390 TIMBER BONDS 



Hemlock 3.00 per thousand feet 



Hickory 5.00 per thousand feet 



Beech $ 2.00 per thousand feet 



Ash 10.00 per thousand feet 



Timher not specified above 4.00 per thousand feet 



Railroad Ties 10 each 



Telegraph Poles 25 each 



Hemlock Bark 1.00 per cord 



Oak Bark 3.00 per cord 



All Other Forest Products 1.00 per cord 



On the basis of these figures, the removal of the Com- 

 pany's timber would produce over $3,000,000, or twice the 

 amount of the outstanding bonds, while the exhaustion of 

 its coal properties would produce over $15,000,000, or ten 

 times the amount of the bonds. 



DESCRIPTION OF SECURITY. 



The security for these bonds consists of — 



(a) 67,981 acres of land owned in fee simble. 



(b) 18,000 acres of timber owned in fee simple. 



(c) 400,000,000 feet of White Pine, Hemlock and Hard- 

 wood Timber contained in (a) and (b). 



(d) 22,000 acres of coal rights, including 1,300 acres of 

 surface. 



(e) 300,000,000 tons of coal, contained in (a) and (d). 



(f) Five (5) modern coal mines of a daily capacity of 

 2,000 tons. 



(g) Modern saw mill, planing mill, dry kilns and lum- 

 bering equipment of a daily capacity of 75,000 feet. 



(h) Town site of Stearns, comprising 509 acres, to- 

 gether with 143 houses, commissary, office buildings and 

 other structures. 



(i) The Kentucky & Tennessee Railway and complete 

 equipment. 



(j) Contracts, rights and other assets. 



The main body of land, comprising 67,981 acres owned 

 in fee simple, lies in practically a solid body in Wayne 

 County, Kentucky, and in Pickett, Scott and Fentress Coun- 

 ties, Tennessee. The property is bounded on the east by 

 the Big South Fork of the Cumberland River, and is all 

 available to the main line of the Queen & Crescent Rail- 

 way. This property, together with the adjoining 18,000 

 acres on which the Company owns the timber only, con- 

 tains, according to the report of Mr. J. P. Brayton: 



