392 TIMBER BONDS 



i 



OPERATION. 



LUMBER. 



The Company's lumbering equipment consists of a fine 

 modern double cutting band and resaw mill located at 

 Stearns, together with dry kilns, planing mill, power plant, 

 machine shop, lumber sheds and everything necessary for 

 the economic manufacture of lumber up to a capacity of 

 75,000 feet per day of 10 hours. With its own railroad 

 connecting its mills with its main body of timber and 

 with an exceedingly favorable freight rate to Cincinnati, 

 the principal hardwood market, the company's location is 

 a most favorable one for the profitable operation of a 

 hardwood lumber business. The Company's earnings from 

 this source will naturally vary according to the amount 

 and character of the timber manufactured, but should not. 

 In any event, be less than $5.00 per thousand feet after 

 making proper allowance for depreciation and maintenance 

 of plant and logging outfit and after payment has been 

 made to sinking fund on account of the stumpage cut and 

 removed. 



COAL. 



The Company has now in actual operation five devel- 

 oped coal mines with a present capacity of 1,500 tons per 

 day. The operation of this coal is of the simplest character, 

 consisting entirely of drift mining and obviating the neces- 

 sity for shafts, which are expensive to build and expensive 

 to maintain. Additional equipment will be immediately 

 added to these mines to bring the production up to at least 

 2,000 tons per day and this capacity will be steadily in- 

 creased as the market for the Company's coal extends. 



With this additional equipment and increased capacity, 

 the cost of putting this coal on cars, according to the re- 

 port of Mr. J. K. Seifert, should not exceed 80 cents per ton. 

 The Company's entire production is now being promptly 

 absorbed at prices netting the Company from $1.10 to $1.35 

 per ton f. o. b. cars at mine. The Queen & Crescent Rail- 

 road has established at its own cost expensive loading 

 works at the town of Stearns for coaling its locomotives 

 and this Railroad alone purchases from the Company over 

 200,000 tons of coal per annum at $1.35 per ton run of 

 mine. The Company also has a well established market 

 for its product for domestic use along the entire line of the 

 Queen & Crescent, Including Chattanooga, Tennessee; Lex- 

 ington, Kentucky, and as far north as Toledo, Ohio. One 

 prominent coal and iron company is using this coal with 



