444 TIMBER BONDS 



order, a sinking fund of $5.00 per thousand feet on all tim- 

 ber cut from the land, under the Mortgage, during the pre- 

 ceding calendar month. 



Any surplus left in the sinking fund at the end of any 

 year may be used to retire the bonds in the reverse of 

 their numerical order at 102 1/. and interest. 



This sinking fund is sufficient to pay off the entire prin- 

 cipal of these bonds from the exhaustion of less than one- 

 third of the Company's timber. 



SECURITY. 



The security behind these bonds consists of timber lands 

 in Mobile County, Alabama, about twenty miles in a direct 

 line from the city of Mobile. These lands comprise: 



10,000 acres of land and timber owned in fee sim- 

 ple. 

 1,802 acres of timber owned in fee simple. 



Total 11,802 acres. 



These lands contain, according to the estimate of Mr. 

 J. P. Brayton: 



72,520,000 feet of Pine. 

 10,030,000 feet of Cypress. 

 40,190,000 feet of Hardwood. 



Total. ..122,740,000 feet of merchantable timber. 



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

 timber is very good. 



These bonds are also secured by the Company's plant, 

 which includes a Band Saw Mill, Logging Railway and 

 Logging Outfit, in excellent condition and with a capacity 

 of 45,000 feet per day. 



OPERATION. 



Because of the close proximity of the timber to the Mo- 

 bile market, with railroad and water facilities, the ideal 

 character of the land for economic logging and the quality 

 of the timber, the Company's operations should be exceed- 

 ingly profitable. 



In his report of June 3rd, 1910, Mr. J. P. Brayton esti- 

 mates the cost of manufacture from the stump to the car, 

 including depreciation and management, to be about $7.50 

 per thousand feet for the Yellow Pine, and the cost of 

 lumbering the Cypress, Gum and other Hardwood and man- 

 ufacturing the same into lumber, including depreciation 

 and management, at $10 per thousand feet. He considers 

 $16 per thousand feet a fair average price for the Pine, $25 



