xt70zp3vt865_48 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/mets.xml https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46.dao.xml unknown 14 Cubic Feet 31 boxes archival material 63m46 English University of Kentucky Copyright has not been assigned to the University of Kentucky.  Contact the Special Collections Research Center for information regarding rights and use of this collection. Harkins Family papers Mineral rights -- Kentucky -- Floyd County -- History. Law reports, digests, etc. -- Kentucky. Mining leases -- Kentucky -- Floyd County -- History. Practice of law -- Kentucky. Bankers -- Kentucky. Banks and banking -- Kentucky -- Prestonsburg. Coal trade -- Kentucky -- Floyd County -- History. Lawyers -- Kentucky. July-December 1911 text July-December 1911 2016 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46/Box_8/Folder_7/16428.pdf section false xt70zp3vt865_48 xt70zp3vt865 ’:’,WWVM,_J._,,,_N_..___,,~__W.,,.. ; mm“. ::::_...':::':;-:::;..::332::.~ ::::ng3 $3.11.. .. T. j"""i_.:f"‘é ' - 7" W 'r'” g ”I“; “jerk? ,,_,
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” 2‘5/‘57 Government Bonds, .
alarkk‘fifln & m1]. % 7.7 / Bonds $3- irivestment by Banks,
auh . Savings Institutions, Trustees,
' i. - Executors Administrators
. . Mushrnh . ,.. _ ,
mm 1301 1mg WE OFFER THE FOLLOWING. end ssefulprmte
Em , . . . Investors.
43 Exrhungr 161m: subJeCt to sale or Change 1n pnce. Letters-(pf Siedit payable in all
( :3 . \ 0 parts of the world.
Nrmlflm‘k g) @5 ©©g©©©lfl
FIRST NIORTGAGE SERIAL 5 0/0 SINKING IVLTND (QOLD lSONDS 4
ISSUED BY THE ‘
ml /' !' l_\.l ‘. El I- ("r (”\jflfi /T\\. _\I Y
F K t Mi - / t J ‘ llu Eu ' ll“ bu? :
. :, . \ ,_J— . . _ _
Dated July 1st, 1911. Callable at 107%% and interest at any interest date after July lst, 1921, .
upon three monthsprior notice.
Series “A” $700,000. Payable July lst 1921 at 107% and interest
‘1 “B” (K “ K‘ (I 1926 U 6‘ (( H . ‘
‘C “C,, H l‘ “ I‘ 1931 H H H l‘
H “D” u u (t a 1936 M u H (K
H “E” (f H l‘ l‘ 1941 5‘ K‘ {I Ll
Coupon bonds $100, $500 and $1,000 each, with privilege of Registration as to Principal.
Principal and Semi-Annual interest payable in New York at the office of the
NEW YORK TRUST COMPANY, Trustee. ' .
. -_—>4—.—H———-———
SECURITY
We summarize the salient features, which are fully set forth in the accompanying letter of Charles '
W. Kohlsaat, President of the Company as follows: . .
This issue is secured by all the property of the Company comprising 40,800 acres of coal and
timber lands, in one body, located near the towns of Hazard and Hyden in the. Counties of Perry and
Leslie, State of Kentucky, accessible by siding to the Louisville and NashVille Railroad; including coal
plant, lumber plant, railroad and equipment to be installed upon property, and all future real and
personal assets acquired by the Company.
INTRINSIC VALUATION
OF SECURITY.
40,800 acres contain 499,392,000 (3c. per ton in ground, valutle use?
net tons of coal (2240 lbs.) for (by U. S. Government Geo ogica
_ market above drainage level (Survey as basis of conservative) $14,981,760~
‘ (valuation of coal lands. ) .
