402 TIMBER BONDS 



Detroit, Michigan, trustee, is a first lien on about 49,000 

 acres of virgin timber lands, owned in fee simple, con- 

 taining 267,540,280 feet of standing merchantable 

 timber, consisting of poplar, white and yellow pine, white 

 and red oak, etc., lying in a solid body in Polk County, 

 Tennessee. The mortgage also covers a modern double 

 band saw mill with a capacity of 25,000,000 feet per 

 annum, planing mill, dry kilns, etc., 16 V^ miles of com- 

 pletely equipped standard gauge logging railroad, store 

 building and employees' houses, located at Prendergast, 

 Tennessee. 



A conservative appraisement of the timber mort- 

 gaged, found in detail on the following page, shows it 

 worth $1,456,000, — over three times the amount of the 

 bonds. The Prendergast Company, of Marion, Ohio, un- 

 conditionally guarantees the payment of bonds, both 

 principal and interest. It is a corporation with the 

 highest credit and has been profitably engaged in the 

 lumber business for over 16 years. Marwick, Mitchell 

 & Co., chartered accountants, report the combined as- 

 sets of the companies issuing and guaranteeing the bonds 

 at about $2,500,000, — over five times the amount of the 

 bonds, and the net profits for the last five years at $440,- 

 900.70. 



RAILWAY, ESTIMATES AND APPRAISALS. 



The company's plant at Prendergast, Tennessee, is 

 located on the main line of the Louisville & Nashville 

 Railway, affording excellent shipping facilities. 



Lemieux Brothers & Company, the well known pub- 

 lic estimators, of New Orleans, Louisiana, estimate the 

 quantity of standing merchantable timber at 267,540,280 

 feet, log scale, the appraised value of which is as fol- 

 lows: 



At per 

 Feet 1,000 

 Poplar 58,586,000 $12.00 $ 703,032.00 

 White pine 35,459,160 6.00 212,754.96 



Yellow pine 14,514,150 3.50 50,799.53 



White oak 12,101,755 6.00 72,610.53 



Red oak 13,855,480 4.00 55,421.92 



Basswood 10,477,550 5.00 52,387.75 



Hemlock 56,465,060 3.00 169,395.18 



Other hardwoods 66,081,125 140,126.15 



$1,456,528.02 



Tanic acid wood 219,487 cords 



Pulp wood 195,100 cords 



