DEPARTMENT OF LANDS AND FORESTS FOR 1935 11 



Artificial trade barriers that have existed for some time between this 

 country and the United States very seriously affected our lumber exports, 

 and it is hoped that, in the not distance future, a new Trade Agreement between 

 Canada and our Southern neighbours may be consummated. A revival of 

 the once great export trade from Ontario will result in a decided improvement 

 in the lumber industry. 



Much of the improvement incidental to the lumber and bush operations 

 is due in no uncertain way to the close co-operation of the Government with 

 both the workmen and the operators. Under the Woodmen's Employment 

 Act — to which reference was made in the last Report — officers on the ground 

 get into close contact with the men, hear their grievances, and then meet the 

 operators with a view to mediating between the contenders and avoiding 

 disturbances in the industry. Relationships between the parties are con- 

 tinually improving under the tie now existing between the Government and 

 those interested, and every indication points to freedom from the disturbing 

 elements with which we have had to deal in the past. A better understanding 

 has developed and steps in due time are to be taken towards definite agree- 

 ments between the men and operators under the Industrial Standards Act. 

 It is commendable to report that so little unrest was evidenced during the past 

 Winter. 



During this five month interim period the total amount received from 

 all Forest Sources was $379,674.97, as shown in Appendix No. 9, this being 

 in excess of a like period for the previous year of One Quarter Million Dollars. 



The lumber industry, while it is showing some improvement, cannot be 

 regarded as "brisk". Ontario producers are confronted more and more with 

 interprovincial competition, especially from British Columbia, Quebec and the 

 Maritime Provinces. 



From 1929 to 1933 the average annual production of lumber in Ontario 

 was 497,711,000 feet B.M. This quantity is but 34 percent of the highest 

 recorded production, which was in the period between 1909 and 1913. The 

 average annual lumber consumption in Ontario for the same period was approx- 

 imately 537,000,000 feet B.M. 



Had the Ontario producers supplied this total consumption the industry 

 would today be in a much healthier position. However, statistics reveal that 

 Ontario — produced lumber furnishes but 54.3% of the total — 16.8% comes 

 from Eastern Canadian Provinces, 15.4% from British Columbia, and 13.5% 

 from United States of America. 



Reductions in freight rates on lumber and timber from British Columbia — 

 ostensibly to compete with waterway traffic — have been an important factor 

 in increasing the quantity of wood received in Ontario from British Columbia. 



The normal rates on lumber and timber from British Columbia were 88}^ 

 and 90 cents to Eastern Canadian points in Ontario and Quebec. In May, 

 1934 new rates were established which reduced freight charges to 60 cents on 

 construction timber to Quebec points and 70 cents to Ontario points. For 

 lumber a new rate of 75 cents was established. 



The "Maritime Freight Rates Act" gives the Maritime Provinces a 

 statutory advantage of a 20% reduction in freight rates. 