1 . 36,720 acres standing merchantable timber 220,320,000 board ft- - - - - - . 8,537,400 ‘ ‘
x 3,672,0008tandardR.R.ties........... 734,400. .
Coal plant to mine 3000 tons per day, cost of installation. . . . . . . . . . . . . . . . 1 90,Q00-
' Lumber plant to cut 100,000 board ft. per day, cost of installation ~ . ~ - - - - 130,000-
' 20 miles R. R. and equipment cost installation . . . . .. .. . . . . ...... . . . . . . .. 250,000.
Store bldg. fixtures, stock, supt., miners houses, etc. to cost - - - - - - - - - - - - - - 100.000-
4 Totalintrinsicvaluationofpropéty..................................... $24,923,560.
Totalbonded debt tobeissuedatpresent............................... 3,500,000. -
Margin beyond bonded debt outstanding ..... . . . . . .. - . . . . . . . . . . . . . . . - - .- 21,423,560.
This valuation is equal to more than 63,/4 times the outstanding bonded debt and is substantially
in excess of the entire authorized bonded debt of $5,000,000. '
INCOME.
With completion of the coal plant the annual net earnings per installation
above cost of productionwillbe.................................... 450,000.
With completion of the lumber plant the annual net earnings per installa- , '
tionabovecostofproductionwillbe 968,750.
Estimated net income of Company’s stores will be. . .. . . . . . . . . . . . . . . . . .. .. 50,000. _
. Total........................ 1,468,750. '
Less interest, Sinking Fund and all fixed or contingent charges. . . . . . . . . . . 483,750.
Surplus S 985,000.
SINKING FUND.
A Sinking Fund of Zléc. per ton of coal mined and }v§c. per foot of lumber cut beginning July lst, 1913, payable to the Trustee
semi-annually is provided for in the Mortgage or Deed Of Trust. it is also provided that no additional bonds Of the Company are to be
issued for any purpose whatever until at least 5,000 tons of coal and 150.000 feet of lumber are produced daily.
This liberal Sinking Fund provision amounting to $642. per acre for redemption of bonds is provided and deposited with
the Trustee against an outstanding bonded indebtedness Of 88.34 per acre including improvements.
As the Sinking Fund accumulates it will be invested by the Trustee in the bonds of the Company. Holders of the bonds will be
‘ asked each year after July lst, 1921 through public advertisements to tender bonds to the Trustee for purchase. After which date, ii the -
number of bonds tendered does not equal in amount the available Sinking Fund, the Trustee will call by lot at 107%; and interest upon
three months prior notice such a number as are to be purchased. Bonds purchased by the Trustee from the proceeds of the Sinking Fund
will be cancelled.
In addition to the above after July lst, 1913 the Company is to deposit each year with the Trustee for the Sinking Fund 3.;” of l'.‘ .
of the entire outstanding bond issue, which exclusive of the coal and lumber provision will liquidate the present Offering of bonds in -
25 years.
> PRICE SUBJECT TO PRIOR SALE TO NET OVER 53/40/0.
If redeemed prior to maturity they will yield a proportionately greater rate. ' .
These bonds have our recommendation. Reservations may be wired at our expense. .

