360 TIMBER BONDS 



spectively at Spirit Lake, Idaho, and at lone, Washington. 

 The Spirit Lake mill, which was completed in 1908, con- 

 tains two double cutting 9 foot band saws, together with 

 all accessory equipment. The plant includes lath mill, 

 planing mill, dry kilns and complete manufacturing and 

 shipping facilities for handling an annual output of over 

 50,000,000 feet of finished lumber and lumber products. 

 The Company's mill at lone was completed in 1910 and is 

 an exact duplicate of the Spirit Lake mill, except that it 

 is electrically driven. The electric plant of the lone mill 

 uses sawdust and refuse for fuel and does a profitable and 

 steadily increasing business in general power and lighting 

 in its vicinity. The aggregate normal capacity of these 

 two mills is 100,000,000 feet of lumber per annum and the 

 maximum capacity over 1.50,000,000 feet per annum. In 

 order to justify so large an investment in plants, the Com- 

 pany is pursuing the commendable policy of purchasing 

 for current manufacture the standing timber and logs of 

 other owners and preserving as far as possible its own 

 timber, as well as applying its surplus funds from time 

 to time in adding to its timber reserves. The total amount 

 of virgin timber within economic reach of the Company's 

 mills is in excess of fifteen billion feet. 



TRANSPORTATION FACILITIES. — The Company's 

 transportation facilities are probably not equalled, and are 

 certainly not excelled by those of any other lumber com- 

 pany in the West. The Idaho & Washington Northern 

 Railroad, owned largely by the stockholders of the Pan- 

 handle Lumber Company, and built and equipped in the 

 most substantial manner, runs practically through the cen- 

 ter of the Company's timber properties. This line connects 

 with the five main transcontinental trunk lines centering 

 at and near Spokane and enables the Company to ship 

 its product to all markets reached by these transcontinental 

 lines at the same rates as if the Company's mills were actu- 

 ally located on these trunk lines. 



MARKET. — The lower grades of the Company's product 

 are marketed in the local territory immediately tributary 

 to the mills, and as far east as the Mississippi River, and 

 as far south as Denver, Colorado, including the very profit- 

 able and growing market of the Canadian prairie provinces 

 of Saskatchewan and Manitoba, into which section the Com- 

 pany shipped last year over 5,000,000 feet of lumber. The 

 western pine shop lumber is marketed largely in Wis- 

 consin and Iowa, being shipped to the sash and door mills 

 in these states. The better grades of boards are largely 

 used in the Chicago market, where they command an excel- 



