CHAPTER VIII. 



CONTRACT TO DELIVER BONDS. 



To purchase an issue each bond house and 

 banker uses a private form of contract or agree- 

 ment. These forms range from a verbal under- 

 standing to the most elaborate written instru- 

 ment. The nature of the document depends to 

 some extent on the particular transaction. The 

 two forms given below contain all the basic 

 clauses and can be modified to suit any specific 

 case. These forms are each standard with two 

 large bond houses. Form number one is a 

 splendid contract in the nature of a letter writ- 

 ten by the bond house and accepted by the 

 timberman. Form number two, while simpler 

 than number one, is an excellent docunlent in 

 the shape of a letter written by the timberman 

 to the bond house. Form number two is not as 

 favorable to the timberman as form number 

 one, because the bond house does not accept it 

 and can decline the bonds at pleasure : 



FORM NO. 1. 

 Gentlemen: — 



From your representations we understand as follows: — 



(1) That you own in fee simple approximately 



acres of timber lands in , being in Town- 

 ships , Range 



(2) That upon said acres there is at the pres- 

 ent time approximately feet of standing and liv- 

 ing timber, consisting of approximately 



{Here insert quantity of each, kind.) 



(3) That you also own free of encumbrance plant and 



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