 if] pRESIDENT’S LETTER.
GENERAL OFFICES,
BOWLING GREEN BUILDING, 11 BROADWAY,
NEw YORK. N. Y.
' July lst, 1911.
WM. C. WEISBROD, Esq. .
43 Exchange Place,
New York, N. Y.

‘2 Dear Sir:

Referring to the bonds of the Elkhorn Coal and Lumber Company which we have sold to you, and
in response to your request for a complete official statement, I desire to say, that all of the present and
future assets of the Company are pledged with the Trustee to secure the bond issue, the property at
present consisting of the following.

PROPERTY
COAL: The Company’s property is situated in Perry and Leslie Counties, in the State of Kentucky.
The south eastern boundary of the Perry County tract of 20,400 acres is 3% miles south by
west of the town of Hazard the County Seat and adjoins the Leslie County tract of 20,400 acres on the

‘ boundary line of the two Counties. The 40,800 acres are underlaid with five seams of coal below drain-

' age level and three seams above drainage level; these three seams only being considered of present
commercial value and used in the estimate of available coal for market.

The three upper seams underlay 6073 of the entire acreage owing to the contour of the mountains
and average 54, 66 and 84 inches in thickness, all of which contain (after allowing 20% for waste in

‘ mining) 499,392,000 net tons of coal (2240 lbs.) or 12,240 net tons to the acre.

' The estimate of the quantity of coal is based on engineers' reports and verified by using the
estimate of the U. S. Government Geological Survey, which is 1800 tons (2240 lbs.) per acre
one foot thick and as a basis of valuation in the ground of 3c. per ton for high grade bitum-

I inous steam and coking coal.

i The quality of the Elkhorn Coal is equal to any known bituminous coal ,in this country

i for steam, gas and coking purposes, and is superior to some for coking in its very low per-

I centage of sulphur and phosphorus.

While the intrinsic value of the coal in our property as based on the Government estimate
amounts to a net value of $14,981,760., this value with that of the lumber and installation of plants is

‘ many times the value of the bonds to be issued, but the commercial or actual market value is far

" greater as I will show hereafter.

LUMBER: Out of the above stated 40,800 acres of land 10% or 4080 acres of surface rights are set
aside for squatters, this being under cultivation by them and has little or no timber growth.

g The remainder or 36,720 acres of land has a virgin growth of hardwood timber averaging 6,000
board feet to the acre, amounting (according to Doyle’s Log Rule which allows from 20% to 40% for waste
in cutting) to 220,320,000 board feet for market, divided and classed as follows :

I:

. 50% Fork Leaf White Oak 110,160,000 feet

25% Yellow Poplar 55,080,000 “

25% Assorted Hardwoods 55,080,000 “

100 Standard R. R. ties per acre 3,672,000 ties.

While the estimate of lumber valuation only covers the merchantable lumber, the fact must not

‘ be overlooked that the by-products such as cordwood, tan bark, laths, handle, spoke, shaft or cooperage

I stock, mine ties, mine props, and mine timber are very important and valuable products of a large

,1 lumbering operation.

l TRANSPORTATION FACILITIES : Direct connection from the property will be made with the

Louisville and Nashville Railroad Company; north and west for
Ohio and Mississippi River shipments, east and south to Norfolk, Va. and Wilmington, N. C. for Atlantic
. Coast and Export shipments, and all steel, iron and manufacturing districts within profitable reach,
‘_ north, south, east and west.
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43 Exrhange film»,
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SPECIAL LE'IVI‘ER
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$395@
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5 W7. ,. x F F W‘T:F‘ fl * -
P ELKHW @@UAL NE [LWWLEE QMPANY
i FIRST MORVI‘GAGE 5 PER (:EN'F.
‘ SERIAL SINI§ING FUND GOLD BONDS.
TO YIELD ABOVE 5 3/4 PER CENT.
, Government Bonds,
Bonds for investment by Bank!,
Savings Institutions, Trustees,
Executors, Administrators,
and eareful private
Letters of ;2::::::;able in all
parts of the world.

 Kw“ . “_ _l A r n H ,’, W .. a mflmmmflnu,.m_ . ,,. »L..L .. L.~ 4; “WW *' “““W'” - " ‘
y [If
' SPECIAL LETTER.
1 As to the Elkhorn Coal and Lumber Company, and its 5 per cent. First Mortgage
Serial Sinking Fund redeemable Gold Bonds, to yield an income of over 5.78 per cent,
; we beg to point out:
First: The value of the security and the safety of the investment.

Based on the quantity of raw materials owned outright, the bond issue represents a
charge of less than three-quarters of one cent per ton of available coal, and one and six-
tenths of one cent per foot of marketable lumber. A ton of bituminous coal is valued
m— .
from $1.00 upwards according to locality, and 1000 feet of hardwood lumber is valued
at from $40. to $100. according to grade.

The mortgage therefore is equivalent to a less charge than one seventy-fifth part of
the lowest value of the combined available products.

Second: The enhancement in value.
W

When the subscriptions are completed the bonds will be advanced in prices to
par value.

