BOiND CIRCULARS 425 



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MATURITIES. 



$25,000 1 year, August 1. 1910 

 25,000 1^2 years, February 1, 1911 

 25,000 2 years, August 1, 1911. 

 25,000 21- years. February 1, 1912 

 25,000 3 years, August 1, 1912 

 25,000 3V'. years, February 1, 1913 

 25,000 4 years. August 1, 1913 

 25,000 41-; years, February 1, 1914 

 25,000 5 years. August 1, 1914 

 25,000 5V, years, February 1, 1915 

 25,000 6 years, August 1, 1915 

 25,000 e^L. years, February 1, 1916 

 The above schedule of maturities comprises $300,000, 

 which is the total issue of bonds authorized by the mort- 

 gage. $100,000. however, will not be issued until the com- 

 pany has acquired and placed under the mortgage sufficient 

 additional lands to bring its total acreage up to a minimum 

 of 9,500 and its total stumpage to at least 175,000,000 feet. 

 These additional lands and timber will be acquired in the 

 immediate future and are subject to the approval of Pea- 

 body, Houteling & Co. When the entire $300,000 of 

 bonds has been issued, the valuation of the company's 

 assets will be in excess of $1,000,000. 



VALUATION. 



These bonds, which are issued for the purpose of com- 

 pleting the company's mills and railroad, are secured by 

 an absolute First Mortgage on 5900 acres of land and 138,- 

 000,000 feet of merchantable timber located in Nez Perce 

 County, Idaho, together with saw mill, planing mill, rail- 

 road, rolling stock, and logging equipment. 



Based on an examination of the company's timber, made 

 on our behalf by the well-known expert, Mr. J. P. Brayton, 

 and on the estimated cost of the company's mills and rail- 

 road, we value the security behind these bonds as follows: 



Land and timber $597,650 



Plant, logging equipment and railroad 212,000 



Total fixed assets $809,650 



SINKING FUND. 



Under the terms of the Mortgage, the company agrees 

 to pay in to the Old National Bank in Spokane on or before 

 the fifteenth day of every month, beginning the second 

 month after the commencement of operations, subject to 

 the Trustee's order, a sinking fund of $3.50 per thousand 



