380 TIMBER BONDS 



each year. I believe that for a long term of years this 

 represents a fair, conservative value and as equitable a 

 deal for both parties as can be made at present. 



In a new country, where lumbering operations are just 

 beginning or are being carried on on a small scale, it is 

 difficult to fix actual values of timber. It might be proper 

 for me to state that in the years 1890 to 1893, I purchased 

 in the State of Minnesota considerably over one hundred 

 thousand acres of timber lands at a cost averaging less 

 than $1.00 per thousand feet for the timber. The most 

 convenient and best of this timber is now cut, but the 

 balance, averaging poorer in quality, more remote and 

 consequently much more expensive to cut and bring to 

 the mills, is today, in my judgment, well worth more than 

 $12.00 per thousand feet. 



As the timber resources of the country are being de- 

 pleted very rapidly, much more rapidly than in years past, 

 I believe that the increase in values in the timbered dis- 

 tricts on the Pacific Coast, where operations are just now 

 beginning to be carried on, will be more rapid than in the 

 last fifteen years in the State of Minnesota. 



A very peculiar feature in regai'd to redwood timber, 

 and which should appeal to investors, and especially to 

 those who are not familiar with timber generally, is that 

 it is practically indesructible. A redwood tree cannot be 

 killed by fire. If it is blown down or severed from the 

 stump and lies on the ground for generations, it can still 

 be cut into lumber practically as good as that from the 

 standing tree. 



The sugar and white pine is very similiar to the white 

 pine of Michigan, Wisconsin and Minnesota, except that it 

 grows much larger and consequently will cut out several 

 times more of the higher grades of lumber than the timber 

 in these states. As the white pine in these white pine 

 states is being cut out very rapidly and the sugar and white 

 pine of the Sierra 2kIountains^ in California (which, by the 

 waj-, is quite limited), is the only timber of that class, it 

 can readily be seen that this timber must enhance in value 

 very rapidly. 



Regarding the C. A. Smith Lumber and Manufacturing 

 Company, permit me to state that this company was or- 

 ganized with $750,000 capital, all paid in, to be purely a 

 manufacturing and mercantile company. A small mill, 

 which is covered by the bond issue, was purchased about 

 a year ago and has been in full operation, manufacturing 

 from two to two and one-half million feet per month. The 

 erection of a new mill and a complete lumber manufactur- 

 ing plant was begun about ten months ago. and is now 