Third: The exceptionally great skill and experience of the engineers, managers and
W
operators.

PROFESSOR FRANK RAY, formerly of the College of Mines, Ohio State University—
the Consulting Engineer of the corporation—for its coal operation—and MR. WILLIAM JOB,
of Zaleski, Ohio—the coal operating director of the corporation—have been closely identi-

' fied with the phenomenal growth of the bituminous coal industry—particularly in the
central west, and are among the foremost authorities on coal operations and developments.

MR. W. A. WILKINSON—the Consulting Engineer of the Corporation—for its lumber

L operation—and MR. JAMES ELLIOTT of Oconto, Wisconsin—the lumber operating director
of the corporation—have been closely identified with the enormous progress of the lumber
industry in this country.

Mr. Wilkinson has designed, constructed and directed the operation of more lumber
plants than any other man in this industry.

To the organization and practical direction of Mr. Elliott the success of many
important lumbering operations is largely due.

The fact of securing the unlimited services of Professor Ray and Mr. Wilkinson and
the exclusive services of Messrs. Job and Elliott assures the permanent success of the

M
Elkhorn Coal and Lumber Company.
Fourth: The great economic advantages possessed by the corporation.
M“

Full confirmation of the reports as to the economic location and extent of the raw
materials on the company’s property has been obtained by examining engineers and
United States Government Geological reports and maps.

The property is located in what is known as the Appalachian or Elkhorn Coal Fields,
and the corporation has many advantages over its competitors in the quality, quantity
and accessibility of its raw materials and occupies a position of great strength by having
at hand important industries requiring its products that are within easy reach by great
railroad systems, through which also Mississippi River and Atlantic Export shipments can
be made.

The market demand for coke doubles each decade. The Connellsville field has ‘
probably- reached its maximum of production. The time has come for the development
of the Elkhorn coking coal field, the last and the best on the continent, which will produce
coke of physical structure and cellular space superior to the Connellsville standard.

The low percentage of sulphur and phosphorus in this coal will be of value to every
inhabitant of the United States, for it will enable the steel companies to produce steel
rails, steel bridges, engines, machinery, automobiles and the hundred other demands of
modern life, of sufficient strength to meet the strains required—at a lower cost of produc-
tion. It will further enable the foundries of the country to produce castings free from the
flaws caused by the presence of suphur in the coke used in the foundry cupolas.

 . . _ .,__.__.___.____. MW. .-e. _._...m . _,,,-,,,, _‘MV [(3.
\i'\.

Considering the amazing development of the iron and steel industry of this country
and throughout the world, and bearing in mind that we must certainly provide within ten
years a coke supply more than double that of to-day—because iron and steel production
will double within that time—we cannot see why the Elkhorn district will not show a far
more rapid growth than has ever been seen in the Connellsville field, and why the Elkhorn
field shall not fully equal in value the prices in the Connellsville district. No one regards
the $3,000 an acre valuation in the Connellsville field as too high. Why should not
“Elkhorn” with its superior coking coal, show a duplication of such conditions?

Fifth: The conservative and strong financial institutions acting for the corporation.
l-W

THE NEW YORK TRUST COMPANY OF NEW YORK—the Trustee and Registrar for the
bondholders—is one of the strongest and most conservative institutions in this country.
Its resources are nearly sixty-six million dollars. It is one of the largest holders of trust
funds in the country.

THE NATIONAL PARK BANK OF NEW YORK—one of the official banks of deposit——
has resources upwards of one hundred and thirty million dollars.

THE SEABOARD NATIONAL BANK OF NEW YORK—also one of the official banks of
deposit—has resources upwards of thirty nine million dollars.

THE NATIONAL BANK OF KENTUCKY, Louisville—within a short distance of the com-
pany’s property and operations—is one of the leading banks in that section—and has
resources of more than twelve million dollars.

.fiixth: The corporation counsel.

MESSRS. JOHNSON, GALSTON AND COREA, the corporation counsel is a well known law
firm, engaged in the practice of International and corporation law, having offices at 49
Wall St., New York City.

