16 REPORT OF THE No. 3 



possibility of building up their yard stocks, still had the vision, as they yet 

 have, of some modification being made in these fiscal barriers through an 

 international pact and hesitated to close out even temporarily their produc- 

 tion plants and business organization, and this vision was an added reason for 

 placing men in the bush, because the operators, although pressing the Govern- 

 ment in the Fall of 1933 for some fair and equitable concessions in the way of 

 reductions in prices of material, were refused any relief in respect of bonus 

 prices for timber acquired from the Government during good times. 



As pointed out in the Minister's report of last year, the operators pressed 

 the Government for a reduction in Crown dues and likewise a drastic reduction 

 in bonus rates, but the only relief granted by the then Government consisted 

 in a reduction of eighty per cent of the Crown dues where a bonus obtained and 

 fifty per cent where only simple dues were applicable, while pulpwood operators 

 were conceded a reduction in Crown dues of forty cents a cord on Spruce only. 



These concessions, while considered small favours by the industry, did 

 not have an important bearing on the enlarged operations as the lumber 

 dealers, for the various reasons above cited, had already firmly determined to 

 take their chances on an improved outlook. 



PROSPECTIVE OPERATIONS 



At the conclusion of the season's cut and throughout the summer of 1934 

 grave doubts were expressed by the leading representatives of the lumber 

 industry from time to time on the wisdom of renewing work during the coming 

 winter, and every indication pointed to almost a complete cessation of lumber 

 operations. 



The new Government was appealed to and, with a view to co-operating 

 with the trade and sympathetically listening to grievances and undertaking to 

 lighten the burdens of the operators and assist the placing of workers in the 

 bush, conferences were held at the Parliament Building, the Cabinet, with the 

 Honourable the Prime Minister, Mitchell Hepburn, in the chair, receiving 

 large and representative gatherings of the lumber industry. At these round 

 table conferences it was elicited that for over four years the industry had 

 been regularly and persistently pressing the former Government for a reduc- 

 tion in bonus rates, payable according to contract prices bid under public 

 competition and now too oppressive to be borne. These requests had been 

 declined, and the operators, appealing to the new Government, represented 

 that the once great lumber industry was in a wearied state and required en- 

 couragement. Fears were expressed that but few would undertake to place 

 men in the bush during the ensuing season unless some substantial assistance 

 was meted out and concrete inducements offered. 



Careful study was given to the representations submitted, and as a result 

 important concessions were granted to the industry in the way of reductions, 

 not only in Crown dues, but also in bonuses, these concessions being on a 

 mutually co-operative basis and applicable for the ensuing season and only 

 where the operator undertakes to place a certain quota of workers in the 

 bush, on the drive and in the sawmill. In consequence of this arrangement 

 operators who otherwise would have remained inactive are making ample 



