BOND CIRCULARS 427 



construction, fully equipped to handle the company's busi- 

 ness, and will connect with the Northern Pacific Railroad. 



OPERATION. 



Because of the close proximity of the timber to its mill, 

 the ideal character of the laud for economic logging, the 

 first-class equipment at its disposal, and the unusually 

 large percentage of high grade lumber, the company's 

 operations should be exceedingly profitable. 



In his report of August 5th. Mr. J. P. Brayton esti- 

 mates the cost of manufacturing from the stump to the car 

 at 18.50 per thousand feet. He considers $19.00 per thou- 

 sand leet f. 0. b. cars at the mill a safe average selling 

 price. On this basis, the stumpage of 175,000,000 feet be- 

 hind the total bond issue of $300,000 will produce the fol- 

 lowing results: 



175,000,000 feet at average selling price of $19.00 

 f . 0. b. cars $3,325,000 



Cost of manufacturing and loading on cars at $8.50 

 per thousand feet 1,487,500 



Net amount available for the protection of prin- 

 cipal and interest of these bonds 1,837,500 



Total amount of principal and interest of these 



bonds 367,500 



On this basis the stumpage will produce over five times 

 the amount necessary to protect both principal and interest 

 of the entire issue. 



MANAGEMENT AND OWNERSHIP. 



The stockholders of the Craig Mountain Lumber Com- 

 pany are men of substantial means and large experience, 

 and the management of the company's affairs is in conserva- 

 tive and thoroughly practical hands. 



The stockholders have an actual cash investment of 

 $300,000 behind these bonds. 



We have investigated these properties thoroughly. The 

 timber lands have been examined and reported on in 

 detail by Mr. J. P. Brayton, one of the most experienced 

 and best known timber experts in the country. The com- 

 pany's books have been audited by the Investors Audit 

 Company, and titles to the company's property and all legal 

 matters pertaining to this issue have been approved by 

 F. M. Goodwin, Esq., of Spokane. Wash. 



We recommend these bonds as a safe investment for 

 the following reasons: 



First: The value of the security is over three times the 

 amount of the issue. 