,Seventh: The standing and high personal character of the Officers and Directors.
w“

MR. CHARLES W. KOHISAAT, the president, is a well known old time merchant and
banker of New York, and is identified with large commercial and financial interests
throughout the country.

MR. HENRY \V. RICHARDSON, vice president, is the active head and sole proprietor
of Messrs. Gwynne and Richardson—the oldest and one of the largest independent
builders’ hardware and supply dealers in New York City.

MR. JOHN CLARKESON, the treasurer of the Company, is the senior partner of
Messrs. Clarkeson & Co.

MR. W. D. WHEELER, assistant treasurer and secretary, is a mining engineer, and
formerly general manager of Messrs. Wheeler & Company, wholesale coal and lumber
merchants.

MR. WILLIAM JOB, operating director, has developed, directed and operated some of
the largest bituminous coal mines in the world.

MR. JAMES ELLIOTT, operating director, has organized and operated some of the
largest lumbering operations in this country and Canada.

——o«o-~.———

Following an exhaustive research into the merits and value of the products of the
property securing the bond issue, our private examination into the affairs of the Elkhorn Coal
and Lumber Company—*prior to acting as Bankers for the corporation—consumed a period

. of three years, during which time every detail was exactingly examined and considered.

For instance, we required to know and satisfied ourselves as to the quality, quantity
and character of the products—which were thoroughly determined by openings, test pits and
measurements on the property—the definite market for the products, competition, transpor-
tation and economic production, and the validity and regularity of the issue.

Economic coal and timber properties—when operated on advanced lines by men of high
skill and character and of proven business capacity and integrity—and provided with an
adequate sinking fund safeguarded by a Trustee of great financial responsibility—
furnish a security that is not excelled.

.__—.._.—

 I: .
At the present prices—as enumerated below—the bonds will yield an income of over
' 5.78 per cent. (If redeemed prior to maturity the bonds will net a proportionally greater
rate.) .
. PAR VALUE.
Bonds maturing July 1, 1921 Series “A” at S 9980 per $100. bond.
- :‘ ‘{ H “ “ u ‘l “ 499.00 1‘ 500. l‘
a u u H H H u M 998.00 M 1000. H
“ “ July 1, 1926 Series “B” at 97.70 “ 100. “
. u u u (6 u u u u 488.50 M 500. u '
“ H (I “ l‘ “ “ ‘I 977.00 “ 1000. K‘
. “ “ July 1, 1931 Series “C” at 96.20 “ 100. “
“ (l ‘6 “ “ “ ‘6 K‘ 481.00 “ 500. l‘
i u (1 cc 6: u u :5 M 962.00 M 1000. u
“ “ July 1, 1936 Series “D” at 95.00 “ 100. “
(‘ “ “ “ 1‘ “ ‘I “ 475.00 “ 500. “
u u u u l; u u u 950.00 u 1000' u
“ “ July 1, 1941 Series “”E at 94.10 “ 100. “
u u u u u u u a 470-50 (4 500. u
l‘ H ‘l (l U ‘K H I‘ 941.00 (‘ 1000' “
' After the subscriptions are completed, all the bonds will be advanced in
price to par value. ‘
The bonds will therefore have an increase in value equal to their present
discount.
There having been no syndicate underwriting expenses to this issue, we are
able to offer the bonds at the above discount.
For further particulars attention is directed to the accompanying subscription form.
Subscriptions may be made forthwith, the subscriber reserving the right of cancella-
tion for a period of 15 days.
Reservations may be made by telegraph or letter.
August 15th, 1911.

 I Government Bonds,
alarkPfinn & an. Bonds for investment by Banks,
an?! Savings Institutions, Trustees,
. mm. m. mpifihrnh Executors, Administrators,
m k and careful private
an Prfi, investors.

43 EXIIIEIHQP ambit? Letters of credit payable in all

N211] finrk parts of the world.
INQUIRY FORM.

