BOND CIRCULARS 353 



the Southern Pacific Railroad. It was bought for a per- 

 manent investment and I believe is one of the best tracts 

 of its size of fir timber, considering quantity per acre and 

 quality, on the Pacific Coast. I have been offered more 

 than $2,250,000 for this tract, but declined to sell. 



The timber in Coos, Curry, Douglas and Lincoln Coun- 

 ties is located among and intermingled with other large 

 holdings of mine, title to which lies in the C. A. Smith 

 Timber Co. of Oregon. All the lands in these latter coun- 

 ties I plan to operate and will, within a short time, be 

 cutting with the two mills owned by the C. A. Smith 

 Lumber & Manufacturing Co. located at Marshfleld, Oregon, 

 on Coos Bay, one of the good harbors of the Pacific Coast, 

 at the rate of 150,000,000 feet per annum. The mill now 

 operating is cutting between 7,000,000 and 8,000,000 feet 

 per month, or at the rate of about 85,000,000 feet per year 

 and we plan to raise this to 100,000,000 feet per year. 

 We will very shortly start up the other mill, known as the 

 Dean Mill, and I expect to have an output here of approx- 

 imately 4,000,000 feet per month, or say 45,000,000 feet per 

 year, to be later increased to 50,000,000 feet per year, all 

 of these estimates being based on ten hour days. If desir- 

 able this output can of course be doubled by means of two 

 shifts. 



The bond issue covers by first mortgage this Dean Mill. 

 The plant is worth in excess of $200,000. 



I expect to be able to cut this amount of timber per 

 year, deliver the logs to the mills, manufacture it and put 

 the finished lumber on our docks (at San Francisco) at a 

 cost of $7 per thousand feet. Fir is now selling in San 

 Francisco at an average price of $14 per thousand feet. 

 A fair average price over a period of years would be, in my 

 opinion, from $15 to $18 per thousand feet. Washington 

 and Oregon Fir may be compared in its uses and price to 

 the yellow pine of the South. As the most generally 

 used wood on the Coast it finds employment for heavy 

 structural work, large timbers, car sills, sidings and deck- 

 ing, for flooring and in fact for almost all general uses. 



We own at Suisan Bay, near San Francisco, a large dis- 

 tributing yard. We also own two steamers having a car- 

 rying capacity of 2,250,000 feet of timber. 



The Linn & Lane Timber Co. has entered into a con- 

 tract, (subject to the Trust Deed) with the C. A. Smith 

 Lumber and Manufacturing Co., which latter concern has 

 a paid in capital of $2,500,000, whereby the Manufactur- 

 ing Company agrees to cut off the timber in Coos, Curry, 

 Douglas and Lincoln Counties, or pay for without cut- 

 ting, at least 30,000,000 feet per year. 



