20 REPORT OF THE No. 3 



(g) Licensees or operators under any reduction arrangement shall be 

 required to pay all necessary ground rent and fire protection charges 

 at $5.00 and $6.40 a square mile respectively. 



(h) The Minister may in such cases where licenses are held in suspense, 

 due to the non-payment of charges, and where he is of the opinion 

 that sufficient security in the way of collateral is lodged in the Depart- 

 ment, permit operations for the ensuing season of 1934-35. 



The Committee of Council concur in the recommendation of the Honour- 

 able, the Minister of Lands and Forests, and advise that the same be acted 

 upon. 



Certified, . 



C. H. Bulmer. 



Clerk Executixe Council 



PULPWOOD OPERATIONS 



The pulpwood cut amounted to slightly over a half million cords, the 

 exact figures being 500,083. This has been the largest pulpwood operation 

 on Crown Lands for five years, or since the season of 1929-30 when twice as 

 much, or 1,051,631 cords, were cut. During the intervening years yard stocks 

 were being depleted, and the operating companies, desirous during the past 

 year of replenishing their piles and of taking advantage, no doubt, of the 40c. 

 a cord reduction on Spruce granted to them in the fall of 1933, cut some 35,000 

 cords more than the previous year. 



Uncertain conditions surrounding the pulp and paper industry continue 

 to exist. The number of mills in Ontario now closed and others running on 

 a partial basis provide a large and important problem, the solution of which 

 may be found only after a careful survey of all the facts incidental thereto 

 has been made and an intelligent study of such has been given. 



A number of pulpwood agreements have expired, and these, along with 

 others where the obligations have not been met, are being reviewed for the 

 purpose of enabling such steps to be taken as may ensure the re-opening of 

 certain of the old mills now idle and maintaining the production of going 

 concerns. 



The whole question of bringing into production certain of the large areas 

 where matured pulpwood now exists and of re-allotting such portions thereof 

 to accredited operators is being carefully considered. 



It is confidently predicted that without causing any undue apprehension 

 on the part of concessionaires or their bond holders mutual arrangements can 

 be effected or new undertakings reached whereby new avenues of business 

 may be encouraged, a more sustained operation provided and substantial 

 advantage to employment gained. 



Efforts will be directed to the end of increasing the price of newsprint to 

 a point consistent with the need of providing a fair return to the investors and 

 a standard living wage to the allied workers of the industry. 



