and that there are no liens upon it. This is the 

 work of the lawyer, who must be one of high 

 standing, familiar with bond issues and whose 

 opinion is accepted without question in financial 

 circles. After he is satisfied that the company 

 owns the title to all the lands in fee simple and 

 the details of its incorporation have fulfilled all 

 the requirements of the law and that it has the 

 legal right to own the property and to pledge 

 it as security, the lawyer is ready to draw the 

 trust deed and mortgage which conveys the 

 timber holdings to a trustee as a pledge for the 