This House endeavors to prepare its announcements concern-
ing an issue of bonds so that all the possible information relating thereto will
be stated clearly and precisely. At the same time we recognize that persons
engaged in other business and accustomed to express themselves differently
may not follow the statements as readily as we do, and in order that all
persons may have before them every bit of the information they desire we
send this inquiry form; on which may be asked any questions regarding
investment.

No person can understand better than does the trustworthy
Banker the care and the discretion necessary before making an investment,
and we believe that investors are entitled to have every detail of the informa-
tion which we possess. ‘

Careful investors will not allow themselves to be caught by
high sounding names, nor by glittering arrays of figures. Nor can they afford
to blindly follow classes. Much of the real-estate offered is hardly worth
owning at any price. Every municipal or railroad bond is not (as so many
appear to believe) a good investment, but great discretion and care are at
all times necessary.

' Many persons contemplating investment hesitate to make
further inquiry fearing that they are placing themselves under some obligation
to the Banker. Our attitude in this respect is that instead of believing that
correspondents are under obligation to us, we are very often under obligation
to them, since by such inquiries we learn to make our service more thorough.

We do not undertake speculative business and cannot reply
to the questions relating thereto.

Many of the letters we receive cannot be answered for the
reason that the writers fail to mention their full addresses.

See other side

 CLARKESON & CO.,
AND
WM. C. WEISBROD,
43 Exchange Place,
New York.
Dear Sirs: ,

 SUBSCRIP'I‘ION FORM.
Government Bonds,
alarkl’fifln & an. Bonds for investment by Banks,
uni! Savings Institutions, Trustees,
mm. m. mpifihrnh Executors, Administrators,
and careful private
mankPrfi, investors.
43 Exrhaugp film-p Letters of credit payable in all
New flnrk parts of the world.
Dear Sirs:
I hereby subscribe for First Mortgage Serial 5 per cent. Sinking Fund Gold
Bonds of the Elkhorn Coal and Lumber Company as follows :
SERIES “A”
Bonds maturing July lst, 1921 at $ 99.80 per $ 100. Bond.
“ “ “ “ u “ 499.00 “ 500. “
” “ “ u u ” 998.00 “ 1000. “
SERIES “B”
Bonds maturing July lst, 1926 at $ 97.70 per $ 100. Bond.
“ “ “ “ “ “ 488.50 ” 500. “
“ ” “ ” “ “ 977.00 ” 1000. “
SERIES “C”
”...-...“..n-n.....vBonds maturing July lst, 1931 at $ 96.20 per $ 100. Bond.
.............. “ " ” u “ “ 481.00 “ 500. U
” u “ n H “ 962.00 “ 1000. “
SERIES “D”
Bonds maturing July lst, 1936 at $ 95.00 per $ 100. Bond.
” ” “ H “ ” 475.00 “ 500. “
‘6 “ “ “ c‘ " 950.00 “ 1000. ”
SERIES “E”
...........-B.onds maturing July lst, 1941 at $ 94.10 per 35 100. Bond.
“ ” fl “ “ “ 470.50 ” 500. u
“ “ ” “ u “ 941.00 “ 1000. u
and enclose herewith check, draft, or express money order for $. . . . . .. . . . . . .the same
being 25 per cent. of the purchase price of said bonds.

1 will forward to you, without notification, on the. . .. . . . . . .day of each month
in three equal payments, the balance of the purchase price of said bonds.
Date Post Office Address.............

When bonds are paid for in one payment 2 per cent. may be deducted.

Temporary receipts will be delivered pending the engraving of coupon bonds.

The right is reserved in case the payments are not made regularly, to return to
subscribers who are in arrears, all payments made, and to reject any or all subscriptions
and in the event the issue is oversubscribed to reduce the subscription of any subscriber
and make all allotments pro rata, and should any one series be oversubscribed the right is
reserved to allot bonds in the next preceding or succeeding series or both.

Insert in blanks provided opposite each maturity the number of $1,000 bonds, $500
bonds and of $100 bonds desired.

