354 TIMBER BONDS 



The price to be paid the Linn & Lane Timber Company 

 being $6 per thousand feet for cedar and $3 per thousand 

 feet for fir so cut during the year 1910, with an advance 

 of 50 cents per thousand feet for cedar and an advance 

 of 25 cents per thousand feet for fir each year thereafter 

 until 1918. The agreement runs until 1935, eight years 

 after the expiration of the last maturing bond under this 

 mortgage, but on December 31, 1918, and again on Decem- 

 ber 31, 1928, it is stipulated that the prices to be paid for 

 timber by the said Manufacturing Company shall be read- 

 justed, but in no event shall they thereafter be less than 

 $8.50 for each thousand feet of cedar and $4.25 for each 

 thousand feet of fir. 



It will be seen from the above that by this agreement 

 the Linn & Lane Timber Company should have a substan- 

 tial annual income from this source. 



REDEMPTION FUND: For all timber proposed to be 

 cut and manufactured into lumber, the mortgage requires 

 the Linn & Lane Timber Company to deposit with the 

 Trustee (prior to the cutting of the timber) at the rate of 

 $2.50 per thousand feet log scale based upon the estimates 

 of the timber filed with the Trustee, which payment is at 

 the rate of over seven times the amount of the loan, and 

 will insure the whole loan being paid when 600,000,000 feet 

 are cut. 



The Company is required to account to the Trustee for 

 all timber, and the provisions of the mortgage covering 

 this point are carefully and strictly drawn. Provision is 

 made in the mortgage for inspection by the Trustee or 

 its agents of the mortgaged property at intervals of six 

 months, the cost of this inspection to be borne by the Tim- 

 ber Company. 



All monies received by the Trustee from the above 

 sources constitute a fund to retire principal only of this 

 issue. Should the deposits exceed the amount required to 

 pay the bonds maturing in any one year, the Trustee is re- 

 quired to purchase or call for redemption at a premium of 

 2V2 per cent and accrued interest the bonds next maturing 

 to an amount sufficient to practically exhaust such de- 

 posits. 



HAZARDS: The Timber Company, under the terms of 

 the mortgage, is required in case of any damage by fire, 

 wind or elements to any of the timber securing the bonds to 

 promptly pay to the Trustee $1 per thousand feet for such 

 timber so damaged, which payment, however, shall not re- 

 lease such timber from the lien of the mortgage, but for 

 such release an additional payment of $1.50 per thousand 

 feet at the time of cutting is required. 



