BOND CIRCULARS 437 



VALUE OF PROPERTIES. 



We appraise the market value of this timber at 



$3.50 per thousand feet, or $312,865 



We appraise the market value of the railroad and 



mill properties at 75,000 



A total valuation of all property covered by this- 



mortgage of $387,865 



Or more than two and one-half times amount of this 

 bond issue. 



The company takes no account in their financial state- 

 ment of the 20,100 acres of land owned in fee, which is 

 estimated to be worth an average of over $5.00 per acre, or 

 $100,500. Botetourt County, we are informed, is a well 

 known apple producing county. 



REDEMPTION FUND. 



This mortgage requires a deposit of $3.00 per thousand 

 feet every thirty days, log scale, for all timber cut, based 

 upon estimates filed with the Trustee. Provisions of the 

 mortgage covering this point are rigidly and carefully 

 drawn. This deposit applies to the payment of the prin- 

 cipal of the bonds only, and will operate to retire this en- 

 tire bond issue before cutting 60 per cent of the timber 

 covered by the mortgage. Should the amount deposited 

 under this redemption fund exceed the amount maturing 

 in any year, the Trustee is required to repurchase or call 

 for redemption, at a premium of 103 and accrued interest, 

 bonds of an amount suflScient to exhaust the surplus. In- 

 terest on the bonds is payable out of the earnings of the 

 company. 



CONDENSED BALANCE SHEET AS OF JUNE 30, 1910. 



Compiled by Marwick, Mitchell & Co., 



Chartered Accountants. 



ASSETS. 



Timber lands owned in fee simple (19,800 acres), 



logging and mill property, equipment, etc. .$297,332.82 



Inventories, accounts and notes receivable 28,531.41 



Cash at bankers 70,011.97 



Total $395,876.20 



