44 TIMBER BONDS 



series of bonds are secured at the rate of 16% 

 cents per thousand feet stumpage. 



"In another issue the debt per thousand feet 

 stumpage was originally $1 .81. This decreases 

 from year to year until the debt per thousand 

 feet, when the last series of bonds are outstand- 

 ing, is 21 cents. This company pays into the 

 sinking fund $4 per thousand feet for timber 

 cut. 



"It is in checking up the sinldng fund that the 

 value of the timber cruisers' plat is again 

 shown. Although there is no legal obligation 

 on our part to check up sinking fund payments, 

 we make a business of doing it, not only for our 

 own satisfaction to know that the provisions of 

 the trust deed are being fulfilled in every par- 

 ticular, but as an additional protection to the 

 interests of customers who have bought the 

 bonds on our recommendations. The services 

 of Mr. Straight are secured. He is given the 

 plats and the statements, and cruises the timber 

 holdings again in the same careful and pains- 

 taking manner as before. He reports on his 

 estimates of the amount of timber that has been 

 manufactured from the various sections and 

 shows the difference between the original esti- 

 mate and the actual manufacture into lumber, 

 if any. He also investigates all of the other 

 timber land properties that are security for the 

 bonds, reporting on whether there has been any 

 cutting of timber of which no report has been 

 made. Thus it will be seen that there is con- 