 '
COMMERCIAL OR MARKET VALUE OF PROPERTY.

The following values are based on actual wholesale market prices, delivered aboard cars after
deducting cost of production and allowing liberally for loss in manufacturing and mining. .
110,160,000 feet White Oak 2075 Quarter sawed at $75.00 per 1000 ft.

and 80% plain at $45.00 per 1000 ft. average wholesale market value ,
at $51.00 per 1000 its 5,618,160.00
55,080,000 feet Yellow Poplar, average wholesale market value at $55.00
per 1000 ft 3,029,400.00
55,080,000 ft. assorted hardwoods average wholesale market value at
, $30,00per1000ft 1,652,400.00
3,672,000 Standard Railroad ties average market value f.o.b. cars
at 40¢. each.. 1,468,800.00
I Total gross lumber value. . . . . . . . . . . . . . . . .$11,768,76000
Less cost of logging, sawing, sticking, loading,
etc. at $8. per 1000 ft. for all lumber. . . . . . .$1,762,560_00
Railroad ties cut on contract, at 20c. each. . . . . 734,400.00 2,496,960_00
Net market value of lumber f. o. b. cars. . - . - . . . - . -8 9,27 1,800.00 I
499,392,000 tons of coal at $1.10 per ton ‘
f. o.b. cars $549,331,20000
Less cost of mining, handling and placing
aboard cars at 60¢. per ton- - - --- 299,635,200.00 249.696,000.00 -
$258,967,800.00
:Machinery, construction, necessary equipment and sundry tools for lumber
mill to cut 100,000 ft. per day 130,000.00
Power plant, construction, installation and sundry tools and equipment to
mine 3000 tons of coal per day 190,00000
.Stock, fixtures and buildings for general company store, Supt, miners
houses, etc... 100,000_00
.20 miles of logging and coal tram railroad within property and equipment 250,000.00
Total net value of property resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259,637,800_00
ANNUAL NET INCOME AND FIXED CHARGES.
The annual net income on coal plant per installation will be. - . .- -. .. . - .. 450,000.00
The annual net income on lumber plant per installation will be. . . . . . . . .. 968,750.00
'.The annual net income on Company stores will be. . . . - -. .. ~ - - - - - - - - - - - - ' 50,000.00 ‘
. Total Annual Net Income......................... 1,468,750.00
FIXED CHARGES.
Interest on $3,500,000 Bonds at 5%. . . . . . . . . . . . . . . .$175,000_00 ,
V. of 1%on Bond issue-.... 26,250.00 1
2%c. per ton of coal mined, 3000 .
Sinking Fund tons per day, 300 days. . . .. . . . . . . .. 22,500.00 1
Vc. per ft. of lumber cut, 100,000
_ if: per day, 250 days.... . . . . .. .... 125,000.00
Insurance about 3% on valuation of plants. . - . . . . . - . 18,000.00
Depreciation on coal plant at 10% - - - - - - - - - - - - - - - - 19,000.00

“ “ lumber“ “ 10¢................ 13,000.00

“ “ R. R. & Equipment at 10%. . - - . . . - 25,000.00
Profit and 10513: accoundt 1% on oufistanding bond
issue, to cover ire, acci ents or ot er un oreseen
occurances.................... - 35,000'00
Taxes and incidental charges --- - - - - - - - - - - . - - - ~ . -- S 25,00000 483,750-00

SURPLUS....................$ 985,000.00
CONCLUSION.

From the above it will be seen that after liberally providing for Sinking Fund and Depreciation
the net income from operation will be over three times the annual fixed charges as shown.

Modern mining, lumbering and saw mill equipment will be installed to manufacture the products
of the property. The equipment will be increased from earnings when and as the operation and
demand require it.

The property, its operation, and the Company organization is in charge and under the direction of
men whose wide business experience, high standing and expert knowledge of the legal, financial and
operating requirements of an enterprise such as this, insure careful and conservative management for the
interest of its security holders.

