The Mena weekly star., 1920-10-07

buckshot In tin pan. Listen, now,
/ with an your ears. When BIZ Hen
| derson wanted to build the logging
railroad which he afterward sold TO
| Pennington. aud which Pennington is
/ now using as club to beat our brains
/ out. did he have the money to build
/ it?r
"No. | loaned II to him."
How did he pay you backy
why, he gave me len-yesl; c''n-
tract for hauling our logs al a COLLAR
aud n half thousand feet. End
merely credited his account with the
amount Of the freight bills he sent me
until he'd squared up the loan. prln-
clpaI and interest"
swell. il Bin Henderson financed
himself on that plan, why didn't we
think Of using Ihe same time-honorea
plan for financing road to parallel
Pennington'sT
John Cardigan sat up with Jerk
by thunderr' he murmured. That
was as close as he ever came to utter
| ing an OATH
"All right, John Cardigan. ! forgive
! you. Now then, continue to listen
To the north of that great block OF
timber held by you and Pennington lie
the redwood holdings of the Trinidad
Redwood Timber company"
'Neyer heard Of them before"
"Well. timber away in there In back
of beyond has never been we'll adver-
tised, because II is regarded as prac-
tically inaccessible. You will remem-
Der that some ten years ago a COM
pany was Incorporated with the idea
of building q railroad from Grants
Pass, Ore, on the line Of the Southern
Pacific, down the Oregon and Califor-
MIA coast to tap the redwood belt"
II remember. There was hig
whoop and hurrah and then the propo-
sition died abornin'. The engineers
found that the cost Of construction
through that mountainous country
was prohibitiye."
"Well. before the project died.
Gregory and his associates believed
that 1t was going to survive. They
quietly gathered together thirty thou.
sand acres of good stuff and then sat
down to wait for the railroad. And
they are still waiting. Gregory. by the
way, is the president of the Trinidad
Redwood Timber company. He's on
Edinburgh nan. and the fly American
promoters got him to put up the price
Of the timber and then mortgaged
their interests TO him as security for
the advance. He foreclosed on their
notes five years ago"
"And there he is with his useless
timber r John Cardigan murmured
thoughtfully. 1.-THE poor Scotch suck
err
He isn't poor The purchase Of
that timber didn't even dent his bank
roll. But he would like to sell his
timber. and being Scotch. naturally
he desires TO sell Il at a profit. In
order to create market for 1t, how
ever he has TO have an outlet to that
market We supply the outlet-with
his help: and what happenss Why,
timber that cost him fifty and seventy
i've cents per thousand feet stumpage
land the actual timber will overrun
the cruisers estimate every time viii
be worth two dollars and nifty cents
perhaps more.
"He loans US the money TO build
our road. We build ton through
our timber and into his. The colIat-
eral security which we put up will be
a twenty-five-year contract to haul
his logs 20 tidewater on Humboldt
bay, at base freight rate OF one dol
lar and fifty cents. with an increase
of twenty-five cents per thousand
every FIVE years thereafter. and an op.
ton for q renewal Of the contract
upon expiration, at the rate Of freight
last paid In addition we sell him. al
reasonable figure, sufficient land
fronting on tidewater to enable him
to erect sawmill, lay out his yards
and build a dock out into the deep
water.
"Thus Gregory will have that which
he hasn't got now-an outlet to his
market by water; and when the rail.
road to SeGuoia builds In from the
south. It will connect with the road
which we have built from Sequoia up
into Township nine to the Forth !;
hence Gregory will also have an out
let to his market by rail. He can
easily get a good manager to run his
lumber business until he finds GUS
toner for Il. and IN The meantime we
VIII be charging his account with our
freight bills against him and gradual
ly pay Off the loan without pinchIng
ourselves"
John Cardigan's old hand came gsrcp
ingly forth and rested affectionutely
upon isAboy's. You forget, my son,
that we cannot last IN business long
enough to get that road built, even
though Gregory should agree to
finance the building Of II. The inter
est on our bonded Indebtedness IS
payable on the first
I'VE can meet Ii, SIR"
AYE, but we can't meet the fifty
thousand dollars which. under the
terms of our deed Of trust, we are re-
quired to pay in on July first OF each
year as sinking fund toward the re
tirement of our bonds. Bryce, 1t Just
can't be done. We'd have our road
about half completed when we'd bust