BOND CIRCULARS 381 



completed at a cost of upwards of $400,000. This plant 

 is also covered by the bond issue. In building this plant 

 it has been done with a great deal of study and care to 

 make it as complete and economical in every way possible 

 as time and money could accomplish. In connection with 

 this plant a distributing yard is being put in on Suisan 

 Bay, near San Francisco. A steamer has been built at a 

 cost of $300,000 by this company, with a carrying capacity 

 of two and one-quarter million feet, the intention being to 

 use this exclusively for the carrying of the product from 

 this plant to the distributing yard. This company also 

 owns two-thirds interest in the Smith-Powers Logging Com- 

 pany, which is incorporated with a paid-up capital of 

 $150,000, for the exclusive purpose of logging the timber 

 covered by the contract between the C. A. Smith Timber 

 Company and the C. A. Smith Lumber & Manufacturing 

 Company, and deliver such logs to the mills of the Lumber 

 & Manufacturing Company. I firmly believe that the C. A. 

 Smith Lumber & Manufacturing Company will be able to 

 deliver the lumber at the distributing yard, paying all ex- 

 penses for transportation, manufacturing, logging and for 

 the timber as per above agreement, at a net cost of less 

 than $8.00 per thousand feet. At the very lowest price 

 which, as I understand, has ever prevailed in California 

 for fir and spruce, this lumber should average not less 

 than $12.00 per thousand feet, and. at a fair average price, 

 from $15.00 to $18.00 per thousand feet. 



As the payment of the bonds and interest are guar- 

 anteed by the writer, permit me to state that, with the 

 exception of a small amount owned by the men directly con- 

 nected with the management of the C. A. Smith Lumber & 

 Manufacturing Company, I am the sole owner, as I am also 

 of the C. A. Smith Timber Company. I also own other 

 large tracts of timber in the States of Oregon and Califor- 

 nia, which are not covered by the bond issue, but located 

 largely in the same territories. I am also the principal 

 owner of the C. A. Smith Lumber Company and the C. A. 

 Smith Timber Company, of Minneapolis, two A^ery success- 

 ful companies, and have interests in other manufacturing 

 and mercantile companies, banks, etc. The proceeds of the 

 bonds will be used exclusively for the payment of the float- 

 ing debts as far as may be necessary, and principally for 

 the building of two other lumbering plants with necessary 

 railroads for the manufacturing of the timber covered by 

 the bond issue. This bond issue will also be a first lien on 

 the new lumbering plants and railroads above referred to. 



Yours truly, 

 (Signed) C. A. SMITH. 



