424 TIMBER BONDS 



4. The loan is at the rate of 55 cents per thousand feet 

 on the timber. 



5. Under the trust deed the company is required to 

 pay to the Trustee $1.50 per thousand feet for timber 

 desired to be cut; from this provision it will be seen that 

 the whole loan will be paid before practically one-third of 

 the timber pledged is cut. 



6. Frequent inspection of the property is provided for 

 at the expense of the borrower. 



7. Should the timber be damaged by fire or the other 

 elements, the company must within sixty days after such 

 loss has been determined pay to the Trustee 75 cents per 

 thousand feet for the timber so damaged, and an addi- 

 tional 75 cents when the timber is removed. 



8. The hazard of fire is minimized by the property 

 being located in what is called the "fog-belt" just west of 

 the Cascade Mountains. 



9. The valuations, titles and legal matters have been 

 passed on by competent parties; the timber and its value 

 by our own cruisers and the titles and legal matters by 

 W. W. Gurley of Chicago and E. E. Barthell of Nashville, 

 Tenn. 



10. The whole property lies within a few hours' jour- 

 ney of Portland, Ore. 



All statements made in this circular are based upon 

 information which we regard as reliable and upon which 

 we acted in the purchase and valuation of the securities 

 offered; such offerings being made subject to prior sale. 



Price on application. 



LYON, GARY & COMPANY, 



Lumbermen and Bankers, 



204 Dearborn St., Chicago, 111. 



EXHIBIT NO. 16. 



Circular No. 677— September, 1909. 



Peabody, Houghteling & Co., 105 S. LaSalle St., Chicago. 



(Established 1865.) 



Cable address, "Hought," Chicago. Codes used, Lieber and 



A, B, C, 5th Edition. 

 $200,000 First Mortgage 6 per cent Serial Gold Bonds of 



the Craig Mountain Lumber Company. 

 Dated August 2. 1909. Payable in series as below. Coupon 

 Bonds of $500 and $1,000 denominations with privilege 

 of registration as to principal. Principal and semi 

 annual interest payable at the office of Peabody, Hough- 

 teling & Co., Chicago, 111. First Trust & Savings Bank, 

 Chicago, and Augustus S. Peabody, Trustees. 



