430 TIMBER BONDS 



100,000,000 feet and the value, exclusive of plant and equip- 

 ment, at $420,000. 



In addition to the timber above described, the bonds 

 are further secured by closed, first mortgage on real es- 

 tate, plants and equipment located in the City of Monroe, 

 La., all of which is owned in fee by The Hardwood Man- 

 ufacturing Company. The value of these assets, exclusive 

 of the timber lands, is estimated at $175,000. 



The total net assets of the Company, upon which these 

 bonds are an absolute first mortgage, are about $600,000, a 

 sum equal to nearly FIVE TIMES THE AMOUNT OF THE 

 BOND ISSUE. This sum does not include any valuation 

 on the land, which is worth at least five dollars per acre, 

 or about $100,000 in addition to the above. 



SINKING FUND. 



The Trust Deed provides that the Company will, on the 

 first days of March, June, September and December, file 

 with the Union Trust Company, Trustee, a sworn state- 

 ment of all merchantable timber cut upon the lands dur- 

 ing the three calendar months preceding the filing of such 

 statement, and will within fifteen days after filing of such 

 statement, pay into the Trustee, in cash, the sum of $3.00 

 for each 1,000 feet of Oak timber and the sum of $2.00 for 

 each 1,000 feet of other timber so cut. 



Should the Sinking Fund exceed the amount of bonds 

 maturing in any year, the Trustee is required to call for 

 redemption, at 102i/^ and accrued interest, unmatured 

 bonds to the amount suflScient to exhaust the surplus. The 

 Sinking Fund will be sufllcient to retire all of the bonds 

 before one-half the timber has been cut. 



LOCATION AND OPERATION. 



This tract of 20,000 acres of virgin hardwood timber 

 land is situated along the Bayou D'Arbonne, which flows 

 into the Ouachita River a few miles above the City of 

 Monroe, La. The timber lies on each side of this naviga- 

 ble stream, within an average distance of three-quarters 

 of a mile. The logging operation is a simple one and re- 

 quires no expensive railroad tracks and equipment. The 

 logs are taken from the property by means of a skidder 

 and are then hauled to the sawmill, located in the City of 

 Monroe, an average distance of about fifteen miles. The 

 timber is cut into lumber and placed upon railroad cars 

 for shipment. The Company has access to the St. Louis 

 & Iron Mountain R. R., Vicksburg, Shreveport & Pacific 

 R. R. and Arkansas, Louisiana & Gulf R. R. 



