436 TIMBER BONDS 



The proceeds of this bond issue will retire all out- 

 standing indebtedness of the O. D. McHenry Lumber Com- 

 pany, other than current obligations and provide them 

 with ample working capital. 



PROPERTIES COVERED BY MORTGAGE. 

 TIMBER. 



This mortgage to the Central Trust Company of Illinois, 

 as Trustee, is a first lien on 20,100 acres of Botetourt 

 County, Virginia, adjoining the main line of the Norfolk 

 & Western Railroad, of which 



10,000 acres are virgin timber lands, 

 6,000 acres partly cut-over timber lands, 

 4,100 acres open lands. 



According to detail estimates made by our own timber 

 estimator, Mr. W. E. Straight, a well-known and compe- 

 tent timber estimator of twenty years' experience, these 

 lands will cut tne following amounts of timber: 



White, Red and Chestnut Oak 24,850,000 feet 



White Pine 16,350,000 feet 



Chestnut, Poplar and other hardwood 48,190,000 feet 



Log scale 89,390,000 feet 



These properties are exceptionally located, being on the 

 main line of the Norfolk & Western Railroad, only 160 

 miles from" Baltimore and the Central Eastern markets. 

 The majority of mills shipping into this market are from 

 400 to 600 miles distant. 



According to the audit of the books of the O. D. Mc- 

 Henry Lumber Company as of June 30, 1910, made by Mar- 

 wick, Mitchell & Company, chartered accountants, the O. 

 D. McHenry Lumber Company at the present time is mak- 

 ing an average net profit of $7.78 per thousand feet. This 

 is on a basis of OVER SEVEN TIMES THE MAXIMUM 

 INTEREST CHARGE ON THIS ISSUE, after deducting 

 the Redemption Fund requirement of $3.00 per thousand 

 feet. 



MILL PROPERTIES. 



The mortgage is also a first lien on a modern band mill 

 with a daily capacity of 50,000 feet, well located and sub- 

 stantially built, all timbers and line shafts resting on con- 

 crete foundations. The mortgage also covers five miles of 

 railroad connecting the company's timber with the mill. 



