42 TIMBER BONDS 



bonds. The trustee must be a trust company of 

 large capital and resources, whose officers are- 

 recognized as competent and trustworthy, for 

 the trustee has important duties to perform 

 which extend over a term of years until all of 

 the bonds have been paid and the terms of the 

 trust deed fulfilled, when the trust company's 

 duty is to make a reconveyance of the property 

 to the owner. 



"Every possible safeguard that can be 

 thought of by astute lawyers is thrown about 

 these timber bond issues. There are 20 pro- 

 visions in the form of trust deed, each one of 

 which requires some duty of the maker of the 

 bond issue. Some of them are: punctual pay- 

 ment of principal and interest when due; con- 

 ditions under which lumber shall be manufac- 

 tured, including sinking fund provision for pay- 

 ment of certain amount per 1,000 feet of timber 

 cut, to the trustee ; fire insurance on all build- 

 ings and machinery; payment of taxes and 

 liens; issuing and delivery of bonds; registra- 

 tion of bonds in name of owner, if desired; 

 statements in writing of condition of property 

 to be furnished and provisions giving the trus- 

 tee access to books and vouchers for the pur- 

 pose of verifying statements ; and penalties for 

 default in agreements. 



"Timber land bond issues are so made that 

 the bonds mature serially, a certain portion 

 coming due each six months. The payment of 

 these bonds when thev become due is further 



