460 TIMBER BONDS 



such issues. The underwriter gives good serv- 

 ice and makes it more than worth his profit 

 to the dealer to buy through him. The under- 

 writer knows stumpage values thoroughly, 

 watches the lumber markets, knows the move- 

 ments of the timber trade, keeps in close touch 

 with the entire business, and the timber bond 

 issues he others are always the choicest. No 

 bond dealer, however, should be entirely de- 

 pendent on the underwriter. He should know 

 the timber situation well enough to bring out 

 his own timber bond issues when he so de- 

 sires. 



In a recent conversation with a bond seller 

 who disposes of a round quantity of timber 

 bonds each year, I was informed that he never 

 originated his own issues because he knew 

 nothing about the necessary proceedings, and 

 could find no book on the subject. He told 

 me he sent the timbermen, who came to him 

 to negotiate loans, to the dealers he bought his 

 bonds from and to whom he paid a handsome 

 profit for their work of creating the bonds. I 

 asked him why he did not buy through an un- 

 derwriter, and was surprised to learn that he 

 did not feel sufficiently confident even to do 

 this. He would rather have some other house 

 buy from the Underwriter and then in turn buy 

 from it. 



Such men lose business because they cannot 

 train their salesmen thoroughly in the handling 

 of this class of paper, and are not able to talk 



