10 TIMBER BONDS 



Forest fires, and the loss of timber thus 

 caused, is the chief argument used against tim- 

 ber bonds. The public gets its ideas of these 

 fires from what has occurred in the upper Mis- 

 sissippi Valley. The situation of the commer- 

 cial timber at present practically removes this 

 fire risk. The chapter on forest fires will clearly 

 show this danger to be greatly magnified. 



There are some speculative timber bond oper- 

 ators now doing business and some issues at 

 present outstanding that will default. Less than 

 half of one per cent of the dealers can be classed 

 as speculators, or with a tendency toward rapid 

 riches. Amongst no other class of bond dealers 

 is the percentage of legitimate, conservative 

 and careful operators so large as in the Tim- 

 ber bond field. 



The serial is the only safe timber bond and 

 the last maturity must fall due while there is 

 ample stumpage standing to protect the prop- 

 erty until the trust deed is fully satisfied and 

 the Trustee released. The sinking fund clauses 

 should cover this point clearly and thoroughly. 

 A careful reading of the chapter on sinking 

 fund will enable the student or banker to form 

 safe conclusions. 



Successful practice and the daily operations 

 of sound and active traders is the best guide 

 for those contemplating the timber bond field 

 either from the outlook of borrower, banker, 

 dealer or investor. The bond circulars given in 

 this book have been selected with care and will 



