BOND CIRCULARS 389 



Lumber Department $100,000.00 



Coal Department 100,000.00 



Kentucky & Tennessee Railway 35,000.00 



Commissary, Rents, etc 40,000.00 



Average annual net earnings applicable to pay- 

 ment of Bond Interest $275,000.00 



Average annual Interest Charge on this entire 



issue of bonds 51,937.00 



Sinking Fund from Lumber Opera- 

 tions $120,000.00 



Sinking Fund from Coal Operations. 25,000.00 



Average annual sinking fund applicable to pay- 

 ment of Bond Principal 145,000.00 



Average annual serial payment on account of 



Bond Principal 125,000.00 



Combined average annual net earnings and 



sinking fund 420,000.00 



Combined average annual Principal and Inter- 

 est requirements 176,937.50 



These figures are based on an average annual output of 

 20.000,000 feet of lumber and 500,000 tons of coal. The 

 cost of production and selling price in each instance are 

 figured on a most conservative basis and the actual annual 

 average results during the life of these bonds should ma- 

 terially exceed these figures. 



SINKING FUND. 



The mortgage securing these bonds provides that on or 

 before the 15th day of each month, beginning with the 

 month of August, 1910, there shall be deposited with the 

 Trustee a sinking fund equivalent to five cents per ton on 

 all coal mined and removed from the Company's property 

 during the preceding calendar month, and also that a sink- 

 ing fund on all timber cut and removed from the Com- 

 pany's property in accordance with the following schedule, 

 shall be likewise deposited with the Trustee. 



White Oak $ 8.00 per thousand feet 



Red Oak 5.00 per thousand feet 



Poplar 15.00 per thousand feet 



Chestnut 2.00 per thousand feet 



Yellow Pine 3.00 per thousand feet 



White Pine 7.00 per thousand feet 