Yours truly, ‘
(Signed) ELKHORN COAL AND LUMBER CO.,
CHARLES W. KOHLSAAT, President.

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T, I
" ORGANIZATION

ELKNNRN GOAL AN. LNMER @0MPANYa
§ Organized under the Laws of the State of Delaware.
'2 Capital Stock $2,500,000. (par value)
5% lst Mtg. Serial S. F. Gold Bonds (authorized) 5,000.000. “ “
Dated July Ist, 1911. Due July lst, 1941.
Of which are to be issued at present 3,500,000. “ “
OFFICERS
CHARLES W. KOHLSAAT (Capitalist)..........................President
HENRY W. RICHARDSON (Merchant) . . . . . . . . . . . . . . .. .. . . . . . . . . . .Vice President '
JOHN CLARKESON (Banker, Clarkeson & Company). . . . .. .. .. . . .Treasurer
WILLIAM D. WHEELER (Engineer)- - - - . - .. . - -. .---.--~----.-.-..Asst. Treasurer & Secy.
DIRECTORS '
CHARLES W. KOHLSAAT, HENRY W. RICHARDSON, JOHN CLARKESON,
WILLIAM D. WHEELER. 3
. WILLIAM JOB..........................(Coa,l Director)
JAMES ELLIOTT.. .. . . . . . . . . .. . . . . . .(Lumber Director)
JAMES M. SATTERFIELD....................(Lawyer)
OFFICIAL BANKS OF DEPOSIT
, NATIONAL PARK BANK.............. ........NEW YORK, N. Y:
SEABOARD NATIONAL BANK......... NEW YORK, N. Y.
NEW YORK TRUST COMPANYNEW YORK, N. Y.
‘ NATIONAL BANK OF KENTUCKY..................................LOUISVILLE, KY.
CORPORATION COUNSEL
‘ Legality and Validity of bond issue attested by
JOHNSON, GALSTON & COREA NEW YORK, N. Y.
1 CONSULTING ENGINEERS
I. MR. FRANK RAY (Professor of Mines, Ohio State University) 1
. MR. W. A. WILKINSON (Lumber operation)
, TRUSTEE AND REGISTRAR
NEWYORKTRUSTCOMPANY.....................................NEWYORK,N.Y. '
: 1i

 X 3,2 )1 M H]
' .......‘... ., Circuit Court
Commonwealth of
Kentucky
against
> INDICTMENT.
The Grand Jury o/Coum‘zj in the name and by file
(Luthority of the Conunonwealth of Kentucky accusafifi
00772/mz7ttecl as follows .' The said ClC/ZB7’LCZCU7/tm, ,, , ,1 _V .V ., _
on 2571,0mm___;Mday ofANJQ, in the couniy and circuit aforesaid
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.xigainst the peace and dignity of the Couunonioealth of Katrine/cg. ‘
V V'V‘". “ ; 1 V .I.‘ 'l " ,’t "I"
1' ‘ ‘ ”m Commonwealth’s Attorney,
3lst Judicial District of Kentucky.
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Commonwealth of Kentucky ‘.,
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3‘ Filed in open. Court in the presence of the Grand }
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 J. N. KEHOE. PRESIDENT. ARCH. B. DAVIS. SECRETARY. H. D‘ ORMSBY. TREASURER.
MAYSVILLE. LOUISVILLE. LOUISVILLE.
EXECUTIVE COMMITTEE EXECUTIVE COMMITTEE
JOHN H. LEATHERS. . . . C. E. DALLAM.
CHAIRMAN ‘ HENDERSON.
LOUISVILLE. L. N. DAVIS,
JOHN STITES. ASHLAND.
LOUISVILLE. o. D. THOMAS.
LEBANON.
ED
SAMUEtoigilsLLEf‘Y' J. A. SULLIVAN.
AMERICAN NATIONAL BANK BUILDING. RICHMOND.
J. W. PORTER, J. K. WALLER.
LEXINGTON. MORGANFIELD.
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