16 REPORT OF THE No. 3 



Copy of an Order-in-Council approved by the Lieutenant-Governor, 

 dated the 23rd day of March, A.D. 1935. 



The Committee of Council have had under consideration the Report of 

 the Honourable M. F. Hepburn, Acting Minister of Lands and Forests, wherein 

 he states that: 



The general policy of the Government in its desire to protect and foster 

 home industry is such that the exporting of pulpwood has to a great extent 

 been prohibited. The Crown Timber Act provides that all sales of pulpwood 

 shall be made subject to "The Manufacturing Conditions" which in effect 

 prohibit exportation of raw and unfinished pulpwood. Section 9 of the said 

 Crown Timber Act, however, provides that the Lieutenant-Governor in 

 Council may suspend the operation of "The Manufacturing Conditions" 

 for such period as he may deem proper and as to any district or districts which 

 he may define so as to permit the exportation of pulpwood during such period 

 and from such district or districts. 



In consequence of the continued unemployment situation obtaining in 

 the pulpwood and lumber industry due to the restricted industrial activities 

 in the pulp and paper business and the paucity of local consumption of pulp- 

 wood for newsprint, the Acting Minister is of the opinion that some move 

 should be taken in the direction of creating labor opportunities that will 

 assist in the employment of men now out of work and on Government relief. 



The Acting Minister recommends that the Minister of the Department of 

 Lands and Forests be authorized to suspend the manufacturing conditions so 

 as to permit the exportation from any district in the province of Ontario of 

 the pulpwood cut or to be cut by any duly authorized pulpwood operator during 

 the operating season of 1935-36 provided such pulpwood operator has submitted 

 for the approval of the Minister and the latter has approved of a contract for 

 the purchase of the said pulpwood and has approved of the prices and the 

 terms and conditions relative to the said purchase. The suspension of the 

 manufacturing conditions is to be made subject to the imposition of such 

 terms and conditions as the Minister may deem proper. 



in addition to the charges payable under the license or right to cut, 

 the operator will be charged an export charge of 25 cents a cord on the quantities 

 exported. 



All pulpwood to be exported under and by virtue of the authority recom- 

 mended to be granted hereunder shall be subject to the production of evidence 

 satisfactory to the Minister, to be furnished before shipment clearance is 

 granted, that the pulpwood will not be used in the production or manufacture 

 of newsprint nor will it be used in the production or manufacture of pulp to 

 be used for the production or manufacture of newsprint. 



Local labour must be used in connection with the work of cutting or 

 preparing the pulpwood for export and the wages paid must be fair and reason- 

 able and satisfactory to the Minister. 



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

 able M. F. Hepburn, Acting Minister of Lands & Forests, and advise that the 

 same be acted on. 



Certified, C. F. BULMER, 



Clerk, Executive Council. 



