426 TIMBER BONDS 



feet on all timber cut from the company's lands during the 

 preceding calendar month, or months. Any surplus left in 

 the Sinking Fund at the end of any year, at the company's 

 option, may be — 



1. Left in the Sinking Fund at interest; 



2. Used to retire the bonds in the reverse of their nu- 

 merical order at 102^^ and interest. 



3. Used for the purchase of additional timber lands, 

 clear of encumbrance, which will become additional security 

 for the bonds. 



In the last event, however, the investment of the surplus 

 sinking fund is strictly subject to the written approval of 

 Peabody, Houghteling & Company. 



This Sinking Fund is sufl5cient to pay off the entire 

 principal of these bonds from the exhaustion of less than 

 one-half of the timber security. 



SECURITY. 



The security behind these bonds consists of timber lands 

 in Nez Perce County, Idaho, about twenty miles in a direct 

 line southeast of the city of Lewiston. These lands com- 

 prise — 



5,980 acres of land and timber owned in fee simple, 

 1,042 acres of timber owned in fee simple, 



Total, 6,942 acres 



These lands contain, according to the estimate of Mr. 

 J. P. Brayton — 



132,405,000 feet of pine, 

 3,626,000 feet of fir. 

 2,320,000 feet of tamarack, 



Total, 148,350,000 feet of merchantable timber. 



These timber lands are, for the most part, level and the 

 timber runs large and smooth and practically free from 

 unsound trees. Most of the lands are suitable for farming 

 purposes; the soil is fertile, and the lands will be in good 

 demand at from $15.00 to |20.00 an acre after the timber 

 has been removed. 



These bonds are also secured by the company's mills 

 and railroad, which will be completed and in operation 

 within six months. 



The mills, which will consist of saw mill, planing mill, 

 dry kiln, lumber sheds, etc., with an annual capacity of 

 20,000,000 feet, will be of the most up-to-date character in 

 arrangement, construction and equipment, and will enable 

 the company to produce lumber at a low rate. The rail- 

 road will be about six miles long, of standard gauge and 



