358 TIMBER BONDS 



These bonds, which are issued for the refunding of the 

 Company's floating indebtedness, are secured by a closed 

 Firet Mortgage upon all the property now owned and that 

 may hereafter be acquired by the Panhandle Lumber Com- 

 pany, Limited, including lands and standing timber in the 

 Counties of Kootenai and Bonner in the State of Idaho, 

 and in the Counties of Spokane and Stevens in the State 

 of Washington, aggregating 89,294 acres of land and 943,- 

 978,490 feet of standing timber owned in fee simple, to- 

 gether with two fine modern saw mills, having a normal 

 capacity of 100,000,000 feet of finished lumber per annum. 



VALUATION OF SECURITY. 



Lands and standing timber owned in fee $3,562,770.67 



Farm lands and city real estate 75,050.75 



Plants and equipment 1,544,240.45 



Total fixed assets $5,182,061.87 



Cash and cash assets, net 971,692.77 



Total assets $6,153,754.64 



ACTUAL INVESTMENT IN THE PROPERTY. 



Cash investment of stockholders $3,080,488.79 



Investment of bondholders 1,200,000.00 



Total actual investment $4,280,488.79 



The stockholders, therefore, have behind the bonds an 



actual cash investment of more than two and a half times 



the total issue. 



EARNINGS. 



Net earnings in 1910 applicable to the payment 



of principal and interest of these bonds. . . .$ 283,418.22 

 Annual maturing principal of these bonds 120,000.00 



Available for bond interest $ 163,418.22 



Average annual bond interest charge 37,800.00 



The net earnings, therefore, after providing for ten per 

 cent of the entire amount of the principal, were suflBcient 

 to pay the average annual bond interest nearly four and a 

 half times over. 



The year 1910 was a year of extreme depression in the 

 lumber industry. The Company's output was less than 50 

 per cent of the present normal capacity of its plants. The 

 new mill at lone, representing an expenditure of over $750,- 

 000, was only recently put in operation and contributed only 

 a nominal amount to the Company's earnings. Under nor- 

 mal conditions the Company's output in finished lumber 

 will be 100,000,000 feet per annum, and its net earnings 



