BOND CIRCULARS 379 



to twenty-five per cent more than such estimates. From 

 re-estimates which we have had made during the last year 

 and from our experience in cutting timber in the vicinity 

 and from the judgment of other people thoroughly experi- 

 enced in cutting these different classes of timber, I am 

 satisfied that it will cut even considerably more. 



As to the present value of this timber, it is very diffi- 

 cult to state. I believe, however, that the redwood, sugar 

 and white pine could readily be sold on a basis of more 

 than $2.00 per thousand feet, and the fir, spruce and other 

 timber on a basis of more than $1.00 per thousand feet. 

 This would mean, approximately, based on the above esti- 

 mates: 



1,800,000,000 feet of Redwood, at $2.00 per thou- 

 sand feet $ 3,600,000 



1,100,000,000 feet of Sugar and White Pine, at 



$2.00 per thousand feet 2,200,000 



5,100,000,000 feet of Fir, Spruce and other tim- 

 ber, at $1.00 per thousand feet. 5,100,000 



Or a total of $10,900,000 



This price I consider most exceedingly conservative 

 and do believe that these lands and timber could be sold 

 even now at considerably higher prices than above stated, 

 but I would not accept twice said amount. 



As an indication of the values of redwood, it might be 

 stated that lands in the same territory where these lands 

 are located and intermingled with these lands, are held at 

 from $100 to $200 per acre, making an average of, say, 

 about $3.00 per thousand feet of timber. Lands inter- 

 mingled with the sugar and white pine lands are held at 

 from $50.00 to $100.00 per acre, making an average of. 

 say, about $4.00 per thousand feet of timber. A tract of 

 two sections of fir and spruce located in Coos County and 

 in the same territory where -these lands are located, but. 

 however, somewhat more convenient, were sold this winter 

 on a basis of $2.60 per thousand feet. 



A contract has been entered into between the C. A. 

 Smith Timber Company and the C. A. Smith Lumber & 

 Manufacturing Company, extending over a period of thirty 

 years, wherein the C. A. Smith Lumber & Manufacturing 

 Company agrees to cut of the timber covered by the bond 

 issue at least fifty million feet a year and pay to the C. A. 

 Smith Timber Company on a basis of $5.50 per thousand 

 for Port Orford Cedar and $2.75 per thousand for spruce, 

 fir and other timber during this year, with an advance of 

 fifty cents and twenty-five cents per thousand respectively 



